Essay: Success of Starbucks

Sample Essay

Words 1,423

According to Schultz, Starbucks success is not only derived from delivering experience to the customer. The organizational culture starts from the employee. He says, “We’re profitable because of the value system of our company…American companies have failed to realize that there’s tremendous value in inspiring people to share a common purpose of self-esteem, self-respect and appreciation.” (cited in Weiss, 1996) The experience that is created for the customers comes from the employee culture. Lately though Starbucks has been losing customers and the stock has been falling.

To eradicate this problem Schultz recently discussed the new innovative ideas that will enhance the experience for the customer by going “back to the roots” at the annual shareholder meeting. “The initiatives are intended to restore an authentic coffeehouse experience to the stores and, in turn, re-energize an ailing stock that has lost half its value in the last 15 months.” (Stone, 2008, p.1) Schultz commented that “We somehow evolved from a culture of entrepreneurship, creativity and innovation to a culture of, in a way, mediocrity and bureaucracy.” (cited in Stone, 2008, p.1) Schultz pointed out his mistakes and promised to bounce back and grow like Starbucks always does. The essence of the culture at Starbucks is to face challenges in the best spirit, never give up, stick to the roots, and come back bigger and better. This idea of growth is embedded in their culture and a shareholder recently commented, “I’m glad Howard is back at the helm. Starbucks is his heart…I have every confidence he will turn the company around so this stock can take our family on our 50th wedding anniversary trip next year.” (cited in Stone, 2008, p.2) The culture of an organization is its life support. The culture is the heart and it pumps blood to each department, each employee, and the customers. After an analysis of work ethic, the CEO’s ideologies, and the mission and vision statements, it can clearly be said that Starbucks belongs to the “BE POSITIVE” blood group.

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