Values and Strategies Paper for Starbucks
Write a 1,050-word paper for Starbucks in which you address the following: Identify the major components of the strategic management process. Discuss how these components work together to create value for the organization. Evaluate the company’s mission statement, vision statement, motivation strategy, innovation strategy, and people strategy. If the organization does not have one or more of these, how does that affect the organization and its people? Explain the role of ethics and corporate social responsibility in strategic planning. How does this direct their strategy? How do the organization’s vision and mission align with your own values and vision? If you are currently working for the organization, how does your role influence this and vice versa? Format your paper according to APA guidelines.
Values and Strategies Paper for Starbucks
Values and strategies pose critical aspects of a business in shaping the company’s culture and, hence, directing the employees toward the goals. Starbucks Corporation, an American company, recognized as a premier roaster, marketer, and retailer of specialty coffee, embrace values and strategies as an integral part of the business operations (Enquist & Haglund, 2011). This paper discusses the values and strategy for Starbucks.
The major components of the strategic management process. Discuss how these components work together to create value for the organization.
The strategic management process defines the method through which the managers of a business formulate and implement a strategy to initiate a sustainable business operation. The core values of the organization focus majorly on enhancing market reputation and profitability by producing premium products. Starbucks embraces two significant components of the strategic management process to create value for the organization, which include environmental scanning and strategy formulation (Morais et al., 2014). The organizational performance has influenced by the choices made by the top executives to define the overall direction.
Strategy formulation entails the process of designing the approaches used in the company to address the factors affecting the business. Such may include the need to harmonize a diverse workforce for better performance. In the efforts to manage various employees at Starbucks in its numerous stores in different states, the company has a culture that values and respects diversity and inclusion (Morais et al., 2014). Further, the company formulates strategies that take into consideration the aspect of customer relationship management, as well as employee welfare (Morais et al., 2014). both employees and customers pose as valuable contributors to the success of Starbucks. As such, the process of strategy formulation ensures that their needs are clearly and effectively addressed.
Environmental scanning is a function of strategic management that analyzes the external functioning and their impacts on the organization. Starbucks utilizes the concept of environmental scan tactics to create business strategies. The primary goal of Starbuck’s environmental scan is to identify the workforce gaps and the priotization of the actions to meet the talent needs. In environmental scanning, the company identifies critical threats that can enhance performance and profitability when adequately addressed. For instance, Starbucks produces only coffee, which could lead to essential risks if the society preferences changes to opt for other beverages. Coffee is not significantly differentiated and hence can easily be imitated by the company’s competitors.
Evaluate the company’s mission statement, vision statement, motivation strategy, innovation strategy, and people strategy
Mission Statement
The mission and vision statements of the Starbucks organization emphasize on its leadership in the coffee industry and coffeehouse market. The company’s mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood as a time” (Vision, 2019). Surprisingly, the mission statement has nothing to do with coffee and this may negatively impact on potential customer base. The mission statement reveals the intended immediate impacts it desires to have on the customers’ satisfaction. From the statement, it is quite challenging to realize the relationship it has on the selling of the best coffee. Besides, the brand majors on establishing a more impactful and meaningful ideology, which eventually creates a warmer company culture (Vision, 2019). Such culture attracts competitive employees and hence a better chance to widen the market share. The mission statement’s impact of creating a warm culture poses a friendly working environment for the employees by nurturing excellent human spirit (Vision, 2019). The mission statement asserts both human spirit and oneness. Nonetheless, the mission statement fails to spell out its customers, market, and employees. However, while businesses majorly focus on human society, Starbucks remains focused on this aspect. The focus on ethical sourcing, maintaining ethics, and compliance in business operations and empowerment (Vision, 2019). In this case, the company motivates a humanistic spirit among its employees, customers, and society. The second part denotes the acknowledgment of both customers and employees. “One person” impacts significantly in creating a non-discriminative environment that initiates strong collaboration.
Vision Statement
The company’s vision statement is “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Vision, 2019). The vision statement provides a basis and direction of what the company wants to achieve in the future. An analysis of this vision statement indicates that Starbucks focuses on making the most excellent coffee, maintaining the uncompromising principles, and growing while maintaining its standards (Vision, 2019). Further, the company focuses on remaining competitive in its operations, products, and pursuit of continuous growth. The vision statement has impacted the company’s growth as it is ranked as the largest in its industry globally. Uncompromising principles include ethical conduct and warm culture, which ignites a sustainable development.
Motivation Strategy
Keeping the company employees highly motivated and focused on achieving organizational goals, Starbucks uses critical motivation strategies. One of the strategies is the equal treatment of employees. The term ‘partners’ is used mainly in Starbucks when referring to all employees as well as supervisors. The top managers also co-work with the level staff in the frontline. Such enhances a feeling of equality among the employees and hence a closer relationship (Tikson, 2018). Another strategy is the aspect of proper listening to employees’ ideas and grievances. The well-organized communication channel at Starbucks promotes value for the employees. Employees have the opportunity to comment on the best policies for them and even participate in developing plans and decision-making. Such enhances a sense of belonging among the employees and hence a motivation strategy. Proper welfare measures is also a strategy for motivation. At Starbucks, employees enjoy discounts on commodities, vacations, and medical insurance covers (Tikson, 2018). The company charges stock dividends to employees, which motivates them to increase sales.
Innovation strategy
The company utilizes modern technology to enhance the customer experience. According to Tikson (2018), the company was the first to launch Wi-Fi stores. Such impacted the customer base positively. Further, the company utilizes the mobile payment systems which allow customers to pay their bills through smartphones.
People strategy
People’s strategy at Starbucks embarks on both the employees and the customers. The company has continually succeeded in managing diverse employees through the establishment of reliable work and organizational culture. According to the company’s CEO, Starbucks seeks to connect with both employees by satisfying employment needs and customers by providing excellent customer service (Tikson, 2018).
The role of ethics and corporate social responsibility in strategic planning and how this direct their strategy. How the organization’s vision and mission align with my values and vision
Ethics and corporate social responsibility (CSR) have a critical role to play in strategic planning. Ethics regards to moral values, which asserts that a company should act and operate in the right direction. Ethics helps in developing organizational decisions that affect the overall performance. These components contribute to uphold the dignity of the society while carrying out operations by implementing strategic plans with the moral values of the society (Enquist & Haglund, 2011). Starbucks defines its ethics and CSR by conducting business in ways that produce economic, environmental, and social benefits (Enquist & Haglund, 2011). Starbucks has good governance, socially responsible, and ethical conduct. This promotes a good relationship between the company and stakeholders. Accordingly, the company attracts and retains qualified employees who contribute largely to maintaining customer loyalty in the quest to uphold the mission statement (Enquist & Haglund, 2011). The company’s vision aims to uphold uncompromised principles that align with my values. I regard upholding integrity while carrying out roles and responsibilities. The mission statement also aligns my values and vision of every individual as crucial to the business.
References
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Morais, U. P., Pena, J., Shacket, K., Sintilus, L., Ruiz, R., Rivera, Y., & Mujtaba, B. G. (2014).
Managing diverse employees at Starbucks: Focusing on ethics and inclusion. International Journal of Learning and Development, 4(3), 35. https://www.academia.edu/download/54907130/5994-21560-1-PB.pdf
Tikson, S. D. S. (2018). Human Resource Policies and Work Culture: A Case of
Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), 1-12. http://journal.unhas.ac.id/index.php/jbmi/article/view/1773
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http://panmore.com/starbucks-coffee-vision-statement-mission-statement