Business
Assess the organisation in terms of its organisational strategy, objectives, mission and values.
Analyse the environment in which the organisation operates with regards to industry, business life cycle, etc.
Evaluate the organisation's current reward and pay strategies on two criteria: for meeting its overall organisational strategy and for maintaining competitive advantage in the face of new challenges and changing conditions.
Reach a reasoned and evidence-based conclusion about the level of success achieved by the organisation in motivating employees to reach organisational objectives and propose a reward and pay strategy that may better serve this purpose.
Starbucks: The Company and its Compensation System.
Starbucks is the largest coffee producing industry in the world with 19,555 stores in 58 countries. This includes 12,811 in the United States, 1,248 in Canada, 965 in Japan, 766 in Great Britain, 580 in China and 420 in South Korea (Location xcelrated). Starbucks has succeeded to the extent that it has a reputation as being the foremost coffee-offering location. Its logo, brand, and patents have become unassailable. Starbucks, too, has motivated and loyal employees as well as a good relationship with suppliers and customer loyalty.
It has won numerous awards and accreditations including being rated one of the Fortune Top 100 Companies to Work For in 2005. This reputation has been further spread by at least one book written by one of its employees that has become a popular seller on the "Starbucks experience." The company is known too for its sustainability performance. Its environmental mission for instance reads: 'Starbucks is committed to a role of environmental leadership in all facets of our business.'
Starbucks' Mission and objectives
The Starbucks mission is: "To inspire and nurture the human spirit -- one person, one cup and one neighborhood at a time." (About.com). The Starbuck's vision, objectives and goals are to gain complete effectiveness in each of the following factors: their coffee; their partners; their customers; their stores; their neighborhood; and their shareholders. They intend to be passionate, to treat each other with respect and dignity, to embrace diversity, to make their stores shelters of solace and comfort, to care for the environment, and to reward their shareholders (Starbucks)
The organization has created the motif of the "Starbucks experience" and employees rally around that. Their value, mission, objectives are also clearly spelled and unify the employees, aside from which they have created a distinctive Starbucks corporate culture.
The environment in which the organization operates
The environment possesses both opportunities and threats. As part of its disadvantages, the company faces a great deal of competition from other fast food stores and manufacturers that produce coffee. So far, Starbucks has outlived the competition but the fact that they are almost exclusively centered in the U.S.A. with more than three-quarters of their outlets located here could make them vulnerable prey. There is, also, too much focus on expansion rather than on internal growth. In the millennium, for instance, the Company opened a store a day. Their rapid internal growth was impeded by the recession which compelled them to close 300 locations (Miller, 2009).
Another environmental weakness is the product itself. Although Starbucks continuously innovates, the limitation of their offering necessarily and logically dictates potential waning of innovation over time. The recent -- not yet -- over recession is a threat to Starbucks with customers preferring to budget on their coffee or chase costs elsewhere. Another environmental threat is the costliness of the product pricing, due partially to the rising cost of coffee, to the price of coffee that fluctuates in developing countries and to the rising cost of dairy products. Starbucks overcame the recession but their pricing is a weakness. This feeds into the hands of the numerous competitors that include restaurants, vendors, and supermarkets.
Some of these competitors are on the rise. The 2007 Consumer Reports of American fast-food chain coffee rated McDonald's Premium Roast coffee to be the "cheapest and best," and one that surpassed Starbuck's coffee in all areas. The magazine proceeded to described Starbucks' brand as being "strong, but burnt and bitter enough to make your eyes water instead of open" (ibid)
Other environmental factors that limit Starbucks include the national trend towards healthiness and away from caffeine and the fact that Starbucks has received negative publicity from poorly treated farmers in developing and supplying countries.
Furthermore, Starbucks experiences unpredictable political issues in certain of their countries where they are located and Starbucks, too, has a reputation as a greedy, sprawling corporation with anti-competitive practices (Damien, 2009)
Lastly, since the company is dependent on the competitive factor of retail...
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