Starbucks business analysis and market position

Business

Organizational Analysis Profile - Starbucks -

If the company's Web site and store operations are any indication, the degree of customer focus the company exhibits is high indeed. They do not call their staff employees; instead, they refer to them as "partners," which indicates their level of thinking about the people that work for them. In addition, they stress customer appreciation and respect their career center Web site notes the place commitment on "an emphasis on respect in how we treat our customers and each other; and a dedication to social responsibility" (Editors). They have high standards for their employees, which helps to ensure they will in turn treat customers with the same high standards. In most Starbucks, the employees have fun, but are always service oriented and intent on customer satisfaction.

This focus on partner satisfaction, which in turn leads to customer satisfaction, is shown in their mission statement, which says, "provide a great work environment and treat each other with respect and dignity" (Editors). If their commitment to their partners is strong, this will trickle down to the customers. A pleasant and happy work environment translates to employees who are satisfied, which helps them treat the customers more professionally and with enthusiasm. For example, the most common customer service experience at Wal-Mart is usually sullen or non-responsive employees who seem "bothered" by questions or problems, while the Starbucks environment is much friendlier and service-oriented overall. Wal-Mart is notorious for low paying, go nowhere jobs, and that is evident by many of their employees. Starbucks creates an atmosphere of respect and happiness, and that in turn is reflected in many of their employees. Thus, they create a better work environment, but they create a better customer experience as well.

It is difficult, if not impossible for any business to make timely and effective management decisions all the time. There are so many different management levels, concerns, and variables that no one, or no company, can get it right all the time. However, Starbucks seems to have the experience behind them to consistently make good management decisions. That is indicated by their increasing profits every year, for example. In addition, they have consistently added stores throughout their history, while still managing to make excellent profits.

Perhaps the biggest indicator of their effective decisions is their very public stand on the environment and corporate responsibility. They are very open about their support of the communities where they do business, and doing business with varied and diverse suppliers and businesses. Obviously, the corporate choice to begin operating with more responsibility came from upper management, and had to be decided on and approved by other levels of management. This seems to indicate that management is not only "enlightened" about the Earth and environment, but have made conscious management choices to include it as a part of the business plan. In the light of all the discussion on global warming and other environmental issues facing the planet, this seems especially timely and effective at the same time. The decision paints the company in a positive light for many, and that is a very effective management decision, even if it helps the planet as well.