Starbucks -- Standards as Marketing

Starbucks -- Standards as Marketing Message

Overview- Starbucks is a Seattle-based global Coffee Company and the largest coffeehouse in the world, with over 16,000 stores in over 51 counties. Starbucks not only imports and roasts its own unique blends, but its retail outlets sell drip coffee, espresso drinks, other hot and cold beverages, snacks, and tie in retail products (Company Fact Sheet, 2008). Founded in 1971, and joined in 1982 by entrepreneur Howard Shultz, who purchased the company in 1987, Starbucks has grown geometrically, and in 2003, purchased both Seattle's Best Coffee and Torefeazione Italia (Frey, 2007).

Starbucks calls its employees "partners," and indicates that it respects and serves ethnically sourced coffee that is environmentally responsible. Starbucks sells brewed coffee, espresso drinks, hot and cold seasonal specials, coffee beans, salads, samwiches, snacks, gifts, etc. And continues to expand its branding and sales efforts globally.

Culture- Looking at Starbuck's, though requires that one look at their culture, not just their individual policies. While it is clear they do not have tolerance for drug and alcohol abuse, and they do have training on recognizing and dealing with issues, it is really the culture of the company that defines the manner in which they respond to laws, regulations, and other events.

Most current and former employees of Starbucks, whether at the corporate headquarters in Seattle, Washington, or within individual stores, report that the overall company culture for Starbucks is "entrepreneurial" in spirit -- rewarding innovation, teamwork, and quick thinking. Culturally, this entrepreneurial spirit is accentuated by the Starbucks model believing that each of its shops (outlets) is the "Third Place," for people to spend time (first place being home, second being work). The way each store is designed accentuates this idea -- overstuffed couches and chairs, comfortable colors and seating, free Wi-Fi, televisions, newspapers, and an attitude of welcome. Additionally, almost every Starbucks have a policy of non-smoking, both for health reasons and not to "dilute the aroma of fresh coffee beans." Similarly, employees are requested not to wear strong perfume or aftershave, again, to ensure that the customer experience is of the highest "coffee sensual" as possible. Schultz himself has said, "We're in the business of human connection and humanity, creating communities in a third place between home and work" (Schultz, 1997, intro).

Starbucks is in the Top Ten of Fortune's "100 Best Companies To Work For" in 2008 (http://money.cnn.com/magazines/fortune/bestcompanies/2008/full_list/index.html ) Starbucks offers what are considered "Full Time Benefits" to most of its Part-Time partners (roughly 19 hours per week or more to receive benefits). These benefits include full medical, dental, and vision insurance; as well as supplemental life and disability insurance. Starbucks offers a 401K program, stock options, tuition reimbursement, adoption assistance and a very liberal free Employee Assistance Program. After 6 months, partners receive paid vacations, discounts on serviced Starbucks has contracted with, and discounts on products to take home.

Of course, the discounts help also to bring more friends and relatives into Starbucks -- certainly, if one serves the coffee at home then that is a great recommendation for the brand. Branding and flexibility with product at Starbucks is impressive, too. Since the 3rd Space concept engenders people coming to Starbucks and spending time, the company has invested in several different types of foodstuffs, not simply the traditional pastries, but breakfast and lunch sandwiches, soups in some locations, and so many different permutations of coffee drinks that everyone can surely find something to drink -- even if they do not care for coffee See: Mann, 2007; Gold, 2008).

Human Resource Strategy - Starbucks also believes in utilizing its own human resources to fill openings within its corporate structure. That may be promotion to managers of local shops, to filling marketing and corporate positions at its Seattle or international offices. This idea of on-the-job training and loyalty is very appealing in that it engenders a two-part loyalty system: Starbucks is loyal to their employees, the employees, in turn, will be more loyal to the company. This is especially important in modern American business culture, since most new employees feel that the next promotion is simply that next job Snyder, 2006).