Starbucks Corporate Culture

Katie Brindley, Michelle Grant,

Evangelita Nez, Ryan Scalmanini
and Robin Tigler
University of Phoenix
PSY428 Organizational Psychology
May 18, 2009

Introduction
The following topics will be discussed:
Diversity and Customer Focus
Organizational Structure
Networking
Organizational Ethics
Employee Relations
Corporate Citizenship

Diversity and Customer Focus

Starbucks is not a franchise
Customer base includes all nationalities
Repeat customers include business
professionals, healthcare professionals,
students
Store locations are international
Sites include schools, malls, hospitals,
airports, grocery chains

Diversity and Customer Focus

Management execs regularly visit stores to
ensure quality
Strategies are implemented to enhance
benefits for customers and employees
Customer ownership and loyalty are key to
success
Customer feedback regularly solicited

Organizational Structure
Howard Schultz CEO
Restructuring has created new positions for
flatter organization:

Global Real Estate Design Mgr

Global Strategy Mgr
Human Resource Strategy Mgr
Customer Experience Mgr
Marketing & Brand Strategy Mgr
Store expeditors at all locations

Organizational Structure
Flatter organizational structure will:
Lead to more efficient and more effective business
strategy
Streamline information flow from customer and
low-tier employee to corporate level
Keep customer and bottom line a priority to
Starbucks business strategy
Utilize new employee manual to streamline
production and increase employee efficiency

Starbucks Networking
My Starbucks Idea social networking site
launched in March 2008:

Customers play role in shaping companys future

Re-ignites emotional attachment with customers
Builds a network of loyal and dedicated clientele
Allows open forum for ideas and discussion
Provide customers the ability to provide ideas on
products and service
www.Mystarbucksidea.com

Organizational Ethics
Supports six point mission statement
Mission statement is guiding principle and
holds it up as a filter for decision making
Employee training includes review of mission
statement, customer service theory and
corporate culture
Starbucks New Partner Training Plan
includes training on ethics, ergonomics,
safety, legal compliance, hands-on training

Employee Relations
Starbucks promotes frequent visits to store
locations from regional/district mgrs
Encourages open employee communications
Starbucks values each employee as partner
Employees provided medical, vision/dental,
401k/stock options, tuition reimbursement,
vacation

Effects of Organizational Ethics and

Corporate Culture
Employees share in Starbucks Experience
Reduction in employee turnover rate
20% Management
80% Lower tier (Avg retail turnover rate + 200%)

Results in more satisfied/happy employees

Results in value oriented ethics

Corporate Citizenship
Developed the Shared Planet:
Reflects companys desire to conduct business in
responsible manner

Long-term plans include improving corporate

ethics by 2015 by:
Ethical sourcing
Environmental stewardship
Community involvement.

Created International Youth Foundation,

Give2Asia, China Education Project

Conclusion
Starbucks has become the most successful
company in gourmet coffee by integrating:

Restructuring of organization
Social Networking
Focus on Diversity and Customer Service
Global promotion of ethical business practices
Strengthening employee relations
Promoting corporate citizenship

References
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References
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http://mystarbucksidea.force.com/ (2001).
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