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Organization Development Implemented in Starbucks
Organization Development Implemented in Starbucks
Implemented in Starbucks
Indiran
Mohd Faizal
Chia Wi Peaw
Lee Yew Hoong
Chong Kuen Soon
MBS141104
MBS141114
MBS141106
MBS141102
MBS141133
Introduction
To identify Organizational
Development (OD) process that
implemented by Starbucks to
accomplish successful organization
change and performance.
Solving problems and managing future
change.
Industry Analysis
Operates within the Specialty Eateries
Industry.
Company that sells specialty and premium
food products
Baked bread, doughnuts, ice cream
Non-alcoholic beverage like coffee, tea and
chocolate
Coffee Shops
Starbucks
Tullys
Peets Coffee
Bakery Stores
Auntie Annes
Cinnabon
Major
Players in
Specialty
Eateries
Industry
Smoothies Stores
Jamba Juice
Smoothies King
Doughnut Stores
Dunkin
Krispy Kreme
Tim Hortons
Ice Cream Parlor
Cold Stone
Dairy Queen
Baskin Robbin
Cultivation
Processing
Preparing
Consuming
Disposal
Historical Background
30 March 1971
2000 Western Avenue,
Seattle, Washington
1984: Peets
share was
bought by the
other three
owners
Brainstorming
session: word
begins with St
old mining map
of Cascade
Range with
mining town
Starbo
Starbucks Logo
twin-tailed mermaid, or siren (Greek
mythology)
1971-1986 : Starbucks siren was topless
and had a fully visible double fish tail,
likened to a melusine
1987-1991: breasts covered by hair,
primary colour changed from brown to
green
1992 - 2011: and only vestiges remain of
the fish tails
2011 till now: removing the Starbucks
wordmark around the siren, enlarging
the siren image, and making it green
As of September 2015..
23
11
26
3
6
2
Food
Bottled drinks
Smoothies
Bakery
Bistro boxes
Ice coffee
Blended beverages
Hot breakfast
Espresso beverages
Chocolate beverages
Tea beverages
Starbucks petites
Fizzio handcrafted
Evolution fresh
sodas
Frappuccino blended
beverages
salads
Customers
No.4 for best customer experience
by Global Customer Experience
Management Survey in 2011
Employee
All qualified applicants will receive consideration for
employment
Starbucks College Achievement Plan allows employee
complete degree through Arizona State University
Management Team
Good governance practice ensures business and affairs
accomplished according to stated goals and objectives,
long term interests of shareholder are obliged
Independence requirements of the National Association
of Securities Dealers Automated Quotations (NASDAQ)
and U.S. Securities and Exchange Commission
Board of Directors
SWOT Analysis
Strengths
Diverse product portfolio
Knowledgeable employees
Brand Image and presence in other distribution
channels
Customer bond through value-added services
SWOT Analysis
Opportunities
Entry into the health food market
Emerging international retail markets
Expanding in the single-serve coffee market
SWOT Analysis
Weaknesses
High Prices
Weakening US segment
Brand image affected recalls
Negative Publicity
SWOT Analysis
Threats
Direct Competition
Rising prices of supplies and commodity
Economic state of US
Problem Statement
Challenges
Struggling to meet the goal it set on recycle cups
to 5% from existing figure which is 25% of the
beverages.
Manages to decrease more than 17% since year
2008 but in year 2011 the water used by
Starbucks increased to 5% over the year
Completed the installation of energy management
system in its stores but the energy improvement
only improved 4.6% over its baseline level
Challenges
Certified LEED international stores face technical
challenges due to the US based LEED certification
program is still developing.
Stores located in the area that do not provide
recycling infrastructure and landlords who do not
provide recycling services.
Opportunities
Gives the positive image to the consumers and its
employees
Studies show that companies support social and
environmental issues will give the 93%
consumers positive mindset on the organizational
Employees in the organizational will continue
serve and work in the organizational where data
proven less turnover and employees become
support to the organizational.
Opportunities
Longterm marketing strategy for the Brand Image
Attracting people who share the same mission
and value to join the organizational.
Starbucks social responsibility gives the
organizational competitive advantage to enter to
global market easily and to secure the fair trade
market share for coffee.
Transactional Change
OD intervention
directed towards
structure,
management
practices & system
(policies)
nd
2 Order Change
Transformational Change
OD intervention
directed towards
mission & strategy,
leadership &
organization culture.
Warner Burke
Action Plan
(Challenges & Opportunities)
Social Entrepreneurship
What is SE in Starbucks
address Social or Environmental problem
through business
pr
Result:
- Committed to 100% Ethically Sourced
Opportunity Youth
How is it implemented in Starbucks
Statrbuck assist young peoples gain a skill throught training.
Free tuitions fees for bachelors degree from Arizona State
University (online learning).
Provide learining of customer servicing skills and hands-on
experience for cafeteria setup.
Commitment to Community
How is it implemented in Starbucks
Starbucks Foundation was founded to supported communities around the
globe.
In 2014, Starbucks gave USD11.4M for community projects, including
Global Fund through the partnership with RED
Result:
-Nearly 60,000 volunteers participated from across 30 countries
on continents
-More than 1,400 community service projects completed
-More than 156,000 hours of service contributed in just 30 days
(thats equivalent to 76 people working full-time for a year)
- Approx. $3.3 million (USD) of financial value invested in
communities through service
Conclusion
OD is a field of research, theory, and practice
dedicated to expanding the knowledge and
effectiveness of people- to accomplish more successful
organizational change and performance.