Corporate culture and management style. Starbucks philosophy. Курсовая на англ. языке на примере международной сети кофеен Starbucks

Table of Contents

Additionally, approximately $246 million of these purchase commitments are price-to-be-fixed contracts, most of which will be received by Starbucks during fiscal 2009.
The company depends upon its relationships with coffee producers, outside trading companies and exporters for its supply of green coffee. The company believes, based on relationships established with its suppliers, the risk of non-delivery on such purchase commitments is remote.
In addition to coffee, the company also purchases significant amounts of dairy products, particularly fluid milk, to support the needs of its company-operated retail stores.
Dairy expense for the US segment represents a large majority of the Company’s total dairy expense; therefore significant changes in US dairy prices can have a material impact on total dairy expense. The US segment’s dairy costs, which closely follow the monthly class I fluid milk base price as calculated by the US Department of Agriculture, can change significantly in the short term. The company’s US dairy costs remained higher , adversely affecting the US segment’s and the company’s profitability. In the United States, the company purchases substantially all of its fluid milk requirements from three dairy suppliers. The company believes, based on relationships established with these suppliers, that the risk of non-delivery of enough fluid milk to support its US retail business is remote.
Starbucks also purchases a broad range of paper and plastic products, such as cups, lids, cutlery, napkins, straws, shopping bags and corrugated paper boxes from several companies to support the needs of its retail stores as well as its manufacturing and distribution operations. The cost of these materials is dependent in part upon commodity paper and plastic resin costs, but the company believes it mitigates the effect of short-term raw material price fluctuations through strategic relationships with key suppliers.
Products other than whole bean coffees and coffee beverages sold in Starbucks retail stores are obtained through a number of different channels. Beverage ingredients, other than coffee and milk, including leaf teas and the company’s selection of ready-to-drink beverages, are purchased from several specialty manufacturers, usually under long-term supply contracts.
Food products, such as fresh pastries, breakfast sandwiches and lunch items, are generally purchased from both regional and local sources.
Coffee-making equipment, such as drip and coffee press coffeemakers, espresso machines and coffee grinders, are generally purchased directly from their manufacturers.
Coffee-related accessories, including items bearing the Company’s logos and trademarks, are produced and distributed through contracts with a number of different suppliers.
Starbucks firmly believed that when it opened a store, the company added immediate value to that community because the store “becomes an instant gathering spot, a Third Place that draws people together.” Additionally, store managers were granted discretion to donate to local causes and provide coffee for local fund-raisers.
One Seattle store donated more than $500,000 to Zion Preparatory Academy, an African- American school for inner-city youth. In 1998 Starbucks and Erwin “Magic” Johnson’s company, Johnson Development Corporation, formed a joint partnership and created the Urban Coffee Opportunities. Subsequently, stores opened in urban communities, providing new employment and revitalization opportunities in several US cities. In 2005, the Starbucks Foundation pledged $5 million to establish the Starbucks China Education Project at Give2Asia, an organization that facilitates and encourages charitable giving to meet social needs in Asia.
Howard Schultz personally believed that literacy had the power to change lives and foster hope for young children who lived in underserved neighborhoods. Accordingly, Schultz used the advance and on-going royalties from his book, Pour Your Heart Into It, to create the Starbucks Foundation, which provided “opportunity grants” to nonprofit literacy groups, sponsored young writers programs, and partnered with Jumpstart, an organization helping Headstart children. While it was completely separate from the company, Starbucks made an annual donation to the foundation.
Contributing to Producing Countries: In 1991, Starbucks began contributing to CARE, a worldwide relief and development foundation, as a way to give back to coffee-origin countries. By 1995, Starbucks was CARE’s largest corporate donor pledging more than $100,000 a year and specifying that its support go to coffee-producing countries. The company’s donations helped with projects like clean-water systems, health and sanitation training, and literacy efforts. Over the years Starbucks has contributed more than $1.8 million to CARE.
When a severe earthquake rattled China’s Sichuan province in May 2008, Starbucks partners and customers joined the global relief effort, rallying to bring much-needed financial, volunteer and in-kind support to the devastated communities.
In partnership with the American Red Cross and the International Federation of Red Cross and Red Crescent Societies (supporting the Red Cross Society of China), The Starbucks Foundation provided $250,000 for immediate humanitarian and long-term recovery efforts.
In addition to The Starbucks Foundation’s support, Starbucks Coffee Greater China contributed $100,000 for immediate disaster relief and long-term recovery through company donations, materials and fund raising by partners and customers.
In 1998 Starbucks partnered with Conservation International (CI), a non-profit organization than helped promote biodiversity in coffee-growing regions, to support producers of shade- grown coffee. The coffee came from cooperatives in Chiapas, Mexico and was introduced as a limited edition in 1999. The cooperatives’ land bordered the El Triunfo Biosphere Reserve, an area designated by CI as one of the “hot spots” that were home to over half of the world’s known plants and animals. Since 1999, Starbucks had funded seasonal promotions of the coffee every year, with the hope of adding it to its lineup of year-round offerings. The results of the partnership had proven positive for both the environment and the Mexican farmers. Shade acreage increased by 220% while farmers received a price premium of 65% above the market price and increased exports by 50%. Since the beginning of the partnership Starbucks made loan guarantees that helped provide over $750,000 in loans to farmers. This financial support enabled these farmers to nearly double their income.
Because Mexico is one of the countries which is not only retail stores but also an excellent source of coffee, the partners in Mexico have the unique opportunity to give back to the very places that grow coffee – within their national borders.
In 2005, the partners in Mexico and the joint venture partner, Alsea S.A.B. C.V., began working to help bring a secondary school to this community so that local children could continue their education without leaving home.
The community provided the land and construction workers, using premiums earned from selling high-quality coffee grown under Starbucks™ Shared Planet™ principles. The well-respected Tecnológico de Monterrey university donated the online curriculum, and Starbucks gave $10,000 to help build the single-classroom school and the satellite hookups needed. Sedesol, a public institution for social development in Mexico, donated computers and equipment for the classroom.
When this first classroom opened in June 2006, it became so successful that the community asked for another. Starbucks shared this story with the customers in Mexico, and through a variety of donations and fundraising efforts from Starbucks partners and customers, a fully equipped second classroom and sports court were built for the children in July 2008.
In fiscal 2008, Starbucks Mexico launched a second in-store campaign to build the village’s next request: a student dormitory. Mexico partners held a fundraising event for customers, honoring Chiapas farmers by auctioning pieces of a lifelike coffee tree sculpted by an internationally renowned Mexican artist. Starbucks also donated $10,000 to this part of the project.
Altogether, more than $180,000 has been raised for the community since the beginning of the project. The Mexico team hopes to continue working with the Chiapas community for as long as the area can benefit from the collaboration.
Since 1971, when Starbucks opened its very first store in Seattle, to today with nearly 17,000 stores around the world, the corporation always been committed to doing business responsibly and conducting themselves in ways that earn the trust and respect of the customers and neighbors.
Conclusion
Every company or organizations has numerous corporate cultures. It is created naturally and automatically. Companies with well-developed corporate system focus on their people and create a social environment – or culture – in which employees can thrive achieve superior, long-term business success. In contrast to the other coffee companies, Starbucks changes the behavior and view points of global consumers to coffee, and this successful example has caught global attention. Nevertheless, it was also a small retail coffee shop in North American initially. Nowadays, it is not only one of the fastest growing corporation, but also an outstanding business model with lower employee turnover rate and higher profit performance.
According to the case of Starbucks, it shows that shared values is the key factor of a company policy; in other words, opposite to the principles of classical management which only concerns about produce but ignore workers’ ideas. In recent successful businesses, the appropriate management for labors should include financial and emotional rewards. Besides, motivation and personal satisfaction should be put into first rank. A good relationship between managers and employees could maintain a high quality of performance. Just like Starbucks, to use the correct strategy would lead to a successful path.
Starbucks is committed to being a deeply responsible company in the communities where it does business around the world. The company’s focus is on ethically sourcing high-quality coffee, reducing its environmental impacts and contributing positively to communities. Starbucks global responsibility strategy and commitments are integral to the company’s overall business strategy. As a result, Starbucks believes it delivers benefits to the company and its stakeholders, including employees, business partners, customers, suppliers, shareholders, community members and others.
Bibliography

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Starbucks 2008 Annual Report
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http://www.companyculture.com An practical informational website for managers, with articles on the theory and principles for understanding company culture and how to change it.
http://www.starbucks.com Company website

Appendix 1: Starbucks Organization Chart
Appendix 2: Starbucks Mission Statement
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Here are the principles of how we live that every day:
Our Coffee
It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.
Our Partners
We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.
Our Customers
When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.
Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity.
Our Neighborhood
Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business. We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead.
Our Shareholders
We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive.
Keith Molenaar, Hyman Brown, Shreve Caile and Roger Smith. Corporate Culture/Professional Safety 47 no7 18-27 Jl 2002
Keith Molenaar, Hyman Brown, Shreve Caile and Roger Smith. Corporate Culture/Professional Safety 47 no7 18-27 Jl 2002
Terrence E. Deal and Allan A. Kennedy. The new corporate cultures : revitalizing the workplace after downsizing, mergers, and reengineering / Reading, Mass. : Perseus Books, 1999, page 21
http://www.companyculture.com An practical informational website for managers, with articles on the theory and principles for understanding company culture and how to change it.
Terrence E. Deal and Allan A. Kennedy. The new corporate cultures : revitalizing the workplace after downsizing, mergers, and reengineering / Reading, Mass. : Perseus Books, 1999, page 25.
Joseph A. Michelli. The Starbucks experience : 5 principles for turning ordinary into extraordinary / New York : McGraw-Hill, c2007. Page 7.
http://www.starbucks.com. Company website
Starbucks 2008 Annual Report
Starbucks 2008 Annual Report
http://www.starbucks.com. Company website
Joseph A. Michelli. The Starbucks experience : 5 principles for turning ordinary into extraordinary / New York : McGraw-Hill, c2007. Page 9.
Pendergrast, Mark. Uncommon Grounds: The History of Coffee and How It Transformed
Our World, Basic Books: New York, 1999. Page 374
Schultz, Howard. Pour Your Heart Into It, Hyperion: New York, 1997.Page 139
Schultz, Howard. Pour Your Heart Into It, Hyperion: New York, 1997. Page 132
Schultz, Howard. Pour Your Heart Into It, Hyperion: New York, 1997. Page 293
Starbucks 2008 Annual Report
http://www.starbucks.com. Company website
http://www.starbucks.com. Company website
Robert McClure, “Starbucks soon to have it Made in the Shade,” Seattle-Post Intelligencer, August 3, 1999, pg. 2
http://www.starbucks.com. Company website
32
Corporate Culture
The Authority Structure
Communication
Experience-Creating Motivation and Trust
Equipment and Other Physical Objects
The System


CEO
President
Executive VP,
Legal
Executive VP,
Partner Resources
Executive VP,
Chief Financial Officer
Executive VP,
Supply Chain & Coffee
President,
Japan
President, Europe,
Middle East, Africa
President,
North America
VP,
Southwest
VP,
South Central
VP,
Northwest
President,
International
Australia
United Kingdom
Thailand