CHAPTER 1 Human Resource Management: Gaining a Competitive Advantage up saying, "Don't ask for permission, ask for forgiveness." Schultz believes that one of Starbucks' most serious problems is that its successes have left the company too cautious. Part of this is because he is seen as the soul of the company, which causes employees to consider "What will How- ard think?" before making decisions. He creates passion but also creates anxiety. Schultz is trying to change his image and at the same time make Starbucks more innovative. When one employee in a California store suggested that he could create better artwork than what was hanging on the walls, Schultz told him to put his pictures Sources: Based on G. Weber, "Preserving the Counter Culture," Work- force Management, February 200s, pp. 28-34; J. Adamy, "Schultz's Second Act Jolts Starbucks," Wall Street Journal, May 19, 2008, pp. A1, A11; M. Weinstein, "Fresh Cup of Training," Training, May 2008, p. 103; J. Adamy, "Starbucks Plays Common Joe," The Wall Street Journal, February 9, 2009, p. B3; J. Adamy, "Starbucks CEO, Top Officials Didn't Get Bonuses for 2008," The Wall Street Journal, January 23, 2009, 83: J. Adamy, "Starbucks Could Cut 410(k) Match," The Wall Street Journal, December 24, 2008, p. B3; J. Adamy, "At Starbucks, a Tall Order for New Cuts, Store Closures." The Wall Street Journal, January 29, 2009, pp. 82,83; J. Adamy, "Starbucks Shift Focus to Vaiue, Cost Cutting." Wall Street Journal, December 5, 2008, p. B1. ENTER THE WORLD OF BUSINESS Starbucks: Refocusing on the Brew Using HR Practices by other retailers. Although 85 percent of its Starbucks continues to offers comprehensive health benefits that exceed those provided employees are part-time, they are still eligible for full-time benefits if they work 240 hours a quar- ter. Less than 30 percent of part-time workers in the United States receive health care, paid sick leave, or eligibility for bonuses or stock options. Starbucks provides all employees and their same-sex or opposite-sex partners comprehen- sive health benefits that include medical, dental, and vision care as well as tuition reimbursement, stock options, vacation, and the 401(k) retire- ment plan. To cope with the economic conditions, Star- Starbucks, the Seattle-based coffee store, has experienced incredible growth in the past several years by opening more than four stores and add- ing 200 employees each day. However, Starbucks has had to change its strategy and reposition its brand to cope with the recession that has caused consumers to save more and spend less. Because of its growth goals, the company made poor selection for new stores, cluttered the stores with merchandise, and lost its focus on coffee. Howard Schultz, who returned to the Starbucks chief exec- utive officer (CEO) position in 2008, has supported bucks' best customers are saving money by refocusing the company on coffee by ordering a phaseout of breakfast sandwiches and cutting the number of new store openings. The company has had to change its human resource policies and emphasize certain practices more than others while still trying to preserve its value-and-treat- employees-right approach that is part of the com- pany culture. One of the company's six guiding principles is "to provide a great work environment less. The training event, known as "Perfect the and treat each other with respect and dignity." Starbucks has taken several drastic steps in its human resource practices to ensure that it can survive the sharp decline in its sales. CEO Howard Schultz and other top executives did not earn bonuses in 2008 as a resuit of the company's a time?). Staff discussions about how the training poor financial performance. Schultz asked the board of directors to reduce his $1.2million in base pay to $1. The compensation committee agreed to cut his pay to less than $4 per month in salary, although he will still receive his stock compensation. The committee put the company's of coffee, the company is training baristas to tell new corporate jet up for sale. Starbucks has had to close 300 underperforming stores and layoff 6,700 employees. Starbucks also announced that it would no longer match employees' contribu- tions to their 401(k) retirement plans. However, making fewer visits to Starbucks each month. To ensure that customers are delighted and coffee served meets high-quality standards, Starbucks went so far as to shut down operations of most of its stores in February 2008 for three and a half hours for a full-day training event. Training is inte- gral for Starbucks to successfully compete in the weak economy in which customers are spending Art of Expresso," was designed to help baris- tas deliver high-quality expresso. One activity consisted of pulling an expresso shot and then evaluating the process and the product (Was it the right color? Did it take too long or too short would benefit customers were held at each store. Employees were told to greet regular customers by their first name and to not resteam milk that had been steamed once. To counter percep- tions that Starbucks is the home of the $4 cup customers that the average price of a Starbucks beverage is less than $3 and 90 percent of Star- bucks drinks cost less than $4. Baristas are also encouraged to promote to customers its new dis- counted paring of coffee and breakfast for $3.95.
CHAPTER 1 Human Resource Management: Gaining a Competitive Advantage up saying, "Don't ask for permission, ask for forgiveness." Schultz believes that one of Starbucks' most serious problems is that its successes have left the company too cautious. Part of this is because he is seen as the soul of the company, which causes employees to consider "What will How- ard think?" before making decisions. He creates passion but also creates anxiety. Schultz is trying to change his image and at the same time make Starbucks more innovative. When one employee in a California store suggested that he could create better artwork than what was hanging on the walls, Schultz told him to put his pictures Sources: Based on G. Weber, "Preserving the Counter Culture," Work- force Management, February 200s, pp. 28-34; J. Adamy, "Schultz's Second Act Jolts Starbucks," Wall Street Journal, May 19, 2008, pp. A1, A11; M. Weinstein, "Fresh Cup of Training," Training, May 2008, p. 103; J. Adamy, "Starbucks Plays Common Joe," The Wall Street Journal, February 9, 2009, p. B3; J. Adamy, "Starbucks CEO, Top Officials Didn't Get Bonuses for 2008," The Wall Street Journal, January 23, 2009, 83: J. Adamy, "Starbucks Could Cut 410(k) Match," The Wall Street Journal, December 24, 2008, p. B3; J. Adamy, "At Starbucks, a Tall Order for New Cuts, Store Closures." The Wall Street Journal, January 29, 2009, pp. 82,83; J. Adamy, "Starbucks Shift Focus to Vaiue, Cost Cutting." Wall Street Journal, December 5, 2008, p. B1. ENTER THE WORLD OF BUSINESS Starbucks: Refocusing on the Brew Using HR Practices by other retailers. Although 85 percent of its Starbucks continues to offers comprehensive health benefits that exceed those provided employees are part-time, they are still eligible for full-time benefits if they work 240 hours a quar- ter. Less than 30 percent of part-time workers in the United States receive health care, paid sick leave, or eligibility for bonuses or stock options. Starbucks provides all employees and their same-sex or opposite-sex partners comprehen- sive health benefits that include medical, dental, and vision care as well as tuition reimbursement, stock options, vacation, and the 401(k) retire- ment plan. To cope with the economic conditions, Star- Starbucks, the Seattle-based coffee store, has experienced incredible growth in the past several years by opening more than four stores and add- ing 200 employees each day. However, Starbucks has had to change its strategy and reposition its brand to cope with the recession that has caused consumers to save more and spend less. Because of its growth goals, the company made poor selection for new stores, cluttered the stores with merchandise, and lost its focus on coffee. Howard Schultz, who returned to the Starbucks chief exec- utive officer (CEO) position in 2008, has supported bucks' best customers are saving money by refocusing the company on coffee by ordering a phaseout of breakfast sandwiches and cutting the number of new store openings. The company has had to change its human resource policies and emphasize certain practices more than others while still trying to preserve its value-and-treat- employees-right approach that is part of the com- pany culture. One of the company's six guiding principles is "to provide a great work environment less. The training event, known as "Perfect the and treat each other with respect and dignity." Starbucks has taken several drastic steps in its human resource practices to ensure that it can survive the sharp decline in its sales. CEO Howard Schultz and other top executives did not earn bonuses in 2008 as a resuit of the company's a time?). Staff discussions about how the training poor financial performance. Schultz asked the board of directors to reduce his $1.2million in base pay to $1. The compensation committee agreed to cut his pay to less than $4 per month in salary, although he will still receive his stock compensation. The committee put the company's of coffee, the company is training baristas to tell new corporate jet up for sale. Starbucks has had to close 300 underperforming stores and layoff 6,700 employees. Starbucks also announced that it would no longer match employees' contribu- tions to their 401(k) retirement plans. However, making fewer visits to Starbucks each month. To ensure that customers are delighted and coffee served meets high-quality standards, Starbucks went so far as to shut down operations of most of its stores in February 2008 for three and a half hours for a full-day training event. Training is inte- gral for Starbucks to successfully compete in the weak economy in which customers are spending Art of Expresso," was designed to help baris- tas deliver high-quality expresso. One activity consisted of pulling an expresso shot and then evaluating the process and the product (Was it the right color? Did it take too long or too short would benefit customers were held at each store. Employees were told to greet regular customers by their first name and to not resteam milk that had been steamed once. To counter percep- tions that Starbucks is the home of the $4 cup customers that the average price of a Starbucks beverage is less than $3 and 90 percent of Star- bucks drinks cost less than $4. Baristas are also encouraged to promote to customers its new dis- counted paring of coffee and breakfast for $3.95.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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