The Starbucks Corporation has enjoyed phenomenal growth since its early days in 1971 as a quaint coffee shop in Seattle, Washington. can be directly attributed to the following factors; the emphasis placed on product quality, high employee standards, and creating the perfect cup of coffee.
How a small idea became a huge business. Growing up in Brooklyn Howard Schultz had no aspirations. His only goal was to escape the struggles his working-class parents lived every day (Schultz 107).
Eventually, Schultz discovered his talent for sales, and was hired by a Swedish housewares corporation. By age 28, he was vice president in charge of sales in the United States. He has an excellent salary, a co-op apartment in New York City and was happily married. However, Schultz wasn't satisfied with all he had accomplished. He wanted to be in charge of his own destiny (107).
It was then in the early 1980's that he was introduced to the company, Starbucks Coffee and Tea. Starbucks's original was modest but full of character. Schultz was immediately impressed by its charm. Importantly, he thought the coffee was wonderful (Schultz 108). He then had dinner with a friend, Jerry Baldwin owner of Starbucks and his partner, Gordon Bowker. Schultz tried to persuade Baldwin to hire him as an employee, even though it did not seem to be a logical career move. But for Schultz Starbucks held an inexplicable attraction. He soon found many reasons to get back to Seattle and visit (108).
Then in the spring of 1982, Jerry and Gordon invited Schultz to meet Board member Steve Donovan. Schultz told the men what he saw for the future of the company. The partners seemed inspired by his vision. But they had decided not to hire Schultz. They felt his vision, was not what they had in mind for the company (108). Schultz still believed so much in the future of Starbucks that he couldn't except ?no? as an answer. He then contacted Baldwin and protested that he wasn't selfishly interested in a job but it was more so about what he wanted to do for the company. Finally, Schultz had a job working at Starbucks (Schultz 109).
Then, after working there for a year, he had a simple experience that changed his life. He traveled to Milan, Italy to attend an international housewares show. While, traveling he noticed a little espresso bar. The espresso bar brought to his attention the romance and ritual of a coffee bar. He realized that his company's connection to coffee lovers did not have to be limited to their homes, where they ground and brewed the coffee. Instead, he imagined that, coffee should be sold by the cup, in coffee bars (109).
On his return to Seattle, however, his bosses argued that Starbucks was a retailer, not a restaurant, or a bar. Schultz felt torn between loyalty to Starbucks and confidence in his vision for coffee bars. In the end he followed his vision.
In 1985 he left Starbucks and started his own company, Il Giornale (Schultz 110). Within 6 months they were serving more than a thousands customers a day in their Seattle store (110).
In March 1987 Jerry Baldwin and Gordon Bowker decided to sell their Starbucks stores. Schultz knew immediately he had to buy the company. So, with the support of his Il Giornale investors, Starbucks was his (Schultz 111).
Starbucks now has more than 1500 stores and 25,000 employees. Unlike other retailers, they provide stock options and full health benefits, for even part-time employees (111).
Starbucks's goal is to become 'the most recognized and respected coffee seller in the world.? To achieve this goal the company employee standards are extremely important.
The Clinton administration has praised the company's generous employee health care package (Simons 190).
The company engages in philanthropic endeavors, as well: In many communities, it donates pastries to homeless shelters, and for five consecutive years the company has been the largest corporate donor to CARE, the international relief organization (191).
When it comes to welcoming new employees Schultz makes sure he tells all new employees how delighted his is to have them aboard, even though he has to do so by video, since the coffee giant recruits roughly 500 people a month for its approximately 26,000 person staff. Even part time workers called ?partners? repeatedly hear how much they are valued during the 24 hours of training they undertake in their first 80 hours of employment (Reese 1).
The company puts much emphasis on the rules employees must follow, including a focus on employee self esteem (2). Partners are encouraged to share their feelings: about selling, about coffee, about working for Starbucks. Starbucks is a company with lots of rules and partners must memorize them (Reese 192). During the employees orientation they are introduced to the so-called ?Star Skills?, three guidelines for how to behave on the job. First, to maintain and enhance self- esteem. Second, to listen and acknowledge. Third, to ask for help (194). Starbucks is a smashing success, thanks in large part to the people who work there. One employee has permanently removed her tongue stud because it didn't confirm to the dress code; every day she covers her 4 tattoos. The company has turned tattooed kids into managers of $80,000 a year caf's (190). Starbucks really does treat its partners well. They pay between $6 and $8 an hour which is better than most food service jobs (196). Starbucks thinks it has a good handle on its work force.
Creating the perfect cup of coffee is stressed and has been vital for the company's success. ?Brewing the Perfect Cup? is one of the 5 classes that all partners must complete during their first six weeks with the company. (Reese 192). The milk must be steamed to at least 150 degrees but never more than 170 degrees. Every espresso ...