Background and HEM of Starbuck
ABSTRACT
Starbuck is a representation of something beyond a cup of coffee; it’s a coffee company with an image beyond Americanization being American product produced globally. Its origin is in Seattle, U.S.A and its spread worldwide; indeed Starbuck is one of the global companies with highest rate of expansion. In a year this company opens hundred of new stores in different countries a success which has been attributed to by its ever vibrant human resource. This paper is about the Genesis of Starbuck, its journey to the top, its human resource management and policies.
BACKGROUND
Starbuck was started by Gordon Bowker, Jerry Baldwin and Zev Sigel in 1971. Starbuck coffee tea and spices was its first name which later change to Starbucks coffee company (Kusasi, 2010). The three owners originally lacked relevant skills and started the business with the idea that a good cup of coffee is hard to find. The three of them received training in the coffee business by working for Peet’s Coffee and Tea. Peet roasted beans for Starbucks while he taught them the art of perfection in the business.
Their original idea was to sell coffee along with coffee related merchandise and equipment not to sell coffee by the cup. Sigel was the only paid partner at the beginning of the business he was in charge of customer care and was a guru in that field.
Peet continued to supply Starbucks with the beans until their demand outgrew the supply. The Partners purchased a second hand coffee roaster from Holland to boost the production. They did set up a roasting operation and begun experimenting with blends and flavors on their own. Baldwin did the roasting while Bawker took the marketing role. Starbucks survived the 1970 Boeing crush in Seattle and its sells played a great role in economic recovery after which one partner Zev Sigel sold out his shares to pursue his other interests. Baldwin took the presidency and Bowker remained invoked. Howard Schultz a new player comes on board in 1984.
Schultz sold the idea of serving coffee to the founders. The idea was tested in one of their stores in Seattle the result was overwhelming but the partners decided to stick to coffee roasting at that particular time. In 1984 Peet was out of business and Starbucks bought Peet’s Coffee and Tea. Schultz continued and opened up Giornale coffee company. By the help of other investors including Starbucks he grew financially and bought out the founders of Starbucks later changed the name to Starbucks Cooperation (Schult, 2011).
Starbucks Mission Statement is “Inspiring and Nurturing Human Spirit: one person, one cup, one neighborhood at a time. The company is well known its interest in giving back to the community by community involvement through volunteer work in neighborhoods where their stores are located.
Currently the company has approximately 17,000 stores in United States and more than 50 companies worldwide (Schultz & Gordon, 2011).
Starbucks’ Human Resource Management Practices are vital in supporting its business strategy It’s HRM aligns their training strategies in giving its customers the “Ultimate Customer Experience” (Schultz & Gordon, 2011). Their hiring/recruitment strategies are aligned to ensure they have the best employees for customer services through development of their own screaming system. The HR administration system aligned to ensure they retain their partners through development of a reward system and having great benefit packages for both full time and part time employees. The HRM workforce helps employees to grow and has a mindset that the growth of the company should be reflected in their employees’ growth. Their employees are commonly referred to as partners and after every 18 months this partners do a survey answering question about their overall job satisfaction and commitment to the company a survey in which they are paid to take part by having them do it online hence creating a workplace where people treat each other with respect and dignity (Mabey, 2003).
CONCLUSION
The HR system has an integrative linkages involved in both strategic formulation and strategic implementation. It’s Performance Management System Rewards Model has Bonuses based on goals achieved, Free Coffee, Tuition Assistance, Partner Discounts, 30% Store discount and The Growth Model that improves employee’s growth in the company are very instrumental in Starbuck success hence its phenomenal global growth ( Schult, 2011).
References
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