Starbucks: Hr Practices Help Focus on the Brew, Weather the Recession and Prepare for Growth

Starbucks: HR Practices Help Focus on the Brew, Weather the Recession and Prepare for Growth.

Introduction

Starbucks, the Seattle-based coffee has the human spirit of one person, one cup and a neighborhood at a time which is well known for its ethical sourcing of coffee from farmers all over the world and the reusable and recyclable cups. It stores is located at the neighborhood area and design to invite friend and family to come along to enjoy the custom brewed coffee and their pastries and sandwiches in the hectic pace of daily life. Starbuck had experience a great success all this while until the recession period hit on 2007. The recession is one of the reasons that make Starbuck struggle at that time and the sales and profit began to go down. One of the reason is the customers perceived the Starbuck’s drink is too expensive. During that time, almost 300 stores in more than 50 countries need to close down and open fewer new one in the market. Besides that, Starbuck also launch many marketing campaign and restructure the business practices to increase its profit. Starbuck had adopted a new growth model from the marketing campaign which is encouraging more customers to purchase more coffee regardless of its form, venue or name of the coffee beans. Besides that, Starbuck also introduced new product to the new market. Starbuck had introduced a new instant coffee which can get it in the fast food chain, supermarket and coffee house while not only in the Starbuck store itself only. Starbuck had changed its selling approaches that could cater for a larger market size to increase its profit.

One of the key that Starbuck experience is they believe its employee. Starbuck address its employee as partner who has the coffee knowledge, experience and excellent customer services. Starbuck treating its employee with dignity and respect that they believe employee will have more motivate in their job by doing so. Besides that, employee are given full day training to help in deliver high quality drinks and services to the customer. Starbuck believe that deliver high quality of services to the customer will indirectly create a better and positive customer value. Besides that, providing employee with training could give employee to come out with high quality drinks and smoothing the process of making it as employee could minimize their mistake. Furthermore, Starbuck treating their employee differently with others firm do. Starbuck give the part time employee benefit same with the full time employee which are receive health benefit such as medical, dental and vision care, paid sick leave, tuition reimbursement and as well as bonuses or stock option. Other than that, the employee is eligible to have free coffee or tea each week. All of the decision is made by the Starbuck CEO, Howard Schultz because he believes that placing its partner in the high important decision as the partner