MANAGMENT PRINCIPLES

Management Principles - Starbucks

Management Principles - Starbucks

Introduction

Starbucks was founded by Gordon Bowker, Zev Seigl and Jerry Baldwin. HeThese were three friends who were familiar to each other since university life, since the year 1971. Howard Schiltz was a a sales representative who made decision to become the part of Starbucks as a Makerketing and retail sales Director after understanding the work environment of the organisation (Ehrhardt, 2008: 1013-1015)

In the year 1985, the decision to open a new coffee shop was made by Howard Schults in Seatle by the name of II Giornale. In 1987, because of the Schultz's successful tactic, the three founders of Starbuck made a decision to sell this organisation to Schltz. After this, some investors were gathered by Schultz in order to arrange the capital and he changed the name of organisation from II giornale to Starbucks. He looked for pursuing his aim to make everyone try his coffee therefore he tried to focus on expansion of his business. During that time, he considered openeing of new stores in other place an appropriate strategy for efficient growth. Starbucks opnened its first international store in japan in the year 1987.

Till 2002, starbucks was expanded from seveteen stores to 568 stores located at 30. The company has grown by more than 300 times during 2002-2012. In 2005, Fortune magazine ranked Starbuck the 11th best organisation in United States, then the rank was raised to 29th in year 2006. The next year starbucks was ranked as 16th best organisation. In 2007, financial times voted the company for top ten oraganisation in United Kingdom (Porter, 2010: 109-138).

Over the recent years, due to the rapid globalisation the competition has been intensified all over the globe, particularly in service sector with same products. The most significant factor for achievement for the organisations in not just the product quality that is supplied by them bt the environment of cooperation between teams in retail sales. Thus it becomes more important for orgnisation to keep their employees, motivated, trained and reward them for making them exellent workforce.

Presence of Management

Starbucks coffe has a speciality on rosted coffee beans and the company makes most out of selling these beans and several other types of coffee or teas. The company is owner of 400 branches all around the globe. It is among the fastest growing organisation in US. The reason behind the popularity of Starbucks is not just the quality of the product but the customer service provided by the organisation and the cosy ambiance. The surrounding of Starbucks is comfortable for people for socialisation with a reasonable price and this is os great attraction for people of all ages. The consumers of starbucks are of all ages (Bishop, 2007: 287-300). Besides the cosy envrionment the company place imporance to employee satisfaction. The rate of turn over of personnel at starbucks was 65% and for the managers the rate was 25% per year. On the other hand, the rate of other national chain retailer are ...