Starbucks Corporation: Case Study in Motivation and Teamwork
Because of rapid globalization over recent years, competition around the world becomes more intense,
especially for the service industry with similar products. The most critical point for business to achieve
success is not only the quality of products they supply, but the atmosphere of cooperating and the amount
yielded from teamwork in retail sales. Therefore, it turns out to be essential for companies to motivate,
reward and train their employees to be the best quality personnel.
Starbucks Corporation, the most famous chain of retail coffee shops in the world,
mainly benefits from roasting and selling special coffee beans, and ...view middle of the document...
In 1985 Howard Schultz chose to establish a new coffee shop, named II Giornale, in Seattle. After the next
two years, due to the successful strategy of Schultz, the original three owners of Starbucks decided to sell
their corporation to Schultz. Then Schultz gathered other investors and changed the name of II Giornale to
Starbucks. He sought to pursue his dream to make everyone taste his coffee, so he focused on the rate of
expanding. At that time, he though that the most efficient way to grow the amount of branches was to set
up new stores in other places. In I987, Starbucks had the first overseas store in Japan.
Until the end of 2002, Starbucks has developed from 17 stores to 5,688 spreading over 30; it has grown
over 300 times in these ten years! In Fortune magazine, Starbucks was ranked the 11th best company to
work for in 2005 in the USA and then rose up in 2006 to 29th. In 2007, it was ranked as the 16th best. In
the same year, Starbucks was also voted as one of the top ten UK workplaces by the Financial Times.
Motivation is a vital factor for business in the production process. Labourers are not machines, and can not
always do the same task with equal passion. The chief executive officer of Starbucks corporation, Howard
Schultz, considers that the reason for success in Starbucks is not coffee but employees. He firmly believes
that the spirit of Starbucks is employees and feels honoured about the value of Starbucks employees.
Starbucks offers an interactive structure that makes personnel throw themselves into their job.
1) Equal treatment: The managers in Starbucks treat each employee equally and all of the staff are called
‘partners’, even the supervisors of each branch. In order to narrow the gap between managers and
employees, they also co-work with the basic level staff in the front line. Due to this, they can maintain a
good management system and create a much closer and more familiar atmosphere than other places. Not
only do employees enjoy their job but customers are also affected by their enthusiasm.
2) Listen to employees: Starbucks has a well-organized communication channel for employees. It places
great importance on labour. For example, managers plan the working hours per workers and arrange the
schedule of time off, according to the workers’ wants in order to meet their requirements. There are
interviews weekly to see what employees’ needs are.
The partners have the right to figure out what is the best policy for them, and the directors show a respect
for each suggestion. Starbucks even wants every employee to join in making and developing plans, then
work together in achieving their goals. As a result, the policies and principles are communicated between
all staff, and there is no limitation in employees’ personal opinions.
3) Good welfare measures: All employees, including informal personnel, are offered a great deal of welfare
policies, for instance, commodities discounts for employees, medical insurance...