What Are the Key Policies, Practices, Business Principles, and Procedures That Underlie How Howard Schultz and Starbucks’ Management Have Implemented and Executed the Company’s Strategy? 5. What “Values” Does Starbucks Have?

4. What are the key policies, practices, business principles, and procedures underlie how Howard Schultz and Starbucks’ management have implemented and executed the company’s strategy? (Done by Ping Ping)

Starbucks has many business principles that are key to the company’s success. The main two are the high quality customer service, and their commitment to having the highest quality products (especially coffee discussed in the following section). Since the beginning of Starbucks, one of their major draws to consumers was their high quality customer service and overall store ambiance. Starbucks wasn’t just a place to pick up your coffee and run; there was a certain degree of comfortability within each store. The main reason Starbucks locations are so comfortable is due to the people who work there. Starbucks emphasis on their staff all stemmed from Howard Schultz belief that the success of the company was most directly dependent on a positive in store experience.

In order to make this possible the first step is to have a pleasant workplace environment. Starbucks does not refer to their workers as employees, but rather as “partners”. Starbucks empowers their workers through other ways such as encouraging them to offer up any ideas they should have. Employees also are regularly given awards for a job well done. There are a variety of awards (18 total) employees can obtain and each one is meant to further motivate employees to continue improving.

Starbucks offers benefits for both full-time and part-time employees, which is a major draw to working at Starbucks and motivates employees to keep their jobs. Even when the company fell on hard times Schultz made sure that health care was not touched. Another draw for Starbucks employees are the available stock options for employees. They are awarded options based on Starbucks’ success and profitability in said year, the size of base wages per employee, and the stock option price. Furthermore, after 90 days of...