Starbucks: HR Practices Help Focus on the Brew, Weat

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

 

NOTE: The entire article is located on page 3-4 of your textbook. The article/book is on the internet.
Along with this article please refer to the sources at the end of the article for more information and to assist in development of thorough answers for this written assignment.
Starbucks is Seattle- based coffee store with a mission to “inspire and nurture the human spirit. Its stores, which number 17,000 operating in the United States and 50 other countries, provide an inviting place for customers to enjoy fresh brewed coffee as well as smoothies, teas, pastries, sandwiches, salads, oatmeal, parfaits and fruit cups. The company has experienced come challenges from the economic downturn in 2007 when the recession as well as competition cut into its profits. The company had to close stores, retool practices for greater efficiency, and launch a new marketing campaign. Starbucks believes that its employees, whom it calls “partners,” are vital to its success. The company wants its partners to have coffee knowledge, product expertise, and provide excellent customer service. The company also believes in investing in its partners. It provides comprehensive health care benefits for partners who work 240 hours per quarter. Starbucks has a “total pay” package that includes programs that embrace diversity, providing all employees and their opposite-sex or same-sex partners with comprehensive health care benefits that include medical, dental, and vision care as well as tuition reimbursement, stock options, a discounted stock purchase plan, vacations and a 401(k) retirement plan. Starbucks’ CEO Howard Schultz places a high importance on partners. This is evidenced by his response to an institutional investor who, during the worst time for the company during the recent recession to consider cutting employee health care benefits. Schultz indicated he would not so do, and suggested that the investor invest elsewhere.

 

In a 3-4 page paper (excluding title and reference page) develop a paper addressing the following discussion questions. Remember to include context from your textbook along with other sources related to this article.

 

1. Think about the emphasis that even the face of economic challenges and stiff competition such as McDonalds’ and Dunkin Donuts, Starbucks places a heavy emphasis on treating its employees with care. Starbucks cares about knowledgeable employees, and it also training, comprehensive medical benefits as well as other benefits. Why do you think that CEO Howard Schultz is willing to persist in the provision of such benefits, even in the face of these external challenges?
2. What HR practices do you believe are most critical for Starbucks to maintain the coffee experience and customer service it’s known for?

 
3. Could Starbucks be successful without its current HR practices? Explain.

 

 

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