Starbucks - Creating Value
...work force of people who are immersed in the same
commitment as management. Our only sustainable advantage is the quality of our
workforce. We're building a national retail company by creating pride in--and
a stake in--the outcome of our labor." --Howard Schultz Founder
and CEO of Starbucks According to this statement, the human resource is the
number one resource in Starbucks Corporation. Schultz believes that happy
employees are the keys to competitiveness and growth. In 1996, Starbucks
employed approximately 16,600 individuals, including roughly 15,000 in retail
stores and regional offices. * All of these "happy" employees help account for
another of Starbucks' intangible resources--the company's reputation for
providing quality and knowledgeable serviceStarbucks deploys their human
resources by requiring that each employee have at least 24 hours of training.
Classes cover everything from coffee history to a seven-hour workshop called
"Brewing the Perfect Cup at Home". This workshop is one of five classes that
all employees (called partners) must complete during their first six weeks
with the company. This workshop focuses on the need to educate the customer in
the proper coffeemaking techniques. Store managers teach the classes. These
classes are designed to teach the employees to make decisions that will
enhance customer satisfaction without requiring manager authorization.*
Another way that Starbucks ensures that its employees are content is by
offering a stock option plan called the Bean Stock Plan. After one year,
employees may join a 401K plan. There is a vesting period of five years; it
starts one year after the option is granted, then vests the employee at 20
percent every year. In addition, every employee receives a new stock option
award each year and a new vesting period begins. * Schultz believes that
without...
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