Starbucks Hr Case Study

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Human Resources Management at Starbucks

Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business. Therefore the company took great care in selecting the right kind of people and made an effort to retain them. Consequently, the company's human resource policies reflected its commitment to its employees.

Starbucks relied on its baristas and other frontline staff to a great extent in creating the 'Starbucks Experience' which differentiated it from competitors. Therefore the company paid considerable attention to the kind of people it recruited. Starbucks' recruitment motto was "To have the right people hiring the right people."

Starbucks hired people for qualities like adaptability, dependability and the ability to work in a team. The company often stated the qualities that it looked for in employees upfront in its job postings, which allowed prospective employees to self-select themselves to a certain extent.

Having selected the right kind of people, Starbucks invested in training them in the skills they would require to perform their jobs efficiently. Starbucks was one of the few retail companies to invest considerably in employee training and provide comprehensive training to all classes of employees, including part-timers...

The Human Resources' Challenge

Analysts said that Starbucks biggest challenge in the early 2000s would be to ensure that the company's image as a positive employer survived its rapid expansion program, and to find the right kind of people in the right numbers to support these expansion plans. Considering the rate at which the company was expanding, analysts wondered whether Starbucks would be able to retain its spirit even when it doubled or tripled its size. By the early 2000s, the company began to show signs that its generous policies and high human resource costs were reflecting on its financial strength.

Although the company did not reveal the amount it spent on employees, it said that it spent more on them than it did on advertising, which stood at $68.3 million in fiscal 2004.

That the company was finding its human resource costs burdensome was reflected in the fact that it effected an increase of 11 cents on its beverage prices in mid-2004. Analysts wondered whether the company's cost problems could be met by a price increase, as customers already paid a premium for Starbucks beverages. On the other hand, it would not be easy for the company to cut down on benefits, as it could result in a major morale problem within the company...


Exhibit I: Starbucks' Income Statement
Exhibit II: Starbucks' Mission Statement
Exhibit III: Benefits to Part-Time Workers and Full Time Workers

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Starbucks Human Resource Management

789 WordsFeb 25th, 20134 Pages

Case Study Analysis: Starbucks: HR Practices Help Focus On the Brew, Weather The Recession, And Prepare For Growth

Starbucks is one of the worldwide well-known multinational companies which are specializing in café business. Aside from the extraordinary coffee, Starbucks has made business out of the human connections, community involvement and the celebration culture. Employees at Starbucks described as an important asset of the company and they are important for the company’s growth. Starbucks use its Human Resources policies and practices as a strategy to gain competitive advantage within the international market and the retail industry. Through the enough implementation from Human Resource Management, it helps to attract and…show more content…

Thus, it also leads to increase the company image. Starbucks also concern about the training and development plan of their employee. This is to improve and enhance their employee skills, knowledge. Starbucks heavily invest a lot in their learning and development especially in giving training to its baristas and the front line employees. According to Starbucks’ policy every selected new employees has to complete the 24 hours of training before he or she resume to their new job. This is to ensure the employees have enough skills in handling their job roles. Company train them well to gain a self esteem and confident .With the proper training and knowledge can eventually attain efficient work from their employees. An experience and well-trained employees can helps to increase the company reputation. The competitors can replicate the beverages products that Starbucks served but they can’t replicate the Starbucks people serving their products to customers. There are some challenge need to face by Starbucks when across the great competition from the coffee market which offer more cheaply and tasty coffee like in McDonald’s, Dunkin’ Donuts and other fast food chains. It might influence the customer buying power in this situation. Therefore, the profit margin might not as high as previous. The problem that occurs in Starbucks will be how to sustain

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