History And Mission Statement Of Starbucks Marketing Essay

Starbucks was begun by three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, in 1971. The first Starbucks was open in 1971, which is the only store in Seattle historic Pike Place Market. The name comes from Herman Melville’s Moby Dick, a class American novel about the 19th century whaling industry. A sales representative, Howard Schultz joins Starbucks in 1982, as a director of marketing and retail sales, after he realized the atmosphere and environment of the company. Due to successful strategy of Schultz for his own coffee shop named II Giornale, in Seattle, 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. Howard Schultz though the most efficient way to grow the amount of branches was to set up the new stores in other places. So, the first overseas stores had established in Japan at 1987. The first Starbucks store in Malaysia opened on 17 December 1998 at KL Plaza in Jalan Bukit Bintang by Berjaya Starbucks Coffee Company Sdn Bhd.. Until now, the company has over 115 stores in Malaysia. Until now, Starbucks has more than 6000 stores over 30 countries to let people enjoy Starbucks excellent coffees and espresso drinks. To let Starbucks become successful. Mission Statement play an important rule for the company to achieved the goal. Mission statement for Starbucks is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. To accomplish mission, Starbucks has seven principles which is Our Coffee, Our Partners, Our Customers, Our Stores, Our Neighborhood, Our Shareholders and Onward that guild all of the employees as they go about the daily business. Our Coffee, coffee has always been, and will always be, about quality to improving the lives of people who grow them. Our Partners, employees Starbucks called each other partners, not employees, because this is not just a job, this is the passion, they always treat each other with respect and dignity and hold each other to that standard. Our Customers, employees of Starbucks are always connecting with customers, sharing, laughing and uplifting with the customers, even if just for a few moments. Sure, this is starts with the promise of a perfectly made beverage, but Starbucks work goes far beyond that. Our Stores, Starbucks wanted to let customers feel Starbucks are the place for them to belonging, to break from the worries outside, a place to let customer meet with friends, this is about the enjoyment at the speed of life, sometimes slow and savored, sometimes faster, always full of humanity. Our Neighborhood, Starbucks can be a force for positive action, bringing together partners, customers and the community to contribute everyday. Our Shareholders, Starbucks enjoy the kind of success that rewards Starbucks shareholders. Starbucks are fully accountable to get each of the elements tights so that Starbucks and everyone it touches can endure and thrive. Onward, no one can expect what will be happen in the future, but Starbucks regards it as important, and all decisions and actions have to contribute to making a better future for Starbucks and all partners.

2.0 Body

2.1 Definition of Motivation

To let Starbucks become successful, Howard Schultz knows that employee motivation is important to push employee to work. Motivation has the internal and external factors in desire to let people have the energy to continually interest in their job, role or subject, and to achieve their goal. Motivation results from the interactions among conscious and unconscious factors such as the intensity of desire or need, incentive or reward value of goal and expectation of the individual of the significant others. In Starbucks, Motivation is a vital factor for business in the production process. Employees are not machines, and can not always do the same task with equal passion. Because of this, Howard Schultz considers that the reason for success in Starbucks is not coffee but employees. The spirit of Starbucks is employees and feels honored about the value of Starbucks employees. Starbucks always offers an interactive structure that makes personnel throw themselves into their job. There are two types of motivation in Starbucks, for personal motivation and teamwork motivation.

2.2 Personal Motivation for Starbucks Employees

Motivation is important for every employee so every employee can concentrate and fight for the company. There are few ways in Starbucks to motivate the employees. Equal Treatment, Listen to employees and Good welfare measures had been introduced by Starbucks to motivate employees. Equal Treatment, employees in Starbucks are called partners, not employees, even the supervisors of each branch to equally all of the staff. In order to narrow the gap between managers and employees, managers are also responsible to work in basic staff level in the front line to serve customer and provide services to the customers. Due to this, Starbucks can maintain a good management system and create a much closer and more familiar atmosphere between employees and customer. Employees can enjoy the job happily and this may affect customers by their enthusiasm. Furthermore, Listen to employees can motivate employees to work for company. Starbucks has a well-organized communication channel for employees. It place great importance on labors, Starbucks have schedule weekly interview for every employee so Starbucks can understand what employees wants and needs and Starbucks can met their requirement. For example, if the employee have faces problem with the new working hour schedule, employees can say it out to the manager during the interview and find the solution like changing the working hour with other employees. Besides that, Starbucks willing to listen to any suggestion given by the employees to figure out what is the best policy for them, and show a respect to each suggestion. Starbucks would like to join all the employees in the meeting for making and developing plans, the work together in achieving goals. As a result, the policies and principles are communicated between all employees and there is no limitation in employees personal opinions. Good welfare measures are another way for Starbucks to motivate employees. All employees in Starbucks are offered a great deal of welfare policies like discount for employees, medical insurance, commodities discounts and others. Moreover, Starbucks will have a reward for employees who work over 20 hours a week. Starbucks also thinks that debt financing is not the best choice, thus it chooses to allocate stock dividends o all employees with a free script issue. By the policy, the employees can get benefits from the dividends of the company. Because of this, they have the same goal, in the other words, employees are motivated to increase the sales to earn more profits. To Starbucks, the employees are the most important asset.

2.3 Teamwork Motivation for Starbucks

Starbucks are also introduce the teamwork motivation so can motivate every employees in each stores can work as a team. There are two ways which is the strategies to keep good relationships and a goal of public welfare to motivate employees in a team. The employees in every stores are usually from three to six, with such a small size of team may helps employees get to know each other easily and deeply. Furthermore, the manager and employees co-work in the first line can eliminate the distance between the different statuses. Suggestions and complaints made by employees are treated equal importance and employees are given the right to participate in the process of revising company policies. Starbucks employees can thinks that they are important and playing an important role in company operating to work out the direction of Starbucks. These entire have gives employees respect and a sense of participations. Other than this, a goal of public welfare can give motivation for employees because Starbucks contributes part of the profits to public service. As a consequence employees have an idea that what employees do for Starbucks is for society as well. With regard to goals, Starbucks set a challenging and specific goal, and allows all employees to decide the direction.


In my opinion, Starbucks have to keep upgraded themselves to improve more to employees. Nowadays, there are many fast food restaurant or café open 24 hours to provide services for customers. To compete with the competitor, Starbucks can open for 24 hours too so they can provide services for everyone especially who work for long hours and office workers. Office workers have to wake up in the earlier morning, at this time, they may need coffee to bringing them a spirit to work, so Starbucks will become their best choice to have a coffee before going to work. Besides, this is suit for those who work long hours too, workers who work for long hours will feel tired and sleepy, so, they may need a coffee too to keep them have a spirit to continue for work. Besides, Starbucks can provide a delivery services for public, Starbucks can help customer who order a large amount of coffee to the location so customer can save a lot of time to do their own things.


Starbucks changes the behaviors and view points of global consumer of coffee, and this successful example has caught global attention. Nowadays, Starbucks is not only one of the fastest growing company, but also an outstanding business model with low employee turnover rate and high profit performance. Starbucks already shows that motivation is the key factor of a company policy, opposite to the principles of classical management which is only concerned about the production and ignores workers idea. A good relationship between managers and employees could maintain a high quality of performance. Other company should learn from Starbucks which is using the correct strategy to lead to success.






Question 2


Employee satisfaction and motivation play an important role in improving organization efficiency and daily work. The motivation models are deals with motivation and management. Every employee performance is based on their expectation from the company such as rewards in increase salary or benefits that will lead employees put more effort to get better performance. To work in good performance, employees factors such as employees personality, skills, knowledge, experience and abilities can affect employees performance. The motivation model emphasizes self-interest in the alignment of rewards with employees want and the connection among expected behaviors, rewards and organizational goals.

Question 2(a)


To achieve higher level of efficiency, Starbucks Vroom’s (1964) Expectancy theory consists of three components, Valence, Expectancy, and Instrumentality. First, Valence in Starbucks are refers to the feeling of satisfaction about Starbucks employees derive from their preferred outcomes should performance be achieved. When employees of Starbucks have preferences to getting certain outcomes, the outcomes have a positive valence. In the other side, if the outcomes are in negative valence, Starbucks employees will have the desire to avoid any outcomes at all expense. From the survey had been made, 93% of Starbucks employees were satisfied with the compensation package offered by Starbucks. However, all employees are eligible for the reward as long as they are Starbucks employees, regardless of how much effort Starbucks employees demonstrate. Second, expectancy is effort-performance relationship which defined as the probability or degree of certainty people estimate on how well a particular alternative action will indeed lead to a desired outcome, Starbucks belief that increased effort will lead to increased performance. This is affected by having the right resources available, the right skills to do the job and the necessary support to get the job done. The employees of Starbucks believed that they receive fully support by their supervisor and necessary training skills to improve performance. This shows that once the employees of Starbucks believed their supervisor supported them, they are likely to be motivated to exceed Starbucks expectation, helping Starbucks to increase revenue, attract more customers and customer royalty. Third, instrumentality is performance reward relationship which regarded as means people have to successfully achieve their preferred outcomes. For Starbucks employees to successfully achieve the desired outcomes, they must have the experience, knowledge, physical ability and the right machinery tools as well as external support such as appropriate job design, organization structure and work procedure to outcomes with good performance differ form those outcomes with poor performance. .Starbucks of employees always believed they will have the fully support and rewarded fairly by supervisor. Being treated or rewarded fairly is just one of the components of instrumentality.

Question 2 (b)


Starbucks Mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at time. There are seven principles of how Starbucks live that everyday. Our Coffee, Our Partners, Our Customers, Our Stores, Our Neighborhood, Our Shareholders and Onward. Our Coffee, Starbucks coffee is always high quality and hard work has been done to maintain and improve that. Our Partners, people who work for Starbucks are called partners and partners share a passion together to create a place to everyone that includes respect and dignity. Our Customers, Starbucks focus on the significance of human connection and customer satisfaction through Starbucks quality made beverages. Our Stores, Starbucks mission to focuses on making their stores as a haven for everyone to go to. Our Neighborhood, Starbucks consider their stores as part of the community and passionate about doing the part and responsible about it. Our Shareholders, Starbucks are fully accountable to get each of the elements right so that everyone Starbucks touches can endure and thrive. Onward, the future is unknown, but Starbucks regards as an important and all decisions and actions have to contribute to making a better future for Starbucks and Starbucks partner. To support the mission statement of Starbucks, Starbucks committed to a role of environmental leadership in all facets of the business and fulfill the mission by some commitment. First, understanding environmental issues and sharing information with Starbucks partners. Starbucks will share every issue mentioned and sharing the information with partners and discuss to find solution together. Second, developing innovative and flexible solution to bring about change. Starbucks always emphasize research to develop and create a new idea to making changes for Starbucks and making Starbucks a better place for everyone to go to. Third, striving to buy, sell and use environmentally friendly products. Starbucks are use environmentally friendly product in the business and always encourage public people to use too to protect the earth. Forth, recognizing that fiscal responsibility is essential to our environmental future. Starbucks knows that having a healthy financial situation is important to let Starbucks running the business and expand their store to different location. Fifth, measuring and monitoring our progress for each project. Starbucks always measure and monitor every project running by Starbucks so the project can successfully complete. Lastly, encouraging all partners to share in our mission. Starbucks encourage employees to share their mission to public to let everyone know how important they are for Starbucks.


In my opinion, Starbucks should focus on the human resources issues as an important issue for improving productivity. In applying human resources management interventions, Starbucks can operate more efficiently, improving the performance and effectiveness. These interventions should focus on employees by developing, integrating and supporting people in the organization, Starbucks believe that organizational effectiveness results from improved practices for integrating employees into organization. Besides, Starbucks can corporate with some corporate and send their employees for training program to train and gain more experience, so the employees can return with the experience and produce a more efficient work Starbucks.


In conclusion, expectancy theory is important because these theories can help Starbucks to achieve higher level of efficiency and fulfill the satisfaction of the employees and produce a good performance. Mission statement of Starbucks committed to a role of environmental leadership in all facets of the business and fulfill the mission by some commitment so the mission of Starbucks can achieve in short time and share Starbucks successes with public.

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