Introduction
Organizations have distinct cultures that evolve based on combinations of multiple factors. Starbucks is a company with a unique system of processes that have formed in response to several issues. After being founded in 1971, the corporation went public in 1992 as it completed its initial public offering (IPO) (Gupta et al., 2018; “Timeline,” 2022). In establishing its culture, Starbucks has overcome problems related to external adaptation (EA) and internal integration (II), such as developing consensus on goals, means, and authority.
External Adaptation
One of the essential matters of EA encountered by Starbucks was identifying the organization’s mission. Starbucks is an interesting firm because it has twice changed its owners and purpose (“Timeline,” 2022). In 1987, Howard Schultz bought the firm from its founders and opened Starbucks Corporation (Gupta et al., 2018). In 1990, Schultz presented the brand’s first mission statement, and for many years the business was successful (Gupta et al., 2018). By 2008, Starbucks had grown but faced several challenges, and Schultz resolved to transform operations and adopt a new mission (Gupta et al., 2018). Schein (2017) suggests that an organization’s mission reflects a balance between the interests of different stakeholders. Accordingly, it seems that Starbucks’s new reason for exiting pursues poising between those involved in the business by focusing on “one person, one cup, and one neighborhood” (“Timeline,” 2022, p. 3). The corporation responded to the external matter of obtaining a shared understanding of the business’s purpose by embracing a mission that indicates that Starbucks strives to pay attention to each distinct person and group.
EA issues that emerged after Starbucks had established its mission were the goals and meant required to accomplish the organization’s main purpose. Enterprises must have a consensus on goals, which represent the short-term tactical survival points and must be precise in designing, manufacturing, and selling products and services (Schein, 2017). By the time of adopting its latest mission statement, Starbucks had 16,680 stores in several countries, and the leaders had to identify specific objectives to maintain the business (“Timeline,” 2022). Starbucks’s goals at the time were maximizing customer experience, establishing a social media presence, and expanding digital offerings (Gupta et al., 2018; “Timeline,” 2022). To accomplish the listed objectives, Starbucks had to resolve problems around means, which incorporate an organization’s structure, methods, and processes, such as systems of reward and incentive (Schein, 2017). For instance, an approach taken by Starbucks to advance consumer experience concentrated on motivating baristas by training them and offering them benefits (Gupta et al., 2018). A company’s mission, goals, and means demonstrate what an enterprise deems important and guide the business’s operations.
Internal Integration
Internal integration issues encountered by Starbucks revolved around language and authority. Schein (2017) proposes that spoken language is the most obvious cultural dimension. It can be characterized by special jargon and acronyms developed by founders but can be confusing to newcomers. Considering the number of Starbucks’ international stores, the corporation had to determine ways for employees in every location to understand one another. For instance, Starbucks appears to provide employees with a glossary outlining language usage regarding coffee-related definitions such as Robusta and decaffeination (“Glossary of coffee terms,” n.d.). Furthermore, one of the important II matters is addressing the authority structure, which shows who has the capacity to dominate and influence and how they should manage (Schein, 2017). In 2008, Schultz removed most of the corporation’s top executives for underperformance and focused on transforming the business (Gupta et al., 2018). Schultz divided the organization’s administration by assigning a particular person to a certain area, such as Talent and Partner Experience, Starbucks EMEA, and Global Sourcing (“Leadership,” n.d.). The company resolved the matters of language and authority by producing a dictionary and dividing power.
Culture and Assumptions
The problems faced by Starbucks after going public and adopting a new mission have shaped the enterprise’s culture and tacit basic assumptions. Schein (2017) states that culture represents shared learning that an organization accumulates while solving the issues of external adaptation and internal integration. Accordingly, as Starbucks had addressed such items of EA and II as obtaining a shared mission, defining specific goals, and establishing a language, the corporation determined its values, objectives, and practices shared by all employees. Culture is associated with desired behaviors within a company and is related to assumptions, demonstrating ways of doing things (Schein, 2017). Such speculations of culture reflect the deepest and unconscious beliefs that new members are expected to adopt (Schein, 2017). For Starbucks, the main assumptions appear to be the necessity to meet the needs of all stakeholders, ensuring maximum client satisfaction, training to enhance performance and receive benefits, and individual responsibility of executives. Upon addressing EA and II points, Starbucks has developed a culture that concerns all parties involved in the business, prioritizes customer experience, motivates employees, and divides accountability between leaders.
Conclusion
Starbucks’s experience with external adaptation and internal integration problems has influenced its organizational culture. Although founded in 1971, the corporation’s current purpose and procedures were determined after Starbucks faced performance challenges in 2008. Howard Schultz resolved to transform the corporation and change its mission, leadership, and operations. Starbucks’s management seems to have adequately addressed issues that emerged at the time. Some insights I have derived are that multiple aspects can impact a company’s culture and that those factors are closely connected to one another. Moreover, I now better understand the importance of having a well-defined mission in structuring an organization’s operations. Overall, the activity presented me with an opportunity to research such a major corporation as Starbucks and helped me comprehend how processes within an enterprise are related to culture.
References
Glossary of coffee terms. (n.d.). Starbucks. Web.
Gupta, P., Nagpal, A., & Malik, D. (2018). Starbucks: Global brand in emerging markets. Emerald Emerging Markets Case Studies, 8(4), 1-22. Web.
Leadership (n.d.). Starbucks Stories and News. Web.
Schein, E. H. (2017). Organizational culture and leadership (5th ed.). John Wiley and Sons.
Timeline. (2022). Starbucks Stories and News. Web.