PART B – MINI CASE STUDY Carefully read the news articles below and then answer question 4 at the end of the article:
Starbucks Coffee @ Malaysia
Starbucks is one of the largest coffee gourmet business chains in the world. Starbucks in Malaysia is operated by Berjaya Starbucks Coffee Company Sdn. Bhd., a joint-venture between Starbucks Coffee Company and Berjaya Group Berhad. From their first store opening in Kuala Lumpur on 17 December 1998, they have expanded to Sabah and Sarawak and surpassed the 140 stores milestone in January 2012. Now into their 14th year operation, Starbucks has grown not only to become the favorite coffee place for Malaysians but also a productive member of communities across the country.
Brewed freshly coffee is a promising experience to each and every of their customer. A detailed designed store is a perfect place to meet and chat, working, establish a networking or simply enjoy a peaceful interlude in their day. Customers can enjoy the couches, and lots of ambience was created to serve as flagship stores in high-traffic, high-visibility locations. Starbucks offers the finest coffee, the wide selection of beverages, contemplated by assorted choice of dessert. This ultimate coffee experience is resulted from excellent human resource practices. Aside from valued it employees, Starbucks promoting high motivational culture, designing an adaptive organisation, being ethically and socially responsible, and demonstrate a strategic leadership.
Starbucks believes its employees, called partners, are the key to the Starbucks experience. Starbucks wants its partners to have coffee knowledge, product expertise, and provide excellent customer service. At the same time Starbucks believes in treating its partners with dignity and respect. For example, to ensure customer satisfaction with their services, Starbucks provide full day paid training event, known as “Perfect the Art of Espresso”, was designed to help baristas deliver high-quality espresso. One activity consisted of pulling an espresso shot and then evaluating the process and the product. Staff discussions about how the training would benefit customers were held at each store. Partners were told to greet regular customers by name and not to resteam milk that had been steamed once. Also Starbucks want its baristas to slow down and instead focus on making no more than two drinks at a time. To maximise the customer experience and increase the freshness of the coffee, Starbucks is also asking baristas to grind beans for each batch of coffee as it is needed instead of grinding all of the day’s beans first thing in the morning.
Starbucks offers its partners comprehensive and adequate benefits that exceed those provided by many other retailers across Malaysia. Although many partners work part-time they are still eligible for full-time benefits if they work 240 hours a quarter. In term of learning and training development, Starbucks provide varies training programmes for each level of job duties such as Barista Basics Training Programme, Shift Supervisor Training Programme, Retail Management Training Programme (Assistant Store Manager or above) and District Manager Training Programme. Partners who work for more than 8 years are eligible to apply for managerial positions regardless of their educational background. Partners are also eligible for free coffee and tea products each week. Starbucks Support Center houses the partners that focus on providing the tools, resources and innovations stores need to be success in a variety of fields including marketing & communications, Information Technology, Finance, Partner (human) Resources, store development, supply chain and operation Services opportunities.
Question:
(a) What HR practices do you believe are critical for Starbucks to maintain the customer experience and product quality it’s known for?
(b) Could Starbucks be successful without its current HR practices? Why or why not?
(c) Do you think Starbuck’s culture and HR practices can be emulated in other industries such as manufacturing and health care? Why or why not?