Starbuck’s Cultural Change
Since Starbucks was first founded in 1971, it has grown by leaps and bounds in every aspect. Its first foreign market was Canada in the mid 1990’s and it continued to grow to overseas markets, bookstores and even to military bases in deployed locations. (Wikipedia.com) The first cultural change that I noticed was the change over in CEO’s over time. Throughout the last eight years, there have been three CEO’s, with one of them sitting in that seat for the second time. To me, that much change over in such a powerful seat, can cause stress on all employees since each leader has different styles and ideas on what they believe will make the company successful.
With the foreign market, there is a different form of cultural change and stressor's that affect the employees as well as the company overall. Wherever a new location opens, Starbuck’s analyst’s have to make sure that they research the area to ensure that the locals and/or host nation are not offended by any actions or items provided by the store (foods provided, some places find it rude to walk around outside with a drink in your hand). Some additional risk and culture stressor's are locations where people are all about coffee, as they are in Austria, Italy, or Turkey or in locations where tea is more their style like in Japan or the United Kingdom. Sales may be higher in zones where coffee is more popular versus where tea is the main selection. (Gurufocus.com)
The rollout of alcohol and wine sales in some locations of Starbucks was a big risk to take for the company. Which is why they chose limited stores to partake in this venture. It started with one location in Seattle and then moved on to Atlanta, Southern California and Chicago. Out of all of the locations, Seattle saw the biggest and strongest sales trend. (Reuters, 2012). When asked why they started this venture, even after all the scrutiny, it was said that, “we started serving after customer response...