OD Implemented in Starbucks 1

ORGANIZATION DEVELOPMENT IMPLEMENTED IN

STARBUCKS

INDIRAN MBS141104

LEE YEW HOONG MBS141102

CHONG KUEN SOON MBS1133

CHIA WI PEAW MBS141106

MOHD FAIZAL MBS141114

SEM I 2015/2016

UBSE1123 – Session 01

International Business School, UTM

Lecturer Name: Dr Harcharanjit Singh

Submission Date: 05th

Dec 2015

OD Implemented in Starbucks 2

Table of Contents 1.0 Introduction ............................................................................................................................... 3

1.1 Problem Statement ............................................................................................................... 3

1.2 Challenges ............................................................................................................................ 4

1.3 Opportunities ........................................................................................................................ 5

2.0 Industry Background ................................................................................................................. 5

2.1 Relevant to Issue .................................................................................................................. 6

3.0 Organization Background ......................................................................................................... 7

3.1 Historical Background ......................................................................................................... 7

3.2 Branches & Location ............................................................................................................ 8

3.3 Products and Services .......................................................................................................... 8

3.4 Customer/ Clients Description ........................................................................................... 10

3.5 Employee ............................................................................................................................ 11

3.6 Management ....................................................................................................................... 12

4.0 Challenges and Opportunities Faced by the Organization ...................................................... 13

4.1 How it Started .................................................................................................................... 13

4.2 The Social Entrepreneurship with Starbucks. .................................................................... 13

4.3 Responsibility as an Organization to Reduce Global Warming. ........................................ 14

4.4 Contribute to Mother Nature and Restoring the Eco-system. ............................................ 14

4.5 Creating an Ethical Supply Chain from the Seed to Distribution ...................................... 15

4.6 Creating Pathways to Opportunities and Employment in Global Communities ................ 16

5.0 Conclusion .............................................................................................................................. 17

6.0 References ............................................................................................................................... 18

OD Implemented in Starbucks 3

1.0 Introduction

This paper discusses about what Starbucks has done on the organizational development to

achieve its goals and objectives. Starbucks established in 1971 in Seattle‟s Pike Place Market,

Washington. Starbucks has become the biggest coffeehouse company and also one of the leading

retailers in the world. Starbucks headed by Howard Schultz as CEO of the organization and the

organizational development plus its strategic direction come from its mission statement and

vision statement influences. In order to have sustainable development, Starbucks has an

environmental mission statement and organizational mission statement. The organizational

mission statement is inspiring and nurturing the human spirit with one person, one cup and one

neighborhood at a time. Under the environmental mission statement, Starbucks has to commit to

a role of environmental leadership to all its business. Secondly, Starbucks has to understand the

environmental issue and share the information with their employees. Thirdly, recognizing that

financial responsibility is a needs to the environmental future and instilling environmental

responsibility as a corporate value. Fourthly, developing innovative and flexible solution to bring

the changes and encouraging its employees to share in the mission. Lastly, is to strive for buying

and selling environmentally friendly products.

1.1 Problem Statement

Starbucks‟ commitment towards the social responsibility gives a significant growth to the

organization. Starbucks initiates to be more environmentally friendly with the environmental

initiatives as below:

1. Starbucks to develop a comprehensive recycling solution for its paper and plastic cups by

year 2012.

2. Starbucks to implement front of store recycling in its stores by year 2015.

3. Starbucks to serve 5 percent of beverages made in its stores in personal tumblers by year

2015.

4. Starbucks to reduce energy by 25 percent in its company stores by year 2015.

OD Implemented in Starbucks 4

5. Starbucks to purchase renewable energy equivalent to 100 percent of the electricity used

in its global company stores by year 2015.

6. Starbucks to reduce water consumption by 25 percent in its stores by year 2015.

7. Starbucks to ensure 100 percent of its coffee is ethically sourced by year 2015.

8. Starbucks to invest in farmers and their communities by increasing farmer loans to & 20

million by year 2015.

9. Starbucks to improve farmers‟ access to carbon market and help them to generate

additional income while protecting the environment.

10. Starbucks to mobilize its employees and customers to contribute 1 million hours of

community service per year by year 2015.

11. Starbucks to engage a total of 50,000 young people to innovate and take action in their

communities by year 2015.

12. Starbucks to build and to achieve „LEED‟ certification to all its new stores.

1.2 Challenges

Starbucks water consumption manages to decrease more than 17% since year 2008 but in

year 2011 the water used by Starbucks increased to 5% over the year. Starbucks knew the root

cause was due to higher sales of beverage and the increase was driven by the change in the

rinsing process of blender pitcher. Besides that, Starbucks struggling to meet the goal it set on

recycle cups to 5% from existing figure which is 25% of the beverages sale. Starbucks has

finished the installation of energy management system in its stores but the energy improvement

only improved 4.6% over its baseline level. The low improvement was due to the increase in

energy requirement in supporting its expanded food platform. Starbucks faces challenge on its

recycling program with its stores located in the area that do not provide recycling infrastructure

and landlords who do not provide recycling services. Starbucks certified LEED international

stores face technical challenges due to the US based LEED certification program is still

developing.

OD Implemented in Starbucks 5

1.3 Opportunities

Starbucks invests in its people, environment and community gives the positive image to

the consumers and its employees. Studies show that companies support social and environmental

issues will give the 93% consumers positive mindset on the organizational. Employees in the

organizational will continue serve and work in the organizational where data proven less

turnover and employees become support to the organizational.

Starbucks builds the future workforces by attracting people who share the same mission

and value to join the organizational. Starbucks supported the baristas‟ training program to help

them developing customer service skills. Starbucks social responsibility gives the organizational

competitive advantage to enter to global market easily and to secure the fair trade market share

for coffee.

2.0 Industry Background

Starbucks operates and competes in the specialty eatery industry whereby companies in

this industry operate self-service restaurants that serve specialty snacks items with nonalcoholic

beverage and to be consumed on-premises or take away. These restaurants are usually bagel

shops, coffee house, doughnut shops, juice bars, smoothies shop and ice cream parlor. Other

major players in this industry include Dunkin‟s Brands, Krispy Kreme Doughnuts, Costa Coffee

and Tim Hortons. Coffee shops which specialize in gourmet coffee like espresso drinks and other

beverages account for about 40% of specialty eatery revenue whereas doughnut shops account

for about 20%. Ice cream shops and other frozen treat outlets account for about 15%. Two of the

major companies Starbucks and Dunkin‟s Brands had dominated more than 60% of the market

share, giving them considerable market power in determining the trend in this industry.

The demands of specialty eatery business are mainly driven by demographics, consumer

tastes, personal income and attitudes towards health. The efficiency of the restaurant‟s operations

and large volume sales determine the profitability of individual companies. Usually the large

companies will have the advantages in purchasing, finance and marketing, whereas smaller

companies can only compete by offering high-quality foods and beverages and providing

superior customer service to their customers. However, this industry is very sensitive to

OD Implemented in Starbucks 6

macroeconomic factors that affect the growth in household disposable income where during the

recession, the revenue and profitability margins in the industry will highly impact due to the

decline in household disposable income.

2.1 Relevant to Issue

The food sector in specialty eateries industry includes producers, processors and

distributors of food together with food services and food retail sector. Energy, fuels and several

other resources are used when the foods travels down the supply chain from growers to

processors to restaurants and ultimately to our plate. Resources are used at each and every step

along the process from growing, transporting, preparing, packaging, cooking and serving the

food that we eat. This energy and fuel use produce carbon emissions and ultimately contributes

to the climate change and global warming. These activities, like food distribution, processing,

retail and food services combined are projected at nearly million tons of CO2 emissions. The

specialty eateries industry has been affected by the climate change because it had impacted the

agriculture sector. As their businesses are dependent on the agriculture, natural resources and

energy, they see the need to be more climate-resilient by being sustainable as well as

environmental friendly in their business practice.

Many companies in this industry are still new to the practice of carbon management and

the education about this new business practice is an important driver. Another strong factor is

marketing and brand image because businesses start to observe the market demand shift towards

a more environmentally responsible products and services. The consumers are now more aware

and responsible when purchase the foods and beverages that they consume, therefore more

companies are changing their business strategy in order to target the health-conscious market

segment by introducing organic, sustainable and healthy foods to the community. Cost saving

opportunities is also another driver for most of the companies as they see energy, waste and fuel

prices rise. Companies need to find a number of sustainability initiatives in order to protect their

business from the impact of the increasing production costs.

Industry and community engagement is another factor that drives the company to practice

the sustainable business strategy as they started to look to network and learn best practices from

their peers and take a leadership role within the industry. A corporate social responsibility

OD Implemented in Starbucks 7

mandates together and their supply chain or partner requirements are also needed to be drivers

for companies in this industry to start to manage carbon emission. If these companies reduce

their emissions by just 5%, the total reduction of 50,000 tons of carbon can be achieved annually

and ultimately save $20M in operating costs.

3.0 Organization Background

3.1 Historical Background

Speaking of Starbucks, the public will spontaneously associate it as the American

originated coffee. It has also been also recognized as among the best places to have the

beverages and spend some leisure time. But what people may be unaware is that the short history

of its development and progress it made, in which Starbucks becomes among the most visited

and popular coffee shop in the globe within less than half a century.

The first Starbucks was established on 30 March 1971, initially located at 2000 Western

Avenue, Seattle, Washington. Three students of University of San Francisco with different

educational backgrounds have founded the company. Three of them were English teacher Jerry

Baldwin, history teacher Zev Siegl and a writer Gordon Bowker. They enthused in selling high

quality coffee beans and equipment after observing the method of roasting coffee beans

performed by a coffee entrepreneur Alfred Peet.

Meanwhile, the name Starbucks came from a character in a classic American novel about

the 19th century whaling industry, the Herman Melville‟s Moby Dick novel. It was suggested

that the company took the name of the chief mate in the book Moby-Dick: Starbuck. However, in

an interview with Bowker, he stated that the name came out when they were brainstorming a list

of words that began with “St”, which he thought those words were more powerful and attractive.

Someone has taken out an old mining map of the Cascade Range and they saw a mining town

named "Starbo", which sparked the character of "Starbuck” in Bowker‟s mind. He re-emphasized

that it was only a coincidence and the Herman Melville‟ novel was not related with the name

“Starbucks” directly.

The Starbucks store moved to 1912 Pike Place Market, Seattle in 1976 and maintained

till today. In the first year of operation, the green coffee beans for brewing were bought from

OD Implemented in Starbucks 8

Peet, only later the company purchased directly from the coffee bean planters. In fact, during this

early period, the stores only sell roasted coffee, but not brew the coffee for selling. The brewed

coffee was reserved for free samples only. By 1986, the store number has increased to six in

Seattle and began to diversify its product by selling espresso coffee.

In 1984, Jerry Baldwin with the other owners of Starbucks purchased Peet‟s share in the

company. However, in 1987, former employee of Starbucks, Howard Schultz has bought the

retail chain after being the employee since 1982. Schultz has also rebranded his own Giornale

coffee outlets as Starbucks. The greatest impact done by Schultz was being the architect of

Starbucks, lead the expansion of Starbucks not only outside of Seattle, but successfully ventured

and marketed the products to become a worldwide business as what we observed today.

3.2 Branches & Location

Starbucks branches quickly expanded after Howard Schultz leading the company in 1987.

Waterfront Station in Vancouver, British Columbia and Chicago, Illinois became the first

Starbucks branches located out of Seattle, which were opened in the same year as Schultz took

the management. In 1996, Tokyo, Japan became the first running Starbucks located outside the

North America. Starbucks has penetrated the United Kingdom market in 1998. Meanwhile, the

first store of Starbucks in Latin America opened in Mexico City in September 2002. A year later,

the first Starbucks was opened in South America in Lima, Peru while they only managed to do so

in Russia in 2007. Meanwhile, 17 December 1998 marked the milestone of Starbucks in

Malaysia. As of September 2015, Starbucks has made its presence in six continents and up to 66

countries. The table 1.0 below lists down the countries in the world with Starbucks branches.

3.3 Products and Services

Despite started as a coffee shop, Starbucks has tremendously improved in term of growth

opportunities. Began only with roasted coffee bean, it has intensified the selling by serving other

variants of coffee such as latte and mocha. Moving ahead, Starbucks has integrated the related

business such as selling tea, beer and other beverages in the stores. In maintaining the

competitive advantage, Starbucks diversifies its products with the introduction of additional

OD Implemented in Starbucks 9

menus such as salads and baked goods in the shop. The table 2.0 below summarizes the products

available in most Starbucks branches.

Asia

Azerbaijan Bahrain Brunei South

Korea

Hong

Kong

Saudi

Arabia

Cyprus India Indonesia Japan Jordan Kuwait

Lebanon Malaysia Oman Philippines Qatar Sri Lanka

Singapore China Macau Taiwan Thailand Turkey

UAE Vietnam

Europe

Austria Belgium Bulgaria Guernsey Denmark Finland

France Germany Greece Hungary Ireland Monaco

Netherlands Norway Poland Portugal Romania Russia

Spain Sweden Switzerland United

Kingdom

Czech

Republic

North

America

Aruba Bahamas Canada Costa Rica Curaçao El Salvador

Guatemala Mexico United

States

Puerto

Rico

Panama

South

America

Argentina Bolivia Brazil Chile Colombia Peru

Oceania Australia New

Zealand

Africa Egypt Morocco South

Africa

Table 1.0: World Starbucks Branches

OD Implemented in Starbucks 10

Drinks

Bottled drinks Freshly brewed

coffee

Iced coffee Espresso

beverages

Frappuccino

Blended beverages

Kids‟ drinks &

others

Smoothies Cold brew coffee

Fizzio handcrafted

sodas

Evolution fresh Chocolate

beverages

Tea beverages

Food

Bakery Sandwiches, Pannis

& Salads

Bistro boxes Hot breakfast

Yogurt and Fruits Starbucks petites

Table 2.0: Menu in Starbucks Stores

Starbucks has utilized the technology to enhance the services they provide. To enhance

the ambience, unlimited free Wi-Fi Internet access is usually available in the coffee houses. Ports

for charging mobile devices are made available for customer convenience. The customers can

even buy the drink wares and beverage making equipment as gifts or for personal use. In some

stores, the customers may choose their drink combinations via automated touch screen machine.

To further ease those who are in a hurry, they can make their orders and pay through mobile

applications, then drop by the shop just to pick up orders.

3.4 Customer/ Clients Description

Global Customer Experience Management Survey in 2011 has listed Starbucks as

number four for Best Customer Experience. As mentioned previously, the brand name that

Starbucks has created is inimitable till now by any other coffee shops. It is not just a simple

coffee shop, but a few factors have carved the establishment of Starbucks, mainly the

atmosphere, coffee quality, customer service and employee satisfaction. Starbucks has steered

the second wave coffee by which people come to realize that coffee is not just a matter of drink,

but the experience of having a good coffee is utmost crucial. Quality control has been the main

OD Implemented in Starbucks 11

theme in Starbucks. For example, Starbucks collaborates with the coffee planters to keep the

standard of coffee beans identical. This is reflected by the fact that regardless where the coffee

house is located, the ambient and the taste of the drinks that Starbucks presents to the customers

remain similar.

3.5 Employee

In the first place, the Starbucks policy statement has ensured that all qualified applicants

will receive consideration for employment without regard to age, race, color, religion, sex,

national origin, disability, sexual orientation, status, gender identity or expression, or any other

basis protected by local, state or federal law. The policy applies in all aspects of one‟s

employment which encompasses the process of hiring, transfer, promotion, compensation,

eligibility for profits and termination.

The newly appointed employees will be provided with adequate training, in both how to

be personable with customers and knowledge of the product offering in order to provide a

superior experience to the clients. In regard to welfare, comprehensive health coverage is made

available to all eligible full time and part-time employees. Benefits-eligible employees are

further endowed with wide ranges of perks which include bonuses and discounted stock purchase

options.

In addition, the employees in Starbucks are treated as partners rather than workers. Being

a Starbucks partner means having an enormous opportunity for self-development. It is parallel

with the leadership pipeline culture that embedded in the organization. The employee is expected

to develop as a person, in the career and to be a leader in the future. Starbucks College

Achievement Plan is available to allow the employee to pursue their study in Arizona State

University and they will be provided with total tuition reimbursement. The military service

members and veteran partners can extend this benefit to their spouse, domestic partner, or child

to achieve their dreams.

In cultivating and preserving ethical behaviors and conducts among partners, Standards

of Business Conduct of Starbucks are made available for reference. It consists of company‟s

expectations of partners as how to conduct the business, in line with the mission, guiding

OD Implemented in Starbucks 12

principles and core values. It also serves as a resource for partners to make appropriate decisions

at work.

3.6 Management

Starbucks leaderships are committed to maintain good governance practices with the aim

of warranting the business and affairs are accomplished according to its stated goals and

objectives, together to serve the long term welfare of the shareholders. This is established by the

Starbucks Corporation, corporate governance principles and practices of the Board Directors

policy statements which were updated on 23 June 2015. Besides, a majority of the Board

Directors meets all the independence requirements of the National Association of Securities

Dealers Automated Quotations (NASDAQ®) and U.S. Securities and Exchange Commission.

Furthermore, the CEO, COO, CFO and Finance Leaders in Starbucks are required to sign an

undertaking letter of the Code of Ethics.

Below are the lineup of the latest Board Director of Starbucks, in which majority of them

are the distinguished personnel in the industry:

1) Howard Schultz (Chairman & CEO) 2) William (Bill) Bradley

3) Robert M. Gates 4) Mellody Hobson

5) Kevin Johnson (President & COO) 6) Olden Lee

7) Joshua Cooper Ramo 8) James Shennan Jr.

9) Clara Shih 10) Javier Teruel

11) Myron Ullman, III 12) Craig Weatherup

Howard Schultz believes that a happy employee would lead to higher customer

satisfaction, which is the ultimate success of an organization, but it needs a concerted effort from

the superiors with ethical leadership to begin. This notion is comparable to Job Characteristics

Model as coined by Hackman and Oldham. The success of Starbucks as an international coffee

retail chain, the always friendly Starbucks employees and the marvelous services that we obtain

in the stores are conforming to the model.

OD Implemented in Starbucks 13

4.0 Challenges and Opportunities Faced by the Organization

Founded in 1971 and hurdling through storm and shine, Starbucks has evolved over the

years to be a more responsible cooperation. One of the major responsibility Starbucks has carried

from 2008 onwards, is towards the environment. After all, down the supply chain of Starbucks

is from Mother Nature; Coffee plant. Starbucks has re-evaluate its organizational development

process to address global environment change by building or renovating their stores to green

conception to utilize water and energy efficiently, breaking the barrier of recycling with

environmental friendly cups made out of bio-degradable products and to invest in renewable

energy.

4.1 How it Started

The whole process was inspired by Howard Schultz in 2008 when he returned as the

CEO of Starbucks after the downfall of Starbucks since he left in 2000. Schultz launched a

radical plan over the next five year to revitalize the brand and increase its growth to profit.

Among his plan was to breathe life into the organization harmonically through a major

organization development process.

4.2 The Social Entrepreneurship with Starbucks.

Starbucks initiated its first Leadership in Energy & Environmental Design (LEED)

certified store and has continued the initiative globally. LEED is defined as a certification

program for green building.

The main challenge in executing this idea is to have a standard. Not many had experience

in designing and building, thus it faced a strong technical challenge. Besides that, the cultural

different and norms practice is another major obstacle to implement this idea internationally.

One important criterion in achieving the LEED standards is to efficiently utilize water

and energy. In line with that objective, Starbucks implemented new water filtration system and

retrofitted old ones to improve the process, this contributed to savings up to 23% of the baseline

level. In order to comply with the next condition of LEED certification-green building, Starbucks

OD Implemented in Starbucks 14

integrated green construction tactics to exercise energy-efficient appliances and fixtures, natural

lighting at any possible corners and utilizing a better aerodynamic ventilation system to reduce

the amount of heating and cooling consumption. Even though with these initiatives, the

improvement was only a small figure to be compared to the investment of the new installation

and replacement of old appliances, it did not de-motivate Starbucks to set an ethical footprint.

By 2014, 64% of Starbucks stores comply with LEED standards.

4.3 Responsibility as an Organization to Reduce Global Warming.

The second significant change; made by Schultz to improve the performance of Starbucks

when he stepped in; was to invest in renewable energy. Starbucks started this proposal by

restructuring their purchasing practices. In United States, Starbucks took a bold risk to purchase

renewable energy from wind and solar source. This baby step has lead Starbucks to equip more

than 59% of their stores with solar panel renewable energy globally.

The main challenge with this program was the availability of technology at an affordable

price to Starbucks. Renewable energy was still at the birth stage and required a lot of investment

to grow their market-product leading to a higher selling price to cover all the cost of production

and research.

This course of action has not only spur Starbucks with better return, but also encourage

the renewable energy industry a brighter light of opportunity into expanding their wings and

creating more efficient product to assist business ventures invest on them.

4.4 Contribute to Mother Nature and Restoring the Eco-system.

The third point of interest on this paper Schultz has implemented as a step to a better

organization is the usage of recycled materials. This stride is a significant element to Starbucks

overall process stratagem.

The main challenge to this step is that it requires cooperation from the customer with a

change in behavior and attitude towards the initiative. The local authority policy in enforcing

OD Implemented in Starbucks 15

recycling programs brings a fair value of challenges too, from the infrastructure to influencing

the traditional mindset.

Starbucks promoted discounts to customers who bring in their personal cup or tumbler.

As time passes, Starbucks baited customers to support this initiative with a higher discounted

price on sale of every cup of coffee and progressively witnessed improvements.

As much as Starbucks intend to roll out the go-green campaign by promoting and

educating on waste management, waste is often handled by store owners; adjunct with

differences between the culture of a country and the enforcement made, not many outlets

practices recycling. To overcome the challenge, a dynamic process from the top of the supply

chain has to play a strong character commitment in both material and recycling.

In 2006, Starbucks took the extra mile to support this initiative by developing the

technology to produce recycled paper fiber and went further to use it as cups to packaging to

boxes. On top of that, Starbucks also practices recycling modes facing customers by providing

sufficient recycling benefits.

4.5 Creating an Ethical Supply Chain from the Seed to Distribution

Ethical sourcing is framework setup by responsible retailers in fertilizing and utilizing

suppliers, foods and products that is eco-friendly from the root, to harvesting and

industrialization with respect to Mother Nature and Homo sapiens. As giant organization which

depends highly on suppliers for their raw materials, Starbucks want to improve the quality of life

A major organizational development transformation implemented by Starbucks is the

Coffee and Farmer Equity (C.A.F.E) approach in encouraging lasting ammunition of quality

coffee and create a positive influence in the farmers live.

C.A.F.E contains two main areas, a pre-requisite which is the fundamental to the policy

and an evaluation by third party to enforce the core. The pre-requisite contains elements of

enforcing quality of the coffee meeting Starbucks standards from shape to smell to taste, and

economic accountability that requires transparency of payment made at each level of the supply

chain in order to justify the rights of the farmers and their work for the amount of coffee they

have produce. To cream of this two functions, third party evaluation emphasizes on social

OD Implemented in Starbucks 16

responsibility to ensure the safety and rights of workers so it is in a humane and in living

condition complying with the minimum wage requirement and labor enactments such as the

child and forced labor are prohibited and environmental leadership evaluates the suppliers

economies of scale from energy conservation, water and waste management, and amount of agro

chemical used.

A dynamic and continuous process of improvement has been implanted in supporting and

educating the supply chain in encouraging the plan for a long-term productivity of coffee

innovation. Starbucks opts for open-source approach in improving their organizations in terms of

supply chain and coffee source.

4.6 Creating Pathways to Opportunities and Employment in Global Communities

Around the world, one of the fastest growing population there are more than 290 million

young peoples' undiscovered opportunity for a mixture of productivity and innovation in the

workforce. In the meantime, there likewise challenge for the employers to meet the qualified

candidates. Starbuck as a proven organization has provided a comprehensive and collaboration,

innovation and solutions to assist young people to gain a skill through the training to achieve a

success in a rapidly changing global economy.

As one of the world‟s leading youth employers, Starbuck employed 80 percent

Millennials in its workforce, Starbucks had committed hired nearly 10,000 youths in the U.S.

over the last 3 years, many of whom are eligible to participate in the company‟s full state of

benefits including the Starbucks College Achievement Plan, which provides free tuition fees for

a bachelor‟s degree from Arizona State University through the on-line learning method. By hired

these purpose driven young peoples, Starbucks trusts it can make a real pathway to opportunity

for these new employees while driving its business forward and increase the communities it

serves. In Starbucks, the Schultz Family Foundation and Youth Build USA were also initiated

the Customer Service Excellence Training (CSET) program, which allowed candidate to learn

customer service skill based on the same training Starbucks cafe partners and hands-on

involvement in retail or cafe setup.

The Starbucks Foundation was founded to support commitment to community. Beginning

in 1997 with the funding of literacy programs in Canada and United States, the foundation

OD Implemented in Starbucks 17

supported communities around the globe in all possible ways. In 2014 Starbucks Corporation

gave USD11.4 million money, including USD1.9 million to the Starbucks Foundation. Starbucks

Corporation is granting funds for community building projects, including the Global Fund

through the partnership with (RED) ™ and other efforts and USD38.8 million in real

contributions.

5.0 Conclusion

Collaborative and future-oriented is the keyword for the successful organizational

development. The organization can achieve goals and improve effectiveness, capacity building

and innovatively manage challenged and changes through an organizational development.

The four main elements which are focusing develop by OD experts are structures,

systems, processes, and human within the organization through a several programs which

including organizational assessments, executive and employee improvement and coaching,

mediation and conflict management, operational review and process improvement, retired

planning and assistance, vital and operational planning, team improvement and assistance,

several special training.

In order to have sustainable development, Starbucks has an environmental mission

statement and organizational mission statement. The organizational mission statement is

motivating and sustaining the human spirit with another individual, one cup and one

neighborhood at once. Under the environmental mission statement, Starbucks needs to focus on a

mission of environmental leadership to all its business. Secondly, Starbucks needs to recognize

the environmental issue and share the information with their partners. Thirdly, understand that

financial responsibility is required to the environmental future and fostering environmental

responsibility as a corporate value. Fourthly, developing innovative and flexible solution to bring

the changes and encouraging its employees to share in the mission. Last but not least, to strive

for buying and selling environmentally friendly products.

OD Implemented in Starbucks 18

6.0 References

1. http://www.termpaperwarehouse.com/essay-on/Starbucks-Case-Analysis/118130

2. http://www.termpaperwarehouse.com/essay-on/Saving-Starbucks-Soul/191378

3. http://www.termpaperwarehouse.com/essay-on/Organization-Development-And-

Change/238231

4. http://www.termpaperwarehouse.com/essay-on/4-P-s-Of-Marketing-For-Starbucks/209151

5. http://www.termpaperwarehouse.com/essay-on/Organization-Behavior/25609

6. http://www.termpaperwarehouse.com/essay-on/Starbucks/35872

7. http://www.termpaperwarehouse.com/essay-on/Starbucks-Case/71851

8. http://www.termpaperwarehouse.com/essay-on/Strategic-Audit-Of-Starbucks/41307

9. http://www.slideshare.net/asfawm/starbuckscasestudy

10. http://smallbusiness.chron.com/starbucks-its-organizational-design-12857.html

11. https://books.google.com.my/books?hl=en&lr=&id=UPJljWE62AYC&oi=fnd&pg=PA1&d

q=starbucks+organizational+change&ots=Xb9R9G3inQ&sig=C8Y2umfnZ9Jm27wV5Qn-

Yk6LWlE&redir_esc=y#v=onepage&q=starbucks%20organizational%20change&f=false

12. http://www.yai.org/resources/r-c/resources/organizational-culture-and-how-starbucks-saved-

my-life.html?referrer=https://www.google.com/

13. https://starbucks.taleo.net/careersection/1000222/jobdetail.ftl?job=150002878

14. http://www.newdirectionsconsulting.com/leadership-engagement/the-starbucks-way-

rediscovering-your-mission-purpose-value-in-a-bad-economy-2/

15. http://www.ukessays.com/essays/business/starbucks-business-development.php

16. http://www.nytimes.com/2009/01/29/business/29sbux.html?_r=0

17. https://hbr.org/2010/07/the-hbr-interview-we-had-to-own-the-mistakes

OD Implemented in Starbucks 19

18. http://www.starbucks.com/responsibility/global-report

19. http://www.starbucks.com/responsibility/sourcing

20. http://www.starbucks.com/responsibility/sourcing/coffee

21. http://www.starbucks.ie/about-us/company-information/mission-statement

22. http://www.whywhisper.co/the-blog/2015/9/24/corporate-social-responsibility-how-

starbucks-is-making-an-impact

23. https://bizgovsoc4.wordpress.com/2012/11/11/starbucks-how-ethical-behavior-can-boost-

business/

24. http://www.thegreenmarketoracle.com/2012/04/starbucks-sustainability-journey.html

25. http://www.greenretaildecisions.com/news/2012/03/29/starbucks-reveals-sustainability-

progress-and-challenges

26. How Starbucks got its name – Seattle‟s Big Blog. Seattle Post-Intelligencer. October 21,

2015.

27. Melissa Allison (March 9, 2008). Starbucks co-founder talks about early days, launching

Redhook and Seattle Weekly, too. Business and Technology