Company and Industry Report

Starbucks Corporation Company Analysis

Prepared for:Brigitte Clark

Interim Director, CSUS Career Center

Prepared by:Jessica KingDylan Predko

Olivia ShestyukSvetlana SolovyevaStephanie Tauzer

12 October 2015

12 October 2015

Brigitte ClarkInterim DirectorCSUS Career CenterLassen Hall 10136000 J StreetSacramento, CA 95819

Subject: Analysis of the viability of a career with Starbucks Corporation

Dear Ms. Clark:

Enclosed is the full report on Starbucks, complete as of October 12, 2015.

The purpose of this report is to provide students of Sacramento State with readily accessible and straightforward information on career possibilities available for pursuit upon graduation. In this case the information relates specifically to careers with Starbucks Corporation. Having this information compiled in a clear and easily navigable locale will be invaluable to busy students, cutting through the excess available information to provide what is most essential and pertinent to their needs.

The report presents an unbiased perspective on whether Starbucks and its industry are favorable options for a career. At the outset it provides a broad view of the industry. From there it supplies an overview of Starbucks as it relates to its industry as well as its specific traits as a company and its long-term outlook. Finally, it expounds on what it is like to work at Starbucks, both at the corporate and retail level, including the merits and drawbacks.

Group Three Consulting has performed extensive research to assemble this comprehensive resource. It is objective and relevant—we are students without any Starbucks affiliation and we compiled it for fellow students.

It is our hope that this report will be an indispensible addition to the plentiful resources already provided at the CSUS Career Center. We appreciate you giving us the opportunity to present our findings for the benefit of the students who avail themselves of its offerings. I will get in contact with you on Monday, October 19th, but you are welcome to contact me before then with any questions or concerns you may have. You can reach me at (916) 677-6206.

Sincerely,

Jessica KingGroup Three Consulting Manager

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TABLE OF CONTENTS

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LIST OF ILLUSTRATIONSFIGURE 1-A: REVENUES OF THE COFFEE AND SNACK SHOP INDUSTRY (2002-2016)

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EXECUTIVE SUMMARY

This report gives potential job seeking graduates a comprehensive view of the Starbucks Corporation and the viability of its industry.

Coffee and Snack Shop Industry

The Coffee and Snack Shop industry (SIC: 5812 and NAICS: 72221b) has long outperformed classic restaurant style industries in terms of growth, due to shifting socialization patterns of modern culture. People are now, more than ever, spending time together in the shops of this industry and this created a large business opportunity. The experience, technology, and friendliness offered by this sector of the service industry create a model for growth with no sign of stopping. Although there are only two major players, the industry is comprised of over 40% small businesses (Alvarez, 2015). The $38bn potential revenue creates fierce competition between coffee houses and snack shops, and recently has resulted in consolidation (Alvarez, 2015).

The Starbucks Experience

Starbucks can attribute its success in this highly competitive field to its constant innovation. Staying ahead of consumer trends and blazing a path to technological innovation have kept its consumers coming back for the latest cutting edge ideas. The R&D expenditure of Starbucks has shown its commitment to finding the next big idea, and backing it financially.

The inviting experience and diverse taste selection offered by every one of its 20,000 stores appeals to all generations and every income level (Alvarez, 2015). Having such a distinct culture creates the opportunity for converting every new customer into a potential long-term loyal customer. The desire for the Starbucks experience is not just a domestic phenomenon either, as it has already expanded to 65 countries around the world (Starbucks Corporation, 2015).

Opportunities at Starbucks

Starbucks’ commitment to finding creative and intelligent graduates is a constant process, visible by its presence at job fairs and the opportunities it presents at prestigious universities. Its model of business is appealing to any graduate that wishes to belong to a group of like-minded, innovative individuals. At a company that is at the forefront of its industry, there are positions available within the corporate entity of all capacities and around the world. The opportunity for employment at such a large and successful corporation is highly valued--it no doubt brings its employees satisfaction in the happiness they bring to their customers.

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INTRODUCTION

For students graduating from college, finding a career that provides good pay, stability, and a positive work environment can present a daunting task. With that in mind, this report provides a resource for such students to be able to quickly locate the information that they need in order to make an informed decision about their career.

Purpose and Scope of Work

The purpose of this study is to determine whether Starbucks Corporation is recommendable for a career. In order to reach this conclusion, the study delves into the viability of the industry itself (SIC and NAICS code!!!) and the various qualifiers for what might attract or deter someone from a career with Starbucks. The study assesses the company’s overall values, financial position, and treatment of employees. It presents a conclusion and an unbiased recommendation in light of these discoveries.

Sources and Methods of Data Collection

The sources for all of the information contained in this report are secondary in nature, meaning that the data was presented in other locations prior to its inclusion here. These sources include business journals, financial reports, and third party evaluations from reputable news sources. Most of these articles were obtained through the databases provided for Sacramento State students’ use, including IBISWorld, Business Source Premier, Academic Source Premier, LexisNexis, and ABI/Inform Complete. The report also extracts information directly from the Starbucks company website.

THE COFFEE INDUSTRY

History

For much of the U.S history, coffee consumption mainly consisted of instant and at-home coffee. However, by around mid 1990’s, more Americans were consuming specialty coffees at coffeehouses rather than preparing their own coffee at home (SIC 2095, 2011).Starbucks falls under the following industry classifications: coffee and snack shop industry, roasted coffee, coffee and tea manufacturing, and specialty coffees. The retailer coffee industry depends heavily on other countries to source its coffee demand since the farming of coffee beans is not prevalent in North America due to an unfavorable climate. Thus, the world’s leading coffee producers include countries within the regions of South and Central America, the Caribbean, and some of Asia and Africa. The United States, Germany and Japan account for about 55 percent of all coffee exported, with 53 percent of all coffee produced coming from Brazil, Vietnam and Columbia (SIC 2095, 2011). It is important to consider the sourcing and manufacturing of coffee beans as coffee shops rely heavily on their supply for production and operational purposes. Thus, the industries of roasted coffee and coffee and manufacturing will be considered alongside with the coffee and snack shop industry, in which Starbucks is a major leader.

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Industry Classifications

Starbucks Corporation falls into the following industries, in order of the greatest market share, to the least:NAICS: 72221b (Coffee and Snack Shop)SIC: 2095 (Roasted Coffee)NAICS: 311920 (Coffee and Tea Manufacturing)

Main Players

The leaders in the retail industry of coffee consist of Kraft, Nestle, Procter & Gamble, and Sara Lee, also known as the “Big-Four” (SIC 2095, 2011) Starbucks, although not a primary player in the general retail coffee industry, is “the leading retailer of specialty coffee in North America” with more than 22,000 coffee shops in 66 countries (Starbucks, 2015). As mentioned previously, Starbucks and Dunkin’ Donuts have a large market share in the Coffee and Snack Shop industry, with Starbucks owning 38% of the industry (IBISWorld, 2015). Main key snapshots of the Coffee and Snack shop industry, along with revenue vs. employment growth and consumer spending charts, are provided in Figure 1-A in order to detail the significant details that pertain to this industry’s growth (IBISWorld, 2015). From this point on, the report will mainly focus on the Coffee and Snack Shop industry since Starbucks is a main player in it, and thus, the trends and long-term outlook of the Coffee and Snack Shop industry are the most informative for the purposes of this report. However, the Coffee and Tea Manufacturing industry and the Roasted Coffee industry will also be briefly mentioned, when necessary, in order to provide the full picture of the complexity of running a coffee shop, since it heavily relies on its sourcing partners and roasters.

Trends

The last 10 years have been an indicator of the consumer growth in the Coffee and Snack shop industry that favor the diversity and convenience offered by these firms. The main driver for this behavioral spending is attributed to the healthy economic environment. More households with higher discretionary income equate into more spending on prepared food outside of the house for convenience, with consumer spending projecting to rise 2.9% within the next 5 years (Alvarez, 2015). But this trend is not the sole result between coffee and its patrons, the consistent growth derives from the nature of this industry and its ability adapt to consumer wants and preferences under the condition of a favorable economic outlook.

Growing faster than any other segment of this industry, are the “Third Wave” style coffeehouses that have found niche markets in San Francisco and Seattle-type consumerscapes. The idea behind third wave is more of an appreciation for coffee in an artisanal sense, creating a direct link between growing, roasting and brewing high quality coffee. These firms target coffee connoisseurs and have attained growth rates of 20%. This reflects other trends seen internationally in the UK and Australia (Alvarez, 2015).

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Also, in the last few years, a constant increase in consumer spending due to a larger discretionary income has contributed to a growing, albeit slow market with no sign of stopping. The post-recession economy has fueled consumer-buying habits with higher average incomes. GDP is expected to grow at an average of 2.5% annually until 2020, which translates to a continuing steady trend of growth within this industry (Alvarez, 2015).

Figure 1-A: Revenues of the Coffee and Snack Shop industry (2002-2016)

Long-term outlook

The consistent growth of this industry, even during unstable economic times, is an indicator for its long-term success and viability. Figure 1-B provides the revenue from the Coffee and Snack Shop industry for the years 2002-2016, which show a constant steady growth in the industry revenues (IBISWorld, 2014). The Coffee and Snack Shop industry has long outperformed other areas of food service industries; however, it is currently in a declining growth period (Alvarez, 2015). This is an indication of a mature lifecycle and can lead to market oversaturation in some areas. But because of this sector’s ability to adapt to consumers product and experience demands, the growth rates will remain somewhat steady in the near future.The volatility of revenue has been low industry wide because of the consistent healthy economic outlook. As the expansion of current firms and competition between existing large firms increases, the margin shrinks industry wide. This is projected to slowly continue for the next five years, even though consumer spending is increasing and wages are decreasing. The cost to differentiate the customer experience has attributed largely to the associated costs of continuing

Statista (2015). Retrieved from http://www.statista.com.proxy.lib.csus.edu/statistics/196570/revenue-of-the-us-coffee-and-snack-shops-industry-since-2002/

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business in this industry. It is important to notice that consumer spending with regards to convenience food and drinks is sensitive to economic outlooks and a bumpy economic forecast could be threatening to this industry.

Potential Threats

The widespread increase in general nutrition awareness has been potentially threatening to many businesses that are based mostly on the sweet and less healthy snack options. But this has created an opportunity for many firms to follow the consumer trends of more healthy and locally purchased choices. Starbucks added many options to their menus of food and drink to specifically adapt to these new attitudes. They created drink options under the name “Skinny” to describe their lower calorie content and food options like the “Protein Pack” indicating a lower carbohydrate food choice for the previously common donut or bagel. These small adaptations contributed to an industry profit growth of 6.7% in 2015 alone (Alvarez). Also, the volatility of coffee prices can be threatening to the future outlook of small margins. Political changes, economic trends, or weather patterns all play a large part in the coffee commodity-trading price (ICO, 2009). Typical coffee growing nations have lower average national wages, for this very labor-intensive agricultural process. The countries with these conditions are prone to political uncertainty, which can be threatening to trade regulations. But the wild card factor within all agriculture is the weather hardships experienced by recent conditions. Fluctuations in price up to 60% are not uncommon, taking the potential price from about $1.00 per pound to $1.80 (ICO, 2009). All of these factors are major threats to the volatility of coffee prices and therefore threatening to the profit margins for this industry, since the revenues rely heavily on drinks made out of coffee.

Potential Growth

There are two distinct age groups that offer an opportunity for market growth. The millennials are the most likely to eat their meal out of home, due to the emphasis by this group on the experience of socializing and the large portion of discretionary income they spend on food/drink (Alvarez, 2009). The baby-boomers are the most financially successful of the past few generations and most likely to eat out. These two demographics groups are contributing to the growth of this industry that aligns their common need for social belonging and stimulation.

Figure 1-B: Main Players in Coffee and Snack Shop Industry

Graph from Alvarez (2015). IBISWorld Industry Report 72221b Coffee & Snack Shops in the US. Retrieved from IBIS database.

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Competition

Even though there are only two major players in this industry, the competition for market share between them and many smaller firms is fierce. Industry rivalry is high due to easy entry and exit into the market. Furthermore, threat of substitution attributes to the quick success of smaller and more locally conscious and accommodating businesses. And with over 40% of the industry being smaller businesses, larger competitors need to stay relevant even on a local level (Alvarez, 2015).

Revenue (%) IVA (%) Establishments (%) Enterprises (%) Employment (%) Wages (%)Consumer 

spending (%)2006 10.5 12.4 5.6 3.6 9.8 7.6 32007 10.5 2.3 7.6 3.9 9.4 7.5 2.22008 9.8 -5.7 4.4 2 11.4 10 -0.42009 -3 16.3 -0.8 -0.3 -3.5 -2.8 -1.62010 2.8 -0.3 1.1 2.6 -5.1 3 1.92011 4.4 8.9 2.6 3.2 3.3 4.6 2.32012 2.6 6.8 4.2 4.7 3.4 2.7 1.82013 7.8 10.2 5.8 6.7 7.4 9.6 2.42014 2.8 -4 3.5 2.6 2.9 3.2 2.52015 3.7 6.3 3.3 3.2 3.2 3.6 3.3

TABLE 1: Detailed Revenue in the Coffee and Snack Shop Industry (2006-2016)

Graph information from Alvarez (2015). IBISWorld Industry Report 72221b Coffee & Snack Shops in the US. Retrieved from IBIS database.

STARBUCKS

Starbucks is by far the largest company coffee house in the world. With 182,000 full time employees, over 22,000 stores around the world, and producing 4 billion cups of coffee globally each year, Starbucks is the most successful worldwide coffee chain in the industry (Statistic Brain, 2015). Starbucks has always believed in serving the best coffee possible to help make the world a little better. It is more than just a coffee shop - it is a neighborhood gathering place where people meet up to converse, get work done, and simply enjoy their time. The company has always had an objective of persistently conducting business in ways that keep an equilibrium between profitability and social conscience in the communities in which it does business (Starbucks, n.d.l).

History

The first Starbucks coffee shop opened in Seattle’s Pike Place Market on March 30th, 1971 under the ownership of Jerry Baldwin, Zev Siegl and Gordon Bowker (Starbucks, n.d.a). From 1971 until 1978, Starbucks expanded from one location, to six. Current CEO Howard Schultz first walked into Starbucks in 1981 and got a job there as a regular employee. In August 1987 Schultz bought Starbucks for $3.8 million with the help of local investors. Since then, the

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company has expanded from those first six stores to more than 22,000 locations in more than 67 countries (Geffen, 2014).

Starbucks was named after the first mate in Herman Melville’s Moby Dick. Its logo is also inspired by the sea, featuring a twin-tailed siren from Greek mythology (Starbucks, n.d.a). Despite several changes to the logo in the past 40 years, the Siren has remained as the welcoming face “at the heart of Starbucks” (Starbucks, n.d.k).

Starbucks has always believed in the importance of serving their customers with the warmth and sense of belonging that they all deserve (Starbucks, n.d.j). The company uses humanitarian efforts to include ethics in their production of coffee and share their customer’s devotion to the environment (Starbucks, n.d.l). To ensure they maintained this motive they came up with a mission statement.

Mission Statement

The company’s mission statement is fully rounded out to explain the strategies of the company as a whole. Starbuck’s mission is “to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time” (Starbucks, n.d.j).

Structure

The executives of Starbucks are wise individuals who are truly concerned with bringing out the mission statement in their everyday work, further benefiting the customers, their employees (which they call their partners), and the environment (Starbucks, n.d.b). The following table provides detailed information of what the following executives bring to the company.

Table 2: Starbucks Executive Description

Howard Schultz

Chairman & Chief Executive Officer

Schultz has led to a change in the company since the beginning and now continues to provide his executives with the right resources to carry out the mission statement.

Adam Brotman Chief Digital Officer Brotman is in charge of Starbucks digital businesses, which are mobile and mobile payments, web, card, loyalty program, e-commerce, Wi-Fi, and the Starbucks Digital Network.

Cliff Burrows Group president, US, Americas, and Teavana

Burrows is in control of all the actions happening in the US, Canada, and Latin America including the latest addition of Teavana into Starbucks. He is known for his strong leadership.

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Michael Conway

President, Starbucks Global Channel Development

Conway is responsible for Starbucks Channel Development business. He works with a team that is in charge of the strategy, planning, branding, sales and marketing portfolio of consumer packaged goods.

John Culver Group president China, Asia Pacific, Channel Development & Emerging Brands

Culver is highly skilled in developing the talent and marketing strategy to promote strategic growth of Starbucks in the international business.

Curt Garner Chief Information Officer

Garner is the CIO that administers Starbucks worldwide technology and engineering services for all Starbucks businesses.

Jeff Hansberry President, Evolution Fresh

Hansberry has extensive responsibility for the Evolution Fresh, cold-pressed juice brand at Starbucks.

Source: (Starbucks, n.d.i) ,(Starbucks, n.d.b)

Starbucks’ Success

Starbucks is known for providing each customer with a warm experience and a special cup of coffee. Customers can order their cup of coffee just how they like it. In fact, the company's global chief marketing officer told Huffington Post Newspaper that there are over 80,000 drink combinations a person can order at Starbucks (Spiegel, 2014). In addition, it sells a variety of food, pastries, and souvenirs. Starbucks is partnered with a number of organizations that help increase its revenue significantly and portray the success and growth of the company. Starbucks brand portfolio includes Seattle’s Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange, Ethos Water and Torrefazione Italia Coffee (Starbucks, n.d.j).

Starbucks popularity is not only evident in the United States but also around the world. Its rate of expansion accelerated tremendously in the early 2000s after the first store outside of North America was opened in Tokyo in 1996. “Shared values, strategic fit, good leadership and a strong track record” are the most important values they look for when they choose their partners globally (Starbucks, n.d.h). Starbucks coffee is consumed by multitudes of people around the world. Starbucks has incorporated a portion of their business into technological advances. In 2009, it launched My Starbucks Rewards® loyalty program and Starbucks Card mobile payment for testing. By December 6, 2011, there had been 26 million mobile transactions. Internationally, the Starbucks Card program had $2.4 billion loaded onto cards during Fiscal Year 2011. Moreover, Starbucks Cards are currently used for 1 in 4 transactions in the U.S (Starbucks, 2014). The following graph shows the steady increase in mobile payment volume throughout recent quarters.

Figure 2-A: Mobile Payment Volume

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Source (Smith, 2014)

Financial Analysis

According to the table below, Starbucks Net Income doubled from September 2012 to 2014 from $1,594,500 to $2,336,400 ( SBUX, 2015). A major factor in this financial rise includes an

increase from 18,066 stores in 2012 to 21,366 in 2014 (Starbucks, n.d.m). Referring to the table above, the financial success seems to be correlated with spending on operating expenses.

Annual Income Statement (Values in 000’s)

Source (SBUX, 2015)

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Figure 2-B: Income Statements (2011-2014)

Future

Starbucks is performing exceedingly well in the stock market, with earnings projected to rise 15%-20% in the fiscal years of 2015 and 2016. Starbucks continues to grow and expand its market as it adds convenient services such as mobile pay and ordering, as well as expanding its selection of food, such as its popular breakfast sandwiches and lunch items (Hellman, 2015). With Howard Schultz at the helm, Starbucks will continue to expand in ways that are innovative, but remain in line with its history and coffee shop heritage.

According to Starbucks’ Fiscal 2013 Annual Report, its financial condition and operations potentially could suffer from the following factors, largely outside the corporation’s control: a decline in the demand for specialty drinks, increases in internal expenses such as increased labor costs, increased healthcare costs, and an increase in workers’ compensation insurance costs. Starbucks’ operations also may be influenced by legislative factors such as negative outcomes of future or current litigation, or external environmental factors such as boycotts, terrorism, social unrest, and any other public disturbances that may prevent the general population from venturing

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outdoors (Starbucks, 2013). Although there are many risks involved with the company, it still has remained strong up to date, and this is evident from its financial success.

EMPLOYMENT AT STARBUCKS

Corporate Career Positions

Corporate careers at Starbucks include: Administrative Support and Customer Service, Channel and Business Development, Finance and Accounting, Global Supply Chain, Global Technology (IT), Legal, Marketing, Partner (Human) Resources, Public Affairs and Communications and Community, Research and Development, Retail, and Store Development and Design and Creative Studio.·         Administrative Support is the infrastructure to the business. Customer Service listens and responds to customers. Their interactions with customers give them insight into what customers think so that they can share this information with the business.·         Channel and Business Development involves working with Starbucks brands to spread Starbucks business.·         Finance and Accounting positions include accounting, internal auditing, investor relations, finance services, and others.·         Starbucks’ award-winning global supply chain team aims to be efficient and innovative while shipping more than 85,000 outbound deliveries per week to make sure Starbucks baristas and stores have enough coffee, chairs, cups, and everything else.·         Global Technology finds innovative ways to increase partner productivity, store efficiency, and customer connections with Starbucks.·         Legal protects Starbucks and promotes Starbucks’ interests in many areas of law.·         Marketing creates the strategy for connections with customers in order to give both them and Starbucks value.·         Partner Resources is organized into groups including “Staffing, Learning and Development, Total Pay (Comp and Benefits), Organizational Development and Partner Services” (Starbucks Corporation, n.d.c).·         Public Affairs, Communications, and Community has groups such as Corporate Social Responsibility, Community Involvement, and Diversity and Inclusion.·         Research and Development innovates to develop new products, including food.·         Retail positions include regional directors and district managers. They take ideas from corporate and implement them in retail stores.·         Store Development, Design and Creative Studio involves designing retail stores and product and promotional packaging.The focus of corporate offices is to provide support for the baristas at the retail stores, those places where face-to-face connections occur with customers. (Starbucks Corporation, n.d.c)

Store Positions

Store positions include: Barista, Shift supervisor, Shift manager, Assistant store manager, Store manager, District manager, Regional director. (Starbucks Corporation, n.d.f)

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Compensation and Benefits

At Starbucks, total pay includes compensation and benefits. Partners’ total pay is called, “Your Special Blend,” and is customized to each partner (Starbucks Corporation, n.d.f).

Compensation

Baristas make a little over the minimum wage of $9 per hour in the U.S. in 2015. Shift supervisors make about $11.90 per hour. Shift managers make about $12.59 per hour. Assistant store managers make about $36,854 a year. Store managers make about $48,428. District managers make about $84,707 a year. Regional directors make around $140,000 a year. (Glassdoor, 2015)

Business systems analysts make about $67,122 a year. Human resource managers make about $104,704 a year. Finance managers make about $112,122 a year. Senior Applications Developers make about $118,908 a year. (Glassdoor, 2015)

Benefits

Starbucks employees who work at least twenty hours per week are eligible to receive health benefits (medical, dental, and vision), stock options, and matching 401(k) (Business Wire, 2006). Other benefits include bonuses and perks, such as discounts on Starbucks products (Starbucks Corporation, n.d.f).

Job Application

Candidates can apply to work at Starbucks on Starbucks’ website. Prospective employees can search for open positions, read about the job purpose, responsibilities, and qualifications, and apply for the position. In order to work at Starbucks corporate, a candidate must have prior work experience. This makes it difficult or impossible for students graduating with a bachelor’s degree to obtain a corporate position at Starbucks unless they have had previous work experience or plan on working at a different company before applying to work at Starbucks. For example, in order to be qualified for an “accountant II” position for Starbucks Teavanna Tea Company, applicants must have at least two years of experience in “general accounting at a professional level” (Starbucks Corporation, n.d.a).At the store level, a possible position for undergraduates is “assistant store manager.” Starbucks desires applicants for this position to have: “Two years progressively responsible retail experience and 1 year customer service experience in a retail environment OR 4+ years of US Military service” (Starbucks Corporation, n.d.b). Starbucks trains its assistant store managers for eight to twelve months in order to prepare them to become store managers. Starbucks wants its retail leaders to be purpose-driven and “aspirational.” According to Howard Shultz:Starbucks best store managers are coaches, bosses, marketers, entrepreneurs, accountants, community ambassadors, and merchants all at once. They are optimistic problem solvers who run their stores creatively yet analytically, calling upon passion and intelligence to drive

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customer traffic, partner loyalty, and profit. The best managers take their jobs personally, treating the store as if it is their very own. (as cited in Starbucks Corporation, n.d.e).

Culture

Howard Shultz visited Starbucks coffee shops regularly (at least in 2005) to make sure that they carry the Starbucks quality. Starbucks fosters trust between employees and management. Starbucks aims to treat its employees well, who in turn will treat Starbucks customers well (in theory). Shultz says that when employees like their company, they will be invested and do their best work for the company. (Krouse, 2005)When Starbucks was young, Shultz openly told employees and others about the loss of coffee plants in Brazil and other problems. Shultz keeps the company open to ideas and communication between departments. Employees can give feedback. Listening to others’ ideas is what allowed Starbucks to expand its reach to selling music CDs, to satisfy those customers who wanted nonfat or low-fat milk options, and to innovate in other ways. (Krouse, 2005)           Starbucks works to foster an inclusive environment. Its eight “Partner Networks” demonstrate its diverse workforce:·         “Starbucks Access Alliance Partner Network·         Starbucks Armed Forces Partner Network·         Starbucks Black Partner Network·         Starbucks China & Asia Pacific Partner Network·         Starbucks Hora Del Café Partner Network·         Starbucks Pride Alliance Partner Network·         Starbucks Women’s Development Partner Network·         Starbucks India Partner Network” (Starbucks Corporation, n.d.d)The US Business Leadership Network chose Starbucks to be the 2014 Disability Employer of the Year. (Starbucks Corporation, n.d.d)           Starbucks partners up with organizations and encourages partners to volunteer in order to improve the communities around Starbucks (Starbucks Corporation, n.d.f).

Employee Satisfaction

Starbucks surveyed its partners in 2004 through a third-party to find out how satisfied and engaged they were. The survey found that eighty-seven percent of employees were satisfied or very satisfied with working at Starbucks and that engagement was at seventy-three percent. (Business Wire, 2006)

CONCLUSIONS & RECOMMENDATIONS

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