Starbucks Final Essay

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9 April 2016

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The three major stakeholders for Starbucks are their suppliers, employees, and customers. The external stakeholders of Starbucks are the suppliers and customers, while employees are internal stakeholders. Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. The company is motivated to help create a better future for coffee, communities and the farmers. This is established based on a shared interest to endure the making of high quality coffee.

Starbucks builds and maintains morale in its business to its stakeholders by using the content, process and reinforcement theories. The company uses Maslow’s need of hierarchy by fulfilling their psychological needs, “These are the most basic human physical needs, in which one is concerned with having food, clothing, shelter, and comfort and with self-preservation,” (Kinicki & Williams 375).

The customers fulfill this need by purchasing their coffee, the employees are fulfilling this needs by receiving their paycheck, and the suppliers are also fulfilling this needs by having Starbucks as a customer and having money for shelter, food, and clothing. However, the process theory Starbucks focuses on is the equity theory by treating all their stakeholders equally. For example, Starbucks makes sure that the farmers get the loan money they need to plant the quality coffee beans that the company needs to make their coffee.

Starbucks also follows the positive reinforcement theory “Positive reinforcement is the use of positive consequences to encourage desirable behavior,” (Kinicki & Williams, 391). Starbucks Company offers the stakeholders the best rewards to get the necessary behavior the company needs and they ensure the growth of the company as well as its stakeholders by helping them in whichever way they can.

Starbucks has been both effective and efficient in its communication with
stakeholders. They work with the Fair Trade organizations to communicate any necessary information that needs to be addressed. They expand the business competency by practicing the fair trade operatives. They also deliver clearness to the farmers level and if they cannot be there personally they will send in an intermediary to negotiate a price with the farmer.

The major 21st century challenges Starbucks and other coffee sellers have faced are competitive advantage, diversity, globalization, information and technology. Starbucks has used competitive advantage to stay ahead of its rivals. This organization out performs its competitors by producing effective quality coffee to its customers and including diversity, “At Starbucks, we strive to create a culture that values and respect diversity and inclusion. We expect to be a leader in diversity and inclusion, from our partners in the field to our senior leadership teams,” (Starbucks Corporation, 2013).

They are also expanding with other distributions, however, globalization has helped to establish Starbucks as an international company and globalization is vital to successful companies. Starbucks has made any adjustments that are necessary in order to succeed outside of America, they have taken their time to understand the differences within other countries. Starbucks has also managed information technology by having their own website full of information about their company and their coffee. You can make purchases online and they also offer free Wi-Fi at their local shop locations.

Overall Starbucks has become a very effective management company. They are efficient and effective when it comes to communication. They are successful because they really look at the external environment and have very good control. This is what has made them successful company. It is also obvious that Starbucks is a very organizational company and they are also good at planning. Moreover, this company also value the suggestions, comments and feedback of stakeholders, which ultimately increases the value of management process, as it offers participation of stakeholders to make better strategies and programs (Starbucks Corporation, 2013). This is what makes them great motivators and communicators.

In order to become a good manager one needs to become a good motivator, communicator and be able to influence the people around them in a positive way. A manager should focus on team management and in a supportive environment to increase morale of the stakeholders. They should also be very organized and be good at planning in order to succeed.

A good manager always gives feedback or feed forward to his/hers stakeholders and if the employees’ are doing a good job they should get rewarded so they can have a positive outlook on the job and continue to succeed and be better at their job. Apart from this, managers should always be a leader and focus on fulfilling the needs of stakeholders through good social ethical practices and also good social responsibilities.

Kinicki, Angelo, and Brian Williams K. Management A Practical Introduction. 5th ed. New York, NY: McGraw-Hill/Irwin, 2011. 375, 391. Print.
Starbucks Coffee Company. (2007). Starbucks corporation corporate social responsibility . Retrieved from Starbucks Corporation. (2013). Diversity and inclusion. Retrieved from

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