Starbucks Core Competencies Paper

896 Words4 Pages
Current Requisite of Capabilities and Core Competencies Starbucks uses its resources, capabilities, and strong relationships with its suppliers, customers and stakeholders to achieve profitability and customer loyalty. Starbucks product offering is one of its main way to cultivate a strategic supplier relationships. Organization to supplier relationships are one of the resources and capabilities that make up Starbucks internal environment. Starbucks value-based approach for building a strong internal and external relationship with suppliers drives the success of deploying the Starbucks Experience. Furthermore, "its business strategy of organic expansion into international markets, horizontal integration through smart acquisitions and alliances…show more content…
However, there are certain elements that ought to be revised or changed. This is to ensure the rewards program aligns with the company's objectives, requisite competencies and overcomes challenges ahead. Recommendation 1: Currently, Starbucks offers sick leave, vacation and holiday time however they do not offer maternity leave. The organization should offer at minimum three months of maternity leave with minimum of 65% of normal pay. This will add to the organization's competitive advantage in the restaurants industry. High retention is a strong asset Starbucks holds. By providing maternity leave will help minimize the cost of replacing workers which is 150% of salary figure (Vanderkam, 2016). As a result of offering maternity leave, companies saw "nearly 40% reduction in the number of moms leaving their jobs after the birth or adoption of a child" (Vanderkam, 2016). Moreover, employers say providing additional 10-16 weeks of paid salary plus coaching and counseling is much cheaper than replacement costs. This is a short-term investment for long term…show more content…
Not only were revenue impacted but most importantly, customer satisfaction and employee knowledge, skills and abilities. Although, Starbucks is launching an agenda to address the concerns there needs to be an immediate change to address these concerns and overcome these challenges. Currently, Baristas are receiving training on the history of coffee and brewing techniques. However, the training is missing a large scale by not properly training to handle the technological advances. Moreover, how to still apply customer service techniques to keep customers in the store. Thus, keeping Starbucks the number spot for coffee and

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