Sample Essay on:
Starbucks: An Analysis of the Benefits of Investing in Additional Staffing

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Essay / Research Paper Abstract

A 3 page consideration of whether Starbucks should invest $40 million in additional employee staffing. Bibliography lists 1 source.

Page Count:

3 pages (~225 words per page)

File: AM2_PPstarbucksLaborInvestment.rtf

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Unformatted sample text from the term paper:

Starbucks has recently struggled with the question of whether or not to invest $40 million in adding an additional twenty hours of labor per week in its many stores (Youngme and Quelch, 2006). The answer to the question of whether Starbucks should pursue that investment is really quite obvious. Starbucks concentration on making their customers comfortable is quite likely the primary reason for the companys tremendous success. Starbucks branding strategy has emphasized "customer intimacy" and the goal of creating an "uplifting experience" has been a primary focus since the inception of the company (Youngme and Quelch, 2006, 500). This requires exemplary help. The 60,000 Starbucks employees around the world, after all, are the main interface between the customer and its product. While the quality of the product is important, the quality of the employees is even more important. Investing $40 million to insure that quality is a necessity not an option. Given that the average Starbucks store has a weekly store volume of $15,400 and that this store volume rests on 360 hours of work of Starbucks employees, it seems obvious that any decrease in labor quality could be detrimental (Youngme and Quelch, 2006). Likewise, improvements in labor would likely yield even better returns in terms of average weekly store volume. Starbucks employees are treated as partners. Most are hourly wage earners called baristas. Baristas that are chained to stores that are understaffed are less likely to be happy and to perform exemplary service than baristas that work in appropriately staffed stores. Starbucks has already invested considerably into defining how these employees interaction with customers is a critical component of company success. Through the ...

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