Business Studies Of Starbucks Coffee Store Case Study Sample

Introduction To Business Studies Of Starbucks Coffee Store

Starbucks originated in 1971, in the city of Seattle, Washington, and is right now a well-known worldwide chain Of coffee shops. Since then, it has developed to among the most well-known and prosperous coffee companies in the world, with thousands of locations all through the globe. Starbucks' image has been cultivated through offering premium coffee, an inviting environment, and top-notch customer support (Starbucks, 2023). The business's success may be linked to a number of things, including the company's commitment to ethical procurement and sustainability, its keen attention on customer service, and its wide selection of coffee products. Starbucks also contributed to the revolution in coffee culture bypopularizingthe idea of a "third place" which greet and pleasant location apart fromones'home and workplace where one may unwind, work, orsocialize.

The achievement of an organisation as a whole depends on efficient human resources (HR) management, with a strong emphasis on motivation (Sinambela, et. al. 2022). The internal and environmental forces that motivate workers to put out effort, sustain engagement, and accomplish their goals at work are referred to as motivation in the area of human resources. It involves understanding the motivations behind people's performance while creating ways to support and maintain that level of achievement.

Defining human resources

Human Resource (HR) is an essential department within a business responsible for controlling the individuals who are employed by the company (The economic times, 2023). It encompasses a broad variety of operations linked to people management, including hiring, training, compensating employees, evaluating their work, helping them grow as employees, and managing relations with staff members (Hopper, 2020). HR departments are crucial in making sure a company's personnel is prepared, content, and motivated to effectively contribute to the business's goals.

Explaining motivation and related theories

There are several theories that clarify motivation such ascontent theories like Maslow's Hierarchy of Needs and Herzberg's Two-Factor model which helps in identifying the precise inspiring factors of employees.

Maslow's Hierarchy of Needs:

Maslow's Hierarchy of Needs is a theory of motivation developed by the psychologists Abraham Maslow in 1943. Based to the idea, individuals possess a hierarchy of desires that are structured in a pyramid form, and they try to meet those requirements in a certain sequence. There are five levels within the hierarchy:

• Physiological needs: The basic physiological demands, such as water, food and rest are at the bottom of the hierarchy. Starbucks responds to this degree by offering a wide variety of foods and beverages, providing that consumers may satiate their hunger and quench their thirsts while consuming theirpreferredcoffee.
• Safety needs: The requirement for security and safety is addressed at the next level. By maintaining neat and well-organized locations, putting safety precautions in place, and offering safe payment alternatives, Starbucks seeks to create a warm and friendly atmosphere for its patrons.
• Social needs: The third stage addresses social requirements, such as having to have connections, social connections, and feeling of belonging (Hale, et. al. 2019). Starbucks promotes the idea of a "third place" by creating its locations as welcoming and pleasant places where customers may gather, mingle, or work.
• Esteem needsThe nextstage deals with needs related to esteem, which include the need forauthorization, deference, and success. Starbucks fosters a good workplace culture byrecognizingthe accomplishments of its workers through a variety of initiatives, including worker of the month programmes or open recognition of outstanding customer service.
• Self-Actualization needs: The desire for personal development, which entailsrealizingone's full abilities and seeking growth in oneself, lies at the top of the pyramid. Starbucks encourages its staff members to reach their full potential by providing chances for training and professional advancement.

Herzberg's Two-Factor Theory

In accordance with Frederick Herzberg's Two-Factor Theory that was put out in the 1950s there are two sets of elements that affect staff motivation and work satisfaction:

• Hygiene factors: While they do not directly cause motivation, these traits are crucial for avoiding unhappiness. Salary, a secure working environment, and corporate policies are a few examples (Bhatt, et. al. 2022). Starbucks' HR department makes ensuring that workers get competitive pay, has a range of benefits, and have a secure place to work. Starbucks avoids unhappy staff members and establishes a baseline of ease and pleasure by taking care of these hygiene-related issues.
• Motivators: These factors have an immediate impact on the drive of employees and their level of satisfaction with their work. They consist of appreciation, opportunities for development, accountability, and an awareness of accomplishment. Starbucks is aware of how crucial incentive is in developing a passionate and dedicated the group. The corporation uses a variety of tactics to motivate its staff, including employee recognition initiatives, chances for professional promotion, and fostering innovative thinking and creativity in their work.

Assessing steps undertaken by Starbucks for motivating personnel

Starbucks promotes a supportive workplace environment that values employee contributions and provides chances for both personal and professional development. Starbucks develops an atmosphere where staff members are not only happy but also motivated to work at their best through focusing on motivators along with resolving hygiene problems.

Starbucks employs a variety of programmes that involve and motivate its staff, fostering an enjoyable and productive workplace. Offering competitive pay and benefits, such as insurance for health, stock options, and pension schemes, is one of their primary techniques for luring and keeping people. They also place a strong emphasis on professional growth by offering employees the chance to enhance their careers inside the company via promotions and training programmes (Bhatt, Chitranshi and Mehta, 2022). Starbucks takes a lot of effort to motivate its employees. The company offers a number of staff recognition programmes andrecognizesexceptional performance with "Partner of the Quarter" prizes and open acknowledgement of exceptional service. Respect for staff and pride are fostered by these actions.

Furthermore, Starbucks supports a multicultural and welcoming workplace environment that values the value of every team member, regardless of background. Morale among workers is boosted and a feeling of belonging is created. The organisation also places an emphasis on work-life balance by providing flexible schedule choices to meet the needs of each employee. Employees that follow this strategy are better able to balance both their private and professional lives. Starbucks' dedication to moral behaviour and societal responsibility inspires workers even more. Employees who identify with a socially responsible brand feel as though they are contributing to someone greater and are proud to work for a company that has a good effect on society and the environment.

Financial Management

Overview

Financial management is an essential component of any the company's operations, covering a set of procedures and approaches aimed at efficiently handling the finances in order to accomplish the objectives and goals of the company. To guarantee the best use of finances whilemaximizingprofitability and sustainability, it comprisesorganizing, planning, managing, and monitoring financial activities. Financial management is crucial to decision-making since it offers insight into the company's financial health and aids in the distribution of resources. The objective of this work is to investigate the meaning, justification, and significance of financial management inorganizations.

Definition and Explanation of Financial Management

Financial management is the act oforganizing, planning, and controlling an organization's monetary resources so as to accomplish its goals. It entails managing a number of financial issues; include managing cash flows, investment choices, financial preparation, financial management, analysis of finances, and financial reporting. The main goal of finance management is tominimizefinancial risks while ensuring the company's long-term existence and profitability (Alkaabi and Nobanee, 2019). Creating wise financial decisions which complement the organization's entire plan is at the heart of financial management. Making prudent spending and funding decisions entailsanalysingfinancial data, identifying patterns, anticipating potential financial circumstances, andutilizingthis knowledge. For a company to retain liquidity and fulfil current responsibilities, financial management also include handling the working capital, which involves handling cash, inventories, and debts.

Importance of Financial Functions within Organizations

For a range of reasons, financial operations insideorganizationsare of the utmost significance.

• Planning and budgeting:Organizationsmay manage resources efficiently,prioritizeinitiatives, and spot possible financial restrictions promptly by defining reasonable financial goals and developing budgets.
• Resource allocation: Optimal resource distribution among different departments and projects is made feasible by efficient financial management. Through the identification of profitable companies and the divestiture of underperforming ones, effectiveness and profitability are boosted.
• Decision making: Critical information and evaluation from financial management are used to aid in decision-making procedures (Eppich and Grinda, 2019). Making educated financial decisions is essential to an organization's success and could include assessing investment possibilities, growth plans, or efforts to reduce expenses.
• Risk management: Managing finances involves identifying and reducing financial risks. Organizationsmay protect themselves against possible financial crises and unanticipated market swings by undertaking risk analysis and implementing risk control techniques.
• Performance evaluation: The ability to evaluate and assess the financial health of an organisation is provided by financial management. A company's economic health and overall efficacy are shown by key financial measures including ratios of profitability, ratios of liquidity, and return on investment.
• Stakeholder confidence: Creditors, investors, and stockholders all have increased confidence thanks to good financial management. Establishing trust and attracting investments through ethical financialpracticesand open financial reporting are essential for the expansion and security of any organisation.

Role of the Financial Manager in a Company

The Financial Manager, commonly referred to as the Finance Manager contributes an essential part in the financial stability and achievement. Their main duty is to oversee and oversee the financial affairs of the business to ensure that theutilizationof resources is effective and that the business's financial objectives are met. They are in the position of creating financial strategies and budgets for the company's short- and long-terms according to its goals, as well as performing thorough-depth financial research to find areas for growth and improved profitability. To guarantee effective operations and timely payment of financial obligations, cash flow management is essential (Arnold and Lewis, 2019). The Financial Manager also assesses investment opportunities, controls financial risks, and puts tax planning plans in action. To be able to predict future trends and difficulties and ensure the business's financial health and performance, they make educated judgements about the sources of financing and participate with financial forecasting.

Sources of Finance

Companies can get the funds they need to start or continue their operations from a variety of financial sources. Internal sources and external sources are the two basic categories into which these sources of information can be divided.

Internal Financial Resources:

• Retained earnings: Profits generated by the firm that are put into the company rather than being handed out as dividends to shareholders.

• Working capital: Using additional funds or managing present liabilities and assets efficiently to produce money for ongoing activities.
• Asset sale: Selling non-essential orunderutilizedassets for additional money.
• Depreciation funds:Establishing a fund for repairing and improving fixed investments by setting aside a percentage of revenues.

External Financial Resources:

• Equity financing: Selling firm shares to investors in return for cash is one external source of finance (Avazov and Maxmudov, 2020). With venture money, investor angels, or a public offering (IPO), this is feasible.
• Debt financing: Taking up a loan form a third party and promising to pay back the money plus interests over a predetermined time frame. Bank financing, bonds, and debentures are a few instances.
• Trade credit: Purchasing goods or offerings on credit from suppliers, which enables a company to postpone repayment for a set amount of time.
• Leasing: Choosing leasing agreements over the full purchase of assets to avoid a large upfront financial outlay.

Sources of Finance Available to an Organization

By accessing the following sources Starbucks can meet its financial needs or requirements:

Short-Term Finance Options:

• Bank overdrafts: Up to a predetermined limit, allowing a company to take out more money that is now accessible through the bank account.
• Short-Term bank loans: Take out a loan from a financial institution, such as a bank, for a brief term, often no more than a year.
• Trade credit: Thepracticeof delaying, often of between thirty and ninety days, the payment of suppliers for the goods or services they have supplied.
• Commercial paper: Offering creditors unsecured, short-term financial securities with maturities typically less than 270 days.

Long-Term Finance Options:

• Equity Financing: Acquiring funds by selling investors regular orpreferredstock.
• Debt Financing: Obtaining long loans from banks and other financialorganizations, or issuing business bonds having prolonged maturities (Vernimmen, et. al. 2022).
• Venture Capital: Getting cash from private equity companies in exchange for shares, frequently for start-ups or fast-growing businesses.
• Private Placements: Direct sales of stocks or other assets to organisations like insurance companies and pension plans.

Conclusion

For companies to adopt methods that foster and sustain staff inspiration over time, HR experts are essential in understanding the different requirements and objectives of their workforce. By doing this, companies can acquire a highly motivated and effective staffs that foster innovation and help them accomplish their goals. The performance and sustainability of a company are fundamentally dependent on its financial management. Organizationsmay make wise decisions, achieve stability in their finances, and provide a strong basis for growth and achievement by efficiently managing their financial resources.

References

Books and Journals

• Alkaabi, H. and Nobanee, H., 2019. A study on financial management in promoting sustainable business practices & development.Available at SSRN 3472415.
• Arnold, G. and Lewis, D.S., 2019.Corporate financial management. Pearson UK.
• Avazov, N. and Maxmudov, N., 2020. Investment as a source of financing.????? ??????? ????????????, (24).
• Bhatt, N., Chitranshi, J. and Mehta, M., 2022. Testing Herzberg's two factor theory on millennials.Cardiometry, (22), pp.231-236.
• Eppich, R. and Grinda, J.L.G., 2019. Sustainable financial management of tangible cultural heritage sites.Journal of Cultural Heritage Management and Sustainable Development,9(3), pp.282-299.
• Hale, A.J., Ricotta, D.N., Freed, J., Smith, C.C. and Huang, G.C., 2019. Adapting Maslow's hierarchy of needs as a framework for resident wellness.Teaching and learning in medicine,31(1), pp.109-118.
• Hopper, E., 2020. Maslow's hierarchy of needs explained.ThoughtCo, ThoughtCo,24, pp.1-3.
• Sinambela, E.A., Darmawan, D. and Mendrika, V., 2022. Effectiveness of Efforts to Establish Quality Human Resources in the Organization.Journal of Marketing and Business Research (MARK),2(1), pp.47-58.
• Vernimmen, P., Quiry, P. and Le Fur, Y., 2022.Corporate finance: theory and practice. John Wiley & Sons.

Online

• Starbucks, 2023. Online. Available through: <https://www.starbucks.in/dashboard>.
• The economic times. 2023. What is human resources. Online. Available through: < https://economictimes.indiatimes.com/definition/human-resources>.