Starbucks In France

Managing Abroad, Lauren Perez

Coffee Industry In France (Starbucks)

After eight years spent setting up 63 French Starbucks stores, the company has never turned a profit in France. And even in the parts of Europe where the company does make money, sales and profit growth lag far behind results in the Americas and Asia. Europe's debt crisis and sluggish economy are a factor. So are high European rents and labor costs, which impinge on profits more than in any other region in which Starbucks operates. But the biggest challenge may lie in tailoring the Starbucks experience to appeal to a variety of European tastes.

Cultural Factors In Workplace

Participation in Making Decisions- Employees must stick to the specific recipes unless asked for a specific way from customer.

Hiring Preferences-Starbucks is hiring more tech workers than most tech companies. Fast-paced, multitasked people. Like people with talent and new ideas.

Permanence of Employment-Working at big company, such as Starbucks, people some time doesn’t have the idea whether they are making a big effect on the company, or even how are they doing a good job at their workplace. One of the ways of knowing that is to do a performance appraisal. A performance appraisal is a process of assessing how well employees are doing their jobs. Most employees and managers intensely dislike the performance appraisal process, however it is highly crucial in the workplace.

Labor-Management Relationships- They expect to be a leader in diversity and inclusion, from our partners in the field to our senior leadership teams. They care about employees and they give them the opportunities to come forward and show their abilities for the company.

Management Style

"According to Vechhio (2000) that Leadership might be based on function of personality or it can be seen as a behavioral category. Leadership is the act of influencing the performance of a prearranged set in its efforts toward goal scenery and goal attainment (Stogdill, 1950)."

Their leadership approach is a process of creating idea and persistent evaluation of the environment, corresponding vision by motivating and convincing arguments, structuring faith and commitment, attaining the vision by giving employees empowerment, using simple stories etc.