University of Westminster: Starbucks Skills Gap and Recruitment Report

This report examines Starbucks' HR challenges, focusing on the skills gap within the organization. It analyzes the coffee industry's skill requirements, identifies previous skills gaps, and proposes the appointment of an organizational development specialist to address these issues. The report details the recruitment process, including job analysis, job specifications, and advertisement strategies. It also explores Maslow's hierarchy of needs, relationship-based approaches, and labor market conditions relevant to Starbucks. Furthermore, it provides a job description and person specification for the organizational development specialist role. The report concludes with a commentary, emphasizing the importance of effective communication, teamwork, and customer service in the coffee sector. The report is based on the provided assignment brief which required students to act as senior HR members and research an organization's recruitment process and wider labor market issues.

Starbucks 0
Starbucks
Understanding and leading change
Student name
[Pick the date]

Starbucks 1
Executive summary
Starbucks is a North America based organization one of the leading players in the global coffee
industry. The skills gap is the major issue, which identified by the company in that case
Starbucks appointed an organizational development specialist to address the skills gap in the
organization with the effective and efficient policies and procedure. Marketing strategies of
Starbucks is product innovation, consumer preferences and quality food is the elements of the
success of the organization. The skills, which is required for the selection in Starbucks is good
communication and coordination among the different departments of the organization.

Starbucks 2
Introduction
Starbucks Corporation is an American based company, which is mainly engaged in coffee, tea,
and spices. The Starbucks Corporation is the leading company in the global world and has a high
opportunity in the growth of the future. The internal strategy of Starbucks Corporation is that
retail division managed by the Starbucks and specialty division is which includes licensing
agreements and foodservice managed by the foreign joint ventures.
A skill, which is required in the Coffee industry, is good communication skills and good
teamwork among the different departments of Starbucks. The major issue, which is face by
Starbucks, is a skills gap between the employee and human resource management. Starbucks
asked senior HR manager to appoint a new role to address the issue of the skills gap.
Organization development specialist appointed as a new role to address the issue with the
consultant with the senior HR manager and top management. Appointment of the new role is
through the external recruitment method. Before recruiting the new role job specifications and
person specifications should be considered by the senior HR manager.

Starbucks 3
Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................2
Brief to the Starbucks......................................................................................................................6
Marketing strategy of Starbucks......................................................................................................6
Product innovation:..........................................................................................................................6
Consumer preferences:....................................................................................................................7
Quality food:....................................................................................................................................7
Market share of leading players in the coffee industry....................................................................7
Source: ............................................................................................................................................7
Market analysis of Starbucks:..........................................................................................................7
Skills required for the sector and organization................................................................................8
Sector:..............................................................................................................................................8
Organization:...................................................................................................................................9
Business analysis manager:.............................................................................................................9
Previous skills gap identified.........................................................................................................10
Organizational development specialist (New role)........................................................................11
Communication gap:......................................................................................................................11
Inadequate skills or knowledge gap:..............................................................................................11
Recruitment of Organizational development specialist.................................................................11
Job analysis:...................................................................................................................................12
Job specifications:..........................................................................................................................12
Advertisement for organizational development specialist.............................................................12
Maslow’s theory of hierarchy........................................................................................................12
Relationship-based approach.........................................................................................................13

Starbucks 4
Labor market conditions and other relevant factors......................................................................13
Job description...............................................................................................................................14
Person specification.......................................................................................................................16
Commentary..................................................................................................................................17
Conclusion.....................................................................................................................................18
Bibliography..................................................................................................................................19
Appendix 1.....................................................................................................................................20
Job description...............................................................................................................................20
Person specification......................................................................................................................22

Starbucks 5
Brief to the Starbucks
Starbucks Corporation is an American based coffee company, which found in Washington,
Seattle in 1970. Starbucks succeeded to position itself as a well-known and successful provider
of high-quality coffee products, attracting millions of consumers worldwide. Starbucks has
16,635 stores in 50 countries of which 7,803 licensed stores (Gurchiek, 2018). Starbucks is one
of the leading players in the global coffee market with an aggressive expansion strategy. For
example, currently, the company expands its operations in China to give a tough fight to its
competitors.
Source: (Starbucks, 2019)
There are 14,606 Starbucks stores are present in America. The major working of Starbucks is
production, retailing and marketing of specialty coffee. Starbucks USA segment provides
beverages, packaged coffee, and complimentary food to the customers, focused on the company-
orientated stores, and licensed stores. According to the current survey, Starbucks achieved the
first position in the global coffee market with 39.8 percent. Starbucks control half of the market
of the coffee chain (Geereddy, 2013).
Marketing strategy of Starbucks
Product innovation: The product innovation is one of the strengths of the Starbucks because it
retains competitive advantage by being the frontrunner in product innovation. For example, the
Starbucks recently re-launched pumpkin spice latte, which are seasonal favorites at Starbucks.

Starbucks 6
Through this strategy of product innovation Starbucks share of national QSR, market increase by
6.96%.
Consumer preferences: Starbucks maintains its flexibility through the efficient adaption of
customers taste and preferences. Due to the trend of healthy food among the people, Starbucks
introduces almond milk and other dairy alternatives such as coconut milk and soymilk prove why
Starbucks is a leader in the global coffee market. According to the market survey, 49 % of
people of the United States drink non-dairy milk although not entirely. On the other hand, the
sales ratio of non-dairy milk is decline by 11% in 2020.
Quality food: In the global coffee market, food sales now signify 20% of company’s revenue
and consistently contributing to the global coffee market. During the internal analysis of
business, it found that in terms of product offerings, the saturation level is far below per day. For
the success and increase the popularity of Products Company forming partnerships and creating
food one of its key future growth drivers (Taecharungroj, 2017).
Market share of leading players in the coffee industry
Source: (Starbucks, 2019)
Market analysis of Starbucks: Starbucks Corporation last year earnings per share were $0.62
and expected earnings per share in the current financial year is $ 0.73. During the 4 quarter, the

Starbucks 7
total revenue of Starbucks Corporation is increased by 9.2% year on year. The average growth
rate of Starbucks Corporation compared the other competitors are 3.74%.
The current market strategy of Starbucks is to increase its performance or growth in the global
coffee industry by its joint ventures and partnerships throughout the world. Starbucks has a
successful business in countries like the United States, Canada, and Australia.
Source: (Starbucks, 2019)
Skills required for the sector and organization
Sector: The Coffee sectors are very different from another sector so there are some valuable
skills, which is required for the coffee industry:
Teamwork: Coffee industry is very busy in nature, the candidate needs to conscious and
attentive to their role and stick to it. Teamwork and flexibility are necessary in the organization
in order to support other team members if required.
Communication: Communication is very essential in the coffee industry in both orally and in
writing. Effective communication is vital in the organization because passing on incorrect
information will lead to a wrong order and disappointed customer.
Sales ability: Selling skills is very essential in the coffee sector because the candidate needs to
convince consumers to purchase one or more items. The organization should give training
sessions about the upselling methods to the managers.
Customer service: This skill considered as one of the vital skill in the coffee industry because
the customer gets disappointed if they do not get their food on time. Candidate must
communicate in an effective manner and provide a high level of service to keep them from
selecting their organization over the competitors (Ramadi, 2016).
Starbucks Market share in the U.S Coffee
chain industry
39.8%

Starbucks 8
Organization: Starbucks spent crucial time on supervising and directing the workforce to
ensure consumer satisfaction and products quality. There are the following skills required for
different level:
Business analysis manager: The business responsibility is to conduct an analysis of NPI, ROI
(Return on investment) and IRR calculations. Recognize and communicate risks and
opportunities. Skills required for business analysis manager:
1. 5-7 years of experience in the job of financial analysis and expert in budgeting, financial
reporting, planning, and forecasting.
2. Innovative financial modeling skills
3. Business analysis manager should have communicated skills related to financial concepts
in both verbally and in writing.
4. Prompt knowledge in financial and management accounting principles.
Store manager: Regular feedback from customers to understand consumer needs and the local
community. The store manager should have all the information about customer service
techniques to handle regular operations. Exploit management information tools, studies financial
reports to recognize and address trends, and issues in store performance.
Sales manager: The vital responsibilities of a sales manager are to handle the direct sales and
marketing team. The sales manager should accomplish annual sales goals and incentives for your
sales portfolio. The following skills are required for sales manager (An Examination of Starbuck
Commitment to Civil Rights and inclusion, 2019).
1. Bachelor degree in sales marketing field or experience as a sales manager
2. 4-6 year’s sales experience at administrative or managerial level within the coffee
industry
3. The sales manager must have communication and leading skills and managing goal
orientated teams
4. The sales manager should have the ability to evaluate performance to manage sales
personnel and skills in managing other peoples.

Starbucks 9
Previous skills gap identified
Function Skills required Skills gap
Coffee
industry
 Supervisory skills
 Capability to manage the coffee
inventory
 Basic knowledge of the coffee
industry
 Efficient communication skills
 Must have the ability to manage
customer complaints
 Inadequate skills
 Inadequate skills in handling
consumer complaints
 Timely assurance of functioning
of the restaurant
 Ability to interact with
consumers and enlightening the
specialty of the restaurant
 Coordination with other
departments of the organization
 Ineffective communication
skills
 Less knowledge about the
marketing
 Ability to take orders from
customers and provide food in a
specialized and courteous
manner
 Ensuring hygiene
 Sustain customer relationship
 Inadequate service skills
 Less interaction with customers,
which results in weak customer
relationship
 Efficient administrative skills
 Innovation in foodstuff
preparation
 Quality management and the
ability to draft the menu
 Communication skills
 Inventory controlling
 Inadequate knowledge of cost
and inventory controlling
 Improper communication with
other departments of the
organization
 Less knowledge about
management skills

Starbucks 10
Organizational development specialist (New role)
Organizational development specialist appointed to bring equity and diversity in the operations
of Starbucks as well as to address the skills gap within the organization. Organizational
development specialist sustains equality and diversity among the suppliers, customers and
different communities ( Dahlstrom, 2018).
Communication gap: The case, which happened in Philadelphia, was due to the communication
skill. Organizational development specialist shall ensure that the company is listening to the
employees and maintain regular interaction with them. Organizational development specialist
conducted a regular employee survey, which helps the management address the problem of
communication skill gap.
For example, Organizational development specialist appoints store employees to manage the
conflict between Starbucks and customers.
Inadequate skills or knowledge gap: To address the inadequate gap between skills
requirements and skill gap organizational development specialist should draft a candidate basics-
training program in which an initial training given to the newly hired on necessary skills and
knowledge essential to the role at the Starbucks Corporation.
Weak consumer relationship gap: Two approaches can solve the gap between the customers and
the company:
a) Traditional approaches: Consumers interviews, survey research, complaint systems,
customer panels are considered as traditional approaches to fulfill the gap between the
customer and company.
b) New- innovative techniques: Regular quality gap analysis is very crucial to address the
gap in a weak consumer relationship. Structured brainstorming is an effective way to
address the weak consumer relationship gap.
Recruitment of Organizational development specialist
Recruitment of organizational development specialist will be through an external method where
potential candidate selected on the base of abilities and attitude, which is essential for
accomplishing the objectives of an organization. Before recruiting ODS HR manager must

Starbucks 11
consider the job requirements and applications. Organizational development specialist will in the
following manner (Starbucks, Starbucks ceo: Reprehensible outcome in Philadelphia incident,
2018).
Job analysis: The ODS is liable for the address the skill gap in the management of Starbucks
through strategic planning, organizational redesign, and proper coordination. The main job of
organizational development specialist is to examine and analyze the skills requirements of
Starbucks and skills of employee in order to carry out the task efficiently.
Job specifications: The following elements are included in the job specifications qualification,
experiences, and work responsibilities. Qualification, which is required for the organizational
development specialist is a bachelor degree in training and development and knowledge in
human resource management (Meyer, 2018).
Advertisement for organizational development specialist
Location
Application deadline
Type of contract
Languages required
Position:
Company:
United States
10 July 2019
FTA international
English
Organizational development specialist
Starbucks
Maslow’s theory of hierarchy
Physiological needs: These are the definite fundamental necessities for the staff. These include
oxygen, regular pay, water, and food. The atmosphere in Starbucks must be efficient in nature.

Starbucks 12
Safety needs: It is the responsibility of Starbucks is to provide a secure environment for
employment. For example, Starbucks provide a pension scheme for the employees and also
deliver a healthy and safe environment.
Self-esteem needs: As in Starbucks, communication is from the top level until the bottom, from
director and employee. The employee of Starbucks and top management give respect to each
other. The company also seeks feedback from the management and their suggestions, which they
consider as a priority.
Self-fulfillment: Starbucks also provide staff personal fulfillment. They communicate and
support them and give them training and workshops (Ramadi, 2016).
Attract eligible candidate
1. For the eligible candidate of organizational development specialist, the HR manager
should maintain a “recruiting culture” inside the company. Implements the scheme in
which staff receives rewards when they performed in an efficient manner.
2. Starbucks should maintain good relationships with the new recruits, which make it easier
for the employee as well as the organization.
3. In the job, the description HR manager should not ask “Do you know someone who is
searching for a job” instead ask, “Do you know someone with XYZ skills.
Relationship-based approach
As an HR manager, appoint organizational development specialists to address the skills gap
within the organization and for the effective performance of ‘ODS’, the Starbucks must maintain
a friendly environment and show friendly bond with each other.
Labor market conditions and other relevant factors
In June 2016, shift supervisor of Starbucks filed an online petition to address the problem of
infuriating labor situations in which labor is understaffed and overworked are facing difficulty to
keep up with the demand for service. In the year 2016, it observed that Starbucks are not
supporting employees or staff financially.

Starbucks 13
In 2017, Starbucks launched a two-year program to improve the relations between the employer
and staff. This program created a strong bond between Starbucks and staff.
In May 2019, Starbucks declared the new employee benefits including $500 in store grants and $
2000 to store manager. Starbucks will provide 8000 new jobs to the people of the US (Rinderlel,
2018).
Job description
Job title: Organization development specialist
Statement of ODS: The major work of organizational development specialist is to coordinate
with the variety of workforce and maintains strategic planning with the inter-division.
Suitable: Organizational development specialist is suitable for this new role because of ODS
research and examines data to recognize skill gaps and make strategies to address them. For
example, ODS, implement a strategy of in-house development to bridging the skill gap and
improve employee engagement and retention. The major suitable point to appoint ODS as a new
role he has an experienced in the training and development of new candidates or programs to
develop the management ( Elnaga, 2013).
Duties: The main role of ODS is to address the skill gap between the new recruits and the job
requirements of Starbucks. The ODS will communicate with administrators and senior HR
manager for resolving the issues of skill gap. The ODS will provide training and development to
the new recruits to address the major issue. Plans and implements a variety of workforce and
growth programs for new candidates. The ODS is also responsible for the evaluating, training,
supervising and monitoring of new recruits in the company (Minahan, 2010).
Date: 10 July 2019
Employee name: - Manager’s name: Senior HR manager
Employee signature: - Manager’s signature: -
Necessary knowledge and skills
Points

Starbucks 14
Skills, knowledge, and abilities are required for this as skills include
developing effective working relationships, developing a policy to address the
skills gap. Human resource knowledge is required for this job as for
communicating and interacting with the new candidates. A person should give
the ability to resolve the dispute between the management and candidate based
on the skill gap.
-
Description of how decisions affect the department and company
The decision of the ODS is very crucial as it promotes equality and diversity
among the partners, suppliers, and customers. The decision of the ODS will
affect the recruitment process of the organization.
-
Job-related and managerial responsibility Points
The managerial responsibility for this job is to work under restricted
supervision using standardized practices and regular discussion with senior
leadership and a procedure to design and implement changes across the
business.
-

Starbucks 15
Person specification
Factors Essential Desirable
Experience  Effective specialized knowledge in the
field of learning and development related
to human resource management
 Experience in the complex nature of the
organization
 Experience in the HRM policies and
procedures and in the leadership and
management.
 Experience in the addressing of skill gap
between the organization and sta0ff
ODS must have
Experienced in the
large-scale programs
of skill gap analysis
of global companies.
Qualifications  Master degree in the related field activity
 Administration qualification and equal
experience
 Action learning is crucial for this post
Personal
competencies
 Communication skills
 Effective planning skills in the course of
management
 ODS as a new role must efficiently
organized and able to handle the complex
activities ( Raymond, 2017).

Starbucks 16
Commentary
The job description and person specifications above are very definite and listed all the possible
duties that are elaborate in this position. Job description and person specification are good
matches are explained in the appendix under the necessary knowledge and skills and referred
managerial responsibility. This skills and competencies are in accordance with the requirements
of Starbucks. The job description and person specification are in accordance with the
requirements of Starbucks. Organizational development specialist should be appointed based on
the job description, which specified by Starbucks. Before recruiting any candidate as an
organization development specialist the specifications of a person needs to consider.

Starbucks 17
Conclusion
Starbucks Corporation is a prominent company around the globe. Starbucks used an effective
strategy connecting links between treating staff with dignity and admiration and producing goods
products. Skills gap analysis through the professional in the organization gives an organizational
review to the top management of the company and it helps the directors and executives to meet
their goals and expectations. Skill gap analysis through the organizational development specialist
gives the opportunity to the Top management to analyze the gap and take corrective action on it.
Through the job description and person specifications, help the company to appoint the new role
for addressing the skill gap within the organization. Appointment of Organizational development
specialist permits the organization to maintain the clear learning objective and goals within the
company. Skill gap analysis identifies the training needs in the management for the growth of
employees. Organizational development specialists not only improve the condition of new
candidates but as well as the existing employee in the organization. ODS through the proper
tools and strategic tools measures the difference between the current skills and Starbucks
requirements and fulfill the gap through proper planning. In the end, ODS helps the organization
to maintain good relations with the staff and achieved desired results.

Starbucks 18
Bibliography
Dahlstrom, L. (2018). Beyond May 29: Lessons from Starbucks anti-bias training — and what’s
next. Retrieved from Starbucks: https://stories.starbucks.com/stories/2018/beyond-may-
29-lessons-from-starbucks-anti-bias-training-and-whats-next/
Elnaga, D. (2013). The Effect of Training on Employee Performance . European Journal of
Business and Management , 140-143.
Raymond, N. A. (2017). Human resource management. McGraw-Hill Education.
(2019). An Examination of Starbuck Commitment to Civil Rights and inclusion.
Education, S. D. (2016). Organizational Development Specialist.
Geereddy, N. (2013). Strategic analysis of Starbucks corporation.
Gurchiek, K. (2018). Experts Weigh In on Starbucks' Racial-Bias Training.
Meyer, Z. (2018). Starbucks' racial-bias training will be costly, but could pay off in the long run.
USA.
Minahan, M. (2010). OD and HR. 18-20.
Ramadi, E. (2016). a gap analysis of industry expectations and satisfaction. European Journal of
Engineering Education, 34-52.
Rinderlel, S. (2018). Sending All Employees to Racial Bias Training Unlikely to Solve
Starbucks’ Problem.
Starbucks. (2018). Starbucks ceo: Reprehensible outcome in Philadelphia incident. Retrieved
from https://stories.starbucks.com/press/2018/starbucks-CEO-reprehensible-outcome-in-
philadelphia-incident/
Starbucks. (2018). Starbucks to Close All Stores Nationwide for Racial-Bias Education on May
29. Retrieved from https://stories.starbucks.com/press/2018/starbucks-to-close-stores-
nationwide-for-racial-bias-education-may-29/

Starbucks 19
Starbucks. (2019). Retrieved from https://www.starbucks.com/
Taecharungroj, V. (2017). Starbucks’ marketing communications strategy. Journal of Marketing
Communications,, 552-571.

Starbucks 20
Appendix 1
Figure: Job description

Starbucks 21

Starbucks 22
Figure: Person specification