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.

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

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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.

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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.

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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

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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

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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.

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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

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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%

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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.

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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

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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

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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.