Name: Kelson Sim Sheng Chiet

Student i.d: SCM-012705

i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

Introduction:

Motivation is the process of arousing and sustaining goal directed behavior. It is one of

the more complex topics in organizational behavior. Basically, the word “motivation”

was comes from a Latin root word “movere”, which means “to move”. Motivation

theories try to explain and predict observable behavior. Considering that, motivation is

said to be intrinsic or extrinsic. The term is generally used for humans but, theoretically,

it can also be used to describe the causes for animal behavior. Intrinsic is also known as

internal theories, this motivation give primary consideration to variables within the

individual that give rise to motivation and behavior. During the past century, attention

narrowed to understanding motivation in business and other organizations. According to

the researcher Sigmund Freud’s psychoanalyis theory, motivation is based on work and

the power of love. For example, internal theories to motivate the employees are to

building a good relationship, trustworthiness and respect between the employees and

employer, and even employer would listen to employees, there is no gape between

employees and employers in a company. For extrinsic, which is also external theories is

focus on the elements in the environment, including the consequences of behavior, the

understanding and explaining people’s behavior at work. In the early organizational

scholars made economic assumptions about human motivational and developed

differential piece-rate system pay that emphasized external incentives. They assumed that

people were motivated by self interest and economic gain. External theories are rewards
Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

like money and grades. For example, within a company, if employees done a good job,

and employees given bonus or incentive, this can basically full filled the financial needs

of the employees.

References :

http://en.wikipedia.org/wiki/Motivation
Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

Starbucks Coffee Company:

Starbucks coffee company purchases and roasts high-quality whole bean coffees and sells

them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries

and confections, and coffee-related accessories and equipment, primarily through its

company-operated retail stores. In order to sales through the company-operated retail

stores, Starbucks sells whole bean coffees through a specialty sales group and

supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee

drink and a line of premium ice creams through its joint venture partnerships and offers a

line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea

Company. The Company's objective is to establish Starbucks as the most recognized and

respected brand in the world. To achieve this goal, the Company plans to continue to

rapidly expand its retail operations, grow its specialty sales and other operations, and

selectively pursue opportunities to leverage the Starbucks brand through the introduction

of new products and the development of new distribution channels.

The competition around the world becomes more intense, especially for the service

industry with similar products, such as Second cup, that have been this serving in the

industry for 35years which is longer than Starbucks. Besides that, Caribou Coffee and

Coffee People in United State have a very strong brand and survived for years in United

State also. Starbucks coffee company has also a lot of competitors in Malaysia, one of the

most closely is The Coffee Bean & Tea leaf. The most critical point for business to
Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi
success in not only the quality of products they have, but the atmosphere of cooperating

and the amount from yield of teamwork in retail sales. The employees who always touch

with customers and can realize what customers really need are first-line staffs.

Therefore , it turns to be essential for companies to motivate, reward and train their

employees to be the best quality personnel.

Starbucks Corporation, the most famous chain of retail coffee shops in the world, it owns

about 4000 branches in the whole world. The reasons Starbucks can be very famous in

worldwide are not of the quality of the products, but also its customer service and cozy

environment. Starbucks provide a comfortable surrounding for people to enjoy with a fair

price, which attracts all range of ages’ customer to get into the stores. The turnover rate

of employees at Starbucks was 65% and the rate of managers was 25% a year. However,

the rates of other national chain retailers are 150% to 400% and 50% respectively. This

showed that, if compare between Starbucks and other industries, the turnover is much

lower than other industries.

Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

The History of Starbucks:

Starbucks began by Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew other in

the University of Seattle.

In 1971, the first name of their store is “Starbucks Coffee, Tea and Spice” in Seattle,

Washington’s Public market. They started in making profit from selling coffee beans

roasted to individual customers and restaurant.

Until 1982, they had increased the number of four. In that period, a sales representative of

the house ware business in New York, Hammer last, visited them. Howard Schultz

wanted to know why a small company needs so many of percolators from Hammerplast.

He was familiar with the three inventors, and he realized that the atmosphere and the

environment of the company, so he decided to have some share, then as a director and

retail sales.

In the following year, Schultz had a vacation to Milan, Italy. Through out so many years,

he have been experienced many different coffee culture from United State. But the

culture of Italian care had been one part of people’s daily life. The coffee bars there are

just like a socialized place. From here, he started a new flavour of café and a stylish

environment to communicating with friends.

After the trip, he planned to transfer their business into restaurant industry, but the three

initiators don’t agree with him. In 1985, he established a new shop, named II Giornale, in
Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

Seattle. After next two years, due to successful strategy of Schultz, the original three

owners of Starbucks decided to sell their corporation to Schultz. Then Schultz gathered

the investors and changed the name from II Giornale to Starbucks.

At that time, he thought that the most effective way to grow the amount of branches is to

set up new stores in other places. In 1987, Starbucks had the first oversea store in Japan.

At first, the company's losses almost doubled which is $1.2 million in. Starbucks lost

money for three years running, and the stress was hard on Schultz, he believed that not to

“sacrifice long term integrity and values for short-term profit”. In 1991, the sales grew

up to 84% and Starbucks has developed from 17stores to 5688 spreading to 30 countries

in year 2002. By this strategy, it is more than 300times growing in the ten years time.

In 2005 in the USA, Starbucks was ranked the 11th best company to work and risen up in

2006 to 29th, but it was ranked as the 16th best. At the same year, Starbucks was also vote

as one of the top ten United Kingdom workplaces by the Financial Times.
Name: Kelson Sim Sheng Chiet
Student i.d: SCM-012705
i.c No: 900724-13-7541
Course: Work Psychology in Communication, Writing and Reporting
Code: COM 3463
Lecturer: Ms. Zarina Zawawi

Motivation:

In the Starbucks Company, motivation is a vital factor for the business in the process of

making their production. In another words, labors are not working machine, so that they

cannot always do the same affair with equal passion. But the effective method to makes

staffs put more efforts on their jobs, should be to motive them. It can get back some

rewards that purchasing a plenty of equipments and facilities.

The ways to motivate employees are not only money, and physical rewards, the produce

from workers might decline, especially those who are in creativity industries. But other

factors are essential as well, such as working environment and relationship between

employees and managers. Besides that, workers had strong social needs which they tries

to satisfy through membership of informal social group at workplace.