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How can cultural diversity be managed in a multinational organisation ?
Introduction (The Chosen Company)
Starbucks is a multinational company with outlets scattered across numerous amount of locations which include countries such as the United States, the Asia-Pacific region and also the United Kingdom (Lemus et al. 2015). Starbucks is pioneered by Howard Schutz, who is regarded as the visionary leader whom has propelled Starbucks into greater heights when he made the move to increase the number of coffee shop’s outlets from 17 outlets to 4000 outlets by the year of 2000 (Lemus et al. 2015). Being a company, which has all the essential recipe’s and foundation to be a market leader, this was the major factor that prompted me to choose Starbucks in order to have a conclusive picture on the cultural diversity aspect in their workforce (Paryani 2011). In the upcoming paragraph’s, a detailed and in-depth information on the cultural diversity challenges faced by Starbucks workforce would be conveyed and how Starbucks address them.
The essence of Workplace Diversity
Being in a highly competitive business world, the cultural aspect should be the key recipe for each and every organisation as it is vital to adapt to different business circumstances (Moran, Harris & Moran 2011). Having said that, many companies and organizations have advanced towards having a wider skills of diverse employees in which this would be the pointer towards gaining the competitive leverage in the global market (Joplin & Daus 1997). The business organization’s, should be able to recruit employees of cross cultural background which would lead to employees of different background being able to embark on common projects in which this would be able to foster a better understanding between them (Saxena 2014). The diverse workforce is regarded as a crucial factor in an organization in which it would lead to an effective and a top notch performance if it is implemented well in the organization (Cho, Kim & Mor Barak 2017).
In addition to that, diversity management in the workforce is regarded as becoming culturally competent in which it is important to understand an individuals beliefs, values and strengths (Mujtaba 2007). Through this, by managing diversity in a workforce it would lead members of the workforce to be able to perform beyond their potential and would give an upper hand to the success of the organization (Mujtaba 2007). For an example, in the United States of America a diverse workforce in the business field is taking shape and therefore this employees tend to offer a wide range of insights and understanding (Ramirez 2001). Through this, business which emphasizes on cultural diversity in the workforce tend to posses a richer set of advantage compared to a business driven by a monolithic workforce (Ramirez 2001). Aligning the diversity management with a framework that was proposed by Hudson Jr in which the dimension of diversity is divided into both primary and secondary aspects. In which, age, race and ethnicity is regarded as the primary dimension where else social status, education and marital status is regarded as a secondary status (Hudson Jr 2014). In addition to that, as outlined by Geert Hofstede diverse culture may vary depending on the country (Markman 2018). Taking into account, American and Western European may tend to possess individualist traits in terms of culture where else Eastern Asian countries are more towards a collectivist culture in which more emphasizes is given to groups compared to individuals (Markman 2018).
At Starbucks we define Diversity in the form of an equation.
Diversity = Inclusion + Equity + Accessibility
(Starbucks 2019)
The challenges that was encountered by Starbucks in terms of workplace diversity
Racism related issue
As Starbucks have laid a strong foundation, in terms of managing a diverse workforce there are a number of challenges which was faced by Starbucks in which Starbucks had to scrutinized their diversity in the workforce. In the year of 2018, Starbucks faced a turmoil when two African-American were arrested in one of the outlets (Gabbatt 2018). The Starbucks whom is an American White employee contacted the police, and reported of a suspicious of a trespassing in which the two African-American used the restroom without purchasing any drink in the outlet (Gabbatt 2018). This issue arise, due to the lack of diversity training within the organization and the aspect of the organizational workforce is regarded as the core importance to enhance the competitive advantage of the organizational performance (Khan & Afzal 2011). This caused a public outrage and Starbucks took proactive measures and address them in a way in which the organisation had to place 175,000 of their workers through intensive diversity training which focused on understanding racial biasness (Dobbin & Kalev 2018).
Age Discrimination in Workplace
Furthermore, Starbucks had to deal with age discrimination in the workforce as a 65 year old former barista was fired and was replaced with workers whom were on their 20’s (Chapin 2018). This in overall, portrayed a negative perspective towards the Starbucks organisation (Snape & Redman 2003). Starbucks took some important measure and addressed the issue, by opening an outlet which focused on a workforce of hiring workers whom are 50 years old and older in the Mexico City (Diaz 2018).
Starbucks revamping the workforce diversity and adresses the issue
As the multicultural workforce and diversity can be regarded as the foundation of each business, Starbucks have instilled the significance of diversity by ensuring the top management team alongside the employee should attend the diversity sensitive course (Morais et al. 2014). This is to ensure, the course would be able to upscale themselves and being able to grasp the strong point that diversity withholds (Morais et al. 2014). As each and every employee, have a deep and thorough understanding on the ethos of diversity in workplace this would benefit and magnify the organization (Morais et al. 2014). In addition to that, Starbucks also emphasizes on having a workforce which focuses on employees from different background such as African-American, Hispanic’s and Asians (Morais et al. 2014). Through this aspect, the Starbucks organization encourages a diverse workforce and also permit the customers to have a feeling of belongingness towards the product or services even before they are purchased (Morais et al. 2014).
Conclusion
Aligning the diverse workforce, to Starbucks in the United States a workforce composition of white American (54 %) and People of Colour (46%) in which it shows Starbucks are encouraging a diverse workforce in the organisations (Starbucks 2019). Having said that, I believe Starbucks would be able to have a firm grip on their diverse workforce in which it could take them to greater success in the years ahead. Moreover, I would recommend Starbucks to place more importance on their workplace diversity as this would bring their branding and reputation to a more prosperous outcome.
(1100 words)
CULCrimsenrajdevathanjam 
Great sources and model implemented on your research. Neat work. Keep it up
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Thank you for the feedback Karty ! Appreciate it. Looking forward to seeing your blog soon.
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Superb blog, Rimsen! Just wondering Why Starbucks’ Race Together Campaign Failed? Any idea?
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Thank you Shan ! As Starbucks was involved in the Race Together Campaign in the year of 2015 this campaign was to address racial inequality happening in the United States of America. The very core reason, this particular campaign failed to reach the high note it’s because they were trying their level best to leverage on the moment of national crisis to promote the brand to the public. Moreover, this particular campaign didn’t posses a core heading in which the execution of the entire campaign was poorly decided and implemented.
I hope, I have answered your question Shan. Thank you once again.
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Thank you Shan ! As Starbucks was involved in the Race Together Campaign in the year of 2015 this campaign was to address racial inequality happening in the United States of America. The very core reason, this particular campaign failed to reach the high note it’s because they were trying their level best to leverage on the moment of national crisis to promote the brand to the public. Moreover, this particular campaign didn’t posses a core heading in which the execution of the entire campaign was poorly decided and implemented.
I hope, I have answered your question Shan.
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Nicely done! I like how you covered the many cultural diversity in Starbucks. What about the top management in Starbucks? Are they as diverse as well?
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Thank you for the feedback Su Ling !
The top management in Starbuck’s are highly diverse in which these top management tends to focus on the human ethos. Having said that, Starbuck’s top management are driven by the sense of workplace diversity in which each and every individual are able to bring a distinct life experience to the table. Moreover, by having a philosophy which is embracing diversity in the workplace this is one of the key nucleus which drives Starbucks to greater heights. Moreover, with a rich set of top management steering Starbucks this eventually open’s the door for higher culture empowerment in which it leads towards amassing innovation and growth in the economy.
I hope, I have answered your question Su Ling. Have a pleasant day ahead. Thank you once again.
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Truly knowledgeable piece filled with details and model implementation Rimsen. It really gives the people an insight as to how MNCs like starbucks manage their cultural diversity and the challenges they face.
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Thank you for the feedback Ka Hoe ! Appreciate it. Absolutely, being one of the Top MNC’s Starbucks are emphasising more on the cultural diversity aspect as it is the essence for the growth of the business. Having said that, through this it would portray to the public that this particular company does not only favour towards a particular race, religion or sexuality but having a diverse workforce is the fundamental element towards greater success.
Thanks for the feedback Ka Hoe once again.
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Good job Rimsen. I like the way Starbuck leaders managed to overcome scandals as well as sent workers to diversity training which is really effective.
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Thanks for the feedback Pham ! Appreciate it. Absolutely ! Starbucks were actually in a crisis as they had to send the workers for cultural diversity training. As the racism related issue, was a ‘shocker’ in the Starbucks outlet this infact opened the doors for Starbucks to send the workers for cultural based training. As the workforce comprised of American White’s, African American’s, Asian’s and also Hispanic’s if the element of diverse working culture was not practiced that could be seen as the racism related issue unfolded. But, moving on from there Starbucks have actually implanted the workers with rich amount of training and thus this kind of issue would not be surfacing in the closest period of time.
Thank you for the feedback Pham ! Have a pleasant day ahead.
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Great work and very creative. keep up the good work
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Thank you Wafa ! I hope you enjoyed reading the in-depth and detailed Starbucks writeup on the workplace cultural diversity.
Thank you for your time and hoping to read your write up soon !
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Well done! This is insightful work.
Starbucks recently came under fire for its advertisement which showcased support to the Trans Youth. While the ad garnered a lot of support and admiration; it was their own employees who came forward, claiming that the company’s public value did not align with its internal organisational practices – referring to their exclusion from company insurance (which covers gender-affirming procedures since 2013).
Has there been any initiative taken by the company to correct this bias against their transgender workforce?
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Thank you for the feedback Swati ! An amazing, insight that you gave about the transgender workforce.
Starbucks this days, are focusing on equal employment opportunities in which they tend not to discriminate employees on the basis of race, color, religion, national origin or place of origin. Having said that, Starbucks have gone a mile further to correct the bias against the transgender workforce by broadening their health insurance in which it gives the option for their transgender partners to undergo surgery and also host of procedures that were previously considered cosmetic. This includes, facial feminisation and hair transplants.
The Starbucks vice president was even quoting saying that , “Starbucks is taking a stand and standing up for trans people and saying that our procedures aren’t just cosmetic – they are lifesaving.
I hope, I have answered your question Swati. Have a pleasant day ahead.
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Great post Rimsen. Its very well written and detailed! Besides training the employees what do you think can be other implementation strategies that starbucks can apply in order to be more proactive about diversity issues ?
Thanking you in anticipation.
Have a great day!
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Thank you for the feedback Zainab ! Hope that you enjoyed reading the blog.
As training, could be regarded as one of the key nucleus which would be essential to help the employees to deal with the workplace diversity there are other other ways in which workplace diversity could be improved and sustained in the long term run. This include, fostering a company culture in which each and every employee’s voice is welcome, heard and respected. Through this, it would lead most of the employees to be able to feel connected to the basis of the organisation even tough they are different in race, religion or even gender. Employees would be able to be in their comfort zone, in which there wouldn’t be afraid to voice out their concerns and also fear of victimisation. Moreover, this would lead the company towards having not to just listen to but also actively embrace diverse viewpoints. In addition to that, the organisation could invest in workforce communication platform in which each and every employee would be able to be in the same page in the organisation without being discriminated or even victimised.
I hope, I have answered your question Zainab. Good to you !
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Such an interesting blog. I love Starbucks. The and and “Starbucks Mexico City which is managed by workers whom are 55 aged and elder” are great!.
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Thank you for the feedback Wang Shu ! Truly appreciate it. Starbucks in the Mexico City, are being managed by aged workers whom are 55 years and elder. This clearly shows, that Starbucks are overcoming the age discrimination issue by giving opportunity to the aged and elderly workers. Through this, I feel that Starbucks are portraying a good image of themselves to the public which in return would bring them positive word of mouth from the public.
Thank you for the feedback Wang Shu ! Have a pleasant and great day ahead !
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Great job Rimsen! Very informative. Besides racism and age discrimination, what has Starbucks done to address the challenges faced by the disabled community in their workforce? How have they perform so far?
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Thanks Racheal for reading the blog ! Hoping that you enjoyed it till the very end.
Coming back to your question, Starbucks has raked in 100 percent on the Disability Equality Index (DEI) survey. This clearly shows, Starbucks are a mile ahead and are recognised as the “best place to work” even for the disabled community. Starbucks strive in multiple ways in which the commitment they have towards the disabled community is relatively huge. Having said that, as one in five Americans tend to have disability, and also at certain point individuals tend to face change in both physical or mental health. Starbucks are focusing on the responsibility for creating a culture in which it tends to bring the essence of both warmth and belongings to the disabled workers in their workforce and also the customers. Moreover, we could see that Starbucks are also giving their outmost best in which they tend to provide assertive listening devices for their disabled workers and also going a mile further by installing more automatic door openers which would come in handy for the disabled workers.
I hope, that I have answered your question Rachel. Have a pleasant day ahead.
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Good job Rimsen! Really detailed explanations of how Starbucks manages its cultural diversity. I have one question about how Starbucks solves its age discrimination in workplace in Malaysia?
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Thank you for reading through my blog Ziv ! Hope you enjoyed it.
Coming back to your question, Starbucks in the country of Malaysia heavily practises the essence of workplace diversity. Workplace diversity can be regarded as the membrane of the organisation, in which Starbucks in Malaysia heavily practices the Global Human Rights Policy as Starbucks are committed to basic human rights. Through this, it guides the employees towards the basic aspect of principle and requirements which are needed for ensuring the basic human rights aspect is well within and being practiced in the organisation. Looking back at the track record in the country of Malaysia, of Starbucks there has been no recorded issue of age discrimination which shows that Starbucks in Malaysia are particularly in a stable wavelength. Adding on to that, Starbucks in Malaysia are going a mile further by opening an outlet in which they placed employees whom are physically challenged to be a part of their workforce. This outlet, opened the door for the public in the year of 2016 in which it clearly shows that Starbucks are against any sort of discrimination and are totally employee centric.
I hope, I have answered your question Ziv. Pleasant day to you !
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Good job! What is your propose strategy in managing the workplace diversity on branding perspective?
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Thank you for reading the blog Choong !
Coming back to the question, branding can be regarded as the nucleus and membrane of each and every businesses. Branding , just does not focus on the logo alone , but a variety of aspect’s which include top notch customer service , business cards and also staff uniforms. When we have a look , at Starbuck’s branding the company has a strong branding across the continents that they serve to. From their perspective , it’s just not about selling the coffee’s but creating and instilling the customer’s with rich experience in their coffee outlet. As Starbucks carries , a strong brand name it has to make sure that it complies to the workplace diversity by recruiting a number of employees whom are of different nationality, gender and also race to be a part of their team. From my point of view , the strategy that is being used in Starbucks would be able to attract more employee to be involved in the diverse workforce. Through , it shows that Starbucks are in the wavelength of not discriminating employee but giving a career opportunity for them to develop themselves. I would also propose certain strategy which include , giving more opportunity towards the aged workers in order for them to contribute their wealth of experience in Starbucks. The aged workers , could be been higher health benefits as compared to their monthly salary in the organisation.
I hope , I have answered your question Choong. Have a pleasant day ahead.
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great work bro, informative blog that’s help me to know lots about Starbucks and its cross cultural issues. however, if Starbucks fails to manage cultural diversity in the workplace then I think it might be disastrous for the company.
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Thank you for reading the blog Nizam ! Appreciate it. When we have a look, at the workplace diversity of Starbucks in this 21st century, Starbucks are giving their outmost importance to this very aspect. Lacking in workplace diversity would eventually lead to a downfall in the organisation, and therefore Starbucks are hiring workers of different nationality, and also of different ethnic group which would portray a positive image of the organisation towards the public. Moreover, by having workers of different background and experience this would add more valuable experiences towards the organisation and therefore could propel the organisation towards greater heights. Moreover, Starbucks went a mile ahead by hiring aged and elderly workers in the country of Mexico which clearly shows Starbucks are keen on having a lineup of workers of different age group which eventually would eliminate the age discrimination allegations that they had faced before. In the long term run, I feel Starbucks are in a stable platform in terms of recruiting employee of different culture which would foster the workplace cultural diversity.
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