For this assignment, we are required to write a paper after reviewing the “Starbucks Structure” case study found in Chapter 3 of The Five Functions of Effective Management. In this paper, I will analyze the infamous coffee company Starbucks and what organizational structure is the best form for this company, with the emphasis on Job descriptions for an employee. I will also determine the form of departmentalization, if Starbucks should incorporate food, and whether when faced with financial struggles should centralize power or decentralize operation is done. However, before I get into all that I will give a little background on the company.
In 1971, Starbucks opened its doors to society to become one of the most well known coffee chains. The first store is located in Seattle as part of the Pike’s Place Market and a huge tourist attraction. I have personally been there several times when I was stated in Washington State from 2011-2013. “In 1981, Howard Schultz (Starbucks chairman, president, and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later 2014).” Forty-two years later you can still go into this chain and get a pleasant ye expensive cup of coffee, but I believe in you get what you paid for. “Toda, with more than 18,000 stores in 62 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world (2014).”
Starbucks mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time and with this, my job description is the popular barista. According to our course material job design is how we come up with job descriptions and departments (Reilly, Minnick, & Baack,...
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...yees adapt to change and employee roles. “An adaptation of the Matrix organization is to design the company by product and by country (Reilly, Minnick, & Baack, 2011).” This is important especially when Starbucks is geographically known and it should be able to conform to its surroundings and peoples likes by location. These changes would be successful because it would improve customer experience and define communication.
In addition, whether Starbucks changes their organizations or structures, this company will continue to be a popular coffee place. Truly, I hope they learn to lower prices but I do love that they listen to their customers and employees. In addition, whether they expand their menu in which I hope they do so I can enjoy the best of both worlds. Starbuck as will be around for a long time as long as their caffeine addictive coffee goers like myself.
Starbucks opens its first store in 1971 in Seattle. WA. From the very beginning it offered the coffee on highest standards to please customers. In year 1982 today’s CEO Howard Schultz joined Starbucks as a director of retail operations and marketing. Since that time the company started to grow rapidly. In just few years of operations more stores have been opened expanding a business around the country and around the world. Now, Starbucks has nearly 20,000 stores in 60 countries and it still growing opening more and more stores and moving into new countries. But the corporation is not only selling a coffee. When the company became more powerful and more valuable, Howard Schultz along with other board members and a president, started to get involved in all kinds of programs to make better coffee, but also to make the world better. These days a company recognizes itself as a part of the neighborhood it operates within.
There are several factors that were the framework for Starbucks successes. One major factor was that they brought back the trend of coffee drinking. With this vibe established that they were able to charge a premium for every cup of coffee - everyone wanted to go to Starbucks! Along with the trend that was created, they had great customer loyalty, with their best customers visiting up to 18 times in one month. This customer loyalty was no mistake, as one of their mantras was to create an experience and always say yes to the customer. They really were striving to be the Ritz Carlton of coffee.
Great quality products, customized, served in clean, convenient placed stores for everyday coffee, friendly and fast serving, everything in a pleasant atmosphere - these were just few factors that lead to the great success of Starbucks during the nineties. Their USP was a place where every American could escape from home or work, for a coffee drinking ritual; high quality coffee, according to each customer's taste, served in a special, intimate ambience. Their image was supposed to appeal to anyone, being based on the idea of community, "exploiting" the need of people to interact with each other, in a "third place", away from home or work.
The basis of Starbucks’ operations and policies is to connect with the staff so that they can better the organizational
There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service.
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
Starbucks: How It Became an Extension of People’s Front Porch Starbucks, originally started off as a tiny store in Seattle’s Pike Place Market that sold only coffee- and tea-related products in 1971, is now a dynamic company that has achieved omnipresence all over the world. As of March 30, 2014, Starbucks retains its position in being the world’s largest coffee company 1, with a total of 20,519 stores across the globe in 63 countries, from China to Costa Rica to Czech Republic – and counting. In April 2014, Forbes reported that Starbucks recorded a global comparable sales growth of 6% and a revenue of $3.9 billion in Q2 fiscal 2014.
Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984. With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition, Il Giornale changed its name to Starbucks Corporation and opened locations in Chicago and Vancouver, B.C. (Starbucks timeline and history, 2004).
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
As with any company considering new products in new markets, there are risks associated with it, and Starbucks would need to be prepared to respond accordingly. With diversification, Starbucks will have the opportunity to increase its growth. Also, this strategy will permit the company to add related or unrelated products to its existing business. This will be the opportunity the company needs in order to expand its products, by offering new products to its customers. If Starbucks is considering diversifying, it’s essential to adopt a strategy that is fitting for the company....
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
d. Employee selection and training are also elements of the strategy. Starbucks employed diverse people which reflected the community. Starbucks trained each employee to perform to their best capabilities.
When I saw this discussion, I couldn’t help but think of Starbucks and the impact they’ve made throughout their 45 years of establishment. I worked with them for about 7 years and saw how unique they were from your everyday coffee and latte spots. A retail company with thousands of coffee shops in the US as well as in other countries, this particular retailer has been able to catch the eyes of all ages as well as locations throughout the world. For example, today college students utilize Starbucks locations to study rather than go to a nearby library. Starbucks is also known for its best coffee and espresso drinks (Latte or Frappuccino) and with one of its delicious espresso 's any student or just a person stopping in to enjoy its lounge area where there is free Wi-Fi is awesome! Starbucks lifecycle has made a 360 turn around and been revamped twice to accommodated the growing market. Customizing their brand to fit more in with everything and not just one thing. By doing this they’ve created multiple product lifecycles within their own lifecycle as a corporate company.