They have had a lot of time in terms of getting the model right but they have persevered and never been complacent regarding the needs of their customer base. The Marketing team do this through innovative national advertising campaigns, local and national sponsorships and through in-store merchandising. Starbucks have indicated that they would like to export Yunnan coffee beans throughout its world-wide distribution of retail stores. (Fusso, 2011). The determinants of organizational behavior are the company’s structure, its individuals, and groups. Managers and subordinates in Starbucks stay closer to their customers. SECTION 3. Info: 1784 words (7 pages) Essay These are owned and operated by the Starbucks Corporation under strict quality control guidelines. It is often difficult to keep a check on all that takes place in your supply chain but is is important to avoid scandals like that of Nike who found themselves at the centre of a human rights scandal on the exploitation of child labour. Owing to the amount of an ethical and dishonest marketing practices, as carried out in the USA, the public are looking for improved codes of ethics and marketing practices. Starbucks Organizational Strategy. This is designed to provide a light convivial atmosphere. However, factors that could influence Starbucks structure can be described with two dimensions, organizational and environmental as internal and external respectively. According to Cameron and Green (2015), organizational change defined as the partial modification or a complete alteration or reorganization of the composition, culture or even the structure of the organization. In February 2009 the Seattle based Company announced that it will close more than 300 stores which would impact 6,000 people and result in 700 layoffs. Starbucks emphasises a policy of inclusion amongst its entire staff and no matter where you fit in the hierarchy the firm attempts to recognize individual contribution. A functional organizational structure is one in which the organizations guidelines are followed to the letter. Each paragraph of the main text should be on the same topic. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Ensuring its fiscal responsibility and assessing the business growth is a challenge for the Starbucks financial professionals. He knew when and with whom to ask for help in making decisions. Perhaps less reliance on coffee and increased diversification in their stores may help to consolidate their position further. with equality, respect, personal concern and a willingness to achieve a high quality product or service. The Manager is accountable for the end result. Starbucks makes its products special. No plagiarism, guaranteed! Large Market share & capitalization – They have the financial clout! Paper cups, are one of the most common consumables in our daily life. Statistics show a strong performance in sales between 2005-2008 but in 2008 the net income showed a sharp decline. The functional hierarchy feature of Starbucks Coffee’s organizational structure refers to grouping based on business function. When one paper cup is made, 0.90 square meters of natural habitat will be lost. As such this rests upon a number of different perspectives i.e. In-text: (Organizational Structure Of Starbucks Marketing Essay, 2018) Your Bibliography: UKEssays. In a difficult financial climate competition for business increases and a good customer, relationship management team becomes of paramount concern. These divisions address product lines. First, it has the functional structure whereby the organization is grouped based on business function (Meyer, 2015). Functional Structure Of Starbucks 1436 Words | 6 Pages. Essay Sample: Introduction In order to be successful in the globally competitive market, it is crucial that companies are aware of the important role organizational +1 (855) 626 2755 . For example, Starbucks has a division for coffee and similar products, another division for baked goods, and another division for merchandise like mugs. A functional organizational structure is one in which the organizations guidelines are followed to the letter. The world administration is simply not equipped to deal with all of the recycling required and we are left with a quantum anount of plastic cups and lids which are virtually indestructible. Their specialty is coffee. Starbucks also recommend people bring their own coffee cup nowadays, while one customer bring their own cup, they could own ten cent discount for their order. Posted on March 3, 2019 June 28, 2020; by admin; March 3, 2019 ; 0 comments; What would we do without Starbucks? For instance, the corporation has a finance department, Pay to View the Entire Post . If and how these concepts are uniquely applied, organizations can define many different areas of their organizational structure. The organizational factors such as an organizational complexity. Schultz has focused on hiring a team of executives from companies like Wal-Mart, Dell, and PepsiCo. Organizational Structure Essay 1168 Words | 5 Pages. This essentially will make a strategic commitment to help strengthen and develop the Starbucks brand in China. These two dimensions influence organizational innovation that focus on programs, processes, practices, and systems related to strategic management process of the organization. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. National Promotions – In which they do promotions nationally by different mediums such as event sponsorship, television, radio, in-store advertisements and outdoor advertisements. For example, the company has an HR department, a finance department and a marketing department. The task of the corporate affairs team is make communication with public, government and media. A saturated coffee market – possibility of too many new market entrants, Activists criticise Starbucks fair trade practices – They are improving though, Recession may mean less people purchase daily coffee- Temporary setback, Increased costs of raw materials – May need to be offset in pricing model, Increased costs of operational overheads- May need to be offset in pricing model. It is less urban if it was compared by other coffee shop such as Star bucks. There is no reason why the firm cannot continue its global expansion aims, particularly in China. The Company has been extremely successful in this regard. These forces were considered as observation for creating an environmental context that is either turbulent or stable depending on the forces. The recommendation that helps the organization is to make strategic choices concerning actions an organization that will take it to align with environmental demands. Wasting too many paper contributes to the wastage factor in the felling of trees. By having Flat decentralized structure, it saves money, time and improved the communication process and decision making inside the organization. Starbucks was founded on 1964. A business 's organizational structure affects administration and headship, communication, change, and other variables important for business success. Starbucks organizational structure is a traditional functional structure. We do this by providing customers with prompt service, quality beverages and products. The Situational Leadership Model by Blanchard and Hersey is an important contribution because it has created a relatively simple matrix in order to explain a complex subject. Executives tend to regard this as compensation but in reality it extends far beyond the simple concept of pay. In today’s difficult financial climate it appears that Starbucks are doing most things right. Yunnan province coffee already has a well-developed reputation in China for the production of high quality coffee beans. It focus on top quality, always fresh product, value, great service and community leadership in Canada specializing in always fresh coffee, baked goods and home-style lunches. They have a customer centric approach, place quality control high on the agenda, they address the needs of a young discerning market place and have the right hygiene and environmental factors that support the business. In fact structure of the organization is one of the pivotal points of its success. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. On the other hand, organizational complexity and external communication network were discussed to capture the organizational influences on organizational innovation. The organization needs to be adapted to the demands of their environment in order to survive. Servant leadership has become an extremely popular approach in modern business. The leadership style in Starbucks is very focused towards that of the democratic leadership style. This motivates the staff because it promotes initiative and makes them feel more inclusive in the decision making. The entire Starbucks team work as partners and are geared towards quality customer service and client satisfaction. source.. Organization Structure And The Organizational Structure Of Starbucks. Starbucks follows a matrix organizational structure which is a combination of more than one structure, … Premium company, as such can be undercut by low quality brands, High dependency on coffee – need for increased product diversification, Very focused on US domestic market – This is changing, Could use more Free Trade Products – This is being addressed and improving, Seen as loyal American Global brand – Despite this it is extremely well respected globally. By September 27, 2009 Starbucks has 3,527 chains of restaurants including 556 in United States. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. Strong Brand Image – The brand is recognized world wide, Large store network – Huge distribution of global stores, Committed workforce – A highly motivated workforce, Highly profitable – A highly profitable global business, Global presence – They continue to expand international presence, Strong ethical values – They have maintained a strong ethical stance, Fortune 100 Company – Recognition as an American Corporate giant, High customer loyalty – The customers are very loyal to the brand. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Review of Starbucks: A Step Above DeVry University Review of Starbucks: A Step Above The product I chose to review is the Starbucks Corporation; the Starbucks Corporation is an American global coffee company and Italian-style coffeehouse chain based in Seattle, Washington ("Starbucks," 2012). They want to enrich the lives of people by making Starbucks the premier neighborhood coffee shop and be seen as a social influence of good in people’s daily lives. We will write a custom Essay on Organizational Structure Paper specifically for you for only $16.05 $11/page. Starbucks Structure provides them the positive work environment for the subordinates to serve the customer better. Learn More. They have definitive levels of authority for each level of management (Irani, 2013). Barista: This job contributes to Starbucks success by ensuring our service and store standards are met. This ethos extends to its entire international operation. Their organizational design and structure needs a stable force to sustain in market for longer time. Starbucks Coffee Company’s Organizational Structure Starbucks is the greatest coffee shops network with more than 19000 stores throughout the world. Organizational Structure of Starbucks Research Paper on Organizational Environment Starbucks In-Depth Analysis Assignment Starbucks, as defined earlier is one of the leading coffee retail corporations across the globe. These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Quality products- Consistent quality over all their stores. Another point is that Starbucks have never tried to nickel and dime their customers; they don’t mind how long you sit at the café with a single coffee. Starbucks provides very good service and focuses on operations team. Organizational Structure of Starbucks SECTION 2. For example, at the Starbucks Company, the formal group is the formal organizational structure of the company which involves the flat structure involving the board of directors, managers, and the staff. Study for free with our range of university lectures! Starbucks Coffee’s organizational structure has the following main features. This newspaper talks about about the organizational structure of Canada's major coffee shop network, Starbucks. This requires action on Starbucks part, entrepreneurial action. This type of structure is a very effectual way of utilizing all the communication channels. Just like the advantages, the matrix structure of Starbucks also accumulates the disadvantages of all other organizational structures under it. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries. Next, to converse about decision-making strategies that Starbuck’s management has implemented to maintain it competitive position in the market place; … (starbucks, 2011) In this report I will tell you my experience of being a mystery shopper. Departmentalization means structuring an organization that can be found in public and private companies as well. Market share can be considered as one of the most important objectives of business.” The main advantage of using market share as a measure of business performance is that it is less dependent upon macroenvironmental variables such as the state of the economy or changes in tax policy” (http://openlearn.open.ac.uk/course/view.php?id=2589) . I have chosen to review the organizational structure of Starbucks Coffee, both for successful and unsuccessful organization behaviors and concepts that have been intertwined into the Starbucks business structure. We're here to answer any questions you have about our services. Post author By Joseph; Post date January 18, 2019; Introduction. Starbucks organizational structure is a traditional functional structure. Management; Case Study; College; Pages: 4 (1000 words) October 30, 2019; Tags: Employee Retention Organizational Culture Organizational Structure Starbucks structure. This falling within the general concept of Maslow’s Hierarchy of needs. They are planning to open 150 new stores in 2009/10. The structure is flat and differentiated according to functions needed to achieve specific goals. Get Essay It is a common knowledge that the transformational leadership is the optimum choice for any major company to arrange the work of its employees in the most efficient way possible. Published: 1st Jan 1970 in A functional organizational structure is one in which the organization's guidelines are followed to the letter. Starbucks in China. This is a very interesting video clip that illustrates both the ethical and social responsibility of Starbucks on a global basis. Published Date: 23 Mar 2015. According to Bill Gates in “Innovation Management Policies for Large Corporations,” people who stay closer to customers can respond faster to changing customer demands, make decisions faster, unlock employee creativity and manage ideas better. In this project, I am going to look at the most famous coffee store around the world—Starbucks. The chain accounted for 22.6% of all fast food income in Canada during the year of 2005. This group consists of a manager and his subordinates, and both of them share a common specialty. However, when confronted not many people will agree upon how to achieve these objectives . Starbucks Organization (Essay Sample) Instructions: Starbucks Organization. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. They specialized in producing different product with a special test such as finch vanilla, Donets, etc. At first glance I would have thought that Starbucks … Standards of marketing are not strictly governed by codes of ethics, as compared to other more regulated professions like law, medicine, accountants etc. A matrix structure is the combination of more than one organizational structures. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. Starbucks' organizational structure is a traditional functional structure. Starbucks locations are limited to some extent. It seeks to capture the contention between organizations for acquisition of resource inputs and disposition of production outputs within market areas (Bernstein and Gauthier, 1998). Get Your Custom Essay on Starbucks Leadership Structure Just from $13,9/Page. Most of the consumers who are fans of Starbucks will endorse the level of consistency found across the Starbucks locations whether you are in Seattle, New York or London. (Bussing-Burks, 2009). External Factors consider such items as cultural implications, market potential, and the intensity of competition and market barriers. Starbucks is a hugely successful global American company and has a very loyal customer following, particularly in the USA and Canada where the coffee shops provide a focal meeting place for social meetings and connecting with the internet. To expand more international locations will add more value to this organization. These changes embody innovations adopted through a multi-stage process. Owing to the impact that paper cups will cause to the environment; some of the coffee stores advocate some discount activity to decrease the damage caused by paper cups. VAT Registration No: 842417633. Please click this link to view samples of our professional work witten by our professional essay writers. Emerging international markets like China – Starbucks has now been in China for 12 years and has 400 stores on the mainland and 800 stores in greater China. (Schreiner, 2012). For instance, the corporation has a finance department, The structure of a Organizational Structure essay is similar to many other types of essays. The staff pays attention to the detail and little points that make your experience enjoyable; there are no real throwaways at Starbucks. Download paper. The functional structure feature of the firm’s organizational structure These district managers report directly to the Starbucks Corporation. Communication and customer responsiveness that results in faster product delivery and increased productivity to uphold brand... 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