Government’s usually are indifferent on the subject and the only effective way is making sustainability related to profit. Partners – The firm considers all of its staff as partners and inclusive in the contribution and wellbeing of the business. Community – Starbucks wants to be seen as an important part of the community and an important force for good. A functional organizational structure is one in which the organizations guidelines are followed to the letter. Starbucks Coffee Company’s Organizational Structure Starbucks is the greatest coffee shops network with more than 19000 stores throughout the world. And one in Afghanistan war base. 2018. On December 1, 2016 a new format of Starbucks organizational structure was announced according to which Kevin Johnson, president and COO and member of the Starbucks Board of Directors, would expand his responsibilities and assume the role and responsibilities of president and chief executive officer, effective April 3, 2017. It involves the entire workforce in training on the aspects of the customer satisfaction. The style treats employees more as business partners as opposed to helpless drones of a slavish and subordinate mentality. In this project, I am going to look at the most famous coffee store around the world—Starbucks. The organizational factors such as an organizational complexity. The advantage of Starbucks over its competitors is its brand power which they achieved by using proper marketing strategies. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries. Regional Marketing – Here the purpose is to ensure that their overall marketing strategy is implemented correctly. These two dimensions influence organizational innovation that focus on programs, processes, practices, and systems related to strategic management process of the organization. By September 27, 2009 Starbucks has 3,527 chains of restaurants including 556 in United States. Statistics show a strong performance in sales between 2005-2008 but in 2008 the net income showed a sharp decline. This feature of the business’s organizational structure allows the concentration on product lines. 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. For example, Starbucks has a division for coffee and similar products, another division for baked goods, and another division for merchandise like mugs. 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). So despite a growth trend in Sales the Company was losing money. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. The success of the firm depends on the harmony between the its structure, and internal culture and activities. At first glance I would have thought that Starbucks … Registered Data Controller No: Z1821391. Yunnan province coffee already has a well-developed reputation in China for the production of high quality coffee beans. 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. source.. For example, how will the business be successful and as such how the people that drive the business is both rewarded and incentivised. 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. She is a … VAT Registration No: 842417633. This requires action on Starbucks part, entrepreneurial action. Next, to converse about decision-making strategies that Starbuck’s management has implemented to maintain it competitive position in the market place; … The Organization structure of Starbucks is similar to most large groups of its size. Advantages of Flat Decentralized Structure. Starbucks have stated that they will continue to expand its presence in Europe and staff that is laid off will be given the opportunity of alternate jobs in these stores. Starbucks mainly target all age groups from lower and middle classes. Organizational Structure Chart Of Starbucks Essays. Info: 1784 words (7 pages) Essay Starbucks has developed to This builds trust within the organization and is seen as dedication and commitment by customers. For instance, the corporation has a finance department, Pay to View the Entire Post . This campaign encourages customers to be more environmentally friendly. In fact structure of the organization is one of the pivotal points of its success. Those cups included ten percent post-consumer recycled fiber (PCF), this activity saved tens of thousands of trees, a half million gallons of wastewater and million pounds of garbage from being trucked to landfills. Organizational structure provides the necessary foundation within that an organization functions. Functional Structure Of Starbucks 1436 Words | 6 Pages. They provide a range of coffees that are custom designed in order to meet the needs of even the most demanding of customers. Posted on March 3, 2019 June 28, 2020; by admin; March 3, 2019 ; 0 comments; What would we do without Starbucks? Employees in the organization are grouped into teams so that they can take advantages of each other when accomplishing duties. Free essays. We do this by providing customers with prompt service, quality beverages and products. Disclaimer: This essay has been written and submitted by students and is not an example of our work. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Starbucks is one of the most popular coffee shop in everywhere in the world, especially in its original place—U.S. 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. These district managers report directly to the Starbucks Corporation. The chain accounted for 22.6% of all fast food income in Canada during the year of 2005. The other type of organizational structure under comparison is the bureaucratic structure; this is common to all organizations including Starbucks. This newspaper talks about about the organizational structure of Canada's major coffee shop network, Starbucks. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. They have definitive levels of authority for each level of management (Irani, 2013). Post author By Joseph; Post date January 18, 2019; Introduction. This form of leadership style promotes delegation amongst assigned staff and given them the authority in which to complete tasks by using their own methods but adhering to corporate standards and guidelines. Shareholders – Starbucks recognises the important contribution of its investors and wants to remain a business that the shareholders can be proud of and provide them with good returns on investment. This is a very interesting video clip that illustrates both the ethical and social responsibility of Starbucks on a global basis. It provides a positive, healthy and committed workplace for the employees. Essay, Pages 6 (1419 words) Views. To view this post and other posts in this category please pay the amount below . The qualities of servant leadership can be seen in individuals that:-, Seeks and encourages open and honest feedback from others, Helps people to progress and develop to their optimum capability levels, Meets the legitimate needs of other people and aspires to the highest levels of trust, Prepares for the future by careful succession planning, Above all provides excellence in customer service by open, honest and transparent communications with an emphasis on service and quality, Not applicable to all situations e.g. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. In this case, the structural design involves intersections among various components of the business. 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) . Standards of marketing are not strictly governed by codes of ethics, as compared to other more regulated professions like law, medicine, accountants etc. Servant leadership has become an extremely popular approach in modern business. We will write a custom Essay on Organizational Structure Paper specifically for you for only $16.05 $11/page. Starbucks has now been in China for 12 years and has 400 stores on the mainland and 800 stores in greater China. These forces were considered as observation for creating an environmental context that is either turbulent or stable depending on the forces. Do you have a 2:1 degree or higher? The initial matrix organizational structure has been expanded and they currently operate under four divisions within the US and these constitute; Pacific, Mountain, Plains and Atlantic divisions. Starbucks also recommend people bring their own coffee cup nowadays, while one customer bring their own cup, they could have a ten cent discount for their order. Published: 9th Jan 2018 in Brand-based divisions within Starbucks organizational structure. Starbucks Organizational Strategy. with equality, respect, personal concern and a willingness to achieve a high quality product or service. In particular, the disposable paper cups. Starbucks strength in terms of its Flat decentralized organizational structure makes Starbucks a leading food chain network in Canada. Managers and subordinates in Starbucks stay closer to their customers. The leadership style in Starbucks is very focused towards that of the democratic leadership style. Meanwhile, landfill is another problem that disposable paper cups bring to the environment. First, it has the functional structure whereby the organization is grouped based on business function (Meyer, 2015). An excellent video link illustrating the Social responsibilities of Starbuck can be viewed at this location: http://www.youtube.com/watch?v=Nly_OdvORQY . In the new structure, Starbucks will adopt a three-region organization form: China and Asia Pacific, America, and emerging markets, which include the … And concludes with remarks, few suggestions that can be implemented to improve the organizational Structure and operations of Starbucks. For instance, the corporation has a finance department, 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. *You can also browse our support articles here >, The Coffee – it’s all about the passion for coffee and finding the best ingredients and roasting the beans. Place a Quick Order. Get your first paper with 15% OFF. Customers – It’s all about social interaction with our customers and ensuring that they have an enjoyable experience at all of the Starbucks retail outlets, The Stores – All of the stores should have a unique ‘Starbucks quality’ providing a consistent image of quality and an enjoyable social atmosphere where people can meet and enjoy fine coffee. It is a Canadian coffee shop known for its coffee and doughnuts. Starbucks have embraced the digital revolution in supporting digital networks within its stores. 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. To expand more international locations will add more value to this organization. Premium Essay Starbucks Organizational Behaviors In: Business and Management Submitted By poohbear1519 Words 2044 Pages 9. 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. It also commands 62% in the Canadian Coffee market. And it is also clearly proven that Starbucks marketing strategy is effective by an increased sales growth. The paper "The Divisional and Matrix Organizational Culture of Starbucks" is an outstanding example of a case study on management. Key Duties & Responsibilities: First duty of Barista is to greet all patrons with a smile. Plagiarism checker; Thesis statement generator; About us; Hire expert. These limitations have an impact on the organizational innovation. As such this rests upon a number of different perspectives i.e. Starbucks continuously adapts to the challenges of its critics and overcomes challenges. 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! The Cafes often provide very comfortable seating arrangements and lounge chairs. During this period how many other trees will be destroyed purely for the use of paper cups? Organizational Structure of Starbucks Starbucks uses a mechanistic structure as a contemporary design Starbucks Organizational Culture and Environment Starbucks Corporation is considered as one of the leading coffee house chains that offer best quality coffee to its customers. The Organizational Structure. This is the action through the creation of new products/processes and the entry into new markets which may occur through a newly created organization (Hirsch & Peters, 1989). 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 . These organizational functions are referred to as: functional, divisional, network, and matrix organizations. 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. First, the matrix structure creates a situation where an employee has to answer to two bosses at the same time, functional and geographic heads here. 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). These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. The Starbucks Organizational Structure Starbucks organizational structure is a matrix structure and is one of the best successful organizational structure examples. 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. To understand environmental and organizational factors that manipulate organizational structure via the process is useful to better understanding the organization strategic innovations. Based out of Seattle Washington, this small coffee house name Starbucksgrew from the ideas of a man named Howard Shultz. According to the graph above, U.S paper consumption has decreased in recent years. The other organizational factor is an external communications network that seeks to capture the “degree of interaction and embeddedness of an organization with other relevant elements in its environment representing the degree of consequent conformity pressures” (Damanpour, 1991). 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. In a difficult financial climate competition for business increases and a good customer, relationship management team becomes of paramount concern. Starbucks makes its products special. In this way, the firm uses its corporate culture as a distinction in the coffeehouse chain market. Download free paper File format: .doc, available for editing. A functional organizational structure is one in which the organization's guidelines are followed to the letter. Starbucks Corporation, headquartered in the USA, specializes in the production of coffee beverages and in the processing of coffee beans, which … Organizational Structure of Starbucks SECTION 2. In March of 2012 they announced the appointment of two new Executives to be responsible for the way Starbucks uses technology and innovation relative to servicing its customer base. In analyzing the application of the organizational behaviors of communication, culture, and decision making, we can determine how … 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. *You can also browse our support articles here >. This will help to create employment in China and develop the educational system within the Universities in the province of Yunnan, thereby promoting the development of the coffee industry in China. Download file to see previous pages This essay stresses that throughout the various websites that post the history of starbucks, it is there is one clear recurring aspect of the decision making process that Schultz excelled at. Essays on The Divisional and Matrix Organizational Culture of Starbucks Case Study. Starbucks have also adopted more of a servant leadership style at the store level. Our academic experts are ready and waiting to assist with any writing project you may have. Starbucks Organizational Structure. Increased ‘green’ initiatives – Part of marketing initiatives . These changes embody innovations adopted through a multi-stage process. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. Organizational Structure Of Starbucks Marketing Essay. The Organization structure of Starbucks is similar to most large groups of its size. This style is very paternalistic and encourages others not to be selfish but consider what they can do to help others. Starbucks Essay...inspired from the their love of coffee to open a coffee house. Starbucks Structure provides them the positive work environment for the subordinates to serve the customer better. This group consists of a manager and his subordinates, and both of them share a common specialty. Howard Schultz, President, Starbucks Corporation When considering the organizational structure for his new corporation, Schultz had four basic organizational functions he could have chosen. Starbucks was the first company in the U.S to recycle content coffee cups. [AMA] is attempting to bridge the gap but can only make code binding upon some members. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. All work is written to order. Starbucks has made significant investments in point of sale management systems, sophisticated inventor control systems and provision of computer technology in its supply chain. We're here to answer any questions you have about our services. Hersey pointed out that this is not a theoretical concept but that of a leadership model. This will help promote local knowledge and expertise in Yunnan province. Modern Corporate entities become more interested in the concept of wealth accumulation and making profits. A paper cup is made of paper and lined with plastic or wax to prevent any drink from leaking out through the paper. Looking for a flexible role? Starbucks has embraced matrix organizational structure which facilitated grouping of employees by both product and function. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Starbucks is therefore categorized under the mechanistic organizational structure. 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. Starbucks Coffee’s organizational structure has the following main features. They have definitive levels of authority for each level of management (Irani, 2013). A business 's organizational structure affects administration and headship, communication, change, and other variables important for business success. This starts off with the coffee production and dealing with ‘Fair Trade Coffee’ that ensures planters and their staff are treated in an equitable manner and receive proper financial rewards that are commensurate with their efforts. This motivates the staff because it promotes initiative and makes them feel more inclusive in the decision making. At this moment in time Starbucks are represented in more than 15,000 locations worldwide. Paper cups as the most popular drink container in the world, however, most of them are not recycled paper and as such they bring many negative impacts to the environment. For example, the company has an HR department, a finance department and a marketing department. It is a public coffee for Canadians. (Bussing-Burks, 2009). Perhaps less reliance on coffee and increased diversification in their stores may help to consolidate their position further. Schultz has focused on hiring a team of executives from companies like Wal-Mart, Dell, and PepsiCo. Without these being in place the employees would not complete their job functions. VAT Registration No: 842417633. 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. Quality products- Consistent quality over all their stores. Learn More. It wants to enrich the lives of the local community and be seen as a desirable meeting place. A store manager acts as the local boss for supervising the staff at a particular store location. If you need assistance with writing your essay, our professional essay writing service is here to help! Adaptive actions inevitably involve introducing changes to an organization. Organizational Behavior In Starbucks 1718 Words | 7 Pages. Franchises of Starbucks have an International presence, having its outlets in United States, Afghanistan (outside military base), and Ireland. Starbucks serves 2.3 billion coffee cups a year. Get Your Custom Essay on Starbucks Leadership Structure Just from $13,9/Page. Starbucks have a number of value statements and this is illustrated on their Canadian web site [1] where they enumerate:-. Starbucks needs to link the organization with large social system that serves as the organization’s environment. The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. It encourages the concept of speed (efficiency) and integrity in the way people interact and negotiate in a business setting. Study for free with our range of university lectures! No plagiarism, guaranteed! Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. 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. Starbucks do their marketing in five different areas namely. Starbucks Corporation (NASDAQ: SBUX) is an international coffee and coffeehouse chain based in Seattle, Washington. At this moment in time Starbucks are represented in more than 15,000 locations worldwide. The negative side of traditional leadership models is that it has been more inwardly focused upon personal leadership styles as opposed to taking a more holistic viewpoint in terms of looking who leadership serves and how best to gain the optimum outcomes for the organization i.e. There is no reason why the firm cannot continue its global expansion aims, particularly in China. Free resources to assist you with your university studies! As a multi-national company Starbuck’s sets a good example to achieve paper cups sustainability. They have definitive levels of authority for each level of management (Irani, 2013). We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Organization Structure And The Organizational Structure Of Starbucks. Let us now look at how the organizational structure of Starbucks has helped the company to achieve its long-term success. Brand Marketing – In which the marketing team concentrate on how to establish brand power. The provincial government in China’s Yunnan Province has said that it will invest $450 million to help expand the green bean volume of production from the current 38,000 tonnes per annum to that of 200,000 tonnes by 2020. On December 1, 2016 a new format of Starbucks organizational structure was announced according to which Kevin Johnson, president and COO and member of the Starbucks Board of Directors, would expand his responsibilities and assume the role and responsibilities of president and chief executive officer, effective April 3, 2017. 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. There is a danger that staff does not carry their weight and rely upon others to carry them. There are a lot of very strong positive forces at play within Starbucks and this is what positions the firm as a Fortune 100 Company and a global player in this field. Management; Case Study; College; Pages: 4 (1000 words) October 30, 2019; Tags: Employee Retention Organizational Culture Organizational Structure Starbucks structure. The Military, Changing the leadership view from one style to that of servant leadership can prove difficult unless very carefully handled, Leading is different from managing – personal and organizational styles need to be carefully aligned. A functional organizational structure is one in which the organizations guidelines are followed to the letter. Organization structure exists as social tools in that they match human actions in social system. … the Starbucks Corporation under strict quality control guidelines service is here to answer any you... Over its competitors is its brand power sociable tools for the subordinates to serve others first and! 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