Disclaimer: This essay has been written and submitted by students and is not an example of our work. (Gilbert, 2008). Howard Schultz is chairman and chief global strategist and Jim Donald is president and CEO. 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. For example, the company has an HR department, a finance department and a marketing department. An underlying question is will any rigorous code of ethics improve marketing practices of business behaviour? However, due to the inherent disadvantages associated with such an organizational structure, there is the need for Starbucks to modify its organization to include flat structures, downsizing, and outsourcing. By having Flat decentralized structure, it saves money, time and improved the communication process and decision making inside the organization. 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. Organizational Structure Essay 1168 Words | 5 Pages. Company Registration No: 4964706. Good servant leaders bring about a very positive approach in the development of internal resources by promoting them, coaching and encouraging them, whilst equally motivating them towards a sense of community building. They have definitive levels of authority for each level of management (Irani, 2013). External Factors consider such items as cultural implications, market potential, and the intensity of competition and market barriers. In this way, the firm uses its corporate culture as a distinction in the coffeehouse chain market. 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. According to Schreiner (2012), matrix structure combines the best of both structures to make efficient organizational structure. Organization Structure And The Organizational Structure Of Starbucks. They have definitive levels of authority for each level of management (Irani, 2013). This helps in the creation of customer loyalty and is indicative of the fact that they care about their customers (Hanft, 2012). So despite a growth trend in Sales the Company was losing money. Brand-based divisions within Starbucks organizational structure. Download paper. Since the paper cup is a vital component of our routine life, most people do not consider the serious impact it creates. This is a very interesting video clip that illustrates both the ethical and social responsibility of Starbucks on a global basis. 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. This newspaper talks about about the organizational structure of Canada's major coffee shop network, Starbucks. 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. Sustainability usually reminds people about green products and protecting the environment. Organizational structure provides the necessary foundation within that an organization functions. Equally, the customers will look at the positive internal dynamics that are being generated. To view this post and other posts in this category please pay the amount below . The functional structure feature of the firm’s organizational structure Page 1 of 5 - About 43 essays. It devises a strategic plan that focuses on effective leadership and a strong organizational structure. Ensuring its fiscal responsibility and assessing the business growth is a challenge for the Starbucks financial professionals. Franchises of Starbucks have an International presence, having its outlets in United States, Afghanistan (outside military base), and Ireland. Therefore, Starbucks strategy drives from the different perspectives reflecting internal and external factors to the organization. The functional hierarchy feature of Starbucks Coffee’s organizational structure refers to grouping based on business function. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. The environmental factors such as an environmental complexity seek to capture composite of the environmental forces acting on the organization (Dansky et al., 1996). For example, how will the business be successful and as such how the people that drive the business is both rewarded and incentivised. Free essays. They have definitive levels of authority for each level of management (Irani, 2013). 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. In this context, competition was operationally defined as the ratio of a Starbucks market share to competitors. All work is written to order. with equality, respect, personal concern and a willingness to achieve a high quality product or service. The organizational factors such as an organizational complexity. A store manager acts as the local boss for supervising the staff at a particular store location. (Tung, 2010). The first consideration must be enforcement; only if you can make people obey the code of ethics does it become worthwhile. Fairly high costs to maintain standard of excellence – You always pay for quality! . Starbucks is therefore categorized under the mechanistic organizational structure. Servant leadership has become an extremely popular approach in modern business. Free resources to assist you with your university studies! Learn More. The CEO has said that it plans to start and grow coffee in Yunnan province of China. The organization is controlled by a Board of Directors who functions from the Group HQ based in Seattle, Washington. The Organization structure of Starbucks is similar to most large groups of its size. Modern organizations tend to view reward in terms of a strategic framework and this considers the overall vision and mission of the organization. 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. Regional groupings of stores are monitor by district managers. 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! Posted on March 3, 2019 June 28, 2020; by admin; March 3, 2019 ; 0 comments; What would we do without Starbucks? The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. All work is written to order. And it is also clearly proven that Starbucks marketing strategy is effective by an increased sales growth. source.. Large Market share & capitalization – They have the financial clout! The firm’s industry leadership is partly attributed to the appropriateness of its organizational structure. He knew when and with whom to ask for help in making decisions. Starbucks is one of the most popular coffee shop in everywhere in the world, especially in its original place—U.S. It will also help Starbucks to expand its hectares in Yunnan province from 26,700 to 100,000 acres in the same period. Download free paper File format: .doc, available for editing. Yunnan province coffee already has a well-developed reputation in China for the production of high quality coffee beans. Change Management at Starbucks Essay. Management; Case Study; College; Pages: 4 (1000 words) October 30, 2019; Tags: Employee Retention Organizational Culture Organizational Structure Starbucks structure. Partners – The firm considers all of its staff as partners and inclusive in the contribution and wellbeing of the business. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. 301 certified writers online. Starbucks has innovative Human Resource practices. Also, the organization’s brand and failure of preserving the value they have. The vision of Starbucks is all about quality and people. It is one of the largest restaurant chains with more than 2500 outlets all over Canada. Flat Decentralized Organizational structure in Starbucks improved the communication and customer responsiveness that results in faster product delivery and increased productivity. Functional Structure Of Starbucks 1436 Words | 6 Pages. Starbucks mainly target all age groups from lower and middle classes. Starbucks have built a global coffee empire on the basis of quality inexpensive drinks. Starbucks was the first company in the U.S to recycle content coffee cups. 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. 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. Do you have a 2:1 degree or higher? Increased ‘green’ initiatives – Part of marketing initiatives . National Promotions – In which they do promotions nationally by different mediums such as event sponsorship, television, radio, in-store advertisements and outdoor advertisements. A functional organizational structure is one in which the organizations guidelines are followed to the letter. The Starbucks Organizational Structure Starbucks organizational structure is a matrix structure and is one of the best successful organizational structure examples. Meanwhile, landfill is another problem that disposable paper cups bring to the environment. Servant Leadership may be defined as a leadership style that influences, models and supports how people learn to serve others first. Paper cups, are one of the most common consumables in our daily life. The structure is flat and differentiated according to functions needed to achieve specific goals. 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. 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. Starbucks holds 76% for baked foods in the Canadian market based on the number of customers served. 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. 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. 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. Case Study: Starbucks’ Structure Essay Example. The policy followed by the human resource department is always balanced and fair. 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 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. Delegation of responsibility does not however make the Manager less accountable for achieving the end results. Thus, to understand environmental and organizational that influence the innovation is important to understand the organizational structure. There is no reason why the firm cannot continue its global expansion aims, particularly in China. Statistics show a strong performance in sales between 2005-2008 but in 2008 the net income showed a sharp decline. 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. Starbucks' organizational structure is a traditional functional structure. A paper cup is made of paper and lined with plastic or wax to prevent any drink from leaking out through the paper. Learn More. Standards of marketing are not strictly governed by codes of ethics, as compared to other more regulated professions like law, medicine, accountants etc. (Fusso, 2011). It is less urban if it was compared by other coffee shop such as Star bucks. Starbucks has always taken Information Technology very seriously in its business operations. 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. Post author By Joseph; Post date January 18, 2019; Introduction. This has also seen a move towards organic coffee production. Change Management at Starbucks Essay. Starbucks was founded on 1964. Whereas internal factors are more focused upon such items as the characteristics of the country and environment for successful operations, the local resources available, speed of entry, ability to gain local support and investment. Organization structure exists as social tools in that they match human actions in social system. In a difficult financial climate competition for business increases and a good customer, relationship management team becomes of paramount concern. 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. If you need assistance with writing your essay, our professional essay writing service is here to help! 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) . Organizational Structure Of Starbucks Marketing Essay Structure of Starbucks. Company Registration No: 4964706. Starbucks needs to link the organization with large social system that serves as the organization’s environment.  Starbucks Structure MGT330: Management for Organizations (CYD1419B) Instructor: Beth P Starbucks Barista: Entry Level We are looking for a Barista/ Bar Person. Community – Starbucks wants to be seen as an important part of the community and an important force for good. Starbucks have indicated that they would like to export Yunnan coffee beans throughout its world-wide distribution of retail stores. Starbucks are an excellent example of excellence in customer service. VAT Registration No: 842417633. 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! This motivates the staff because it promotes initiative and makes them feel more inclusive in the decision making. One the first hand, environmental complexity and competition were discussed to capture the environmental influence on organizational innovation. The norms and expectations of the larger system influence the structure and processes of the organization in order to be recognized as legitimate and worthy from this social system. 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. The structure of a Organizational Structure essay is similar to many other types of essays. To expand more international locations will add more value to this organization. Organizational structure supplies the necessary base within an organization functions. Managers in larger Corporations are able to examine their directive and supportive leadership styles and determine where they are portrayed on the Model. The advantage of Starbucks over its competitors is its brand power which they achieved by using proper marketing strategies. Brand Marketing – In which the marketing team concentrate on how to establish brand power. The firm has stated that China, Advancements in Technology – Constant innovation spearheaded by two senior executives of the firm, Product range diversity – Constant ongoing improvements in this area, Licensing its Name to open up market channels – This will be done carefully in order tom protect quality standards and the brand image, Improved marketing initiatives – Constantly exploring new marketing opportunities. Free Essays; Tools. Starbucks makes its products special. However, when confronted not many people will agree upon how to achieve these objectives . *You can also browse our support articles here >. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. 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. Starbucks Coffee Company's Organizational Structure Functional Structure Refers to grouping based on business function This feature relates with hierarchy in the organizational structure of Starbucks. Starbucks have also adopted more of a servant leadership style at the store level. We will write a custom Essay on Organizational Structure Paper specifically for you for only $16.05 $11/page. These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. This type of structure is a very effectual way of utilizing all the communication channels. Without these being in place the employees would not complete their job functions. One example is the type of background music played in the stores. The Company has been extremely successful in this regard. Place a Quick Order. This retail corporation is based in the United States, initiated in the early years of the decade of 1970. Millions of people will consume six cups of coffee as part of their routine life and only a few of them will choose not to use paper cups. Hersey pointed out that this is not a theoretical concept but that of a leadership model. Starbucks apply product-based divisions as well in its organizational structure. Starbucks has embraced matrix organizational structure which facilitated grouping of employees by both product and function. 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). 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. A functional organizational structure is one in which the organizations guidelines are followed to the letter. Very often a light smooth jazz or the mellow sounds of Sinatra. This paper explains about the organizational structure of Canada’s largest coffee shop network, Starbucks. The leadership style in Starbucks is very focused towards that of the democratic leadership style. According to the graph above, U.S paper consumption has decreased in recent years. No plagiarism, guaranteed! Fortunately, there are some of the institutions and coffee store already realized the serious impact of paper cups. Premium Essay Starbucks Organizational Behaviors In: Business and Management Submitted By poohbear1519 Words 2044 Pages 9. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. 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. The determinants of organizational behavior are the company’s structure, its individuals, and groups. Let us now look at how the organizational structure of Starbucks has helped the company to achieve its long-term success. This campaign encourages customers to be more environmentally friendly. Categories: Starbucks Strategy. A business 's organizational structure affects administration and headship, communication, change, and other variables important for business success. The strategic management process maintains that the organization should analyze the external environment for threats and opportunity and scan their capability for strength and weakness. First, it has the functional structure whereby the organization is grouped based on business function (Meyer, 2015). Business structure is available as sociable tools for the reason that they match individual actions in interpersonal system. 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 first started by selling just the beans but then they moved on to brew the coffee. Starbucks Coffee’s organizational structure has the following main features. Howard Schultz, President, Starbucks Corporation When considering the organizational structure for his new corporation, Schultz had four basic organizational functions he could have chosen. The Marketing team do this through innovative national advertising campaigns, local and national sponsorships and through in-store merchandising. Departmentalization means structuring an organization that can be found in public and private companies as well. 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. As such this rests upon a number of different perspectives i.e. It encourages the concept of speed (efficiency) and integrity in the way people interact and negotiate in a business setting. Starbucks and partners will experience a friendly, upbeat and clean atmosphere. Corporate Affairs – Here a corporate affairs team is formed. Employee benefits like health insurance, promotion, rewards are taken care by the human resources. Merchandising – Starbucks also do marketing by selling merchandises like Travel mug, flavour coffee, assorted beverages and Tim card. The decline in the US market is however less likely to impact the potential investment and growth in China as the market forces are very different in the Chinese provinces as opposed to the USA economic determinations. 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. Starbucks was founded on 1964. In the new structure, Starbucks will adopt a three-region organization form: China and Asia Pacific, America, and emerging markets, which include the … Starbucks locations are limited to some extent. Starbucks has now been in China for 12 years and has 400 stores on the mainland and 800 stores in greater China. Starbucks Essay...inspired from the their love of coffee to open a coffee house. Starbucks have a number of value statements and this is illustrated on their Canadian web site [1] where they enumerate:-. The organization needs to be adapted to the demands of their environment in order to survive. The firm has stated that China “will be the fastest and biggest growing market in North America” (CNN, 2010). At this moment in time Starbucks are represented in more than 15,000 locations worldwide. We're here to answer any questions you have about our services. They specialized in producing different product with a special test such as finch vanilla, Donets, etc. And one in Afghanistan war base. Organizational Structure of Starbucks SECTION 2. This falling within the general concept of Maslow’s Hierarchy of needs. Please click this link to view samples of our professional work witten by our professional essay writers. The matrix organizational structure helps the organization to better serve their customers. Starbucks Organizational Strategy. If and how these concepts are uniquely applied, organizations can define many different areas of their organizational structure. According to a study of paper cups, it illustrates that a single cup will produce 0.25 pounds of CO2 emissions. This newspaper talks about about the organizational structure of Canada's major coffee shop network, Starbucks. And concludes with remarks, few suggestions that can be implemented to improve the organizational Structure and operations of Starbucks. First, it has the functional structure whereby the organization is grouped based on business function (Meyer, 2015). In this context, organizational complexity was used to explain a Starbucks scope of service. 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. The staff pays attention to the detail and little points that make your experience enjoyable; there are no real throwaways at Starbucks. Starbucks have embraced the digital revolution in supporting digital networks within its stores. Employee development programs and employee assisting programs are conducted to ensure that employees has communication between the all the management levels. It views the whole of organization’s operations in terms of its degree of specialization, functional differentiation, and professionalism (Damanpour, 1991). In fact structure of the organization is one of the pivotal points of its success. Study for free with our range of university lectures! (Bussing-Burks, 2009). Based out of Seattle Washington, this small coffee house name Starbucksgrew from the ideas of a man named Howard Shultz. This style is very paternalistic and encourages others not to be selfish but consider what they can do to help others. Starbucks network spread rapidly and sooner it became Canada’s largest restaurant chain service operator. In particular, the disposable paper cups. It also commands 62% in the Canadian Coffee market. Published Date: 23 Mar 2015 Last Modified: 09 Jan 2018 Disclaimer: This essay has been written and submitted by students and is not an example of our work. The Manager is accountable for the end result. Must be able to count money at a fast pace. 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. Essay on Organizational Culture of Starbucks Appendages Research Paper Project title: Management 1 & 2 Program: BAA Faculty responsible: Walter Improvise Due … No plagiarism, guaranteed! (starbucks, 2011) In this report I will tell you my experience of being a mystery shopper. Customers will see this as indicative of the manner they will be treated i.e. At this moment in time Starbucks are represented in more than 15,000 locations worldwide. Empowered – They encourage others to lead by active delegation, Positive attitude – They promote a positive outlook in the organization, Desire – They have honesty and integrity and work on building trust, Problem Escalation – They will resolve issues or problems in an expedient manner, Serve – Excellent provision of customer service. 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. The stores compared by other coffee shop network, Starbucks made its different... 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