Starbucks is a multinational coffee company that was founded in Seattle, Washington in 1971. In 2014, the company had more than 21,000 stores in 62 countries, making it one of the most recognized and successful coffee chains in the world.
The organizational structure of Starbucks in 2014 was primarily hierarchical, with a clear chain of command and distinct levels of authority. At the top of the organizational chart was the CEO, who was responsible for setting the overall strategic direction of the company and making high-level decisions. Under the CEO were several vice presidents, each of whom oversaw a different aspect of the business such as finance, marketing, and operations.
Below the vice presidents were a number of managers and supervisors who were responsible for overseeing the day-to-day operations of individual stores or regions. These managers and supervisors were responsible for hiring and training employees, setting goals and targets, and ensuring that stores were meeting performance standards.
In 2014, Starbucks also had a strong focus on customer service, and as such, the company placed a high value on its baristas and other front-line employees. These employees were responsible for interacting with customers, taking orders, and preparing drinks and food items. In order to provide the best possible customer experience, Starbucks provided its employees with extensive training and support, including ongoing coaching and development programs.
Overall, the organizational structure of Starbucks in 2014 was designed to be efficient and effective, with a clear division of responsibilities and a strong emphasis on customer service. This structure has played a key role in the company's success and has helped Starbucks become a leading player in the global coffee industry.
Starbucks Announces New Leadership Structure to Accelerate Global Growth
They will also work closely with Starbucks Global Consumer Products and Foodservice team to continue building out Starbucks brands and channels in each region. Conclusion In closing, Starbucks is a global leader in the coffee industry and as previously mentioned, in business management it is imperative that strategies are created and implemented so the 6 company can experience growth and increase there revenue; additionally they must consider competition advantage, short and long-term planning to continue to sustain their position in the market, including the global market. Further, the company places its cafes and restaurants in strategic places where customers can see it. This will ensure a stronger level of support in partner development, coaching and accountability in the field. Additionally, the decision-making that management made to appeal to customers relies on technology and it has proven to be effective in their competitive advantage over the competition. In fact, matrix organizational model is unique to Starbucks though it is featured in the conventional typology of business structures. It continues to enjoy a leading position in the United States, which is its home country where it sells approximately 50% of the specialty coffee that is sold in the United States for many years.
Critical Discussion On Starbucks Organizational Structure
Currently, our board has 9 directors, a substantial majority of whom meet all of the independence requirements of NASDAQ® and the U. Also, the CEO engaged shareholders throughout the change process. InProduct Lifecycle Management Volume 1 pp. The lack of social interaction platform with its customers affected its strategic positioning. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Introduction of matrix organizational structure This matrix organizational structure was developed in early 1960s and it was practiced at us aerospace industry initially. This type of understanding in organizational cultural behavior promotes achievement and consistency for Starbucks.
STARBUCKS MAKES ORGANIZATIONAL CHANGES TO ENHANCE CUSTOMER EXPERIENCE
This is important because when dealing globally the must understand the beliefs, values, etc. Starbucks and partners will experience a friendly, upbeat and clean atmosphere. Supply Chain Sustainability Risk. International Journal of Learning and Development,4 3 , p. There are teams in Starbucks organizational structure; however, the teams are visible at the lowest level. Senior management has a sound business plan in place that is long-term and it will maintain its profitability as long as the company keeps its core values, beliefs, etc.
Clique topology reveals intrinsic geometric structure in neural correlations. It was recommended that the company should put in place external communication policy, streamline the leadership process and put a mechanism to ensure efficiency in the supply chain. Furthermore, it is an endeavour of every organization to utilize their resources to the optimum, when they are operating a multi-product, multi-service company. The matrix organizational structure in Starbucks has several features. For instance, in the recent past, there has been a shift from the bureaucratic and formal communication process to an interpersonal interaction among employees in organizations. According to an article, The functional structure aspect of Starbucks is typical, its is based on grouping.
Starbucks’ Organizational Structure and Management’s Role Free Essay Example
However Senior management needs to be more focused on Strategic Initiative rather than Daily Operations. In the matrix organizational structure of Starbucks, the employees report to both the product managers and the departmental managers. Kathuria, Joshi, and Porth 2007 argued that the 7-S framework provides a robust approach in examining the organizational alignment. The other matrix aspect of the company is the product based section, which addresses product lines aspects. I hope you view these changes as positively as I do.
It does not need to invest a lot of money in advertising since customers recognize its brand using its unique LOGO Melissa 260. Securities and Exchange Commission. Since the operations are divided into different structures, communication is made easier. Journal of International Management Studies,17 1. Bureaucracy: The Pros And Cons Of A Bureaucratic Government 1717 Words 7 Pages They are in a generation where they accept the logic of organizational power in short being a conformist. The service that customers receive in a timely fashion will always be an important factor when operating a business, thus, having knowledgeable staff that understands the functionality of the operation will minimize wait times, products will be made to company standards, and much more.
Therefore, the possibility of wrong decisions or rejection by the workers is low. Competitive Advantage Of Starbucks 832 Words 4 Pages 1 Starbucks is a company that has been in the coffee industry for a long time. This is because; the structures formed take time to alter in meeting the needs of the market. While developing marketing strategy for a global company like Starbucks, you should understand that a localized approach to product development allows the company to cater to the needs of the customers more effectively. This is because, they are guided in doing some aspects and before they get used to them, changes take place. This can prove to be quite beneficial for your college essay on Starbucks, especially when you are conducting an internal audit. Leadership and management are one and the same.
Organizational Structure Of Starbucks Organization Structure
Annie Young-Scrivner has been appointed president, Tazo, in addition to her current responsibilities as Starbucks global chief marketing officer. Managerial Decisions Starbucks has been successful in their operation for many reasons because management is cognizant that customers need to feel welcomed and relaxed based on the facility layout and location. Moreover, it is seen that every person in the organization is considered to implement managing functions in the organization, however, everyone cannot be a leader Sobratee and Bodhanya 2018. Proceedings of the National Academy of Sciences,112 44 , pp. For example, the teams formed at the lowest level in the organization could pass information to the geographical team. These elements affect the operation of the business and are key determinants of the strategic position of an enterprise. Due to the overlapping nature of matrix structure, it can often become quite complex.
Starbucks Challenges: Current Issues Faced by Starbucks
Consequently organizational structure is necessary for a well implemented Persuasive Essay On Changing School Lunches 752 Words 4 Pages Have you ever wondered if you could ever change the school lunches in the Public schools? Moreover, there are regional managers in each country that take care of regional stores Mason, Cole and Goza 2017. Both the business functions of leaders and managers are confused to be similar or different from one another Liphadzi, Aigbavboa, and Thwala 2017. The Starbucks Company has gained competitive advantage across the globe due to an effective way of communication that has been enabled by matrix structure Stark 2015. Moreover, in every business, both these roles are made accountable for the performance of the employees and the final result of a project or work. Thus, where conflicting policies are developed, inefficiency is experienced which takes long before it is solved as the region served by the company is large. However, there was a hitch when the information leaked to the media and caused a lot of speculation.
