Starbucks Control Mechanisms

1624 Words Sep 11th, 2010 7 Pages
Introduction Business control systems, although sometimes complex in practice, are quite straightforward in concept. Control systems are designed and implemented as a means to control resources and to ensure that employees act in a manner that is beneficial to their organization. Effective managers can use control systems as a tool to make sure activities are carrying on as planned. Starbucks is a nationwide coffee house specializing in variations of coffee. Starbucks implements control functions like budgetary, financial, market, and clan.

Control Mechanisms Starbucks, like most major corporations have many control methods, one method used which is typical with almost every company is hierarchy control. With many levels of
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Having these types of career option and incentives will make way for more valuable dedicated employees.

Positive and Negative reactions It would be extremely hard for one to find any negative reactions with how Starbucks conducts business based on the level of success had by the coffee chain. Pricing seems to be the biggest complaint according to Lee (2007). Many people feel that the extra cost versus what the competition offers is not worth it. One such example that is shared by Lee’s survey (2007), “face it, Starbucks is expensive. With so many other options available to me, it is not always worth the added expense,” and another reaction is “if prices go up again, I’m out.” The negative reaction is from the financial control that deals with the pricing. Customers always look for a cheaper supplier and Starbucks may suffer as a result. Now that we have looked at the negative there are many positive reactions to the way Starbucks conducts business. Starbucks seemingly swept the nation overnight with their business strategy. With the control that allows managers to play the part of customers service is likely to have been of higher quality because the employees would always be on top of their game. Control over the quality of their product is seemingly very well handled as there are millions of customers who prefer Starbucks brand over other coffee brands.

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