The Management Hierarchy Of Starbucks

The fact that all the managers are accountable, help and work with each other despite their level help Starbucks maintains and achieves good result.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks has many different employees, in order for the communication to run smoothly between all of these there needs to be some form of organisation within the business. From doing some research I found that they in fact use the matrix structure. This structure ensures that the CEO isn’t dealing with all of the problems within the business. The employees turn to the person above them in the structure.

Starbucks, as everyone knows, is the leader of coffee retailers in the world today. Despite the competitiveness in the market, Starbucks has still been the best and most famous company among those coffee companies. Success of Starbucks is due to its application of the effective and useful management theories. First of all, Starbucks has applied the General Administrative Theory which includes the 14 principles of management and the Bureaucracy. The 14 principles of management is fundamental rules that can be applied in every organisation, which

Starbucks provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to
pay for
your
drinks
and
earn
rewards
for
your purchase (Starbucks Coffee Company, 2011).
Furthermore, in‐store
promotions
accompanied
by
new
products and
amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).

This paper will explore the science of Managerial Economics, the cost effective management of scarce resources, through an exploration of the Starbucks Company. This will include an assessment of relevant market forces, market structure and the economic theories that guide business decisions for this company.

The company has also developed a structure and control system. With the realization that human capital holds a vital role in the development and sustainability of any institution, that of Starbucks included, it has taken to task to protect the same. To develop this, the company has an elaborate system that ensures the production levels of the company are met with pride. This like other leaders in the same has entailed ensuring they have an empowering corporate culture, topped by ensuring their employees enjoy competitive benefits.

As the world has turned the pages into the 21st century, Starbucks and its leadership team has developed and leveraged the technological advances of this time period to further drive growth and expansion, in addition to providing the ultimate Starbucks Digital Experience to people. The use of digital space and use of technology across the board is what has been a wise and effective tool by management as a method for the company to have and maintain an innovative marketplace advantage. Always cutting edge, some of the innovations that have given Starbucks a marketplace advantage are the company’s ability to connect with customers via social media, mobile order and pay, providing free premium content and access to Wi-Fi for in-store

Collaboration and Communication. Another feature of Starbucks’ organizational culture is encouraging collaborative efforts through effective communication. This can be seen as baristas have to communicate and collaborate with each other to make order fulfillment efficient. Efficiency in business process is important to Starbucks because it presented a contribution to service quality, customer experience, and business cost-effectiveness.

How does Starbucks use management theories in their company? Starbucks uses scientific management towards the front line workers. Each job is carefully studied; they select workers with the proper abilities, train each worker, and plan the work methods accordingly. In order to counterbalance the scientific management portion, they also practice the theory of human relations. They motivate their employees to do a job well done by viewing them as partners instead of employees (Career Center, 2011). Another theory used is total quality management, which falls under quality-management viewpoint in modern management theory. Starbucks mission statement is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time (Our Starbucks Mission Statement, 2011). With this statement in mind, it is apparent that they are dedicated to quality improvement, proper training, and totally focused on customer satisfaction. Now we will focus on how my organization runs.

Mr. Howard Schultz believed that the employees should have stability in their life and he began to change the agenda of daily work for the employees, which is not familiar to a leader. As he was thinking about their well-being along with their happiness in overall. Thus, he set-up a timetable for employee’s work that is suitable for employees and the business processes will not affect. Mr. Schultz strategy was to save and keep Starbucks from its original menu allows the method to its profitable business whereas keeping the brand

Starbucks uses a matrix organization structure similar to most big corporations. The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. For example, the HR department would typically implement a new policy and that policy would apply to all Starbucks cafés. This facilitates top-down monitoring and control with the CEO at the top. Doing this helps the company maintain consistency throughout its stores and allows for employees to know what is expected of them. Starbucks also involves geographic divisions, which are mainly in the Chinese, American and European markets with each division having a vice president. This allows for each manager to only have to report to two superiors, the geographic CEO and the functional CEO. This helps for closer geographical needs and each division is given a high degree of flexibility in strategy and policy. Next, Starbucks uses product-based divisions that address product lines such as coffee, baked goods, merchandise, etc. Starbucks is a brand and they market their own merchandise with supports from its organizational structure. Finally, teams are also used with its most notable team structure being the baristas. They work together to make the product which are given to the customer that can watch it being made. It takes a team to provide top notch

Module 1: The organization that I am going to use is Starbucks. This is an interesting company because of a few factors. It dominates its industry, is able to charge premium prices, and some of its inputs are priced on the world market. Also, as a retail operation, Starbucks should fit fairly neatly into economic concepts.

These days Starbucks owns more than 18,000 stores in 62 countries and is the premier roaster and retailer of exclusive coffee in the world. Back in 1971, when the first Starbucks opened, the company already had two intentions to give to people every single day till now: share specialty coffee with friends and help to make the world a little better.

Since 2004, the value of Starbucks in the market dropped constantly. Therefore researchers found that the 'designer coffee' market just a fad. Recently, the problem was occurred is how to extent their product life cycle and maintain customer relationship. Although we knew that Starbucks had done a lot of effort on CRM. As we can see the market competitions will become more challenging, especially Dunkin Donuts. Dunkin provides the donuts but also compliment with coffee, the coffee becomes one of competitive products in Starbucks. (Zack, Chen, Calvin, Kevin, & Michelle, 2008) In order to overcome the value decline and the profitable issue of Starbucks, Starbucks should consider strategies that provided at below.