In 2000s, Starbucks became a public traded company. Starbucks trended to international that has more than 15,000 locations in over 40 countries. Starbucks never stopping on selling coffee, they initiated several other product and brand extensions. For instance, to distributed whole bean and sold coffee to supermarket. Nowadays, Starbucks is the leader in the coffer industry, and it is almost monopoly the while coffee marketing. Starbucks is like fashion and culture in the society, and it is good place to gather.
In our project, they are seven topics what are vision, mission, strategies, and goals; structure including its use of teams; External environment; management of change; culture and ethical values and practices; management of training and workforce diversity and leadership styles. We are going to explain how successful Starbucks it is because it is almost prefect without any improvements. Key word: Mission, principle, strategy, organizational structure, change management, leadership. Mission and Principles For each organization, having a purpose is very important.
The mission statement helps organization and business set a correct direction to develop. It also could help the decisions making and guide the actions of members in organization and business. The mission statement always changing as time goes by. Starbucks has changed the mission statement because of recession and increased competition a few years ago. The old mission statement of Starbucks is “To establish Starbucks as the premier purveyor of the finest coffees in the world while maintaining our uncompromising principles as we grow. Now, Starbucks has changed their mission statement to “To inspire and nurture the human spirit – One person, One cup, and One Neighborhood at a time. ” To emphasize their mission statement, Starbucks created the principles of how we live that every day, it includes six parts: (Starbucks, 2012) 1) “Our Coffee–It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them.
A Mission statement is defined by Peter and Donnelly in their Marketing Management textbook as, the statement or purpose, of an organization as the description of its reason for existence. “It is the long-run version of what the organization strives to be, the unique aim that differentiates the organization from similar ones, and the means by which this differentiation will take place” (p8). Many ...
We care deeply about all of this; our work is never done. 2) Our Partners–We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. 3) Our Customers–When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that.
It’s really about human connection. 4) Our Stores–When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity. 5) Our Neighborhood–Every store is part of a community, and we take our responsibility to be good neighbors seriously. We want to be invited in wherever we do business.
We can be a force for positive action – bringing together our partners, customers, and the community to contribute every day. Now we see that our responsibility – and our potential for good – is even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead. 6) Our Shareholders–We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks – and everyone it touches – can endure and thrive. (Starbucks, 2012) Different than many businesses, Starbucks is very passionate about the environment. It realized their environmental responsibility and also set an environmental mission statement: “Starbucks is committed to a role of environmental leadership in all facets of our business. ” Starbucks will fulfill this mission by a commitment to: (Starbucks, 2012) • Understanding environmental issues and sharing information with our partners (employees).
By: Brenda Gonitzke Ford Motor Company began a manufacturing revolution with its mass productions assembly line in the early 1900's. Now the company is firmly entrenched in the status quo as the world's largest pickup truck maker and the number two producer of cars and trucks, behind General Motors. It makes vehicles with such brands as Aston Martin, Ford, Jaguar, Lincoln, Mercury, and Volvo. ...
• Developing innovative and flexible solutions to bring about change. Striving to buy, sell and use environmentally friendly products. • Recognizing that fiscal responsibility is essential to our environmental future. • Measuring and monitoring our progress for each project. • Encouraging all partners to share in our mission. • Instilling environmental responsibility as a corporate value. Goals Starbucks has very defined company objectives found on their website, but the most important is the following statements: “The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world.
To achieve this goal, the company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. ” (Starbucks, 2006) The objectives statement is to the point and specific. They clearly explain how they want to achieve their goal of being the “most recognized and respected brand in the world. The statement has clearly stated marketing objectives, which would be to be the biggest and most well-known coffee company in the world. Starbucks is one of the corporations which want to pay attention on the environment. Besides the strategic goal, it also has the environmental goal. Starbucks made gains in green building, water and energy use, ethical sourcing and helping farmers reduce deforestation, the company said in its 2009 Global Responsibility Report. It lagged, however, in one high-profile area: recycling.
Berjaya Starbucks Coffee Company Sdn Bhd is an authorized licensee of Starbucks Coffee International, Inc. It is wholly owned subsidiary of Berjaya Group Berhad which holds 51% share and Starbuck Coffee International, Inc has 49% share capital of the company. As a Starbucks franchisee in Malaysia, currently it is holding more that 45% share of the local gourmet coffee market. It operates Starbucks ...
The company rated its progress on three recycling goals as “Needs improvement. ” The goals involve developing a comprehensive recyclable cup by 2012, implementing front-of-store recycling in company-owned stores, and serving a quarter of beverage made in-store in reusable vessels, both by 2015. (GreenBiz Staff, 2010) Strategy Starbucks has positioned their strategy as a fancy brand which is different with others because Starbucks not only offering coffee products, but rather than a rich “experience”. Starbucks marketing strategy involved ositioning it is a place where customers would like to stay other than their home or work because of the comfortable and relaxing environment of each store. Starbucks offers something enjoyment in order to achieve this objective, such as comfortable furniture and relaxing music. Starbucks stores locate position where customers can spend time in a comfortable environment, but their product lines positions at the higher-end price. Starbucks is according to a mix marketing program to satisfy the different needs of their different consumers.
Although the main product of Starbucks is coffee, the company also offers something else, such as bottle juice, coffee beverage, and fresh fruit. The attractiveness and strength of Starbucks is not only the high quality coffee, but also good service and comfortable environment. The huge existing consumer and geographic advantages of stores are also the favorable conditions of Starbucks development. Because of the stable development in North America, Starbucks plans to focus on international expanding. There are two expansion strategies are involved in Starbucks’ international strategy—licensing and joint-venture partnerships.
The key factor to expand into foreign markets successfully is dependent on S finding the right local partners to negotiate local regulations and other country-specific issues with Starbucks. Currently, Starbucks is operating more than 16,000 locations in over 50 countries. organizational structure Organization structure is an important factor to consider in a company. Organizational structure is “depicted through its organizational chart and recognizes concepts of differentiation and integration” (Anthony, Gales & Hodge, 2003).
The organizational structure of Starbucks is very flat in encourages competitive ideas from all levels of the company. Starbucks places a great deal ... salaries, and large equipment costs. Typically a Starbucks store can cost the company up to $340, 000 to start up. ... process (Schultz). The company developed these skills because it used benchmarking as a competitive strategy. It also hired experts, ...
In order to get the most profit, the organization structure should change with the development and business environment changing. A company’s individual organizational structure is a formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved”. (George & Jones, 2005, pg. 505) Figure 1: The organizational Structure of Starbucks Source: Reconstructed through interviews with Starbucks Starbucks used the design of a matrix configuration by combining divisional and functional structures (See figure 1).
From the chart, we can see that Starbucks has a decentralized structure for their company. The top level is CEO of Starbucks who has the highest power to manage all employees. There are many different apartments in the second level, such as CFO, Marketing, and Global Development, etc. We can see that the number of employees who are following to CEO is huge. There are different regions listed in the third level. Obviously, this means Starbucks is organized by geography. It is good for Starbucks satisfying consumer needs from the different regions and cultures.