This paper centers on the structure of Starbucks Company. This company is organized in a hierarchical manner where executives at the headquarters oversee regional managers who intern supervise employees (Shultz, 2012).
The regional division was thought to be the most effective for two reasons. The first one is that stores could funnel their concerns through geographical headquarters that would link with Starbucks’ main headquarters in Seattle, Washington (Shultz, 2012).
The second reason for organizing in this way was that costumers’ needs would be addressed better if they are approached by culturally or territorial differences.
The recent downturn in the economy, increasing competition, and other factors prompts the question: should Starbucks change its structure and if so which structure would fit best. The answer: Yes and Product departmentalization structure (Reilly and Back, 2011).
Just as important as the structure of the company is the quality its employees and baristas is where the rubber meets the road. Job Description: Besides manager who keep stores running smoothly, baristas are the first impression customers get of the company as a whole (Shultz, 2012).
They will never know how much an executive cares about them or how interested a manager is about their satisfaction with a product, in this case a cup of coffee. Thus, a barista is a position in the company’s success (Shultz, 2012).
The Research paper on Rig Manager Company Team Managers
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Based on this, it is not a surprise that Starbucks’s executive has developed specific criteria to ensure baristas is highly qualified and they represent the company’s vision well (Shultz, 2012).
For example: a person applying for a job as a barista should be extremely personable as the customer’s experience is paramount to the Company’s success.
Other responsibilities would include: Greeting customers as they enter the store Regularly lifts and carries items weighing up to 20 pounds Stands for prolonged periods Stocks coffee bar. Keeps coffee bar, utensils, equipment and work area clean and sanitary. Keeps records of quantities of beverages dispensed and submits requirement for re-stocking to supervisor. Providing not just a product, but an experience through quality and presentation Following company rules Hold a high degree of honesty and integrity Qualifications required:
Must 16 years of age or older. Be able to lift and carry weights up to 40 pounds. Possess math skills necessary to calculate patron bills and take inventory. Be personable and care about the product. Departmentalization should Starbucks use: Currently, Starbucks functions under a geographical departmentalization which ensures that each cafe is operated differently incorporating the particularities of its environment and costumers’ culture (Michelli, 2013).
This type of organization is usually preferred by franchises (Reilly and Back, 2011).
Each regional division conducts separate studies to enhance customer satisfaction and identify areas of concern that must be address. In stores where lunch is served it is possible to see a degradation of the quality of the coffee. To avoid this problem Starbucks should departmentalize further into product divisions. This way coffee quality may be maintained by those heading the department in charge of the main product of the company. Centralizing versus decentralizing power and decision-making authority to weather difficult times.
The Term Paper on Starbucks company profile study
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 ...
Centralizing the decision-making authority during hard times may be necessary to affect the change needed to ensure the company stays afloat (Michelli, 2013).
However, it would not be wise to continue this operating mode for long periods of time. Each region should continue to maintain a certain degree of autonomy that allows it to modify the way they do business according to geographical requirements (Michelli, 2013).
The change of structure from geographically divisions to a more simple or apex mode is warranted when there is a resistance to accept change.
What form of organizational configuration best fits Starbucks? As Starbucks continues to grow and change it may come time to change its geographical divisional structure. One that may work, besides the product structure as mentioned earlier in this paper, is the matric model. This model takes in consideration two or three factors simultaneously. For example: divisions could remain separated by regions, but they could be further divided by product. Starbucks is reaching for other markets. They now sell lunch food, music, and other products.
To maintain the quality and focus in their main product, coffee, Starbucks should separate the supervision of its product to ensure the focus on the quality of the coffee never diminishes. Conclusion Starbucks CEO developed a company that centers on the idea that coffee is more than just a product, is an experience. The manner which they operate focuses on the needs of the costumer. The company chose a geographical form of organization to ensure they stay abreast of the costumers needs and to funnel information in the most effective way.
But a company must continue to change or risk getting overrun by competition. Dunkin Donuts and McDonalds have unveiled gourmet coffee that can be purchased at a lower price. Starbucks continues to stay afloat by providing an atmosphere often preferred by those coffee drinkers looking for a relaxing place to enjoy their beverage. Exterior influences will continue to chip away at Starbucks earnings and one way to counteract these dangers is to change their operational model to continue to stay competitive.
The Essay on Starbucks, an American global coffee company
Starbucks, an American global coffee company and coffeehouse chain that’s been distributing all around the world has been continuing to grow to the point ... sometimes picture frames that resemble the products of Starbucks or related to coffee. Usually the furniture of Starbucks is where you able to ... minded feeling you get at Starbucks is a good feeling and that can never change, well unless you had a ...
