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 MAKES ORGANIZATIONAL CHANGES TO ENHANCE CUSTOMER EXPERIENCE
Apart from that, inefficiency is caused by the functional managers who compete for the attention of the employees with the cross-functional team leaders. It is worth noting that if there is an equilibrium between the forces, then change cannot be realized. They will operate under four U. The process starts by bean procurement where it selects the highest quality beans that are firmly specialty varieties of Arabica beans. This means that the leaders in the brand are known to lead the decision making in the organization in an inclusive manner so that there are no gaps in the decision and the efforts by the employees. Motivating the workers is also helpful in ensuring that they persevere with the problems that could be experienced. In addition, there is the challenge of cost as the workers are paid based on the skills that one has.
Starbucks Challenges: Current Issues Faced by Starbucks
This is to say that each leader is concerned with the sector they are allocated and since they report to senior heads there has been resource coordination. Kathuria, Joshi, and Porth 2007 argued that the 7-S framework provides a robust approach in examining the organizational alignment. In addition, complications develop is determining the priorities to be handled by the management. She will also be responsible for growing and developing Starbucks joint venture and licensed operations in Europe, Russia and the Middle East. Addressing Starbucks Challenges Managing and implementing change is a critical factor for the change process. The company had to lay off employees to remain competitive.
That affected the confidence of the customers and other stakeholders. Therefore, the feature helps the organization serve its market with product lines because what may be demanded by one population may not be required by the other. This is to say that the amount of money spent is coordinating the processes as well as paying the workers is too high, that the profit earned by the corporate is affected Giusti et al. Additionally, at the Starbucks Annual Meeting on March 19, Howard Schultz, president, ceo and chairman, will outline five key strategic customer-facing initiatives that will continue to transform the customer experience. Ă‚ The company assumes no obligation to update any of these forward-looking statements. In this article, we have presented a thorough discussion on the organizational structure of Starbucks, which highlights the hierarchical structure within the company and the its corporate governance. 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.
Organizational Structure Of Starbucks Organization Structure
Starbucks is ultimately controlled by a board of directors and an overarching functional hierarchy, one of three major elements that comprise Starbucks' organizational chart. Also, Starbucks faced the challenge of technology. Â But as I sit at my desk and think about my responsibility to over 170,000 partners and their families who rely on me and others to preserve and enhance our company, I know that I am responsible for ensuring the success of the company for the long term, which means that difficult decisions must be made. Disorder at the top, will leave no avenue for the employees to share their ideas on improving the …show more content… An adhocracy is as a flexible, adaptable, and informal organizational structure without bureaucratic policies or procedures adhocracy, n. Since the operations are divided into different structures, communication is made easier. Handbook of Research on Business Ethics and Corporate Responsibilities, 302.
A Complete Guide to Starbucks Organizational Structure
Perhaps one of the best advantages that management offers to their customers are free services such as Wifi, reduced cost on music such as CDs and free musical downloads for electronic devices, along with diverse music that caters to all ethnic groups. Introduction of matrix organizational structure This matrix organizational structure was developed in early 1960s and it was practiced at us aerospace industry initially. Between 2014 and 2016, the company hiked the prices of its products, with the aim to ensure operations margins Lee and Vachon 2016. There is a functional hierarchy in Starbucks organizational structure which means that structure is grouped based on different business functions such as HR department, finance, and marketing. Therefore, there must be an imbalance in which the driving forces overcome the restraining forces. Another thing is multiple command system can be seen under this matrix organizational structure. It contains driving and restraining forces.
This type of understanding in organizational cultural behavior promotes achievement and consistency for Starbucks. To write an essay on Starbucks organizational structure, you need to understand the underlying chain of command and business segmentation. The Starbucks Culture: Responsible, Radical Innovation in an. Therefore, the possibility of wrong decisions or rejection by the workers is low. Having a structure in a workplace establishes communication skills, defuses conflicts, and also provides awareness of leaders who are in charge of you.
Critical Discussion On Starbucks Organizational Structure
Also, there were technological challenges that the company faced. On the other hand, effective communication ensures that issues realized in the company are solved at the right time. View all versions of the Standards of Business Conduct. This method is especially useful and helpful for companies facing financial difficulties or some sort of catastrophe. With this method, they shall have one source of decision-making authority heading them. On the contrary, it is seen that the manager deal with complex situations Liphadzi, Aigbavboa, and Thwala 2017. However, with a reliable communication channel, the problems are solved which prevents them from reaching the consumers, who would easily prefer other organizations.
The same holds true for marketing communication. As a result, there is a need to put in place strategies that enhance competition and sustainability. One of the solutions to this issue is introducing more types of goods for example the coffee. All you need to do is to place your order with us and let your experts take care of the rest. The Starbucks Company has changed over years to ensure that the business structure used is the one that meets the needs of the current market. Where communication channel is reliable, the decision-making process becomes easy, as the views of every department are considered. Along with this the company will have to be diverse in its operation and products.
Matrix Organizational Structure In The Starbucks Company
The leaders in Starbucks make sure that the employees are happy and they give their best effort towards their goals. The company also was failing to take advantage of the opportunities to interact with its customers. There are some major advantages for this kind of organizational structure which include maximized communication channels. Although different departments are helpful, an organization that does not have a stable routine of doing things experiences problems as the payment structure is complicated. For instance, Schultz pointed out that the managers were disinterested with the work and only concerned with the gross margins instead of the organizational values.
