Organization Performance Assessment Organizational Essay

Pages: 12 (2998 words)  ·  Bibliography Sources: 8  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management


They also educate consumers about the quality of coffee. Besides, Starbucks publishes and supplies a mail order catalog offering coffees and some food items and selected equipment for making coffee and accessories. Other initiatives to improve the consumers' experience at the Starbucks stores are also put in place. For instance, the firm is presently implementing wireless Internet connection in the stores. The firm also has a "comment card" on their web site. This allows the customers to provide regular feedback regarding their experiences or the concerns that they could be having. This improves the business.

Technological Development

Starbucks is constantly looking for how they can improve their customers' experiences. Through the development of the Starbucks Card for instance, the firm has improved on customer service and has also made customer's visit to Starbucks faster and also more convenient.

Human Resource Management

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The firm has realized that one of the most useful assets is the employees. The guiding principle in the mission statement of the firm addresses the firm's principle towards the workers: "Provide a great work environment and treat each other with respect and dignity." The Management comprehends that the workers play an important role in the development of the firm. All workers at Starbucks are being called "partners," regardless of their job position. The firm's cultural values give the workers meaning to their job. Every partner including the part-time workers can receive health care and can get free coffee every week. The employees also take part in a 401(k) profit sharing schedule. Every worker is required to finish a broad training program including product expertise, commitment to client service, and also intense interpersonal skills. Specialized coffee bartenders for the firm finishes up to one day training before they can enter the store assigned to them. The training provides them with the skills to respond to any question regarding coffee or the firm. Starbucks is also proud that it was rated as on of the best firms to work for by the Fortune magazine.

Firm Infrastructure

TOPIC: Essay on Organization Performance Assessment Organizational Performance Assignment

Before the current economic meltdown, the management identified a decrease in traffic. Instead of pulling back from their extension strategy, it came up with a number of little adjustments to increase effectiveness and to carry on with their schedules.


Starbucks warehouses are gathered in high-traffic in every market. The Stores differ in size, averagely 1,500 square feet. Because the firm is able to change the size of the stores, its stores are located in a number of settings which includes buildings of offices, retail centers, kiosks and airport terminals. Whatsoever the site the firm decides to be in, its center of attention will be on drawing huge walker street traffic.


The image of the firm is one of the main keys to its success. The firm has comprehended that consumers do not only come for coffee but the atmosphere also makes them to go to the firm. Individuals socialize, study, read or enjoy music as they drink their coffee. Coffee shops therefore try to put their warehouses unique to create a suitable atmosphere.

Advertising strategies that are applied by the firm has also been a great factor of success. The company has found great success in advertising on local levels instead of the whole nation. The firm advertises much through print mediums.

Research and Development

Innovation and creativity are greatly evident in the firm. This is evidenced by constant developments of brand products. In the month of November 2001, the firm came up with the Starbucks Card'. This is a stored-value card which is capable of being loaded or re-loaded in denominations not exceeding $500. The Card reduces the time that is spent at cash register. This results into the total improvement of the experience of the customers. It is by the introduction of brand products that Starbucks centers on their firm's goal of being the most respected brand in the world. Starbucks is also one of the greatest growing firms in the United States, from only seventeen coffee shops in the year1987 to more than five thousand today.

Financial and Accounting

Financially, the firm has had concrete earnings. During the first quarter of financial year 2002, the firm reported great revenues and earnings. The combined net revenues increased by 21% moving to $805 million. The figure moved from $667 million in the first quarter of financial year 2001.


Starbucks strongly believes that their workers are one of their most significant assets. Workers are encouraged by the management to come up with decisions without having to report to management first. The attitude towards workers can be said to be peaceful and supportive. Starbucks has shunned a hierarchical structure and besides, it has no formal organizational chart. It is apparent that workforce at Starbucks are having common goals.

Information Systems and Information Technology

Starbucks uses Blue Martini's order management system to the retailers. The system gives Starbucks the ability to administer and supply contract-based goods and pricing in several languages for its international circulation.


In general, Starbucks appears to be a tough and well-rounded firm. Being the leader of the industry, they have made for themselves a sturdy brand image that has enabled them to get a significant bigger share of the market as compared with the competitors. Management has made a corporate culture promoting productivity by the experienced human resources. Financially, the firm is stable in spite of its fast and incessant growth strategies. The firm has also done pretty well in establishing dependable, long-term relations with the suppliers. Starbucks is performing well in most fields of its business. In the areas where perhaps they lack expertise or competencies, they have produced strategic alliances with firms that are more competent and effective.

The consequences of assessed performance

From the assessment, Starbucks has, and will carry on having a great commercial growth strategy. As firms grow, there may be a trend to focus heavily on advancing output and locations, and less emphasis on quality or brand image. Starbucks should stay with its ideals and principles that have in the past made it successful.

In a bid to compete with this probable market threat, Starbucks have to push in order to be the first mover. Starbucks must regularly come up with new items to be ahead of the competitors. Starbucks should be aware of what is happening in the highly competitive markets. A way through which the organizations counter this kind of competition is through agreements and long-term contracts.

Starbucks will gain a great amount of market share if it can enter into markets which have less population, and also affluence. Starbucks is having a good reputation allover the United States. This image will make the firm gain profitability and improved market share in the lesser markets.

Research and Development of the firm ought to emphasize on product development. Developing new products will counteract potential risks. Starbucks will also be capable of using sales from its varied array of products to reduce the blow of minimized coffee sales.

The staff should still be Starbucks' most significant asset. The very low turnover rate of workers has greatly led to the improvement of Starbucks' image. A brand image is important to the future success of the company that is extending.


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