Research Paper: Organizational Environment Starbucks In-Depth Analysis

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SAMPLE EXCERPT:

[. . .] In this regard, Starbucks comprehensively follow the ethical values when decision making is involved. The corporate strategy of Starbucks also emphasize on maintaining the corporate cultural values. The values embedded in the culture is not only reached to every corner of the company, but is also followed outside the companies to the communities (Behar, 2007).

The corporate strategy of Starbucks is based on a matrix structure applied to both internal and external environment of the company. Open communication between employees, higher management, and executives is the internal corporate strategy that is highly encouraged. Open communication typically leads to innovative ideas and solutions to various problems that eventually benefits the brand. Moreover, open communication also promotes problems to be heard by the management in a timely and effective manner (Behar, 2007).

The guidelines of the corporate strategy have also explicated the employees that they are empowered to take decision with respect to the delivery of great customer experience for which the corporate would completely support their decisions without any issue. Moreover, the corporate strategy also indicated that the employees have a responsibility which they must consider with gravity. This means that their role is critical in creating a great work environment and protecting the corporate culture and brand reputation (SeaZone, 2012).

However, the external strategy of communication contributes to customer loyalty and ownership. This is because communication leads to customer feedback on regular intervals. Considering the growing demand of technology and its applications in terms of customer engagement with the brand, Starbucks, has incorporated a social networking site that enables the company to be connected to their customers. As a consequence, it would build a network of loyal and dedicated clientele.

Organizational Structure of Starbucks

Starbucks, as defined earlier is one of the leading coffee retail corporations across the globe. It operates in more than sixty countries including United States, Canada, Japan, China, United Kingdom, Turkey, Germany and many more. Since Starbucks is a global image, thus, it is important to state that managing the company (internally as well as externally) is a complicated task. The Organizational Structure of Starbucks modifies over time (with respect to the current needs and demands of the industry), so that they can live up to the customer expectations and can provide them a high quality experience. Maximization of communication channels is another aspect that is immensely considered by the brand, thus they focus on the structure that embrace open communication with all the key stakeholders.

The presented chart exhibits the fact that Starbucks has effectively create structures in order to ensure that rising issues are determined and prioritized so that they can be addressed in a more systematic manner, while following and maintaining the company policies. Nevertheless, Starbucks periodically assess their organizational structure and make changes (if applicable), as they aim to accommodate customer satisfaction to the fullest.

Starbucks uses a mechanistic structure as a contemporary design

As an organizational strategy, Starbucks employs a matrix configuration structure through integrating divisional and functional structures. Starbucks is therefore categorized under the mechanistic organizational structure. This structure involves high vertical and horizontal complexity, high formalization, high centralization, narrow spans of control, and high standardization (Anthony, Gales & Hodge, 2003).

In this regard, the higher management of Starbucks has put his efforts with the intention to build a more efficient and streamlined structure. This rationalized structure would enable open flow of information from customer and low-tier employee directly to the corporate level. This is not as simple to achieve as it seems like, especially with a complex structure. Therefore, Starbucks had segregated its workforce into cross functional work teams, as it would enable them to report to multiple supervisors. Through the utilization of this matrix structure, Starbucks aim to evade the communication failures that might occur, as the organization becomes more vertical with the increase in the number of levels of authority which allows employees to report to multiple supervisors (SeaZone, 2012).

Starbucks have succeeded with the implementation of this structure. High-quality product development, efficient production, and excellent customer service is the result of employing mechanistic organizational structure. In addition, incorporation of this matrix structure has also helped them in their communication both internally and externally.

References

Anthony, W.P., Gales, L.M., & Hodge, B.J. (2003). Organization Theory: A Strategic Approach. 6th Edition. Upper Saddle River, NJ: Pearson Education, Inc.

BCG. (2012). Howard Schultz on Global Reach and Local Relevance at Starbucks - An Interview with the CEO. bcg.perspectives. Retrieved from: https://www.bcgperspectives.com/content/videos/leadership_management_two_speed_economy_howard_schultz_global_reach_and_local_relevance/

Behar, H. (2007). It's Not About the Coffee: Leadership Principles from a Life at Starbucks. USA: Portfolio.

SeaZone. (2012). Successful Application of Organizational Behavior: Starbucks - Achieving Success the Starbucks Way. Yahoo Voices. Retrieved from: http://voices.yahoo.com/successful-application-organizational-behavior-2435551.html?cat=3

Starbucks. (2013). Our Starbucks Mission Statement. Starbucks Corporation. Retrieved from: http://www.starbucks.com/about-us/company-information/mission-statement

Starbucks. (2013). Responsibility. Starbucks Corporation. Retrieved from: http://www.starbucks.com/responsibility [END OF PREVIEW]

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Organizational Environment Starbucks In-Depth Analysis.  (2013, July 26).  Retrieved April 21, 2019, from https://www.essaytown.com/subjects/paper/organizational-environment-starbucks/9598423

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"Organizational Environment Starbucks In-Depth Analysis."  Essaytown.com.  July 26, 2013.  Accessed April 21, 2019.
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