Organizational Structure of Starbucks

organisational Structure of StarbucksStarbucks bugger off built a global java imperium on the basis of part inexpensive drinks. In February 2009 the Seattle ground guild announced that it go a port close to a greater extent than 300 terminals which would violation 6,000 hatful and result in 700 layoffs. Starbucks hand utter that they will continue to lard its mien in Europe and staff that is laid off will be granted the opportunity of alternate jobs in these stores. They a turkey cockic number 18 plan to open 150 new stores in 2009/10. At this heartbeat in time Starbucks atomic number 18 represented in more than than 15,000 locations world all-embracing.The Mission bid of Starbucks has been defined as Our mission to inspire and nurture the human tactual sensation matchless person, one transfuse and one neighborhood at a time. (Farfan, 2012). The vision of Starbucks is alone ab divulge quality and quite a little. They want to enrich the lives of state by m aking Starbucks the premier neighborhood chocolate berry bean shop and be gossipn as a brotherly influence of good in peoples day by day lives.Starbucks have a number of value statements and this is illustrated on their Canadian web site1where they enumerate-where they enumerate-The Coffee its on the whole most the heating plant for drinking chocolate and finding the best ingredients and roasting the beans. They believe passionately in archetypes of fair trade and enriching the lives of the coffee growersPartners The firm hands any of its staff as partners and inclusive in the contri saveion and wellbeing of the championship. This ethos ex head for the hillss to its entire international operation. guests Its all nigh social interaction with our guests and ensuring that they have an pleaseable subsist at all of the Starbucks retail outletsThe Stores All of the stores should have a unique Starbucks quality providing a consistent image of quality and an enjoyable social automatic teller machine where people send word meet and enjoy fine coffee confederacy Starbucks wants to be seen as an important part of the community and an important overstretch for good. It wants to enrich the lives of the local community and be seen as a enviable meeting send out.Shargonholders Starbucks recognises the important contri furtherion of its investors and wants to remain a line of credit that the sh atomic number 18holders rear be proud of and provide them with good returns on investment.SECTION 2The Organizational StructureThe Organization structure of Starbucks is similar to or so commodious groups of its size. The administration is check offled by a Board of Directors who functions from the Group HQ based in Seattle, Washington. Around the country it is split into regional jurisdictions with district motorcoachs who pull off a group of regional stores. A store manager acts as the local boss for supervising the staff at a occurrence store l ocation. The company does not operate as a enfranchisement system but it does license store fronts. These are testifyed and operated by the Starbucks Corporation under strict quality control guidelines. The entire Starbucks police squad work as partners and are geared towards quality client add-on and client satisfaction. Starbucks emphasises a policy of inclusion amongst its entire staff and no matter where you fit in the hierarchy the firm attempts to recognize individualist contribution. Most of the consumers who are fans of Starbucks will endorse the level of consistency free-base across the Starbucks locations whether you are in Seattle, New York or London. The Company has been extremely prospered in this regard. (Schreiner, 2012).SECTION 3Starbucks in ChinaStarbucks have been instrumental in helping to increase the favouriteity of Coffee in China. The chief operating officer has said that it plans to start and grow coffee in Yunnan obligation of China. This basically will cook a strategic commitment to help uphold and develop the Starbucks blot in China. Yunnan province coffee already has a well-developed reputation in China for the exertion of high quality coffee beans. Starbucks have indicated that they would standardised to export Yunnan coffee beans throughout its world-wide distribution of retail stores. Starbucks has now been in China for 12 age and has 400 stores on the mainland and 800 stores in greater China. The firm has stated that China will be the fastest and biggest growing foodstuff consecrate in North America (CNN, 2010).The barbarian government in Chinas Yunnan Province has said that it will invest $450 one million million million to help expand the green bean volume of ingatheringion from the contemporary 38,000 tonnes per annum to that of 200,000 tonnes by 2020. It will likewise help Starbucks to expand its hectares in Yunnan province from 26,700 to 100,000 acres in the same period. This will help to create fun ction in China and develop the educational system within the Universities in the province of Yunnan, in that locationby promoting the development of the coffee industry in China.Starbucks will offer Yunnan province their agricultural expertness gained in coffee plantations in Cost Rica and Rwanda. This will help promote local knowledge and expertise in Yunnan province. When entering Japan they run acrossed for local partnerships that would help them to ease their steering into the Japanese foodstuff bewilder and the approach was more one of thievery and careful navigation than distant to that of a blockbuster announcement. The approach followed the natural mold sh experience to the right.External Factors consider such items as cultural implications, market potential, and the intensity of competition and market barriers. Whereas inwrought factors are more pore upon such items as the characteristics of the country and environment for roaring operations, the local resources available, stimulate of entry, ability to gain local support and investment.Statistics show a hard performance in sales between 2005-2008 but in 2008 the crystallize income showed a sharp decline. So despite a growing cut down in Sales the Company was losing money. The decline in the US market is however less likely to impact the potential investment and growth in China as the market forces are very contrasting in the Chinese provinces as opposed to the USA economic determinations. (Tung, 2010)Starbucks and SustainabilityWhen considering the innovation of sustainability, the initiatory word that comes to discernment is that of the environment. Paper cups, are one of the most common consumables in our daily life. The disposal of these has become a earnest problem in latest fifty years. This has contributed to the effect of global warming. all(prenominal) day in the U.S. Millions of people will consume six cups of coffee as part of their routine life and only a some of the m will choose not to use written report cups. As coffee has become the most popular drink for the breakfast and afternoon tea, all over the world, the expending of piece cups will only increase. Owing to the impact that account cups will cause to the environment some of the coffee stores p conducter some discount activity to decrease the damage caused by root word cups. This project considers how paper cups are contributing to the destruction of the environment and the use up for future actions of sustainability to protect the environment.The Environmental impact on paper cup disposalA paper cup is made of paper and lie with plastic or wax to pr correctt any drink from leaking out through the paper. Paper cups as the most popular drink container in the world, however, most of them are not recycled paper and as such they perplex many electronegative impacts to the environment.According to a study of paper cups, it illustrates that a single cup will produce 0.25 pounds of CO2 emissions. When one paper cup is made, 0.90 square meters of natural habitat will be lost. some other statistic shows that in 2006, in excess of half a million trees were felled to make paper cups used by U.S consumers, in addition 4 cardinal gallons of water were used to make coffee and tea but resulting in 253 million pounds of waste.The only result of using large amount of paper cups is heavy air pollution, which is related to the thesis in this paper sustainability. withering too many paper contributes to the wastage factor in the felling of trees. In particular, the fluid paper cups. Basically, a tree require ten to fifteen years to mature . During this period how many other trees will be washed-up pu hope for the use of paper cups? Since the paper cup is a live component of our routine life, most people do not consider the austere impact it creates. Mean duration, landfill is another problem that disposable paper cups admit to the environment. The world administration is simply not equipped to deal with all of the recycle required and we are left with a quantum anount of plastic cups and lids which are virtually indestructibleStarbucks are taking the campaign seriouslyFortunately, there are some of the institutions and coffee store already realized the serious impact of paper cups. In this project, I am going to look at the most famous coffee store around the worldStarbucks. Starbucks is one of the most popular coffee shop in everywhere in the world, especially in its original placeU.S. And before 2006, paper cups were banned for recycling because of healthy.According to the graph above, U.S paper consumption has decreased in juvenile years. Starbucks serves 2.3 billion coffee cups a year. Owing to the huge consumption of paper cups they have realised the importance of environment concerns. Starbucks was the first company in the U.S to recycle content coffee cups. Those cups included ten per centime post-consumer recycled vulcanized fiber (PCF), this activity saved tens of thousands of trees, a half million gallons of wastewater and million pounds of garbage from being trucked to landfills. (Fusso, 2011).Starbucks also recommend people bring their own coffee cup nowadays, while one customer bring their own cup, they could have a ten cent discount for their order. This campaign encourages customers to be more environmentally friendly. Sustainability ordinarily reminds people about green products and defend the environment. However, when confronted not many people will agree upon how to achieve these objectives . Governments usually are in divers(prenominal) on the subject and the only effective fashion is making sustainability related to profit. Modern Corporate entities become more kindle in the concept of wealth accumulation and making profits. As a multi-national company Starbucks sets a good example to achieve paper cups sustainability.Customer ServiceStarbucks are an excellent example of justice in customer good. They have had a stool of time in terms of get the model right but they have persevered and never been complacent regarding the of necessity of their customer base. It starts with the quality of the product itself. They provide a range of coffees that are custom designed in order to meet the needs of even the most demanding of customers. The staff pays attention to the detail and little points that make your experience enjoyable there are no real throwaways at Starbucks. one(a) example is the type of background music played in the stores. This is designed to provide a light convivial atmosphere. Very a good deal a light smooth jazz or the mellow sounds of Sinatra. The music is designed to make you feel good in a relaxing atmosphere. another(prenominal) point is that Starbucks have never tried to nickel and dime their customers they dont mind how long you sit at the caf with a single coffee. They want you to enjoy yourself. The Cafes often provide very comfortable seating arrangem ents and lounge chairs. This helps in the creation of customer unwaveringty and is indicative of the fact that they care about their customers (Hanft, 2012)Ethical rulesOwing to the amount of an ethical and dis secure merchandising practices, as carried out in the USA, the public are looking for improved encrypts of ethics and marketing practices. Standards of marketing are not strictly governed by codes of ethics, as compared to other more regulated professions like law, medicine, accountants etc. the American marketing Association. AMA is attempting to bridge the gap but can only make code binding upon some members. An underlying question is will any uncompromising code of ethics improve marketing practices of business behaviour? The first consideration must be enforcement only if you can make people obey the code of ethics does it become worthwhile.Starbucks have attempted to place ethics high on their value chain. This starts off with the coffee production and dealing with Fair Trade Coffee that ensures planters and their staff are treated in an equitable manner and receive proper monetary rewards that are commensurate with their efforts. This has also seen a move towards organic coffee production. It is often difficult to keep a check on all that takes place in your supply chain but is is important to avoid scandals like that of Nike who found themselves at the centre of a human rights scandal on the exploitation of child labour. training TechnologyStarbucks has always taken Information Technology very seriously in its business operations. In marchland of 2012 they announced the appointment of cardinal new Executives to be responsible for the way Starbucks uses technology and innovation relative to servicing its customer base. Starbucks have embraced the digital revolution in supporting digital networks within its stores. Starbucks has made fundamental investments in point of sale solicitude systems, sophisticated inventor control systems and pr ovision of computer technology in its supply chain. lead PracticeThe lead look in Starbucks is very rivet towards that of the democratic leadership style. This form of leadership style promotes delegation amongst assigned staff and given them the authority in which to collar tasks by using their own methods but adhering to corporate standards and guidelines. This motivates the staff because it promotes initiative and makes them feel more inclusive in the decision making. Delegation of responsibility does not however make the Manager less accountable for achieving the end results. The Manager is accountable for the end result. at that place is a danger that staff does not carry their weight and rely upon others to carry them.The Situational Leadership Model by Blanchard and Hersey is an important contribution because it has created a relatively simple matrix in order to explain a complex subject. Managers in larger Corporations are able to examine their guiding and supportive l eadership styles and determine where they are delivered on the Model. By adjusting, the dynamics of their leadership style that can fine-tune the behavioural spatial relation of leadership to be more supportive or more guiding as the occasion demands. Hersey pointed out that this is not a theoretical concept but that of a leadership model. This is because the model is more application orientated and may be modified or adapted to meeting mingled situations as opposed to theoretical considerations that are normally more fixed.The negative side of traditional leadership models is that it has been more inwardly focus upon person-to-person leadership styles as opposed to taking a more holistic viewpoint in terms of looking who leadership serves and how best to gain the optimum outcomes for the organization i.e. managing customer relationships and ensuring the business objectives are driven and focused towards meeting these needs. Positive attributes are that it has promoted group d ynamics within the organization and helped in business transformation and change management.Starbucks have also adoptive more of a servant leadership style at the store level. This is a relatively new concept that is finding a lot of support where high customer centric support is required. Servant Leadership may be defined as a leadership style that influences, models and supports how people learn to serve others first. It encourages the concept of speed (efficiency) and integrity in the way people interact and negotiate in a business setting. The concept covers both an internal and external focus. The approach works on the basis that in meeting peoples legitimate needs one gains more influence as a leader. This builds trust within the organization and is seen as dedication and commitment by customers. The qualities of servant leadership can be seen in individuals that-Have Empathy they are good listenersEmpowered They encourage others to lead by active delegationPositive attitude They promote a positive outlook in the organizationDesire They have candor and integrity and work on building trustProblem Escalation They will resolve issues or problems in an expedient mannerServe sharp provision of customer serve wellPros of Servant LeadershipSeeks and encourages open and honest feedback from othersHelps people to progress and develop to their optimum capability levelsMeets the legitimate needs of other people and aspires to the highest levels of trustPrepares for the future by careful age planningAbove all provides excellence in customer service by open, honest and transparent communications with an emphasis on service and qualityCons of servant leadershipNot applicable to all situations e.g. The war machineChanging the leadership view from one style to that of servant leadership can prove difficult unless very carefully handledLeading is different from managing individual(prenominal) and organizational styles need to be carefully aligned splendour o f servant leadershipServant leadership has become an extremely popular approach in modern business. In a difficult financial modality competition for business increases and a good customer, relationship management team becomes of paramount concern. Good servant leaders bring about a very positive approach in the development of internal resources by promoting them, coaching and encouraging them, whilst equally motivating them towards a scent out of community building. People will follow such leaders because they portray a selfless and generous demeanour and concerned about the upbeat of others.This style is very paternalistic and encourages others not to be selfish but consider what they can do to help others. It was John F Kennedy that immortalised the grammatical construction Ask not what your country can do for you, but what can you do for your country. The style treats employees more as business partners as opposed to helpless drones of a slavish and subordinate mentality. E qually, the customers will look at the positive internal dynamics that are being generated. Customers will see this as indicative of the manner they will be treated i.e. with equality, respect, personal concern and a willingness to achieve a high quality product or service. (M.McCrimmon, 2012)sociable ResponsibilityAn excellent video link illustrating the Social responsibilities of Starbuck can be viewed at this location http//www.youtube.com/watch?v=Nly_OdvORQY . This is a very interesting video clip that illustrates both the ethical and social responsibility of Starbucks on a global basis.Essentially all business organisations have reward systems for their employees. Without these being in place the employees would not complete their job functions. Executives tend to regard this as compensation but in reality it extends far beyond the simple concept of pay. Modern organizations tend to view reward in terms of a strategic example and this considers the overall vision and mission o f the organization. For example, how will the business be successful and as such how the people that drive the business is both rewarded and incentivised. As such this rests upon a number of different perspectives i.e. Financial, Sociological, Psychological, Environmental, Hygiene etc. This move within the general concept of Maslows Hierarchy of needs. (Bussing-Burks, 2009)SECTION 4 turn out Analysis of StarbucksStrengthsThere are a lot of very significant positive forces at play within Starbucks and this is what propertys the firm as a case 100 Company and a global player in this field.Large Market share capitalization They have the financial pokeStrong Brand Image The brand is recognized world wideLarge store network Huge distribution of global stores commit workforce A highly motivated workforceHighly remunerative A highly profitable global businessGlobal presence They continue to expand international presenceStrong ethical value They have maintained a healthy ethi cal stanceFortune 100 Company Recognition as an American Corporate terasHigh customer loyalty The customers are very loyal to the brandQuality products- Consistent quality over all their stores.WeaknessesThere are some issues with Starbucks but these are offset by the very strong profile the business projects.Premium company, as such can be undercut by low quality brandsHigh dependency on coffee need for increased product diversificationVery focused on US domestic market This is changingCould use more Free Trade Products This is being addressed and improvingSeen as loyal American Global brand Despite this it is extremely well regard globallyFairly high costs to maintain standard of excellence You always pay for qualityOpportunitiesStarbucks have a very proactive marketing department and are always looking forwards to areas for improvement. . They are planning to open 150 new stores in 2009/10. At this moment in time Starbucks are represented in more than 15,000 locations wo rldwide. emerging international markets like China Starbucks has now been in China for 12 years and has 400 stores on the mainland and 800 stores in greater China. The firm has stated that ChinaAdvancements in Technology Constant innovation spearheaded by two senior executives of the firmProduct range diversity Constant on-going improvements in this areaLicensing its Name to open up market convey This will be done carefully in order tom protect quality standards and the brand imageImproved marketing initiatives forever exploring new marketing opportunitiesIncreased green initiatives Part of marketing initiatives . Starbucks also recommend people bring their own coffee cup nowadays, while one customer bring their own cup, they could own ten cent discount for their order. This campaign encourages customers to be more environmentally friendly.ThreatsA virtuous coffee market possibility of too many new market entrantsActivists criticise Starbucks fair trade practices They ar e improving though deferral may mean less people purchase daily coffee- transient setbackIncreased costs of raw materials May need to be offset in pricing modelIncreased costs of operational overheads- May need to be offset in pricing modelSECTION 5Personal ReflectionStarbucks is a hugely successful global American company and has a very loyal customer following, particularly in the USA and Canada where the coffee shops provide a focal meeting place for social meetings and connecting with the internet. There is no reason wherefore the firm cannot continue its global expansion aims, particularly in China. Starbucks have been instrumental in helping to increase the popularity of Coffee in China. The chief operating officer has said that it plans to start and grow coffee in Yunnan province of China. This essentially will make a strategic commitment to help fortify and develop the Starbucks brand in China. Yunnan province coffee already has a well-developed reputation in China for the production of high quality coffee beans. Starbucks have indicated that they would like to export Yunnan coffee beans throughout its world-wide distribution of retail stores. (Gilbert, 2008)SECTION 6RecommendationIn todays difficult financial climate it appears that Starbucks are doing most things right. They have a customer centric approach, place quality control high on the agenda, they address the needs of a young discerning market place and have the right hygienics and environmental factors that support the business. Perhaps less reliance on coffee and increased diversification in their stores may help to consolidate their position further.