Starbucks Business Analysis

This report analyzes Starbucks' business operations, covering its matrix organizational structure, functional areas, internal and external stakeholders, and its shareholder approach. It highlights the company's commitment to stakeholder value and its effective communication strategies.

INTRODUCTION
Coffee shop industry is growing with a decent rate and various firms who are operating in
this sector, are en-cashing this opportunity. This project is based on Starbucks, one of the leading
company in Coffee industry (Paryz, 2014). They are operating across the globe and have 28000
stores in different locations. UK is a country where tea market is very strong but this
organisation changed the taste of people by selling high-quality whole bean coffee.
FEATURES
Ownership - Starbucks was founded by three people Jerry Baldwin, Zev Siegl and Gordon
Bowker. Their founders sold this company to Howarld Schultz, who was former manager of the
organisation. Starbucks went public in 1992 when they had around 140 outlets.
Liability - Their liability was approximately £8908600 in 2017.
Purpose – Company wast to sell high quality of Coffee by concentrating on every single
customer.
Sector – Starbucks is operating in Coffee shop industry.
Scope – This company has entered in Asia and scope of growth in countries like India is
enormous.
Size - The market cap for Starbucks stands at approximately £60,10,59,65,000 Pound sterling.
Number of employees for this international coffee chain are around 277,000. The sales for this
enterprise as of June 6, 2018 is £17,49,92,05,000.00 approx (Starbucks, 2018).
Organisational structure and functional areas
As Starbucks is following matrix organisational structure, that is crossed mixture of
several features from the basics kind of structure. In this, combination of different frameworks
work on single project.

(Source: Matrix organisational structure, 2016)
There are several functional areas of Starbucks such as:- Technology and product design strategy- Process related to coffee and store designing
as well as innovative packaging. Supply chain management system – Maintaining strong relation with suppliers,
diversification of supply network and sustainability. Human resource strategy – Value of the staff members and providing them time to time
training.
 Production strategy – Quality control process of goods and services offering by
Starbucks
This organisational structure help company in concentrating on quality without making
any compromise with company's expansion rate. Starbucks objectives cannot be attained without
have a matrix organisational structure. Function manager concentrate on daily operation and
project manager focus on specific tasks like find new location for opening stores.
Mission - To inspire human spirit, one person at a time with one cup and one neighbourhood.
Vision – To become a national organisation and have guiding principles on which employee can
proud.
Illustration 1: Matrix organisational structure

Values – Create a culture where everyone feel welcomed.
Aims and objectives - This firm want to open 50 outlets in 4 Years so they can gain
approximately 75% market share in UK (Walker and Paryz, 2015).
STAKEHOLDERS
Customers, employees, government and management are key stakeholders of company.
Their are two types of stakeholder i.e. internal and external (Rizqiyanto, 2017). Management &
employees comes under prior section and customers & government lie in later one.
Internal
Influences on business – Internal stakeholders make all the strategies which is required
by organisation for moving towards their mission and vision.
Effectiveness of communication – Management has developed effective internal and
external chain of communication.
Relations with stakeholder – Relationship of current stakeholder is fine with organisation
but few former key people like Howarld Schultz, do not fine tuning with the firm.
External
Affect on business – Government policies and Suppliers demands can make a huge
impact on profits and growth of Starbucks.
Effectiveness of communication – In present state, this company has an effective
communication strategy with external stakeholders.
Relationship with stakeholders – Suppliers are happy with organisation which proves
sound business relation with key stakeholders.
SHAREHOLDER APPROACH: GOOD OR BAD
Starbucks has a clear and good shareholder approach i.e. to value the work done by every
stakeholders. They want to prove that company shareholder are organisation's backbone and they
are very important part of the corporation.

REFERENCES
Books and Journals
Paryz, R. W., 2014. Subsonic Transonic Applied Refinements By Using Key Strategies-
STARBUKS. In 52nd Aerospace Sciences Meeting (p. 1481).
Walker, E. L. and Paryz, R., 2015. Facility Improvement and Data Optimization (FIDO) Efforts
at the NASA NTF.
Rizqiyanto, S., 2017. Starbucks's Fair Trade in the Edge of Globalization. Etikonomi. 16(2).
pp.231-248.
Online
Starbucks. 2018[Online].
Availablethrough:<https://www.forbes.com/companies/starbucks/#3c56233128ac>.
Matrix organisational structure. 2016. [Online]. Available
Through<http://www.orgcharting.com/matrix-org-chart-function/>.