Principles of Management in Starbucks: Organizational Structure, Leadership Style, and Innovative Management Practices

Running head: PRINCIPLES OF MANAGEMENT
Principles of management
Nam of the student
Name of the university
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PRINCIPLES OF MANAGEMENT
Table of contents
Introduction......................................................................................................................................3
Mission of the organization.............................................................................................................3
Organizational structure of Starbucks.............................................................................................4
Leadership style used by the company............................................................................................5
Controlling process in the company................................................................................................7
Innovative management practices in the company..........................................................................9
Self-reflection................................................................................................................................11
Methodology..................................................................................................................................12
Conclusion.....................................................................................................................................14
Reference list.................................................................................................................................15

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PRINCIPLES OF MANAGEMENT
Introduction
The management principles play an effective role for developing in the company and its
operations in right manner (Wheeler, John and David Dean Richey). The purpose of this study to
shed light on the management principles of Starbucks, which is a renowned coffee chain in the
global market. Highlighting the mission of the company internal situation of the organization has
been discussed.
Mission of the organization
The mission of Starbucks coffee corporation is to inspire the human spirit. The purpose
of the company is to manufacture standard quality of products for providing better experience
(Starbucks.com). The company also aims to introduce uncompromising management principles
in the workplace for maintaining strong organizational culture. Therefore, this can be said that
Starbucks wants to create culture of belonging for maintaining its transparency to the customers.
The target market of a company can be classified into different segments. Analyzing the
target customers of Starbucks, it has been identified that from the demographic segmentation,
Starbucks has targeted the people between 25 to 40 years old. As the company provides standard
quality of products with premium ranges, therefore, upper class and upper middle class
customers are being targeted by the company. Depending on the geographic segmentation, it can
be said that the company has focused on the urban areas, because, due to availability of
transportation, it becomes easier for maintaining the supply chain. On the other hand, it cannot
be denied that psychographic segmentation has higher level of impact on the target market of the
company. The brand fascinated customers have been targeted by the company from
psychographic segment.

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PRINCIPLES OF MANAGEMENT
Due to its premium quality of products, Starbucks has developed strong brand image in
the market (Raj et al.). With increasing popularity in the market, numbers of competitors have
been increased. Analyzing the US market, it has been identified that Costa Coffee, café Coffee
day, McDonalds and Dunkin Donuts are the major competitors of Starbucks.
The social responsibility of Starbucks has been developed depending on the environment,
ethics and community. As the company aims to contribute in the community, it provides
training to the youth for improving the social status (Starbucks.com). Different community
stores have been introduced by the company. Not only the community stores, but also different
nonprofit firms have been introduced by the company. On the other hand, it cannot be denied
that the company is ethically committed with the Cocoa, tea and coffee manufacturers.
Environmental protection is being considered as one of the popular social activities of Starbucks
(Starbucks.com). In order to reduce negative impact on environment, the company has
introduced different waste management initiatives.
Organizational structure of Starbucks
Figure: Organizational Chart of Starbucks