Starbucks Company: A Comparative Analysis of Organisation Structures

This report provides an analysis of the Starbucks Company, examining its organizational structure, types, and functions. The report begins with an introduction to business organizations and their operational environments. The main body then delves into the types and purposes of organizations, including public, private, and voluntary sectors, with a focus on Starbucks as a private entity. It explores the legal structures, objectives, and operational aspects of each type, comparing Starbucks with organizations like the NHS and Oxfam. The report discusses the size and scope of different organizations, differentiating between small, medium, and large companies, and how their objectives and market strategies vary. Key aspects include the role of Starbucks in the fast-food industry, its global presence, and its operational hierarchy. Finally, the report offers a comparative analysis of organizational functions across Starbucks, the NHS, and Oxfam, highlighting their distinct approaches to business and service delivery, including their legal structures and communication channels. The conclusion summarizes the key findings, emphasizing the diverse nature of organizational structures and their impact on business operations and societal contributions. The report is supported by references to relevant academic sources.

Starbucks Company

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Types and purpose of organisation's.......................................................................................1
P2. Explain size and scope of different type of organisation.......................................................3
P3. Relations between different organisation function in Starbucks, NHS and Oxfam..............6
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Business is an activity that employ’ large number of resources to earn profits by
performing various activities. Business is conducted in environment that is termed as collection
of all individuals, entities and other factors that may or may not be under the control of the
organisation. Business operations are affected by various internal and external factors that helps
in maintaining and conduction various activities in a prescribed manner. For this essay Starbucks
Company is chosen. It was founded in Seattle, Washington in the year 1971 as an American
coffee house. It is founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and considered as
the third-largest fast food restaurant by number of locations in the world (Atzori, Shapoval and
Murphy, 2018). Discussion in relation to types and purposes of various organisational structure
is done. Together with this scope and range with different organisational functions of
organisation is mentioned in this essay.
MAIN BODY
P1 Types and purpose of organisation's
Business organisations are incorporated with the basic objective to earn profits. Each
business organisation differs on the basis of size, type, nature and their structure of formation.
Business organisations of UK have large impact on its economy as it is highly influenced by
these organisations. Business organisation contribute their earnings to government in form of
taxes and helps in development of the country. Formation of business organisations are in Public,
Private and Voluntary forms.
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Purpose and legal structure of Public organisation
Public sector organisations are usually owned and controlled by government of the nation
and exist to provide services to citizens of the country. Instead of earning profits these
organisations have motive provided services to consumers and public at large. Ownership of
these organisations is highly scattered among general public as funds are raised by issuing shares
to the public at large.
These organisations are established by government at different levels and provides
different legal structure to the organisation (Types of business organisations, 2019). Local
government regulates and controls a small area of city or town and possess small structure in an
organisation. Businesses that are governed under name of state government needs to follow all
the rules and regulations of state government to resolve various issues involved. Central
government of the country is the highest authority to control economy and organisations
governed by central government is quite large and possess more complex legal structure. Public
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organisation like National Health Service (NHS) is established with the purpose of providing
quality services regarding health and medical to various individuals.
The purpose of NHS is to serve quality services with the motive of improving health are
conditions of the country. Improved health care services give better human life and income can
also be utilised for other purposes and improved quality of life is enjoyed (Chen, Marsden and
Zhang, 2012). Legal structure of NHS consist of state government and central government. Here
state government is a federal form that shares its political power with government at national
level. To manage various regulations of organisations like NHS central government controls
United States for holding absolute supremacy.
Purpose and legal structure of Private organisation
Organisations that are established with primary purpose of earning large amounts of
profits are termed as private business structures. Private organisations can be established in form
of company, firm or business by individual. Individuals who are owners of business are
responsible to set objectives and to defined the process in which business needs to be established
to achieve them. Providing goods and services as per consumers requirements and understanding
various factors that affects business structure helps these organisations to earn large amount of
revenues.
Starbucks Company is one of the third largest fast food organisation that deals in fast
food business and have presence all over the world. Providing ready food to its consumers who
are highly scattered all over the world makes organisation to understand needs and preference of
consumers at large all over the world. Starbucks is established with the purpose of providing
finest coffee in the world while maintaining uncompromising principles of the organisation. It
focuses on providing quality product that is healthy and hygienic at the same time. It gives
experience to its consumers of having finest coffee which is required and demanded by
consumers.
Establishing a business as private organisation may have various legal structure such as
limited company that requires registration under companies act. Owners of business established
as company are not responsible for losses or debts until any legal forces are imposed on them.
Partnership business that is established by two or more individuals who agree to take same
business opportunity. Sole trader is the easiest form of establishing a business to earn profits
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(Isosävi and Lappalainen, 2015). In this no legal requirements needs to be followed and only one
person is responsible for each decision and results of various business operations.
Legal structure followed by private organisations are partnership, sole trader and Limited
liability organisation. Partnership business is owned and controlled by two or more persons who
works to achieve common objective. This legal structure of business gives each partner rights
and responsibility for loss and gain. In legal structure of sole trader there is only one owner who
operates all the business activities. Legal structure of limited liability company is quite different
from the other two. As business and owners are considered as two separate persons and owner
possess limited liability.
Starbucks is operating in more than one nation and termed as MNC with headquarter in
America and operated through branches in other country with aim to expand and earn more. It is
large organisation that is controlled and managed by managers at different levels. This creates
legal structure of the organisation with executives who are operating business activity at lop level
of management. Kevin Johnson is the chief executive officer of the organisation. Structure for
communication in the organisation moves from lower level to upper level. As subordinates needs
to communicate with their superiors and this keeps on going and proper hierarchy is maintained.
Decision making power as per governance is provided to upper level of management in the
organisation.
Purpose and legal structure of Voluntary organisation
Voluntary organisations are established by group or union of individuals who entered into
an agreement to accomplish some specific purpose. These types of organisations are established
mainly for charity or to help various individual. They work towards welfare of society and
community and do not focuses on earning profits (Karman, 2015). These are also termed as non-
profit organisations. Establishing an NPO requires approval of government of the country in
which it is established.
Oxfam is one of the famous organisations who is established voluntarily and works
towards meeting basic needs to individuals that helps then in spending a healthy life. This large
organisation is confederation of 20 independent charity establishments who aims to work
towards gaining country which is free from poverty and helps in development of various
individuals. It was founded by Cecil Jackson-Cole in the year 1942 and led by Oxfam
international in Oxford, United Kingdom.
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Purpose of this charitable organisation is on alleviation of global poverty and filling life
of each individuals with basic requirements that helps them to live their life. It also focuses on
rising awareness for education by different programs and campaigns. These voluntary
organisations can be established as trust that do not required more legal requirements to follow
and can be formed by a group of persons. Other legal structure of charitable trust is as
association that is formed as group of people with some objective for achieving goals with no
profit-making requirements.
Organisations like Oxfam follow legal structure is build with executives who manages
operations and involved in huge decision making for the company. Mark Goldring and Helen
Szoke are two chief executive office of Oxfam. These business are established for social welfare
and communication through formal manner is done within the organisation. But when it is
necessary for welfare of public at large then informal communication channel may be
established. Establishment of legal structure requires to follow all the rules and regulations that a
non profit organisation needs to follow as per government regulations.
P2. Explain size and scope of different type of organisation
Every organisation has different scope and sizes that is according to the organisation
type. Basically, there are three type of organisation such as public, private and voluntary. Public
company are those who have public shares which is owned by the general public. They start
trading shares from stock exchange or from any counter market.
Size and scope of different types of organisations: National health service
(NHS) and British broadcasting corporation (BBC) is the public sector company of UK. NHS is
large Size organisation which have approx. 1.5 million employees and the scope of this company
to take feedback from individual and also know about the people's view regarding their service.
BBC is the large size public company and scope of this company is to focus to improve or
innovate new technology. Organisation create BBC red button or website kind of facility to
connect with digitally with their 26 million users (Kumar, 2016).
Private companies are those which have to bear their own ownership it can be individual
or in group. Such as sole traders, partnership or private limited. Starbucks and Costa are the
private sector organisation. Starbucks is the large size organisation and the scope of this
company to increase their supply chain in various countries. Costa company is also private sector
organisation and it is the subsidiary of coca cola company. It has scope to build their supply
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chain all over the country and also provide digital services to its customers. Costa company has
2121 restaurant in UK (Marín and Ruiz de Maya, 2013).
Voluntary organisations are those who come with any social issue or to deal by individual
or by any group to take initiative for the social welfare. Oxfam and Dogs Trust both are
voluntary organisation. Oxfam organisation deal with the poverty of UK and it organise the
different campaign and program for face the challenges arises in the economy. It is a large size
organisation who deals for the economic and humanity change. Dogs trust is the charity
organisation for the welfare of animals. Dogs Trust is the largest animal charity organisation of
UK. They carry almost 15000 animals every year. There is no rule to rescue them so, British
charity organisation start working for them. Organisations also have different size structure in
respect of small, medium or large size companies and the difference between them on the basis
of relevant elements.
Difference between small, medium and large organisations:
Objectives and goals of Small size organisation such as Wiser is to be earn maximum
profit. In the small company’s main objective is to be create something innovative or creative
which is liked by the consumers and it is further helpful to create their customer and make it
loyal for the company. Goal of the company is to attract large no of customers through their
innovative products and services. Objective of medium size company such as Checkout.com is to
maximise their profit and make further strategies for the expansion of business. Also wanted to
increase market share which is helpful for organisation because higher the market share will
generate high demand of product and vice versa. Medium size company focus on selling huge
quantity of product to earn higher profit. Large size organisation such as Starbucks build their
objectives according to the customer's demand and preference. So large entity focus on product
quality and it is a plus point of every company to attract consumers. So large organisation needs
to produce quality product.
Market share of Small size organisation has low market share because they are not so
well known company between the customers. Market share of Medium size organisation is more
than small size company and it more popular in comparison to small size. Large enterprises have
huge market share and the products are very popular between the consumers. Profit share of
small organisation is low in comparison to big organisation. Medium size enterprises have high
profit share in respect of small company. Large company have huge profit share in the market.
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Small size organisation have growth opportunity but they are not so sustainable to survive in log
run. But it required lots of investment into promotional activity which can help to increase
demand of product. Medium size company also have opportunity to grow but it depends upon the
product quality and quantity sell to the costumer. Large size organisation also have growth. But
if they work on innovation and introduce something different that will increase the interest of
consumer in their product and these organisations are highly sustainable in the market.
Discuss global growth & development of transnational and international & global
organisation:
Starbucks company have huge brand name and it's growth expand in every countries.
This company have almost 17,000 shops in the Americas and it also have large international
market. Starbucks is an multinational company it has coffee shops almost in every cities and they
recently deal with the Nestle company and capture the other countries and target more
customers. Development of transnational is a term that specify some of the multinational
company. Starbucks is an transnational company which contribute in Foreign direct investment,
it will create huge employment, develop infrastructure etc. Company provide the economic
benefits to the nation. Oxfam is an intentional organisation which have huge global growth in the
market. In the Oxfam, 19 organisation work as partners in the 90 countries with the local
community. This organisation work hard to reduce poverty in the UK as well as in the other
countries too and it will help the nation to grow further. British Petroleum is global organisation
and it is the seventh oil gas company.
Market forces heavily effect the organisation, these factors include supply and
demand, scarcity and income elasticity. Demand and supply of Starbucks products depend upon
the customers and it will effect the market economy. It is totally depend on customers that how
much they willing to pay for any product or services. If consumer's demand match with the
organisation's supply than it will become market equilibrium point. Another factor which
influence the organisation is income elasticity, Starbucks need to introduce different range of
products which is affordable by all people. Changed income change the demand of product so
organisation need to build strategies regarding income elasticity. Because these factor influence
the Starbucks company and it's market growth.
P3: Relations between different organisation function in Starbucks, NHS and Oxfam
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Starbucks is an American private company known globally for its largest coffee shop
chains. It is known for its taste, ambience, quality, uniqueness and customer based experience.
Due to which it has widespread its coffee business globally, the marketing objective of Starbucks
is to increase its market reach or share by providing best services and experience to its potential
customers.
Organisation structure: Organisation structure refer to activities and roles as well as
responsibility performed to achieve the goal of organisation. There are various organisation
structure adopted by different organisation on the basis of their size and communication flow to
different levels. Furthermore, structuring of organisation is important to divide the task and
authority within the organisation. Hence, maintain coordination between different group of
organisation. Some of the organisation structure are described below:
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Functional organisation structure: Under functional structure there is a separate
hierarchy of each function. The manger of each function are specialist over their area. In simple
words, functional structure refer to grouping similar jobs together like operations, finance and
marketing.
Divisional organisation structure: Here, people with same skill set and characteristics
are grouped together. Organisation decentralise their authority so that each divisional group can
decide their activities and fulfil their targets effectively.
Strategic business unit structure: It refer to the formal structure of independent division
which is usually adopted by large organisation. Their objective, vision, mission as well as
planning are different from its parent company.
Matrix organisation structure: Matrix organisation structure refer to the interaction
between project manger and functional department so that together they can overcome issues and
fulfil the goal of organisation. The role of project manger is to guide the direction and integrate
the activities of functional manager to attain the goal.
Therefore, among above described structure Starbucks has adopted functional structure
for its organisation. This structures are formulated on the basis of specialisation, skill and
common interest of people. Functional manager supervise these functions as they have expertise
knowledge regarding their field. Herein, Starbucks above all department like marketing, human
resource, finance and so on CEO is placed at the top of organisation.
Marketing does not only mean selling or buying goods and services. It basically adds an
experience in the lives of customer and according to it customer make future decision regarding
to product like repeat purchase or dissonance. Starbucks is known for its brand loyal customers
all over globe because of its same look and feel. This role of marketing functions helps in
building organisation structure as well fulfil the objective of organisation.
As Starbucks believes in serving best possible coffee. Therefore, in respective company
production is done on the basis of market demand. It has adopted functional structure to expand
its reach in best possible manner due to which people of different geographical regions find
uniqueness in brand. Hence, generate huge revenue for organisation.
Financial department help Starbucks by providing them a raw data related to expenses
they can incur for promoting their brand as well as assumption about break even point and
profitability ratio. Moreover, Starbucks consider whole financial budget for performing existing
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and future actions. Hence, on the basis of financial structure funds are allocated to different
groups of functional structure.
Human resource include whole recruitment cycle. Thus after hiring best staff Starbucks
provide proper training and development session to their staff. As the growth of company
depends upon the employees who are catering goods and services to its clients. Thus, Starbucks
make sure its overall customer gets unique experience. So that they can gain competitive edge
over their competitors.
CONCLUSION
From the above report it has been concluded that there are various factors that needs to be
considered to achieve organisational objective. There are various forms of establishing a
business unit and these units differs for the purpose it has been formed. Organisations with
different size and scope possess unique goals, market share, profit share and growth rate.
Functions of these different organisations differs on the basis of objectives and structure on
which it is designed. There are various market forces that influences business decisions and
economic operations of the country. The essay concluded by outlining interrelation of functions
of Starbucks.
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