Starbucks: Management, Culture, and Employee Satisfaction

This project offers a comprehensive analysis of Starbucks' management practices, organizational structure, and strategic approaches. It begins with a company overview, including its founding, international presence, and key competitors. The project delves into Starbucks' organizational design, highlighting its contemporary design and matrix organizational structure, along with its functional, geographic, and product-based divisions. It explores Starbucks' differentiation strategies, such as store expansion, product innovation, and digital engagement, and its growth strategies, including market expansion and product differentiation. Furthermore, it examines Starbucks' corporate culture, emphasizing its relationship-driven, inclusive, and servant leadership approach, along with its focus on employee satisfaction and retention through various initiatives like fair payment, paid holidays, and a positive work environment. The conclusion summarizes key findings, emphasizing Starbucks' reliance on a matrix structure, contemporary organizational design, successful differentiation strategy, and employee-focused culture. The project references various sources to support its analysis.

STARBUCKS
MANAGEMENT

INTRODUCTION
Today, organizational changes are the prominent part
to attain effectiveness in the organization work process.
As a responsible execute, I have provided the directors with
an insight of Starbucks.
COMPANY OVERVIEW
 It was founded in the year 1971 (Owler , 2019).
 It has an International market in 78 countries
(Ritschel , 2019).
 Its total number of stores is 29324 (Lock , 2019).
 Its major competitors are COSTA, Dunkin Donuts
and Café Coffee Day.

ORGANIZATIONAL DESIGN
Organization design is the process that involves
 Designing
 Adapting the organizational structure (Mueller, 2014)
 Starbucks is a follower of Contemporary organizational
Design.
 It follows Matrix Organizational structure (Contemporary
Design).
(Daft, 2010)
ORGANIZATIONAL STRUCTURE

Functional Structure
HR department
Finance department
Marketing department
Others
Geographic divisions
America
China and Asia-Pacific
Europe , Middle East and Africa
Product-based division
Division for coffee and related products
Division for merchandise
Others
Teams
Lowest level of hierarchy
MATRIX ORGANIZATIONAL STRUCTURE

Customized product
Product Innovation
Capitalization on customer preferences
Stores in the economically backward region
No franchising
(Forbes , 2016)
DIFFERENTATION

 The rise in number of stores.
 Upgrading the product experience.
 Developing Teavana.
 Enhancing digital engagement and relationships (Vladova,
2015).
 Initiation of new partnerships (Forbes , 2019)
 Developing Coffee Traceability Program.
 Creation of global social impact (Starbucks , 2018).
GROWTH STRATEGY

STRATEGIC OPTIONS /APPROACH
 Third place experience.
 Integration of technology
 Market expansion
 Product differentiation
(Dudovisky, 2017)
CORPORATE CULTURE
 Relationship driven
 Directness
 Inclusion and Diversity (Anitha, 2016)
 Servant leadership (Ferguson , 2019)

 No biasness in payment
 Paid holidays
 Additional rewards (Khan, 2015)
 Positive work environment (Indeed, 2019)
 Others
Employee satisfaction/retention

Following points are concluded:
 Starbucks is a follower of Matrix Organizational Structure.
 It relies on Contemporary organizational design.
 I’s differentiation strategy has helped in achieving global
success.
 It has employee focused organizational culture.
CONCLUSION

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https://research-methodology.net/starbucks-coffee-business-strategy-2/
Ferguson , E. (2019, February 20). Starbucks Corporation’s Organizational Culture & Its Characteristics. Retrieved from Panmore: http://panmore.com/starbucks-
coffee-company-organizational-culture
Forbes . (2016, October 13). Starbucks Is Maintaining Its Competitive Edge. Retrieved from Forbes : https://www.forbes.com/sites/greatspeculations/2016/10/13/how-is-
starbucks-maintaining-its-competitive-edge/#47937c00759c
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starbucks-growth-strategy/#701e3f393d71
Indeed. (2019, August 30). Starbucks Employee Reviews. Retrieved from Indeed: https://www.indeed.co.in/cmp/Starbucks/reviews?start=40
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starbucks-stores-worldwide/
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https://www.owler.com/company/starbucks
Ritschel , C. (2019, August 29). THE 10 COUNTRIES WITH THE MOST STARBUCKS LOCATIONS. Retrieved from Independent : https://www.independent.co.uk/life-
style/food-and-drink/starbucks-location-countries-where-us-london-china-canada-japan-expansion-a8754761.html
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https://stories.starbucks.com/press/2018/starbucks-unveils-innovative-growth-strategy-at-2018-annual-meeting/
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https://economictimes.indiatimes.com/industry/cons-products/food/starbucks-expects-india-to-be-among-its-top-5-markets-globally/articleshow/61206968.cms
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REFERENCES