Starbucks: Management, Culture, and Employee Satisfaction

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Added on  2022/09/14

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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.
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STARBUCKS
MANAGEMENT
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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.
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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
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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
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Customized product
Product Innovation
Capitalization on customer preferences
Stores in the economically backward region
No franchising
(Forbes , 2016)
DIFFERENTATION
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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
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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)
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No biasness in payment
Paid holidays
Additional rewards (Khan, 2015)
Positive work environment (Indeed, 2019)
Others
Employee satisfaction/retention
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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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Daft, R. L. (2010). Organization theory and design. Cengage learning EMEA.
Dudovisky, J. (2017, April 1). Starbucks Business Strategy and Competitive Advantage. Retrieved from Research Methodology :
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
Forbes . (2019, August 30). Let's Look At Starbucks' Growth Strategy. Retrieved from Forbes : https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-
starbucks-growth-strategy/#701e3f393d71
Indeed. (2019, August 30). Starbucks Employee Reviews. Retrieved from Indeed: https://www.indeed.co.in/cmp/Starbucks/reviews?start=40
Lock , S. (2019, August 29). Net income of Starbucks from 2007 to 2018. Retrieved from Statista: https://www.statista.com/statistics/219502/starbucks-net-income/
Lock , S. (2019, August 29). Number of Starbucks locations worldwide 2003-2018. Retrieved from Statista: https://www.statista.com/statistics/266465/number-of-
starbucks-stores-worldwide/
Meyer, P. (2019, February 14). Starbucks Coffee’s Organizational Structure & Its Characteristics. Retrieved from Panmore : http://panmore.com/starbucks-coffee-
company-organizational-structure
Notesmatic . (2019, August 29). STARBUCKS NUMBER OF EMPLOYEES. Retrieved from Notesmatic : https://notesmatic.com/starbucks-number-of-employees/
Owler . (2019, August 29). Starbucks's Competitors, Revenue, Number of Employees, Funding and Acquisitions. Retrieved from Owler :
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
Shurafat, M. S., & Halim , B. A. (2018, March ). A Review of Organisational Culture and Organizational. Journal of Business and Management, 20(3).
Starbucks . (2018, March 21). Starbucks ceo Kevin Johnson Unveils Innovative Growth Strategy at 2018 Annual Meeting. Retrieved from Starbucks :
https://stories.starbucks.com/press/2018/starbucks-unveils-innovative-growth-strategy-at-2018-annual-meeting/
STARBUCKS . (2019, August 30). Menu. Retrieved from STARBUCKS : https://www.starbucks.co.uk/menu
Susanty, A. &. (2015). The relationship between brand equity, customer satisfaction, and brand loyalty on coffee shop: Study of Excelso and Starbucks. ASEAN
Marketing Journal, 14-27.
The Economic Times . (2017, October 25). Starbucks expects India to be among its top 5 markets globally. Retrieved from The Economic Times :
https://economictimes.indiatimes.com/industry/cons-products/food/starbucks-expects-india-to-be-among-its-top-5-markets-globally/articleshow/61206968.cms
Zheng, W. Y. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business
Anitha, J. (2016). Role of Organisational Culture and Employee Commitment in Employee Retention. ASBM Journal of Management, 9(1).
Khan, M. M. (2015). The longevity of large enterprises: a study of the factors that sustain enterprises over an extended period of time. The Journal of Developing Areas,
49(5), 41-52.
Mueller, J. R. (2014). Alternative Organizational Design and Its Impact on the Future of Work. Journal of Strategic Innovation & Sustainability, 9.
Vladova, K. (2015). DYNAMIC CAPABLITIES AND THE DEVELOPMENT OF ORGANIZATIONAL COMPETENCES. International Conference on Management and
Industrial Engineering, 573.
research, 63(7), 763-771.
REFERENCES
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