Starbucks Corporation: Organizational Analysis and HR Report

This report provides a detailed analysis of Starbucks Corporation, examining its organizational structure, goals, values, and mission. It explores customer expectations, conducts a SWOT analysis, and delves into the roles of employees within the organization. The report highlights the importance of training and development, the role of HR in the company, and the required skills and knowledge for HR professionals. Furthermore, it outlines the training and development needs of the company. The analysis covers various aspects of Starbucks, including its functional hierarchy, geographic and product-based divisions, and team-based structure. The report emphasizes the significance of employee management, communication skills, and decision-making skills for effective HR practices. Overall, the report offers a comprehensive overview of Starbucks' operations and HR strategies.

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Organisation structure, goals, values, mission and size...........................................................1
2.Customers of company and their expectation form organisation.............................................2
3. SWOT analysis........................................................................................................................3
4. Role of employees in organisation and their support towards organisational goals...............3
5. Training and development and its importance for organisation..............................................4
6. HR Role and its importance to organisation...........................................................................5
7.Required Skills and Knowledge required to carry out role of HR...........................................6
8.Training and Development requirements.................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Starbucks corporation is a coffee house chain engage in the offering of providing wide
range of coffee included, espresso, latte, cappuccino, Frappuccino and more (Lemus, 2015).
Company was established in the year 1971 and operate their functions in more than 30,000
locations in the world. In this report, formative discussions has been conducted on, organisation
structure, size, values, goals and mission in addition with this, customers expectations form
organisation and SWOT analysis of company is covered in this report. Along with this,
appropriate role of employees within organisation and constructive concept of training and
development is included in this report.
1.Organisation structure, goals, values, mission and size
Starbucks Corporation is a coffee house chain and was founded in the year 1971 with
having more than 30,000 shops operating worldwide. Company offer different types of hot and
cold drinks along with whole-bean coffee range with micro ground instant coffee. Starbucks is
specialised for its caffe latte, espresso and Cappuccino. Company operates its business in retail
coffee and snack industry.
Structure:
Starbucks Corporation implemented matrix organizational structure in its organisational
constitution which is mainly a hybrid mixture of various types of feature such as, Functional
hierarchy, product-based divisions, teams and geographic division. All these features, supports
Starbucks to gain more competitive advantages. Hybrid mixture of company structure benefits
company to keeps on growing their business despite of having competitive pressure in
international market. Mentioned below matrix organisational structure of Starbucks is briefly
described below:
Functional Hierarchy: I
n this hierarchy, company have grouping based enterprise function. In this, Starbucks
hold HR department, marketing department and finance department at their top corporate
structural level and all these departmental units have authority to take decisions. For example,
HR department of Starbucks is responsible to implement effective policies for all outlets of
company's cafes. While functional department is having the authority for company wide
development and adoption of different set of competitive and growth strategies
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Geographic Divisions:
Starbucks segregates its geographic divisions as per physical locations in which they
operate their activities. Organisation has mainly three types of regional division for international
market that include, Western, South-east, Northwest and North-east. In this Starbucks appointed
local manager in each of their divisional heads.
Product-based Divisions: Starbucks enforced product-based division in which they have separate
division of coffee and other accompanying products, next division of company is for baked
goods and other is for commodity products like mugs. This will help company to effectively
focus on each of their products and brings innovations in them (Sholihah, 2016).
Teams:
Starbucks corporate culture take advantage of team system in their organisational
structure. For example, team culture are mainly seen in Starbucks coffee houses as in this, in
every cafe of company there is a set team incorporated in order to deliver offerings to consumers.
This feature benefit Starbucks to provide best effective services to their customers.
Goals:
Formative goal of Starbucks is to bring cultural and innovation development along with
high integrity and accountability is organisation values. Company is looking forward to expand
their services in those areas in which they haven't reached yet.
Mission:
Starbucks mission statement is “ to inspire and foster human spirit-one person, one cup
and one neighbourhood at a time.
Values:
Starbucks value towards creation of a culture of belonging and warmness where every
individual is welcome.
Size:
Starbucks operates its functions in more than 30,000 locations. Company hold more than
238,000 employees worldwide those who perform their roles in different parts of locations.
2.Customers of company and their expectation form organisation
Potential customers of Starbucks is individual of age groups of 25 to 40 who share
different mixture of characteristics. Company separate its customer sector according to the basis
on, high income bracket, environmental state of mind and knowingness of social status. Recently
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company decided to target young age group of 18-24 through the medium of technology and by
positioning its place where they can have college students. Customer expects effective value of
their money by requiring best product and service. For example, in context with coffee industry
consumers want cost of purchasing a coffee exact same as the item price. Along with this, in
context of time spend by them to get a coffee a consumer want perfect effect, taste and look of
the coffee. For this, Starbucks decided to develop consumer base as to get more attraction and
retention of customers.
Consumer Value= Perceived benefits -perceived sacrifice
3. SWOT analysis
STRENGTH WEAKNESSES
 Starbucks is one of the largest chain of
coffee house in the world
 Strong employee management in their
organisation structure as company offer
lots of benefits and competitive salary
packages to their employees (Sholihah,
2016).
 Increase in price range of coffee beans
affect Starbucks functioning.
 Company is facing major weaknesses
in pricing of products along with
negative publicity, recently in china.
OPPORTUNITIES THREAT
 Starbucks is having wide opportunity to
expand their business in emerging
market of developed countries.
 Company by increasing its range of
products can extend their supply range.
 There is a threat for company as coffee
beans and dairy products is rising.
 Starbucks is facing threat of local
competition and other coffee houses
chains.
4. Role of employees in organisation and their support towards organisational goals
Employees in an organisation acts as an most important element which aid company to
ensure their formative stability and sustainability. Mentioned below there are three different level
within which employee perform their role in an organized way and efficiently support towards
organisational goals:
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Managerial Position in an Organisation: Individuals those who perform their role on
managerial position have responsibility to assign budget, hiring, recruiting and firing employees.
This will benefit Starbucks to perform their day-to-day operations with more effectiveness and
determine long term sustainability for business.
Supervisory Position in an Organisation: Employees performing their roles on supervisory
position are responsible for individual worker rather than to manage departmental goal or project
(Chang and Han, 2012). This will benefit Starbucks to effectively manage their employees at
every stage and raise productivity level of both employees and company.
Non supervisory Roles in an Organisation: In this section, employees perform different types
of job duties. In this they do not supervise any other employees. Starbucks manager effectively
ensure that employees in their working structure perform their role in a coordinating way. Some
of the example of non supervisory role include, mid-or-late- career It role or consumer service
representative position.
5. Training and development and its importance for organisation
Training:
It refers to development or teaching of knowledge and skills in oneself. It assist
individual to gain competencies and enhance them with respect to peculiar skills. In this teaching
and learning activities are carried out to aid employees to grow and apply those skills,
knowledge, attitude and abilities which are required for specific job. It enhance the performance
of employees.
Development:
It is defined as a process of social and economic advancement with respect to quality of
human life. Skill development is a process which aims at development of capabilities to attain
sustainability within organisation. By this skilfulness and efficaciousness of employees is
improved and they are motivated to perform till their complete potential. This enables
organisation to attain their objectives and goals in stipulated time frame.
Benefits of employees:Training and development benefits for employees are mentioned below in
brief:
Improving performance:
Effective training and development benefits employees to improve their skills and raise
their level of expertise which lead them towards more efficient level of performance.
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Adoption of new and innovative technology:
Effective training and development aid employees to get knowledge and have proper
understanding of new and advanced tools and technology which will benefit them to gain more
career opportunities (Bondarouk and Ruël, 2013).
Benefits to organisation: Training and development benefits to organisation are discussed
below:
Fostering growth:
Trained and motivated employees perform their job roles with more effectiveness.
Training and development programmes benefits Starbucks to make their employees work in a
coordinative and collaborative way and effectively deal with complexities. This will benefit
company to efficiently foster its growth ratio.
Reduction in employee turnover: Effective Training and development aid Starbucks to hold their
employees for long term, as experienced employees perfectly perform their operations. Proper
training and development programmes for employees benefits company to eliminate frustration
level among them and increase their performance of job.
6. HR Role and its importance to organisation
There are different types of authorised personnels who effectively perform their roles and
responsibilities in order to accomplish organisation predetermined goals and objectives. Human
resource manager acts an individual who hold formative responsibility to recruit and train
potential and talented employees in order to strengthen company labour force and achieve goals
with more effectiveness. There are some importance of HR manager:
Talented workforce within Organisation Culture: HR manager is having a responsibility to
recruit effective and potential employees within company force. HR manager of Starbucks hold
responsibility to hire skilled and talented labour force in organisation. It will benefit company to
achieve their goals and objectives in effective way while ensuring high quality standards.
Policy Formation:
Human resource manager conduct their roles in effective and coordinating way with
organisation top level management. They frame strategies and policies related to wages,
appraisals, work environment, welfare activities, salary, transfer and administration. HR
manager of Starbucks perform their role in a formative way and frame policies that will aid
company to gain more effectiveness and growth opportunities.
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7.Required Skills and Knowledge required to carry out role of HR
In order to achieve organisational objectives with more effectiveness it is necessary for
HR manager to posses numerous skills and knowledge (Qazi and Shafique, 2015). This will
effectively make them able raise overall productivity of organisation. There are some skills and
knowledge of HR with the help of which HR manager can effectively conduct their role:
Relationship – Building Skills:
With the help of relation building skill HR manager of Starbucks can effectively able to
build formative relationship with their stakeholders, top level management, clients and
customers. It will benefit company to perform their operations with more proficiencies and
improve market sustainability.
Communication Skills:
Communication skills aid HR manager of Starbucks to evaluate more advancements in a
marketplace and effectively stimulate organisation growth. HR manager of Starbucks by
possessing this skills can easily able to evaluate employee issues and frame roles, responsibilities
and mission according to it. This will benefit company to maximise their productivity and
profitability.
8.Training and Development requirements
Proper training and development aid in overall organisational development and benefit
company to gain more opportunities and advancements. In addition to this, training and
development effectively strengthen skills and capabilities of workers while ensuring high rate
growth and productivity in their performance:
Decision-making skills: This skills consists effectiveness in making decision for a situation.
With the help of this skills HR manager of Starbucks can easily able to make appropriate
decision even in conflict and tensed situations. In addition with this, effective decision-making
skills benefits manager to properly evaluate performance of their employees which
simultaneously benefits Starbucks to maximise their productivity and profitability.
Critical Thinking: With the help of critical thinking approach individual can easily able to assess
a situation in more effective way. This will benefit them to acquire more competencies. Critical
thinking approach benefits manager to analyse a situation in 360degree way and evaluate current
and future employees need. This will benefit Starbucks to implement exact required
modifications in their working structure and improve their overall rate of sustainability.
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CONCLUSION
As per the above mentioned report, it concluded that Starbucks is second largest chain of
coffee shop and are fastest and leading company in retail coffee and snack industry. Industry
offer wide range of coffee varieties in order to effectively satisfying their customers. In this
report, SWOT analyses of coffee house is done as to evaluate its growth, weaknesses,
opportunities and threats. Along with this, roles and responsibilities of managers and employees
is mentioned in this report which leads towards formative achievement of company goals. Lastly,
project covered effectiveness of training and development in order to increase proficiencies of
employees and probability of company.
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REFERENCES
Books and Journals
Lemus, E. and et. al, 2015. Starbucks Corporation: Leading Innovation in the 21st Century.
Journal of Alternative Perspectives in the Social Sciences. 7(1). pp.23-38.
Sholihah, P.I and et. al, 2016. The Strategy of Starbucks and it's Effectiveness on its Operations
in China, a SWOT Analysis. Asian Journal of Business and Management (ISSN: 2321–2802)
Volume.
Qazi, T. F., Khalid, A. and Shafique, M., 2015. Contemplating employee retention through
multidimensional assessment of turnover intentions. Pakistan Journal of Commerce and Social
Sciences (PJCSS). 9(2). pp.598-613.
Bondarouk, T. and Ruël, H., 2013. The strategic value of e-HRM: results from an exploratory
study in a governmental organization. The International Journal of Human Resource
Management. 24(2). pp.391-414.
Chang, A., Chiang, H. H. and Han, T. S., 2012. A multilevel investigation of relationships
among brand-centered HRM, brand psychological ownership, brand citizenship
behaviors, and customer satisfaction. European Journal of Marketing. 46(5). pp.626-
662.
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