Starbucks Structure

Considering that employees working with Starbucks form the vital core of the company’s success in terms of selling the company’s image to the general public and performing the day-to-day operations, there is the need for the company to hire people who can maintain positive interactions with customers.Advertising We will write a custom essay sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More This can be achieved through a rigorous process entailing job analysis, job specification, and job description by the human resource department. For instance, for Baristas (bar persons), the following should form part of their job specifications and descriptions: Job Specifications; Candidates eligible for the position of baristas will possess the following skills, knowledge, and abilities; Knowledge of different brands of coffee, Be eager to learn new concepts, Ability to learn the art of coffee brewing, Be s elf-motivated, creative, adaptable, team-players, and passionate, and Ability to maintain a large array of regular customers Job Descriptions: Baristas will be charged with the following duties and responsibilities; Brewing and serving coffee to the customers in real-time, Receiving and responding to customer needs/orders quickly, Reporting to their immediate supervisors on issues regarding customer complaints and preferences, and Helping in designing strategies to address customer issues particularly complaints and customer preferences. In a functional organization, work should be delegated to different departments in order to reduce confusion and ensure that work efficiency is maintained. This forms the essence of organizational departmentalization. Therefore, the most appropriate form of departmentalization suitable for Starbucks is product-service departmentalization. Under this form of sub-dividing work into respective departments, different products or services are assigned to specific departments and personnel. As a result, products or services with unique demands and customer preferences are given the maximum attention (Robins Coulter, 1999). Product-service departmentalization is very important for Starbucks considering the range of products the company offers including different brands of coffees such as coffee mocha, espresso, and cappuccino among others. The wide product range is coupled with unique customer services such as interior designs, which encourage different customer behaviors and conduct (Reilly, Minnick, Baack, 2011). Besides, Starbucks’ cafes are located in different areas, and thus it is difficult to adopt other forms of departmentalization. Hence, in order for the products and services offered by Starbucks to grow and prosper relative to customer needs and preferences, there is the need to give more attention to each product or service independently.Advertising Looking for essay on business economics? Let's see if w e can help you! Get your first paper with 15% OFF Learn More As for stores offering food products and lunch, it is imperative for such stores to adopt the same form of departmentalization. As noted in the above discussions, unique products and services require more attention in order to maintain growth and prosperity among customers. It is also to be expected that stores offering food products and lunch have a variety of products and services some of which are universal while others are unique in many aspects. Therefore, it is important to organize such stores into product-specific departments to ensure timely response to customer needs and preferences (Robins Coulter, 1999). From the look of things, it is apparent that Starbucks’ Howard Schultz has been practicing a centralized or bureaucratic system of organizational management. With the vast number of Starbucks’ coffee joints, it is no doubt that a bureaucratic organization will face many challenges. The s ituation can also worsen when a manager/CEO concentrates on business expansion while overlooking other market dynamics such as business competition. Therefore, when an organization begins to experience financial problems of the kind experienced by Starbucks, it is important for the top management to encourage decentralization of power and decision-making processes within the organization. The beauty of such a system is that the top management makes enough time to concentrate on formulating strategies while delegating the day-to-day operations and other decision-making responsibilities to their juniors (Robins Coulter, 1999). Accordingly, with decentralization, there is rapid responsiveness to customer needs and preferences, employee motivation, and cultivation of new businesses processes. As noted earlier, Starbucks can be regarded to as a bureaucratic organization in which business processes, techniques, and regulations are systematically defined and handed down the management lin e.Advertising We will write a custom essay sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More However, due to the inherent disadvantages associated with such an organizational structure, there is the need for Starbucks to modify its organization to include flat structures, downsizing, and outsourcing. By reducing the number of layers through which information travels from the baristas to the CEO, workers are given the opportunity to report directly to the top management. This is the essence of flat organizational structures. Coupled with downsizing which in essence refers to cutting down on low-value activities, a flat structure will enable Starbucks’ top management to respond to customer needs and preferences by getting first-hand information from its personnel on the ground (Robins Coulter, 1999). Furthermore, considering that Starbucks has embarked on increased business expansion over the years, the re is the need to outsource the services of other organizations to try and reduce the number of its operational assets and employees if necessary. The idea behind outsourcing is that the company will be able to identify certain tasks where its employees and business processes perform best and maintain them while delegating other tasks to organizations with the relevant expertise and personnel. For instance, Starbucks can adopt ‘home-shoring’ whereby workers are encouraged to help with customer service from the comfort of their homes. Overall, Starbucks stands a better chance of getting back to its previous status through initiating the right business strategies and processes. References Reilly, M., Minnick, C., Baack, D. (2011). The five functions of effective management. San Diego, CA: Bridgepoint Education. Robins, S.P., Coulter, M. (1999). Management. Upper Saddle River, NJ: Prentice Hall. This essay on Starbucks’ Structure was written and submitted by user Joey K. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Starbucks' Structure Starbucks is an American company that started in 1971 in Seattle, America. The company started with roasting and retailing both whole bean and ground coffee. As well, the company sold tea and spices starting with one outlet at Pike Place Market. As of now, Starbucks sells to several million customers daily over an expanded geographical region. Starbucks also sells other goods and services far from what it started with.Advertising We will write a custom case study sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More Statistically, Starbucks has over 18,000 retail outlets spread in over sixteen countries. The company operates in Europe, the United States, South America, Asia, some parts of Africa and North America. With its mission â€Å"to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time†, the company continues to provide high quality products to its customers. It buys coffee from countries in Africa, Asia, and Latin America and roasts it at its own facilities (Morris 2006).  The company offers a number of products to its customer base throughout the world, which includes different blends of coffee, handcrafted beverages, merchandises such as mugs, brewing equipment, gift items, and music. As well, the company offers fresh food, consumer products such as coffee and tea, Ready-to-Drink drinks, and ice cream. The company continues to sustain a responsibility policy through its three pillars of responsibility, which are ethical sourcing, environmental stewardship, and community involvement. Concerning ethical sourcing, the company supports its farmers through loans and supporting forestry programs. The company also commits to conserving the environment with the use of recyclable materials for making cups. Starbucks has invested in research with the view to making all its cups reusable by 2015. The company also supports community service projects ( Morris 2006).  A job description is an outline of the expected functions, roles, and responsibilities of a candidate during a recruitment process. Both the job description and the job requirements are specific to the open position. One of the most important job positions at Starbucks is that of a barperson. The barperson is the â€Å"face† of Starbucks since she is the person who deals with customers first hand. The barperson receives and helps customers to their seats and proceeds to take orders. Another important function of a barperson at Starbucks is recording the transactions and maintaining such records in a proper form for purposes of bookkeeping. A job description is a summary of the roles and functions that an employee serves in an organization. As well, a job description lists out the requirements of the job (Morris 2006).  The barperson reports to the cafà © manager and is responsible for providing superior and customer friendly service to customers.Advertisin g Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Among the duties and responsibilities of a barperson, include taking customers’ orders and fulfilling them, recording all cash and credit transactions while maintaining the balances, reporting to duty for the allocated shifts, and displaying new information concerning Starbucks’ services for the customers’ attention. As well, the barperson coordinates with the other employees of the company whereas attending all trainings and seminars offered by the company. Importantly, the barperson should diligently follow all instructions and orders from the cafà © manger. In order to qualify for this position, a candidate should have cleared high school and should hold over one year experience in a similar environment. In addition to these requirements, the person should have the following person specifications: be passionate about coffe e and customer service, and as well be energetic, detail oriented, and enjoy working with people (Reilly, Minnick Baack 2011).  Starbucks should choose a geographic departmentalization whereby it categorizes departments according to geographical locations. With this kind of departmentalization, a number of retail outlets make up a district. A district manager who reports to the head office in Seattle heads this district. This way, the company is able to maintain its high standards of quality and as well promote its mission and growth statement. The company should maintain its cafà © concept where customers can relax over a cup of coffee whereas finishing on their undone work, as well as send emails and listen to music from the comfort of a restaurant. However, the company should streamline its operations with a view to cutting down costs if it is to maintain a competitive edge over its competitors. The management should handle the different geographic departments differently, wi th regard to cultural and economic backgrounds of the areas the company is in operation. Ideally, the central management at Seattle should encourage the individual geographical departments to carry out research concerning the dynamics of their operating environments. This should be with a view to identifying the strengths, weaknesses, and opportunities for growth for each operating environment (Reilly, Minnick Baack 2011).  In the event that the company experiences financial problems, the company should adopt a twofold strategy in terms of decision-making and the exercise of power. The company should both apply decentralization and centralization of power appropriate to individual cases. First, the head office must ensure that every geographic department meets its strict and ambitious goals and objectives. All geographical departments should adhere to the financial and operational directives of the corporate office. As well, they must maintain quality at an all time high. The cor porate office should see to it that all retail outlets follow its directives and operational procedures.Advertising We will write a custom case study sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More On the other hand, each geographic department must be responsible for its own success. Every department should align its marketing objectives to the specific geographical consumer demands but within the wider view of the Starbucks’ corporate brand image. The geographic department must understand the unique customer characteristic specific to the region, and align its strategies towards meeting and sustaining the demands of its customers. This way all the geographical regions remain attached to the headquarters and conform to the company’s corporate standards (Reilly, Minnick Baack 2011).  In order to increase efficiency and reduce costs, the company should automate its service line. The company s hould automate its service delivery activities in order to save on costs whereas reducing the service time for its customers. Currently, Starbucks is operating at high costs causing it to charge more for its services. By mechanizing and automating the whole value chain process, Starbuck will have a competitive advantage over its competitors since it will be able to charge less. This way, the company will be able to increase and sustain its market share and in which way operate profitably. The company should also standardize its norms so that every employee of the company is able to follow and individually drive the company’s corporate objectives. The head office should devise standardized training programs for all employees of the company. In order to achieve this, a team of experts from the headquarters should drive these training programs (Reilly, Minnick Baack 2011). References Morris, T. (2006, September 1) Understanding Starbucks. Coriolis Research. Web. Reilly, M., Min nick, C., Baack, D. (2011). The Five Functions of Effective  Management. San Diego, CA: Bridgepoint Education Inc. This case study on Starbucks’ Structure was written and submitted by user Rivka Moreno to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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