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Organizational Analysis of Starbucks - Case Study Example

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The paper "Organizational Analysis of Starbucks" discusses that Starbucks has been a brand, which used a differentiated strategy to offer its coffee menu to the customers, that shows that it avoids mass marketing and strongly believe in making its products differentiated from the other rivals. …
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Organizational Analysis of Starbucks
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Download file to see previous pages In 1992, Starbucks experienced a tremendous amount of growth, which led to reaching up to around 100 stores across the United States. This was their major stimulus towards going to public and become a publically traded company. With the exceptional amount of growth in its business, Starbuck managed to satisfy on an average 35 million customers per week, which indicates the quality, taste and aroma of the coffee offered by Starbucks to its customers (Stanley, 2002). The mission statement of Starbucks provides a comprehensive insight into the overall purpose of the organization. Unlike the typical mission statements, Starbucks has strived to incorporate all those purposes which are extremely vital for the existence of the business such as achievement of profitability, responsibility towards community and environment, product diversity and lastly but most importantly, fair and equitable treatment with its workforce (Hammers, 2003). Organizational Design Organizational design is influenced by the strategies that the top management of any organization designs for it as part of its future areas of operations. Other factors, which contribute in shaping up the good “fit” for organizational design, are nature of an organization, its size life cycle, environment, culture, and technology (Daft, Murphy, & Willmot, 2007). There might be other factors as well but they vary organization to organization. Starbucks has implemented such a design structure in its organization, which helps facilitate faster communication among employees and from customers to top management. The structure of the organization is developed in such a manner that it fosters meaningful and timely communication across the organization (Hitt, 2008). The top management of Starbucks controls the centralized decision-making system of the organization from its headquarters located in Seattle. The other districts where the stores of Starbucks serve its customer are run under the district managers who are directly reportable to the top managers at the Starbucks headquarters. Under district managers, store managers keep track of all the store activities. Apart from store managers, there are duty supervisors who take charge in the absence of the store managers. Baristas are the coffee servers who report to duty supervisors and store managers (Hitt, 2008). In this way, the complete organizational structure of Starbucks stands and facilitates the appropriate communication and decision-making among the employees from top management to the lower-tier employees. This organizational structure of Starbucks allows the employees to work with coordination and collaboration rather than competition. Employees are assigned their specific roles but they are questioned for their tasks to which they are accountable. Adaptive culture is promoted at Starbucks however; the information sharing among employees follows a formal hierarchical chain, which is the bottom-line towards developing a centralized organizational structure. Organizational Effectiveness The effectiveness of any organization is mainly shaped as to how its major goals are being accomplished. However, there is no stringent tool to measure organizational effectiveness.  ...Download file to see next pagesRead More
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