Organization Management for Starbucks - Essay Example

The company serves over 40 million customers every week, this has been due to the employment of well-focused strategies that can capture the bulk of the growing market (Dess, Lumpkin & Eisner 13).

Human resources

An organization’s success is greatly dependent on the human resources employed in that particular organization. The talent and professional abilities inherent in human resource is demonstrated by tact in duty performance. Starbucks has invested in ensuring that it has the right talent and ability in place perfected by professionalism. The company also banks on the motivation of employees to realize its profitability. It has greatly relied on its baristas and other frontline staff to get the best customer. The recruitment process at Starbucks outlines the need for hiring the right people for the organization, where the right people are placed in the selection and training of new employees (Dess, Lumpkin, & Eisner 20). According to Barney (18), the diversity of the management team and the organizational commitment to the training of its staff makes the company to be a market leader in innovation in market differentiation. The company competitively remunerates its employees to maintain them and avoid staff turnover.

The company has continuously strived to give an unrivaled work environment using offering strong management and benefits packages that are above the industry-set standards (Dess, Lumpkin, & Eisner 16). The workforce hired by the company has diverse personalities which ensures that each of the employees is outgoing and instrumental in helping the company’s growth. The teamwork in the company helps them achieve great and massive results for instance the yearly corporate gatherings held unify and spreads the energy between the employees by sharing their experiences in a fun moment. When the employees get time to meet and exchange their experiences they can learn between themselves new skills and tact on ways of meddling through the daily business activities.

Knowledge

The company’s knowledge about what strategy to put into action is instrumental to the success of the company. The various strategies to be applied at particular times are a key antidote to the progress of the company. Horizontal integration used by the company to gain market dominance and presence has been achieved through acquisitions of Seattle’s Best, Torrefazione Italia, and Coffee People all of which have been major coffee shops. The knowledge of the significance of acquiring these shops was important in making the decision. Market penetration is crucial to a company's presence; the company has established this through differentiation and product placement. Outside the retail stores is also a unique strategy not adopted by other shops. The company’s knowledge of consumers' shopping and consumption habits is important in designing and packaging its products in a manner that consumers find appealing. The company has greatly utilized this information in ensuring that it concentrically diversifies its bottled drinks, ice creams, and liqueur (Barney 22). A market has to be developed continuously to ensure the continued growth of the company. This has been facilitated by the knowledge of the firm to diversify its market by educating its consumers on the value of its products and the specialty of the coffee the company sells to its consumers (Dess, Lumpkin & Eisner 27). The shops are also well versed with the various tastes of consumers about music and movies such that the company stands a good ground in offering these to its consumers as they visit their shops, as this conglomerate diversification expansion technique plays an important part in the success of the company (Hamel & Prahalad 14). The company has developed a human connection through business ecosystem maintenance through value chain development creating a lifelong experience for its customers (Anders 31). The company has a good knowledge management system from its suppliers to its customers. Therefore, this propels it ahead of other competitors coupled with the talent of the human resource, the knowledge in dairy, paper, and coffee current information and historical trends helps the company make edge-cutting decisions that translate to high profitability.  

Justification

Human resources are key to the success of every organization as they put into action all the other resources, the same also utilizes the available knowledge to make it beneficial to leverage a company to realize profits.