This essay stresses that Starbucks is one of the world’s biggest and most successful retailers of coffee. Because of the business environmental changes that took place in the United States, Schultz publicly announced the need to implement a massive lay-off back in 2008…
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According to the report it is essential to know about Starbuck’s organizational structure before one can effectively examine how change management theories can be applied in the case of Starbucks when planning for an important incremental change. Since the use of a functional structure could make the company’s response to market and environmental change in a very slow phase, Starbucks is using a combined centralized and decentralized form of authority when managing organizational change.This study outlines that Starbucks combined using centralized and decentralized form of authority in the sense that the company’s major decision-making power is highly controlled by Schultz. To ensure the quality service rendered by each of Starbuck’s baristas to its valued customers, a regional manager is usually assigned to manage the company’s store managers who are in-charge of managing the work quality and training of each Barista. Because of the continuous changes in the U.S. market, the CEO of Starbucks – Mr. Schultz exerted extra effort to communicate to the general public about its effort to improve its business performance particularly in the United States where the unemployment rate remains high and demand for retailed coffee is low. In order to win back the trust of its valued customers and maximize the ability of Starbucks to gain more revenues, Schuartz talks about the need to develop and implement new business strategies that could make the company optimize the use of its available resources effectively.
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