Starbucks Coffee Management and Organizational Analysis Project
Company History Founded in 1971 in Seattle, Washington. More than 17,600 stores in the United States. Located in more than 50 countries. Not just a cup of coffee anymore: Fresh food, beverages, Starbucks Ice Cream. Expanded outside of its retail locations: Coffee and tea products are sold through supermarkets and paid concessions.
Organizational Culture Quality of both its service and product. A “third home” between home and work.
Employees (Partners) Importance of diversity Encourages and rewards creative ideas and services. Values attention to detail, focus, listening skills, multitasking abilities and team building.
Customers Human connections Fully engage the customers Recognize and respond to the customers’ unique preferences and needs.
Stores Haven from the outside worries. Place for everyone. Familiar store vibe.
Innovation Effective adverse selection process. Utilizing both size and content.
Quality of Coffee Only whole beans delivered to stores Baristas were required to grind the beans Any coffee left standing for more than 30 minutes was tossed out.
Major Changes Force coercion change model. Previous CEO Jim Donald (42% drop in stock value) Reinstated CEO Howard Schultz made a two-year turnaround of the company.
Technology Official Website Added Wi-Fi connections for customers Partnering with Apple to allow customers to download songs they hear in a Starbucks from iTunes
Organizational Structure - Overall Matrix structure Geographic Functional Helps to develop products appealing to specific markets Starbucks’s upper level management 36 executives
Organizational Structure - USA
Informal Organizational Structure Starbucks manager, Nadya, says: “I would say the biggest help I get as a manager is from other store managers. A lot of the managers around my store are actually my friends -- that's typical for Starbucks. Everyone helps each other and is very approachable. It's all about being a part of the team, in this case the Starbucks team.” Guidance flows top-down as well as sideways
14 Management Philosophy & Practice What does Starbucks do to keep it’s “partners” satisfied? –Benefits, Benefits, Benefits –Savings plans –Starbucks U
15 Management Philosophy & Practice How does Starbucks attract potential employees? –Social media –Credibility: “Practice what you preach” –Experience
The Value System Starbucks works directly with coffee growers and exporters The firm’s infrastructure: Planning, financing, decision making, macro management, and setting quality standards Technology Operationally Quality, imports, storage, and distribution Marketing and Sales Makes sure Starbucks is recognized worldwide and making sure company name is synonymous with highest quality Service
There’s a Starbucks near you! Courtesy of Google Maps
“Starbucks has made a point of being wherever you are. They have a tremendous, almost inescapable, presence in countless, high-traffic neighborhoods.” “Today, there are about 14,396 (give or take a few). Divide that number by 20 years, or 7,300 days and, after rounding up, you get an average of 2 stores per day opening every day for the last 20 years.” Quotes by Ross Bonander “5 Things you didn’t know about Starbucks”
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Social Impact Works to protect and empower all stakeholders CAFÉ Practices Farmer Support Centers and loans April – Global Month of Service Aim to have 1 million volunteer hours per year Collaborate with many other organizations –American Red Cross, Fair Trade, Product(Red) Starbucks.com
Environmental Impact Committed to recycling & reducing waste Cup Summit New reusable cup Committed to conserving energy & water Environmentally friendly facilities Educational messages displayed in store goluckyduck.wordpress.com
Conclusion Starbucks is truly an exemplary company. Their strong social and environmental commitments have set high standards. Promote the message of moral responsibility to the plant and people to other companies.
Thank you for listening. Feel free to ask any questions.