Analysis Of Starbucks Organizational Culture
The organisation’s objective is to be the most well established and recognised coffee-house in the world. Its business strategy is based on product differentiation by emphasising on premium quality of products and services. Further, Starbucks aims to continue rapidly expanding across various geographical locations and growing its speciality operations for introduction of new and improved products. The use of technological innovations and intensive integration of technology into varied business measures and order procedures in specific represent another valuable aspect of Starbucks business strategies. The ability to customise your coffee as per the ingredients you require more/less of, the adoption of Starbucks credit cards, etc. are examples of the same.
Starbucks Structure
Starbucks follows a matrix organisational structure wherein the structural design involves interchange among varied aspects of the business. The main features of Starbucks coffee’s corporate structure begin with functional hierarchy. It refers to grouping based particular business functions. It facilitates top-down monitoring and control, with the CEO at the top.
Geographic division is based on physical location of the operations. It consists of three regional divisions in the global market
- America,
- China and Asia Pacific,
- Europe, Middle East and Africa.
Each geographic division has a senior executive, each local manager reports to at least two superiors - the geographic head and the functional head. There is enough room for flexibility in adjusting to suit specific market condition for each division head.
Product based division: these divisions address product lines, a feature that allows Starbucks to focus on product development. Allows product innovation to take place through its organisational structure and maintain its competitive advantage.
Teams: teams are more visible at the lower organisational levels, particularly the coffee-houses. This feature allows service provided to consumers be more efficient and effective. Various teams organised to deliver goods, provide services, etc is an example of the same.
Starbucks System
The organisation has several important systems that facilitate day-to-day business. These deal primarily with product knowledge, product development, customer relationship management and transaction processing systems. Starbucks is also integrating mobile ordering systems, which allows customers to buy without getting in line. This system is not yet available everywhere, but is in the working as well. Further, Starbucks directly purchases coffee from growers and regional associations and also roasts all of its own coffee. This allows the company to deliver a product that consistently matches customer expectations.
Starbucks Style
The style for the organisation is defined as innovative, flexible and team orientated. The company has always believed in treating people with respect and dignity. It believes in the employees and constantly encourages them to be more innovative and creative with their ideas. Starbucks always has and continues to give its employees enough room to come forward and offer their inputs and opinions for the company. For example, according to an article in Forbes Magazine - in 2008, Howard Schultz ordered that Starbucks quits selling melted cheese breakfast sandwiches since the smell was masking the aroma of their coffee, the company’s core offering. Key leaders argued and pushed back for the sandwiches, and eventually they found a middle ground. Now, Starbucks is indeed selling them and cooking them in a way that makes them less aromatic.
Starbucks Staff & Skills
Starbucks believes in creating a strong legacy of progressive and responsible employment. They refer to their employees as their partners and have a business philosophy to exceed the expectations of their partners. They understand that their staff includes students, spouses, working parents or those young people for whom it would represent their first job - all working to achieve their own personal and career goals. Thats why, in order to help them achieve their goals, partners who work for or beyond 2 0hours a week receive access to
- Healthcare coverage
- A debt free college degree through the Starbucks College Achievement Plan.
They have also created various benefit programs for employees and part timers. The ‘Bean Stock’ plan allows employees to get shares of the company. It improves employee morale and boosts commitment. Further, keeping the employee turnover rate low as well.
Keeping all of the above in mind, an employee at Starbucks must have a number of personal characteristics and skills which will enable them to carry out their role. These skills would include attention to detail, friendliness, a commitment to provide customer service and satisfaction, along with an ability to function in a fast paced environment. They provide many training programmes in terms of - supervising, basic training, retail management, and many more.
District Manager Program - It allows a new district manager to be successful in their role by providing him/her with a foundational program. It puts together paper and online training modules, one-to-one delivery and in store skill practice delivered over a fifteen-week period.
Barista Basics Training Program - A highly effective learning experience for a new barista that quickly increases confidence and competence for customer service. It is an initial training for a newly appointed barista to acquire essential skills and knowledge by using simple and intuitive tools as well as on the job training.
Starbucks Shared Values
Starbucks believes in selling an experience, any retailer can sell coffee. They understand the importance f the customer experience and continue to invest a lot of money and time to deliver the same. They believe in creating a third space for society from work and home. An atmosphere that would include friendly staff, comfortable meeting space, great aroma and access to wifi. Further, Starbucks places faith in the “importance of building a great, enduring company that strikes the balance between profitability and a social conscience. “ They always contribute to various social causes, are committed to ethically sourcing the highest quality coffee, and are strongly devoted to having a positive impact on the communities they serve. Moreover, they are finding ways to minimise their environmental footprint as well and hope to inspire others to do the same.
