Company Selection and Analysis: Starbucks Corporation
Starbucks Corporation was incorporated in 1971 in Seattle Washington. It was established as an American Coffee Company and a coffeehouse chain. Currently, Starbuck has operations in more than 23,768 locations worldwide. The company has been considered as the main representative of the “second wave Coffee,” (Starbucks Coffee Company, 2015). Initially, the company was able to distinguish itself from other coffee serving venues in the United States by aspect of taste, customer experience and quality. Since the new millennia, Starbucks has been targeting the quality minded customers with the handmade coffee that is based upon light roasts. As well, the company has been using the automated espresso machines to achieve efficiency as well as safety (Koehn, 2002).
Starbuck Mission and Vision
Starbuck Coffee vision and mission statement has a reflection on the company’s emphasis on the aspect of leadership within the coffeehouse industry. In general, the firm’s mission statement is an indication of what the company wishes to do within the core of its business. As well, the company vision statement indicates what it wishes to achieve in the anticipated future time (Starbucks Coffee Company, 2015). In this connection, the vision and mission statements of the company do guide all activities of the employees with indication of what consumers can receive from the business. In general, Starbuck coffee mission indicates to the customers benefits that can source from the company. Starbuck has been following the mission and vision statement with an aim to influence organizational performance as well as strategic goals. Generally, the current success in the global industry has a direct connection to the mission and vision statements (Koehn, 2002).
Starbuck Coffee Vision statement is “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow,” (Starbucks Coffee Company, 2015). The company’s vision statement has various components such as:
- Finest coffee globally
- Uncompromising principles
- Premier purveyance (Starbucks Coffee Company, 2015).
Starbucks’ mission statement is “to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time.” The mission statement has a reflection on what Starbucks does to ensure that the business operates (Starbucks Coffee Company, 2015). The components of the mission statement are the following:
- One person, one cup and one neighbor at a time
- Inspire and nurture human spirit
Starbucks Current Strategic Plan
According to the firm’s five years strategic plan, the company has set forecast of achieving continuous strong growth as well as plans of launching mobile orders, pay and delivery in the United States. As well, Starbucks has aims of identifying highest values of opportunities in countries such as India, Brazil, Japan and China (Starbucks Coffee Company, 2015). The projections are that, by the year 2019, the firm’s revenues will reach $30 billion which will be an increment from the current level of $16 billion. In addition, Starbucks made announcement of making transformational innovations that target expanding the company’s Global Leadership in Coffee, Tea, Retail Store as well as Partner Experiences. Finally, it aimed at elevating and redefining the premium coffee experience with Debut of the World’s First and the Immerse Starbuck Reserve Roaster and a Tasting House in Seattle (Starbucks Coffee Company, 2015).
According to the company’s CEO, Howard Schultz, there has been a seismic shift in the consumers’ behaviors that have presented tremendous opportunities for the company. According to the statement by Howard, Starbucks will continue to lean on the new business era by the aspect of innovation in the transformational strategy in coffee, tea and retail business (Starbucks Coffee Company, 2015). This would assist in elevation of the company’s customer and the partners experienced levels, continuous extension of leadership position within the digital and mobile technologies, to unlock the new emerging markets, channeling and formatting all over the world. Starbucks will have to invest in the coffee, people and the communities being served. Such ideas will have to remain as crucial to achieve continuous redefinition of the roles and responsibilities to be played by a publically traded company within the global consumer, economic and the retail markets (Starbucks Coffee Company, 2015).
The fact is that, Starbuck business, growth and operations have never been strong and the firm has confidence on the ability to achieve continuous move to foster significant growth and meeting the company’s long term financial goals. According to the Chief Operating Office of Starbucks,
“We have more customers visiting more stores more frequently, both in the U.S. and around the world, than at any time in our history. And we expect both the number of customers visiting our stores and the amount they spend with us to accelerate in the years ahead. With a robust pipeline of mobile commerce innovations that will drive transactions and unprecedented speed of service, Starbucks is ushering in a new era of customer convenience. We believe the runway of opportunity for Starbucks inside and outside of our stores is both vast and unmatched by any other retailer on the planet,” (Starbucks Coffee Company, 2015).
Starbuck Coffee Company has the most distinct character in relation to its organizational culture. The company’s organization culture has a wider influence to the employees and the business performance levels. In the case of Starbucks, the organizational culture has been permitting all aspects of the business (Starbucks Coffee Company, 2015). Within the Starbucks’ cafes, the firm’s organizational culture is well viewed. This relates to the manner in which the employees work closer with each other as well as how they interact with the customers. Within the café, there is warm and friendly response which is different from the competitors. Starbucks organizational culture relates to the company’s strategies towards achieving a successful brand development as well as international expansion (Koehn, 2002).
In general, Starbucks Coffee Organizational culture has been the core success factor. The company has been using the organizational culture to distinguish itself from the rivals. The company’s culture has unique characters (Koehn, 2002). According to the company, the firm’s organization culture has been described as culture of belonging, diversity and inclusion (Starbucks Coffee Company, 2015). In this case, the core features of the organization culture are:
- Inclusion and diversity
- Servant leadership
- Relationship driven approach
- Collaboration and communication
Starbucks has possessed servant leadership attributes that have a significant character of the company’s organizational culture. In this case, the leaders, managers as well as supervisors have been emphasizing on the support of subordinates to make sure that all are growing equally while in the firm (Starbucks Coffee Company, 2015). Under the approach of relation driven, the company has a culture of supporting warm and friendly relation. The feature has extended to the customers (Koehn, 2002). Under the approach of collaboration and communication, the culture of the organization has been encouraging collaborative efforts via effective communication within the firm. Starbucks’ organizational culture has been supporting efficiency in the firm’s processes which has contributed to the quality of the services, cost of effectiveness and experience in the business (Starbucks Coffee Company, 2015). Openness approach relates to encouragement of the employees’ towards asking queries and communicating to the superiors. Through this approach, employees of Starbucks are empowered, a factor that facilitates the aspect of innovation (Koehn, 2002). Finally, inclusion and diversity relates to the anti-discrimination policy that has shaped Starbucks Culture. The policy does prohibit all discrimination forms that may be based on gender, sexual orientation, age, race, religion, cultural background and ethnicity (Schein, 2010).
Starbuck Structure and Organization
Being the largest coffee house internationally, the firm’s leadership has been attributed to the appropriateness of Starbucks’ organizational structure. Starbucks has evolved and posse’s organizational culture that matches with the firm’s business needs. The firm’s organizational culture has been unique and may be characterized by the conventional typology (Lee, Kozlenkova & Palmatier, 2015). The company has been successful since the organizational structure has been growing with the business hence being the chance why the company has been able to optimize all processes and the quality of the goods and services. In general, the company’s organization structure has been evolving with an aim to serve the requirements of the business. The organizational structure offers support to the company in relation to the diversification process and global expansions (Lee, Kozlenkova & Palmatier, 2015).
Starbucks’ Coffee operates with a matrix organization structure that contains hybrid mixture of other distinct features. Starbucks Coffee organization structure has the following features:
- Product based divisions
- Geographic divisions
- Functional structure
Under the functional structure, the firm’s organizational structure relates to the aspect of group based on the business operations. For instance, the company’s HR division, marketing division and finance division (Lee, Kozlenkova & Palmatier, 2015). The company’s divisions have been well pronounced to be at the top of level of the organization structure. Such features have relation with hierarchy of the organizational structure of the coffee firm. In the geographic divisions, the company’s structure has three region divisions within the global market (Lee, Kozlenkova & Palmatier, 2015). Each of these geographic divisions has a senior vice president. Starbucks managers have to report to two superiors, generally, geographic head and the functional head. Such features have been supporting the organizational structure that does support closer managerial operations (Starbucks Coffee Company, 2015).
On the other hand, there is the product based division. In this, Starbucks has been using this to address the firm’s product lines. For instance, the company has division for coffee as well as other related products, baked goods and another one for merchandise products such as mug. Through this structure, the company has been able to develop and innovate most of its products with the support of the organizational structure (Lee, Kozlenkova & Palmatier, 2015). Finally, the teams have been used in various parts of the company’s organizational structure. However, the teams have been most notable within the lower organizational levels mainly in the Starbucks cafes (Koehn, 2002). In the cafes, Starbucks has teams that are organized in delivering goods and services to the customers. Maintaining such features of Starbuck organization structure has allowed the firm to offer effective and efficient services to the clients.
Koehn, N. F. (2002). Howard Schultz and Starbucks Coffee Company. Harvard Business School.
Lee, J. Y., Kozlenkova, I. V., & Palmatier, R. W. (2015). Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), 73-99.
Schein, E. H. (2010). Organizational culture and leadership (Vol. 2). John Wiley & Sons.
Starbucks Coffee Company (2015). Company Information – Starbucks Coffee Company. Retrieved on 30th April 2016, from: http://www.starbucks.com/about-us/company-information