The paper analyzes the organizational effectiveness of Starbucks, especially through analyzing the current task. The campaign Latte Love is meant that has been specifically developed to stimulate the marketing of the organizations new products. It is a global company, which is highly adaptable to the differentiated settings. It is providing flexible workplaces to its employees. Moreover, the company is securing appropriate an organizational behavior that is molded by its community. The striving should go in line with the firms desire to create an enjoyable and relaxed atmosphere for any neighborhood accepting its presence. The paper provides an organizational description, analyzing the task design, role relationships, control systems, information technology, and organizational goals. Then the essay displays the situational depiction, revealing the nature of the objective, the relationships, primary events related to the campaign, as well as an appropriate organizational structure. The paper also presents Starbucks organizational effectiveness. The analysis has revealed that culture is a main basis for the organization. The reason is that it is a service-grounded firm that makes its teams as its most significant facet, adding to the decentralization and stimulating the employee motivation. However, the analysis of the task portrays that online content and interactivity are its main drivers and of the firms development. This issue allows the corporation to differentiate itself from its competitors.
Keywords: Starbucks, organizational analysis, organizational chart, organizational effectiveness
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The Starbucks Corporation appears to be one of the top contenders in the coffee industry. It operates as the Starbucks Coffee. This American global coffee producing company is known as a household brand and coffeehouse chain, which has revolutionized the way Americans drink this beverage. The corporation is headquartered in Seattle, Washington. It is the biggest coffee producing company in the whole world with more than 21 thousand outlets in 64 nations (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016). The facts demonstrate that approximately 12 thousand stores are located in the US, almost 2 thousand are situated in China, less than 1.5 thousand appear in Canada, and approximately 800 stores are in the United Kingdom. (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016). The company markets such products as cold and hot drinks, snacks, and full-leaf teas (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016). Moreover, some of its stores and coffee shops market the pre-packaged food together with other items, including mugs and tumblers. Furthermore, the company also appears to be engaged into music, books, and movie marketing via its amusement divisions outlined as the well-known Hear Music (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016). The organization has been broadly acknowledged through its specific trademark green and white logo of a siren, portrayed on each product, coffee cups, and storefronts. The beverage retailer uses a specific Brick & Click marketing strategy to provide its merchandise to the broadest market possible. On contrary to all other major retailers, including Dunkin Donuts, McDonalds, and Wawa, Starbucks charges $1?$3 more per beverage but offers a much more extensive menu and inviting atmosphere than its competitors (Grant, 2016).
Domain and Task Design
The current task stands for the Starbucks Latte Love campaign, which has been specifically created for the promotion of one of its greatest sellers. It stands for the handcrafted latte. The campaign has to be advertised via TV commercials and social media, capitalizing the quality and uniqueness of the Starbucks products. It is as well facilitating both the most reputed goods, including pumpkin spice latte, and the less known ones, i.e. the VIA latte packets. It is necessary for implementing a peripheral route in order to persuade entice viewers to try their custom drinks.
The current Starbucks Latte Love campaign has been designed similarly to the one developed in 2014, specifically to construct and formulate the firms latte promotions during the winter season. Thus, when the customers obtain the organizations Vanilla Spice Latte, Cafe Mocha or Hot Chocolate before and during the Christmas day, they will get a possibility to share their love through the second one, which will be provided free. It is also important to promote the campaign in the advertisements and through social media, especially concerning its new VIA lattes. They provide the firms customers with a possibility to luxuriate the fresh taste of the Starbucks latte in the comfort of their own home. It is a task, which has required the company to concentrate on provisioning innovative latte flavors to the coffee drinking public (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016).
Starbucks utilizes an attribute control system, which stands for the evaluations grounded on the quality features on the separate scale measuring whether the task implementation is good or defective. The percentages have been utilized to demonstrate the general quantity of defects.
Starbucks depends solidly on the information technology systems across its operations and tasks implementations. The companys capability of effective management of its operations and coordination, distribution, and sales of products relies solidly on the dependability and capacity of these IT processes. There are approximately 650 professionals working at Starbucks equipping technology solutions. In regards with the social media, the corporation has remained as the most popular social media brand starting from 2010 (Starbucks, 2016). The organization has a nationwide mobile payment application, which is available for iPhone, Android, and Blackberry. They can be utilized in 9 thousand Starbucks locations through adding the Starbucks card number (Starbucks, 2016). The application allows making purchases, tracking the reward, and checking the balance. In addition, the company has a digital network, which makes it a makeshift office and a meeting place through the free unlimited Wi-Fi. The digital network is available in approximately 7 thousand locations, delivering the premium content including USA Today, Wall Street Journal, etc. (Starbucks, 2016). Information technology provides the company with solid benefits driving its customer loyalty. In regards with the firms logistics, the radio-frequency identification technology helps it to address the majority of problems, especially concerning deliveries.
The organizational goals and objectives are vivid in the companys mission statement: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time (Starbucks, 2016). The major organizational aim connected to the current task of the campaigns implementation and execution stands for the route to persuasion. The promotion project appears to be a peripheral way to persuade customers to be engaged. It has been objected to demonstrate discrepant flavors of lattes in artisan and handcrafted conditions, majorly via imagery and sound rather than by directly stating the facts. The advertisements, revealing the way all ingredients are prepared with specific care, vividly demonstrate the following fact. Starbucks aims at providing a superior quality of its products and services. It is necessary to utilize the superficial information in order to suggest not merely that the quality of the goods and services has been enhanced, but that the company has become better at catering for individual customer requirements and needs. Lastly, the choice of flavors, which should be revealed in advertisements and standing specifically for the chocolate and caramel, are associated with craving sweets. It allows the company to hold clients. It subtly suggests that when the next time the current or future customers crave for something sweet, they should go to Starbucks.
The campaign has been suggested to appeal to all US Starbucks clients. The major target group stands for the customers between 24 and 45 years old, both males and females. The facts reveal that the Starbucks client is not necessarily outlined by the age as the diapason is comparatively broad. The reason is that the main focus has been placed on the clients attitudes and interests. The ideal companys customer is a person that values social media and entertainment and ties with the organizations coffeehouse community. Within these conditions, the clients might connect and collaborate with like-minded people. Therefore, the size of the target market stands more for the state of being rather than a set of specific demographics. It is a main reason why it is more important to target a psychographics and not demographics.
Blueprint for Growth
Currently, the companys marketing channels are its blueprints for growth. In fact, mobile payments are a main constituent of a huge digital and social media strategy that is necessary for the corporations growth. In fact, it also incorporates brand crossing into the consumer-packaged goods through the social and digital properties. Currently, the company stands as the number one trademark in regards with Facebook (30 million fans). It is being one of the main brands in Instagram, Foursquare, and Twitter (Grant, 2016). The usage of the Starbucks stores to lead sales through the traditional grocery channels also appears to be its blueprint for profitable growth. In fact, four constituents are interconnected in this process, encompassing retail footprint, consumer products reach, values and principles, and emotional engagement. As a basis of the model, there are the organizations values and business principles. The company was created to stay true and faithful to the values and directing principles adhering to the solid sense of humanity. Therefore, the firm has an objective to move on to adhere to these concepts, balancing social conscience and profitability, and, at the same time, equipping the exceptional shareholder value. In addition, such organizational values appear to be a fundamental ground for its emotional engagement with its customers. Increasingly, the companys augmentable face-to-face clientele contact within its stores and its usage of social media helps it in deepening its relationships with buyers. The facts demonstrate that the firm has 30 different accounts on 12 various social platforms and connects with its clients through them (Newman & Ober, 2016). Such online engagement solidly facilitates the Starbucks expansion into new overseas markets and the general introduction of the company-branded products into the grocery trade.
The current Starbucks Latte Love campaign has been designed similarly to the one developed in 2014, specifically to construct and formulate its latte promotions during the winter season. Thus, when the customers obtain its Vanilla Spice Latte, Cafe Mocha or Hot Chocolate before and during the Christmas day, they are able to get a chance to share their love through the second one, which will be provided free. It is also important to promote the promotion in the advertisements and through social media, especially concerning the firms new VIA lattes. They provide the companys customers with a possibility to luxuriate the fresh taste of the Starbucks latte in the comfort of their own home. It is a task, which required the organization to concentrate on provisioning innovative latte flavors to the coffee drinking public (Starbucks: The Best Coffee Makers and Cold Brew Coffee, 2016).
The campaign incorporates the work of IT department, as advertisements should be placed on social media, while implementing Internet and mobile marketing. The social media implements successful Facebook, Twitter, and LinkedIn daily posts and blog posts leveraging. Internet marketing will incorporate Google AdWords and Facebook ad campaigns through keywords for the target market. They are targeting necessary audience. The mobile marketing will incorporate a new application development for smart phones and customer-wide text message programs. The last one is specifically required to target clientele that do not have smartphones. In addition, Starbucks managers and supervisors are supposed to co-operate with the personnel in the front line during the promotion project in order to secure a closer atmosphere.
The campaign requires the formal relationships implemented by formal teams being provided with organizational legitimacy. It requires a formal organizational structure, incorporating a flat matrix of personnel, managers, and a Board of Directors. The formal team accountable for the implementation of the task incorporates a manager and the subordinating employees, all of which share the common specialty. The companys framers have created the team for the campaign purpose deliberately and consciously in order to achieve a legitimate objective of promotion. The relationships between the team members are based on formal connections, in which the authority of derived via the formal source, standing for the process of reallocation and delegation. It is the case when the authority flows from the higher to lower levels. The relationships have been also directed towards efficiency and rationality.
The prior events, which are relative to the current situation, stand for the spice latte and pumpkin spice latte campaigns conducted in 2014 (Starbucks, 2016). They had been developed before the Valentines Day in order to broaden the knowledge about the new products and promote the purchases of VIA lattes. This promotion project has allowed purchasing a sample VIA latte packet for $1, coming with a coupon for $1 discount for their purchases of four items and more (Starbucks, 2016). It has incorporated a series of advertisements, focused on bringing innovative latte flavors to customers. The campaign was highly successful. It is a main reason why it had been created as a basis for the current one.
The organizational behavior in the company is molded by its community, which goes in line with its desire to create an enjoyable and relaxed atmosphere for any neighborhood accepting its presence. The corporation hires its employees of all backgrounds and cultures suiting the organizational culture and treating them properly. It allows to appealing to clients and retaining them. The company solidly finances employee training and provides a comprehensive study to all its personnel encompassing part-timers. In addition, the organization refuses to start franchises. It means that it possesses a major part of its locations that allows sustaining its culture. In regards with the organizational structure, the firm avoids hierarchy. It provides it with a possibility of obtaining input from each individual within the business (Schultz, 2011). Organizational behavior of the company is sex-fold, encompassing employee commitment, global orientation, reward systems, job satisfaction, diversity management, and the inner communication system. The organization incarnates and successfully utilizes three major organizational behavior concepts to elevate its strength, as well as encompass organizational structure, culture, and motivation.
Starbucks work and efficiency depends on the lean production, through maximizing customer value and, at the same time, liquidating waste. It stands for the elimination of processes that do not directly equip the value to its clients. As customer loyalty and satisfaction are crucial for the firms profitability, the companys approach to customer service is different in comparison with other businesses (Schultz, 2011).
Starbucks is a highly adaptable company. It is a global corporation, adapting itself to a wide variety of worldwide traditions and customers. The organization integrates into various societies simultaneously adhering to original fundamental organizational principles. Moreover, the fact that the organization is eager to adapt, contributes to its growing popularity. The company suits itself to the constantly altering ways of living. For instance, it has provided the Wi-Fi hotspots, enabling customers to utilize wireless mobile computer technology in stores. It has made the firm a leader in this sphere (Newman & Ober, 2016). In addition, the company is chief in adapting to the requirements of the majority of its customers, for instance, through adhering to the increasingly informal approach of conducting business. It has allowed the organization to build its trust and reputation.
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Starbucks has a unique organizational structure, which constantly develops and grows within the coffee business. It is providing the firm with a possibility to optimize all processes and products/services quality. The companys matrix of organizational structure appears to be a hybrid of discrepant features of the fundamental organizational structure types (Newman & Ober, 2016). The main characteristics of it incorporate functional structure, teams, product-grounded divisions, and geographic divisions. The organizational culture is highly important for the corporation. It occurs due to the fact that Starbucks is a service-grounded company (Newman & Ober, 2016). As it has been mentioned previously, teams stand among the most significant facet of the organization, performing practically each task within it and adding to its decentralization. The corporation stimulates its workers to consider themselves as owners. It is allowing them to suggest and equip enhancements in existent operations, practices, and new products creation. This process improves the employee motivation. Due to the fact that Starbucks workers are proud of their job and business culture, they are more willing to be motivated. In addition, the companys Human Resources Management has a solid capability of hiring like-minded people. It is allowing merely principal motivation agents to be implemented in the activities. It presupposes that the major part of employees are motivated at the same time eliminating the requirements to execute discrepant techniques for different types of workers.
The companys success is solidly connected with ten decisions of the operations management. They refer to discrepant spheres of activities, in which the companys managers are required to address the peculiar business aims and objectives. The first one stands for its products and services development. The organization has put a significant focus on premium design, which is connected to the companys wider premium pricing and differentiation generic strategies. The services and goods have to demonstrate the firms high-end brand image (Schultz, 2011). The second one stands for the quality management, as the company utilizes a premium character and standards in this manner as well. For example, the organization buys coffee from farmers that are certified under the CAF? (coffee and farmer equity) (Peng, 2011). The third one stands for the capacity and process design, particularly to meet demand fluctuations. The firm increases the effectiveness of processes and workflows in order to maximize its cost-effectiveness (Schultz, 2011). The fourth one stands for the location strategy, which is concentrated on urban centers characterized by huge upper and middle class individuals. In addition, strategic clustering provides the corporation with a possibility of gaining market share, while eliminating competitors (Grant, 2016). The fifth one concerns layout strategy and design, which increases workflow effectiveness, focuses, and its premium customer experience, neglecting the actual space utilization. The sixth one concerns human resources and job design, which are integrated in all business areas (Schultz, 2011). The seventh strategy goes for the supply chain management being global. In addition, it allows the company to integrate corporate societal accountability and ethical management, bearing in mind the focus on sustainability (Schultz, 2011). The eighth strategy regards inventory management. Such one reveals the business objective of minimizing the stock-out, which ensures incessant coffee beans supply (Schultz, 2011). It is addressed through the emphasis on supply automation and adequacy. The ninth strategy is the maintenance of physical assets through faithful workers being specifically educated to sustain equipment and facilities. The last one is related to scheduling. This one stands for the utilization of manual and automated scheduling approaches for a broad variety of business operations and activities (Schultz, 2011). In addition, the company is well-known for its usage of flexible scheduling for personnel management and organizational positions.
Proposed Organizational Chart
The current organizational chart demonstrates the downward communication, which stands for the flow of data and information from managers to employees supposed to report them. In case of Starbucks, it is possible to assume that Howard Schultz, as a CEO and a President, is the one who communicates downwards to his managers (Starbucks, 2016).
Such organizational chart allows dedicating an appropriate attention to all business departments, at the same time, ensuring sufficient and efficient division or all duties and accountabilities. It appears to be a functional structure, which incorporates all departments being necessary for the production of products and services (Grant, 2016). It allows adhering to the decentralized authority due to the utilization of the middle and lower management decision-making. The company has numerous stores around the globe. Each of them should be differentiated in regards to their management, managers, and customers. This chart lets the company conduct operations in a flexible manner even with the further development of this business. In addition, it allows managers to be interested in accrediting workers, as they are capable of obtaining better positions through their solid work. It is providing the basis for the establishment of cross-functional teams (Newman & Ober, 2016). In this manner, managers are those individuals who lead the communication among their employees being accountable for the functional skills and products/services. For instance, such cross-functional structure is represented by the department accountable for operating with the specific individual marketing the goods. It will facilitate each divisions knowledge of specific details of business activities in all other companys sections (Peng, 2011). It makes the firm organic, where each manager appears to have the specific autonomy for the personnel decision-making, including employee recruitment and appraisal. In addition, this process also facilitates and accelerates solution making, saving the time. Meanwhile it allows the resources to be utilized effectively and efficiently.
Conclusion and Recommendations
The Starbucks online content and interactivity are the main drivers of the tasks and the firms development that allows it to differentiate itself from its competitors. The proposed organizational chart allows the corporation to remain flat and organic, adhering to the highly important values and principles. Such concepts are essential for the organizations organizational culture and performance. In case of the current campaign, it is recommended to utilize social media more heavily in order to engage Starbucks clients into the promotion project. It requires a more solid load on the IT department. However, the usage of social media will generate a more profound engagement into the firms new flavors. In fact, it is also necessary to involve customers in the general popularization of the campaign. Therefore, it is recommended to capitalize on this promotion project by executing Facebook and other social media contests, in which the clients should be asked to participate. They might be posting their creative pictures of the companys products with the specifically developed hashtag in order to have a chance to win the defined sum of money or a mobile bonus coupon. It will lead to the development of a more cohesive campaign through marketing platforms, at the same time, sending a more precise message concerning this organizational task. This campaign will result in the engagement of higher customer base, making it even more efficient.