Organizational Environment Starbucks In-Depth Analysis of Organizational

Organizational Environment Starbucks

In-depth Analysis of Organizational Environment - Starbucks

Starbucks Organizational Culture and Environment

Global Perspectives of Starbucks

Social Responsibility embraced by Starbucks

Starbucks Planning Process

Decision Making Process of Starbucks

Starbucks Corporate Strategy

Organizational Structure of Starbucks

Starbucks uses a mechanistic structure as a contemporary design

Starbucks Organizational Culture and Environment

Starbucks Corporation is considered as one of the leading coffee house chains that offer best quality coffee to its customers. This retail corporation is based in the United States, initiated in the early years of the decade of 1970. Due to its popularity, the company rapidly expanded to various locations around the globe. The vision, goals and strategies designed clearly indicated the fact that the owners did not believe in having growth that can abate the corporate culture, therefore, the corporate culture was considered to be one of the integral aspects for the company. The mission statement of the company in this regard also express that they seek to "inspire and nurture the human spirit -- one person, one cup, and one neighborhood at a time." (Starbucks, 2013)

When talking about corporate culture, employees are considered a significant asset by the corporation; hence, open employee communication is promoted. Indeed, Starbucks employees are valued as their partners. Moreover, respect and dignity are also considered as the guiding principles of the corporate culture of Starbucks, where all employees are valued and treated with admiration. Since employees are a valuable asset for the company, thus, they provide harassment and abuse free workplace to its workforce. Furthermore, the corporation also provides the culture that is free from discrimination and biasness. Indeed, human trafficking is highly discouraged by the management; hence, people under age of 14 years are not employed at Starbucks (Starbucks, 2013).

Like employees, customers for Starbucks are one of its most important stakeholders, and they have believed customer ownership as well as loyalty as the foundation stone to success. Due to this reason, they have emphasized on implementation of strategies that can augment the benefits for their customers. Moreover, the company also encourages and keeps a track record of regular feedback from the customers. Starbucks declare that they not only provide its customers with rich tradition of coffee, but this is one of its strategies to build a feeling of connection and engagement with them, which has made them different and unique from others (Starbucks, 2013). .

Global Perspectives of Starbucks

Starbucks is a coffee house that initiated nearly forty years ago as a corner coffee shop, and today is located is more than sixty countries. This remarkable expansion is only due to the farsightedness and their broad vision, which made the company a leading coffee house over the globe. The story of global expansion elucidates the fact that the evolution of national and international trends is the key to their global business (BCG, 2012).

This indicates that explicit needs of the local market has carefully been modified and customized by the brand. However, it is also prudent to note that the brand has also maintained its own traditions, habits and customs while personalizing the needs of the local people. This balancing of local market trends with its own culture is a complicated process; yet, Starbucks has achieved it while focusing purely on the product with the collaboration of its employees and customers (BCG, 2012).

The outstanding vision of the company (to which they have strictly followed) has played a vital role in sustaining their global brand image to a great deal. Besides, their commitment towards providing the finest quality and friendly service has also played a crucial role in building a string brand image on a global perspective. Atmosphere, culture and overall experience are another contributing factor to the success of Starbucks, as it induces eventfulness to the members of the coffee community. Therefore, ambiance and service quality are the prevalent aspects of Starbucks that provides its customers with an experience when renting a space at the coffee house (BCG, 2012).

With respect to the global perspective, it is also imperative to bring into notice that Starbucks has developed a stronger alliance with the technology (which has become a prime need of the today's generation) and technological companies (BCG, 2012).

Social Responsibility embraced by Starbucks

Corporate Social Responsibility has always been an essential component of the Starbucks mission and vision statement. This is predominantly due to the reason that Starbucks intended to fabricate dignified and enduring corporation on two pillars: profitability and social conscience. In this regard, records exhibit the fact that soon after the company was booming its business (in the early decade of 1990), they imitated drafting policies, procedures, strategies and tactics for corporate social responsibility (Starbucks, 2013).

Starbucks has embraced various ways that demonstrate that they are concerned towards keeping the planet (Mother Earth) safe, green and healthy, and indeed, extensively promotes masses to act in the same manner. 'Grounds for your Garden' was one of the initials social responsibility plans of Starbucks in order to make ecological friendly business. However, after this, the corporate continuously made and implemented plans of social responsibility (Starbucks, 2013).

Various strategies pertaining to the subject matter includes diminution of paper napkin size, cut down of store garbage bags, alleviation of solid waste production and so on. Starbucks was highly appreciated and was ranked in the top list of the Green Power Partners due to their plans of social responsibility (Starbucks, 2013).

Even though Starbucks implemented various plans for making the business more environmental friendly, yet, they were surrounded by few controversies. According to these controversies, the company did not properly utilize the water resource, as their stores had excessively continuous running waters for cleaning the dishes. However, in respond to these issues, Starbucks not only re-examined its well system, but also implemented a new solution to overcome the issue of excessive consumption of water for washing of their utensils (Starbucks, 2013).

This is not just the end towards their social responsibility, as they built and implemented the policy to use the recycled (paper) material (to a certain percentage) in their coffee cups. Due to this utilization of recycled material, they were also awarded (Starbucks, 2013).

Starbucks Planning Process

Planning process is the primary need for any organization, and is performed at all levels of management. Starbucks is one of the leading and dynamic brands that intend to become the global leader within the industry by reformulating the coffee experience. Planning process is the ultimate option that can lead to the accomplishment of the goals.

Considering Starbucks, the planning process of the brand is profoundly focused on employee satisfaction. Starbucks employee and management are totally determined towards continuing and preserving the ethics and values that are uncompromising. This signifies the fact that the corporation had the ability to attract and retain the highest-quality employees by applying various strategies related to their benefits and equal rights. Therefore, the overall planning process of Starbucks enabled them to remain at the forefront and competitive within the coffee industry.

Another factor that was immensely focused during the planning process was the customers. Starbucks had the ability to amend and adapt to the shifting dynamics of their widespread consumer demographics.

Since Starbucks is a global brand, thus, the planning process is performed by the board of directors. These directors are primarily responsible for developing the overall strategies and principles of the organization. However, to have a planning process at the local ends, these directors have defined area managers for the locations on regional basis, thus these managers are usually responsible for managing the international standards of the organization, at the same time fulfilling the needs of the local market.

Decision Making Process of Starbucks

Decision making process cover a great deal of aspects for an organization. Starbucks has realized the significance of decision making process at a very early stage; hence, they have successfully designed the modeling guidelines that facilitate the employee as well as shape the corporate perception that can lead to its success (SeaZone, 2012).

At Starbucks, they has developed an extensive decision making process in order to make sure that the ethical practices as well as organizational goals are accomplished. This is specifically due to the reason that ethics are considerably the most important factor in the decision making process. Therefore, ethics are comprehensively reflected in the decisions made by the management (SeaZone, 2012).

Centralized decision making system is the core method implemented by Starbucks. However, this decision making process is typically based on a six step model that is essential for ethical decision making (SeaZone, 2012). The framework includes:

Identification of the ethical problem

List down of all possible solutions to solve the issue

Seek input from key stakeholders

Finding out the best possible approach

Solicit guidance for unclear path

Follow the decisions made

The guiding principle on which the decision making is based is the ethical framework (discussed above), which is purely designed keeping in mind the mission statement of the organization (SeaZone, 2012).

Starbucks Corporate Strategy

Starbucks crafted its corporate strategy and business policies keeping in view the ethical principles and values, as they strongly believed that success of the company is vital to these business ethics and compliance. In this regard, Starbucks comprehensively follow the ethical values when decision making is involved. The corporate strategy of Starbucks also emphasize on maintaining the corporate cultural values. The values embedded in the culture is not only reached to every corner of the company, but is also followed outside the companies to the communities (Behar, 2007).

The corporate strategy of Starbucks is based on a matrix structure applied to both internal and external environment of the company. Open communication between employees, higher management, and executives is the internal corporate strategy that is highly encouraged. Open communication typically leads to innovative ideas and solutions to various problems that eventually benefits the brand. Moreover, open communication also promotes problems to be heard by the management in a timely and effective manner (Behar, 2007).

The guidelines of the corporate strategy have also explicated the employees that they are empowered to take decision with respect to the delivery of great customer experience for which the corporate would completely support their decisions without any issue. Moreover, the corporate strategy also indicated that the employees have a responsibility which they must consider with gravity. This means that their role is critical in creating a great work environment and protecting the corporate culture and brand reputation (SeaZone, 2012).

However, the external strategy of communication contributes to customer loyalty and ownership. This is because communication leads to customer feedback on regular intervals. Considering the growing demand of technology and its applications in terms of customer engagement with the brand, Starbucks, has incorporated a social networking site that enables the company to be connected to their customers. As a consequence, it would build a network of loyal and dedicated clientele.