Systems theory applied to Starbucks organizational structure

Systems Theory

Many individuals all over the globe walk into Starbucks every day for their cup of coffee. However, it is more than the costly coffee that draws individuals in, day after day to the Starbucks shops across the globe. Starbucks offers a high-end atmosphere which is friendly and helpful to its employees who assisting customers having problems relating to their coffee or services. Individuals purchase Starbucks for what it symbolizes, and the status symbol associated with it. Although various business models are available, the concepts and framework of Starbucks is a good design to follow because of its nationwide and international success (Harrison, 2004). This paper offers a systems analysis of Starbucks. From this systems analysis, the study will highlight organizational problems and possible opportunities. The study also offers recommendations to the company.

The organization as a system

The Pairing Deal implemented by Starbucks is an example of the Systems Concept. The Systems theory sees the company and its atmosphere as interdependent parts. The company uses an open system within its public relations team in bringing information to the company, especially on whether the connection is meaningful. The Pairing Deal allows clients to buy the exact drink and food together for a decreased overall cost. Starbucks introduced this system as a reaction to the Global Financial Problems. The system reveals that when two items are combined, the overall cost is decreased. Such combinations that are provided are a tall brewed coffee with a sandwich or a tall latte with oatmeal. The Pairing Deals cost $4.0 all day long at Starbucks stores.

Starbucks is trying to make itself appear affordable by creating the pairing deal at a time when the economic system is poor (Harrison, 2004). The company is acknowledging the changes in their atmosphere and adjusting. The pairing deal is providing an option to reduce costs and get more. This deal by the Coffee house is public relations focused because it reveals the interdependence of Starbucks and the modifying economic system. The offer reveals Starbucks trying to improve their connection with their customer by adapting to the surroundings.

Organizational Challenges

Organizational difficulties will regularly occur in a worldwide business; therefore, Starbucks must learn to handle responsiveness, integration, and flexibility. Starbucks normally goes into a market through partnerships or acquisition of numerous nationwide organizations in order to obtain a hold on the cultural diversity within each new geographical area. The management culture that Starbucks holds also allows it to flourish in the many varying cultures and geographical areas. Starbucks aims to hold on to its top-quality products and customer service, which can surpass culture and language, but it understands that its success is not entitled to them. Entitlement is one of major things that many organizations that do not succeed have in common. Starbucks understands that it has to obtain its popularity in each new community and culture and knowledge fosters its s (Beer, 2014).

Another organizational problem that Starbucks encounters is trying to take part in cross-border cooperation. The company takes great care in identifying what organizations it will associate with when going into a new market. Through joint ventures, international alliances and certification Starbucks benefits access to emerging markets. Starbucks likes to leverage its powerful product through a wide range of alliances to offer Starbucks coffee and make new items with the Starbucks name. Starbucks' powerful name allows it to have the upper hand and power to make use of in its negotiations with other organizations. It uses these alliances to help make impressive new items that it might not have been able to complete or rationalize if it were to take them on alone (Smith-Acuna, 2010).

Starbucks knows what it is looking for in alliances. It looks for partners with shared corporate culture and values, adequate human and financial resources, property information and accessibility, powerful facilities and is a strategic fit. Its business alliances have succeeded because of the past encounter and uncompromising principles of Starbucks. When Starbucks created a licensing contract with Kraft Foods, Inc., it permitted Kraft Foods to begin to make Starbucks' items available in grocery markets, and now because of that attempt their items are available all over Northern U.S. And even the United Kingdom. If Starbucks did not have the primary features of what it is looking for in an alliance, it might not have been as effective in its collaboration with Kraft Foods or any other partner. Starbucks was willing to think about the good and bad in the possible collaboration and choose on whether or not the collaboration would benefit its organization (Davidson & Fielden, 2013). If Kraft Foods, Inc. did not have the same corporate perspective and objectives that Starbucks had, Starbucks would not have engaged in business with them. Starbucks has been effective in developing cross-border collaboration; therefore, it was able to grow and expand efficiently as an organization.

Recommendations

One way that Starbucks can be successful as an organization is by diversifying its product platform and providing prices that are more economical for clients. Starbucks is known for top quality teas, coffee and light snacks, but it does not offer anything of more substance. Trends are always changing just like fashion or hairstyles in Hollywood. Starbucks has made a lot of money as an organization, but that could also change if it is only a simple high-class trend. In the occasion of another economic downturn, Starbucks' top quality coffee is not something that most people will find as a need in comparison to house or car expenses.