Board Committee Organization Structure Of Starbucks Marketing Essay

mount commission Organization expression Of Starbucks Marketing EssayIn 1971, four throng fill with craze of deep brown bean bean open their rootage umber retail depot-Starbucks in Seattle, Washington. By 1981, the f treadrnity had 4 retail chisel ins, which were sale consentaneous bean coffee. Howard Schultz, who is the hot seat and CEO of Starbucks, was hired and join the merchandiseing team in 1982. At that time, Schultz wanted to gain an idea that Starbucks fetch Ameri flush toilets third prop to go, which is a place people can enjoy, relax themselves and non faraway absent from litigate or home. Hence, Schultz suggested club set up an espresso bar in the retail, hence, the idea was wholeow to shew in the sixth store in 1983. From then on, the development of guild increased significantly. Few years later, Schultz bought Starbuck. subsequently Schultz took over the high society, Starbucks turn into high-speed expansion stage. By 1992, Starbucks already had cxl stores, which serviced coffee, beverage, cake and round stores even sold jazz CDs (Tuck trouble school, 2002). Now, Starbucks is cosmopolitan company with 17,800 stores in 49 countries including more than cat valium0 stores in US, 1000 in Canada and 800 in UK (google map, 2010)MethodsData collection methodsMethodologyAs members of conference 8 (ASB 4431 Organisations People Assignment Groups 2010-11) perusing a Masters spot in Bangor University, operate forth d genius a report on Starbucks critic completelyy evaluating the government uses social social system, dodge, enculturation, and management/ lead style.Data collection methodThe research system that the study utilized is the explanatory or Analytical research approach. As this study is based on our depth psychology of Starbucks, grammatical construction, finish, leadership and some otherwise issues would be explored questions will aim answering thereby a need to understand the phenomena. The u se of a Qualitative data analysis will be employed since the data we use will all be non-numeric data. Saunders et al, (2009) ances emphasize of dataSecondary data was obtained from already existing data generally from Starbucks website, other profits sources, journals and textbooks.Issues and challenges in that location argon one-third issues considered in this report, first is the resource constrains, most of the articles we found ar all available online, so far non all of them are free to judge, oddly for those authoritative articles that everlastingly need to pay to assess, for example, the book named Pour Your Heart Into It How Starbucks Built a detainment company One Cup at a Time, which written by Starbucks CEO Howard Schultz is a redeeming(prenominal) reference for our report, however, we can not assess it without buying it. Second issues is the lack of critical come off for Starbucks, most wallpaper we found was regard Starbucks as the positive example in ex plaining brass sectional behaviour, there is no doubt that Starbucks doing a great(p) job in recognise their employees, however it brings challenges to be critical in our report. The final issues is the honorable and profound issues, as all the article we found can published publicly, and we all using enamour reference, as a result, there is no ethical and legal issues to consider for our report.AnalysisIn this study, qualitative data analysis has been conducted to evaluate the brassal feature of Starbucks sight quite an than using quantitative analysis such as statistical analysis. In order to gather the data, extraneous data collection, such as Internet search and literature suss out slightly has been mainly conducted. The purpose of this study is to critically evaluate the physical composition building, schema, culture and management or leadership applications of Starbucks Corporation, therefore all data are gathered by internet search and literature review. In orde r to analyse gathered data to evaluate feature of Starbucks Corporation, find data analysis method has been practiced. Comprehensive search for several facts link to structure, strategy, culture and management/leadership applications of Starbucks, has been executed by using Internet search and literature review. Afterwards, critical evaluation has been conducted to link all cultivation organically. Finally, all analysis results were integrated and final conclusion has been created.ResultsOverview of corporate strategy billet stopping pointsMission program lineA mission disceptation is a brief description of an organisations fundamental purpose, which is steered in outlining the existence of the organisation this is to modify members of the organisation to be aware of the companys purpose as well as the general public. (David, 2009)A mission statement should be a miserable and brief declaration of lasts and objectives. The primary goal of any business is to maximise stake holder worth, which includes shareholders of the business, business employees and clients or nodes who purchase business healthys and services. (David, 2009 Abell, 1980)Diverse give-up the ghosts engender outlined what should be covered in a mission statement (Abell, 1980 Pearce and David, 1987). It is not the content of the mission statement that really matters nevertheless rather the process apply to prepare the document and the principles employed to conform to the alert document (Mullane, 2002).In the mission statement of Starbucks which talks about inspire and nurturing the human spirit one person, one cup and one region with principles to live out all(prenominal) day as an organisation to commit their mission statement.The principles below are what Starbucks employ in achieving their mission statementOur Coffee It has always been, and will always be, about reference. Were lusty about ethically sourcing the finest coffee beans, roasting them with great administer , and improving the lives of people who evoke them. We care deeply about all of this our work is never done.Our Partners Were called plane sectionners, because its not just a job, its our passion. Together, we embrace diversity to create a place where for each one of us can be ourselves. We always cut through each other with respect and dignity. And we hold each other to that standard.Our Customers When we are in full engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a fewer moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. Its really about human connection.Our Stores When our customers smack this sense of be hankering, our stores become a move overn, a break from the worries outside, a place where you can fill with friends. Its about enjoyment at the speed of life sometimes abate and savored, sometimes faster. Always full of humanity.Our Neighbourhood E precise(prenomina l) store is part of a community, and we take our function to be good neighbours seriously. We want to be invited in wherever we do business. We can be a labor for positive action bringing together our partners, customers, and the community to contribute every(prenominal) day. Now we see that our responsibility and our potential for good is even larger. The humans is looking to Starbucks to set the impertinent standard, yet again. We will lead.Our Shareholders We k instanter that as we deliver in each of these areas, we enjoy the kind of advantage that rewards our shareholders. We are fully accountable to get each of these elements right so that Starbucks and everyone it touches can endure and thrive.Environmental Mission pedagogy Starbucks is committed to a voice of environmental leadership in all facets of our businessOur Starbucks Mission Statement Our mission to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time.(Starbucks Our Mission Statements) business strategyTo understand and analyse corporate strategy and business goal of Starbucks, we firstly need to subscribe to a clue of what corporate strategy is. By Johnson and Scholes, corporate strategy is defined asStrategy is the prudence and scope of an make-up over the long-term which achieves advantage for the organization through with(predicate) its configuration of resources within a challenging environment, to equalise the ask of markets and to fulfil stakeholder expectations.In the case of Starbucks, the organization is employing Porters Differentiation Focus Strategy. This strategy provides a product or service to a specific market corner and distinguishableiates from competition in specific areas. (Rebecca Larson, 2009) Starbucks does not exist as a low-cost company to the competitors. It focuses on the supererogatoryized selections, provides sparely tailored lines of coffee and tea related products for a premium price.Starbucks does not promote itself by using traditional means they generally concentrate on high-level marketing and faulting by word-of-mouth, as well as alliances and partnerships. They try not to promote the company, however automatically they are promoted by providing customer support and withal their excellent works in which up to now has suitable a successful strategy.By the companys unstated work, focusing on details and ethical decision-making, customers feature experienced a wonderful service, as a result, the company gradually built up its reputation and becoming one of the most valuable global brands.(Theodore,2002,p.62) It is incredible that Starbuckss achievement with very few commercials, ads or any other kind of marketing means.Starbucks could not become a coffee-related products giant retailer and remain long-term success only by selling coffee on its own. One outstanding part of the companys strategy is strategic alliances, which could overly be called joint tally approach. T his strategy leads the globalization of the company with higher recognition and reputation of the brand as well as exposing the brand to other potential customers. The variety of companys products is relatively cosmos expanded demographically and geographically.For example, in order to advance social and economic equality, the company allied with NAACP, the company donated and together with NAACP organized events for social equality has becoming a great success. It showed that Starbucks is no longer a simple business organization, it also exists as a charity and that brings the company higher reputation. They also partnered with Barnes and Noble bookstores to be the in-house coffee shop in 1993, (Isidro, 2004) co-produce coffee-related drinks such as Starbucks Frappuccino with PepsiCo from 1996, formed alliances with ice-cream manufactures and hotel chains to supply Starbucks brand and flavored ice-creams and Starbucks coffees within the hotels (Rebecca Larson, 2009).Explanation of organisational structure dialog box committee organization structure of StarbucksThe structure of Starbucks Company is shown in Figure 1. As mentioned by Starbucks Corporation Fiscal Annual floor (2009), as group member of the be on of film directors, Howard Schultz was founded to Companys chairman and pass executive. Barbara Bass, William W. Bradley, Mellody Hobson, Olden Lee, James G. Shennan, Javier G. Teruel, Myron E. Ullman and Graig E. Weatherup were appointed to director individually. Kevin R. Johnson and Sheryl Sandberg were appointed to Chief operate military officer individually. Additional, Starbuck Corporation consisted of 38 members of Senior Officers. plug-in perpetrations are placid of Audit and conformance deputation, Corporation Compensation and prudence learning Committee, Nominating and somatic Governance Committee.Composition Job Design climb on of DirectorThe bill of Director inclusive twelve members, independence of each member are bespe ak to meet of the NASDAQ Stock Market efficiently. When Board getting perplexity about recommendation of the Nominating and Corporate Governance Committee, the Board of Directors will appoint a new member in case of there is a void occupation occur on the Board. The Board of Directors of Starbucks Company are responsible for(p) for monitoring company powers and ensuring that the company business meet goals which is requested by shareholders. The Board pass on responsibility to select nominees for the Board of Directors who go appropriate qualifications and diversity of backgrounds experiences. And also, it is in channelize of appointing chief operate officer. (Starbucks Corporation Fiscal Annual Report, 2009)Composition Job Design Audit and Compliance CommitteeThe Audit and Compliance Committee are in charge of financial reporting and intrinsic, immaterial audit processes. The Committee assists the Board of Director reviewing financial issue.The Committee was appointed fro m the Board of Directors. The Committee bring in three members at least and all of them shall match The NASDAQ Stock Market requirements independence. The Committee be recommended by the Corporate Governance Committee, and finally appointed by the Board of Director. The Committee has authority to investigate any financial activity and free access to members of management. It is retain independent legal counsel. All employees have responsibility to assisting members of the Committee investigation (Starbucks Corporation Audit And Compliance Committee Charter, 2010)Composition Job Design Corporation Compensation and Management Development CommitteeThe Compensation and Management Development Committee has responsible for working(a) with management to establish appropriate compensation practices for the Company. There are deciding the benefits and compensations for senior officers of the Company. The Committee consists of three members at lease, which one member be needful come from Board of Director. The members of Committee will be pointed from Board as well. The Committee conducts an annual review of companys compensation for Senior Officer instead of president and chairman. Together with the chastenman of the Corporate Governance Committee, the Chair of the Committee shall annually review the performance of the president and chief operating officer and meet with them to share the findings of such review when after dissertateing with the member of independent directors of the Board (Starbucks Corporation Compensation and Management Development Committee Charter, 2010).Composition Job Design Corporation Nominating and Corporate Governance CommitteeThe Corporate Nominating and Corporate Governance Committee is responsible for developing and implementing policies and procedures of the Board of Directors. They are intended to constitute and organize appropriately to meet its obligations to Starbucks Company and its shareholders. The Committee will be compri sed of at least three members, all of whom have to meet the independence requirements of the NASDAQ Stock Market, LLC as well as. down the stairs Board of Directors direction, members of the Committee and a Chair of the Committee shall be appointed. The Board of Directors shall appoint a new member or members, which is a vacancy on the Committee. The Committee have professional capability to assist Board identifying candidates personality. Reviewing the Companys Corporate Governance Principles and Practices annually according to changing shareholders interests and suggesting appropriate modifications to the Board of Directors. And evaluate the overall effectiveness of the organization of the Board Committees performance.Evaluation of the organisation structure of StarbucksAccording to SeaZone (2009), organisation structure of Starbucks Company is hyaloplasm structure.This is one type of organisation structures that is presented by Gareth Morgan. The organisation structure is quite classical to manage organisation, it plays definitive role for organisations activities.Moreover, the organisation structure is related to its business purpose and presences. (Mullins, 2005) Matrix structure is the organisation structure that has both of steep structure and infrangible horizontal structure. It requires employees to have two reporting relationships concurrently.In this structure, employees work in provisional group constituted by employees from variant function.There are two lines of authority in this structure and employees have two imprintes in their team namely boss for their image and boss for their function. (Mullins, 2005)Specific future of hyaloplasm structureMatrix structure provides organisation flexibility, and contributes to keep security and control of project information.Moreover, organisation can have a possibility to develop stuff well.(Mullins, 2005)However, there are some disadvantages of ground substance structure.At first, there is limi tation of number of employees who report to the project manager directly, because most of all stuffs are assigned from department managers.This accompaniment may lead uncertainty in organisation and employees may be unwilling to accept that their situation is changed constantly and willing that they establish in their functional group.Next, matrix structure has a possibility that organisation make more complex.Thirdly, extension of the authority of manager to the stuff coming from other sections can be a course of problem in organisation.Finally, it is evaluate that functional group may not attention to their normal tasks and role.(Mullins, 2005)What is call for in matrix structure?Matrix structure strongly deeply rely on teamwork spirits, it demand culture of co-operation.In this structure, managers are compulsory high level of behavioural and management ability and organisation needs culture of collaboration.It is requisite to educate employees to support other stuffs and to create the teamwork spirits.Moreover, stuffs mustiness have a special competence to solve the conflict in their team in the matrix-structured organisation.How organisation structure works in StarbucksThere are some disadvantages in matrix structure as mentioned before, however, Starbucks, especially Howard Schultz, CEO of Starbucks Company, may have understood these problems. Therefore he gave special statement to employees when he expanded Starbucks structure to reinforce their knowledgeable and external communication in 2008.He has explained the difficulties of doing business in situation in those days and strongly suggested change of not only structure but also employees in order to enhancing the customer experience.In that message, he also stated that structure of Starbucks Company faced the revolutionarychange, however it was necessary to improve customers and stuffs experiences and recapture the vigour and benefits in the company.As he explained in that message, he recognise d or realised that this structural modification was hard for some stuffs owing to increase and complex of their tasks, however he also described that he made this decision understanding these kinds of issues.He explained that he had decided this numerous change of structure with speculation and he regard for stuffs headacheed. (Starbucks, 2008)Analysis of organisational cultureWith the development of economy, the competitions between companies not only aim at the product they offered but also their intrinsic organisation culture. apportion and Kennedy researched organization culture for 15 years and they found that organisation with fatigued culture always beaten by organisation with strong culture (1999). Edgar Schein who is generally consider the father of organization culture defined that organization is a pattern of grassroots assumptions invented, discovered, or developed by a devoted group as it learns to cope with its problems of external adaptation and internal integ ration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problem (1985). Organization cultures pay attentions to individuals in a organization that it establish an appropriate platform make individual join in the organization promptly and help people work together toward the same organization goals. In addition, organization culture help employee improve their personal ability and companionship to maximum. In the meantime, organisation culture forms the external performance and reputation, which are fundamental to decision making during purchasingStarbucks is one of the successful chain coffee stores. It is because it has a unique organisation culture. In order to understand internal culture in Starbucks, we will use the Great Holsfedes cultural framework. Holsfedes used different five aspects to evaluate culture, which are power distance, individualism, masculinity, uncertainty avoidance, long term orientation (Holsfedes, 1991). . Base on this model, it can reveal that Starbucks have long power distance, because every employee in Starbucks have the same basic rights no special treatment. In addition, for the gander issue, Starbucks view all the employees the same heedless of their gender, thus, Starbucks has high masculinity and femininity. And it also has low uncertainty avoidance collect to it have a vast number of brunch stores abroad, Starbucks has to take massive risk for that. In terms of collectivistic, Starbucks belongs to high collectivistic, although it have branch store everywhere, but there is a vegetable marrow team to conduct the whole company. Starbuck fluent pay attention to environment and other charity event, so Starbucks is long term oriented.The strong power of Starbucks organisation culture appeals a great number of people, including both consumer and potential employee. Great quality of coffee and well service make S tarbucks become a global company with hundreds of chain stores. Its organisation present a great service, consumer always be expected to be confronted with enthusiastic well trained employees with a great number of coffee knowledge and their service always base on consumers need.Starbuck also appeal people because of its values. As we talked above, Starbucks support many organisations in a long term, such as Conservation International, The Earthwatch Institute, Save the Children, mildness Corps, the African Wildlife Foundation, and Planet Green. Starbucks convey a message that corporations need to concern about the society and environment around them. And then, Starbucks establish diversity internal working environment in order to satisfy the entire consumer.The strong organisational culture in Starbucks also embodied in the way they treat their employees. Starbucks hold a job fairs every year in different places, and there are also some guidelines for manager to interview the cand idates and test whether they have full knowledge about the companys product, and who are adaptable, dependable and passionate in interacting with customers. Starbucks also need to deal with hundred of thousands of online applications using packet developed by Taleo, this software help to screen out the candidates by answer the basic information and skills-based questions (weber G. 2005). After recruiting people, Starbucks will also offer 24 hours of trainings to their employees, and learn how to use espresso machines, how to interact with the customers, the process and production of coffee beans. During the training, employees also need to understand the companys mission statement, and bring company culture to their customers (Cesario Minor, Jr. 2009), Starbucks drop downs more on recruitment and development than on publicize which in 2004 is $68.3 million (Weber. G.2005), the mangers and assistance mangers also have trainings in computer, leadership and coffee knowledge. As Star bucks offers both product and services, people become an important factor in maintaining the quality, Starbucks treat their employees as partners by connecting their contribution to companys market value, and give the opportunity to share the success in the company, their employees are super involved in companys activity by reporting their concerns to companys Mission review team, each employee will receive a comment card when they impertinently hired, and they can write down some ghost, advice or disagreement in management decisions, the managers will response and sign for all the comment card within two weeks, and their CEO Howard Schultz also review all the comments every month(Cesario Minor, Jr. 2009), the high involvement also increase the level of responsibility to the company.Starbucks also well known in retaining and recognise their employees by good salary, stock options and wellness cares, according to Thompson Strickland (1999), the store employees were paid $6 to $ 8 per hour that is above the average minimum net profits, their employees can also pay the initial years price and receiving the current years price by cashing in one-fifth of the shares granted each succeeding year. Part-time staffs is the major workforce in Starbucks, and they receive the same health insurance as full-time employees, the insurance including preventive care, crisis counselling, dental care, eye care, mental health care and treatment for chemical dependency. Howard Schultz also been invited to white house and meet with president Clinton to brief the Starbucks health care programme in 1994. Starbucks have a relative low turnover rage compare with the other companies, the turnover rage for Starbucks was about 65% compare with 150% to four hundred% for other retailers and fast-food chains, and the turnover rate for store manager was much lower, which is 25% compared with 50% in other retailers.Starbuckss organisation culture, especially the strong religious culture appealing lots potential employees, employees not only attracted by the salary, stock plans and health care, they would like to work for Starbucks because the trust, power and autonomy given by the organisation, Starbucks promotion for fair trade and environmental contributions also bring positive image and reputations.Critical evaluation of Management Leadership practicesCE for business goalCE for organisational structureCritical evaluation of Management and Leadership practicesAs we have described previously, the organisation structure of Starbucks is the matrix structure. This structure influence management style and leadership style, too. The matrix structure strongly relies on the teamwork and relationship between employees and managerial stuffs. In the matrix structure, a line of command and report is complicating and the line is changed frequently. Therefore, employees are required more complex work rather than in other organisation structures. Moreover, organisation must p rovide employees good education system to create teamwork spirits in organisation. Additionally, in order to lead employees in the matrix structure, strong leadership and well-organised management style is necessary. (Mullins, 2005) It would appear that Starbucks Company energy be able to overcome with these problems coming from disadvantage of the matrix structure and achieve to create good working relationship atmosphere. Therefore, they have been awarded a prize of 100 Best Companies to Work For by case during 1998 to 2009, shut out 2001. (Starbucks 2010)CE for organisational cultureThere are two critical issues to discuss in Starbucks culture, firstly, David A. Pace, who has been an Executive Vice President of Partner Resources of Starbucks Corporation since 2002 verbalise that, even company were to hit hard times, the strategy of above-average investment in training and rewarding employees isnt going to change (Weber G. 2005). Starbucks now is an successful company, and Pac es resolve really help to build a good reputation on taking social responsibilities, however, once the company suffer from the crisis, can they still keep the promise, if they can, it helps to gain more support from their employee, but if they cant, the employees will feel disappoint and may break down the reputation.Secondly according to Weber G. (2005), Howard Schultz, the CEO of Starbucks on October told Business week Online that, for the following two years, Starbucks would spend more on employee health care costs than it does on coffee. What Schulze say may have both impacts on their employees and customers. For their employees, they will feel lever and proud to work for Starbucks, and it may also attract more people desired to work for Starbucks. For Starbucks customers, some may feel Starbucks is a responsible and ethical company and feel comfortable to buy coffee from Starbucks. However, expense less on coffee may misleading other customers that the company will pay more attention on employee health care rather than coffee, customers may feels they are not regarded.Conclusions recommendationsConclusionBusiness goalOrganisational structureAs previously mentioned, Starbucks adopts matrix structure for their organisation structure. (SeaZone, 2009) Matrix structure has a complex aspect owning to the characteristics of that structure, namely it has both of just structure and strong horizontal structure. Matrix structure provides organisation flexibility, and contributes to keep security and control of project information. Moreover, organisation can have a possibility to develop stuff well. (Mullins, 2005) On the other hand, matrix structure has disadvantages, for example, it has limitation of number of employee who report to the project manager directly, moreover, matrix structure has a possibility that organisation make more complex. (Mullins, 2005) However, Starbucks seems to have good relationship and well-organised education system for managerial stuffs to overcome with these disadvantage and they seems to change over these disadvantages to advantages of matrix structure. Moreover, Howard Schultz, CEO of Starbucks, has strong leadership and he is trying to back up stuffs in order to achieve their business well. (Starbucks, 2008) In reality, the fact that Starbucks have been awarded a prize of 100 Best Companies to Work For by Fortune during 1998 to 2009, except 2001 gives evidence that many stuffs who are working for Starbucks satisfy to work in this circumstances. (Starbucks 2010)Organisational cultureTo conclusion, the Comprehensive and thoughtful organisation culture is Starbucks core competitive strategy, which is not only appeal potential employees but also the customers. Almost all the customers satisfied Starbucks services because they are treated very well. At the same time, they are faced with passionate employees and high quality coffee. For employees, they have well trained before they participate in the work fo rmally, which allow them to introduce customer professionally. In addition, employees are satisfied with the wage and even part-time employees have the insurance as well. Feedback makes Starbucks culture special then their company. Their employees have the rights to write down their disagreement or suggestion to company.RecommendationsBusiness goalOrganisational structure(included in conclusion)Organisational cultureAs we know, Starbucks turnover rate is low, because their rewarding system attracts a great number of employees. We recommend company could change its rewarding system to performance base system, which means employees rewarding base on their personal working performance (e.g. set up best employee of the month/year). In terms of health care of employees in Starbucks, it is excellent to treat their employees in such a good way. However, consumers need an image that Starbucks devote itself to improve the quality of coffee and develop the environment in stores. Hence, we rec ommend Starbucks could increase spending on retail store decoration and offering more kinds of food.