...determines an organizations success in any industry. If and how these concepts are uniquely applied, organizations can define many different areas of their organizational structure. The Starbucks Corporation has become a well-known globally successful company. In analyzing the application of the organizational behaviors of communication, culture, and decision making, we can determine how these concepts have made this corporation successful. Organizational Communication Communication in the Starbucks organization is exceptionally successful. In order to appear transparent as an organization, provide sound direction of communication, maintain solid channels of communication, and still the rumor-mill; Starbucks has taken immense strides in concentrating on this aspect of its organizational behavior. Although Starbucks goes to no great lengths to define or list their organizational structure (Hawks, Kembell, Kembell, Olsen, & Perry, 2002), Recent changes in the organization define the organization as a matrix structure (Shultz, 2008). These changes in the organization, done to improve the customer experience, helped define the communication directions used by the organization. George and Jones (2005), state that the matrix organizational structure is a very effective way to take full advantage of all communication channels. Whether the organization wishes to label the organizational structure or not, the structure is the pivotal point of success in its organizational communication...
Words: 2006 - Pages: 9
...STARBUCKS CASE ANALYSIS QUESTIONS Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then. 1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective and its success? 2. By 1987, Schultz bought Starbucks from its original founders. It has grown from six stores to over 3300 locations. What were the critical drivers of Starbucks success? 3. Why did Schultz think he successfully import the Italian coffee bar concept to the U.S.? 4. Why do YOU think Starbucks grew so quickly? Did they have to control so many aspects of the value chain in order to lead the market? 5. How do Starbucks stores function as brand creators and validators? 6. It is 2013 and you are on a panel regarding the past troubles of Starbucks. Please state some of the problems they have had over the last couple of years and how they are trying to recover from these setbacks to their business and their brand. Do you believe they are now on the right track to get solid traction in the worldwide marketplace? Do research and show me how they have changed their business model and what are there major areas of growth in the future? What are their roadblocks to success...
Words: 794 - Pages: 4
...Starbucks’ Strategy Assignment 1 By: Allen Jones Luna 28 October 2013 MGT 500: Modern Management Professor: Dr. Tony Muscia Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy, assess the effectiveness of its management decisions in providing innovative offerings for its customers, determine one key management competency, and speculate on whether the company would achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Shultz. In the case of the success of Starbucks, its organizational culture has been driven and empowered by the founder and CEO, Howard Schultz. Howard wanted to expand the company and when he visited Italy prior to the overhaul of the original Starbucks he wanted to mirror the concepts of the coffeehouses in Italy. The key aspect to realize here is that organizational...
Words: 1516 - Pages: 7
...Starbucks’ Strategy 1. Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’ organizational culture that contributed to its success in a global economy, assess the effectiveness of its management decisions in providing innovative offerings for its customers, determine one key management competency, and speculate on whether the company would achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Shultz. In the case of the success of Starbucks, its organizational culture has been driven and empowered by the founder and CEO, Howard Schultz. Howard wanted to expand the company and when he visited Italy prior to the overhaul of the original Starbucks he wanted to mirror the concepts of the coffeehouses in Italy. The key aspect to realize here is that organizational culture affects performance. Howard Schultz became the CEO of Starbucks in 1987. As an entrepreneur, he was influential in convincing investors to believe in his vision...
Words: 1503 - Pages: 7
...Was the research well designed? Was it a good research? This case study detailed stages of research conducted by Starbucks, Bank One and Visa on the Duetto Card and overall the researches in all stages are well designed and are good examples of research. Firstly, the purposes of research, from understanding the perception of dual-function card concept, understanding user preference and finally to satisfactory level examination, are clearly defined. Secondly, the researches processes are detailed such as the steps to acquire participants, sampling method and the representativeness. Other researchers for card loyalty program can repeat similar research accordingly. Research design is thoroughly planned. For example, at the concept testing period, the feedbacks gathered from focus groups of existing customers is more relevant than asking the general public. Another good example is Bank One directly use observable business metrics to provide the return on marketing investment. Moreover, ethical standard is addressed during the research period. The intercept study outside the Starbucks store is discarded since they think they don’t own that space. Knowing the limitations of feedbacks, in the product optimization study, Bank One has compared the research results to norms that have resulted from more than 200 similar concept studies. On the other hand, for the quantitative online survey, the sample size should have been larger in order to give more reliable results. All three parties...
Words: 1198 - Pages: 5
...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and chief...
Words: 4166 - Pages: 17
...Abstract Starbucks is one of the world’s most powerful and recognizable brands. Since its creation in 1987, Starbucks has managed to revolutionize the coffeehouse industry by marketing expensive, high quality coffee. However, while the company faced significant growth in the early 2000s, Starbucks has recently started experiencing difficulties, as some of its stores face saturation both in the domestic and in the international market. The purpose of this paper is to analyze the reasons that have led to these problems; to identify the key factors that distinguish the company as an international giant, as well as to explore different options that could be undertaken in order for the company to further establish its position as a leader in the coffee industry. Introduction Starbucks is a Seattle based company that has grown to an international leader, operating in over 50 countries with 17,651 stores worldwide (Starbucks, 2012). Starbucks has been able to gain such a large share of the market by catering specifically to a well-defined target audience and by offering unique experience. The history of Starbucks and its expansion is a model for other businesses to look up to. From only one store more than 30 years ago in Seattle to its still growing empire today with thousands of outlets in the United States and in foreign countries, the Starbucks Coffee Company is without a doubt a well-known success story all over the...
Words: 1477 - Pages: 6
...China and Starbucks Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1). Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate...
Words: 1241 - Pages: 5
...Kostelijk Student: Parisa Taghipoor Class: ICV4C Date: 19 November, 2010 ------------------------------------------------- 1.0 Introduction & Background ------------------------------------------------- 1.1 Background Established in 1985, Starbucks Corporation is today’s premier roaster and retailer of specialty coffee in the world. Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment. The international coffeehouse has built one of the most powerful and recognizable brands in the world upon high-quality coffee and the unique "Starbucks Experience." Starbucks has sought to capitalize on its growing popularity through expansion; the addition of over 1500 stores in just over a year brought its total store count to over 16,600 in 2008. In fiscal 2008, the company's stores (retailer and licensed) generated US$ 10.4 billion in revenue. Starbucks first revolutionized the coffeehouse industry by marketing expensive, high-quality coffee as well as a "third place" between work and home - a warm, clean, and inviting environment where customers go to escape the chaos of daily life. Coffee throughout Europe In Europe the demand for coffee is...
Words: 8688 - Pages: 35
...com Abstract Case Analysis and Three year Plan for Starbucks Abstract Case Analysis and Three year Plan for Starbucks Module 7 Final project Case Analysis - Starbucks Module 7 Final project Case Analysis - Starbucks Courtney Parker Strategy Final Project Case Analysis – Starbucks For my case study I have chosen the corporation of Starbucks. The intention of this paper is to introduce the mission and vision statement of Starbucks along with a presentation and review of their code of ethics. These statements and the code of ethics will be compared to and evaluated with the second chapter recommendations and concepts within Strategic Management: Concepts and Cases by Fred R. David. Starbucks does not have a vision statement but rather a mission statement in conjunction with a value statement of sorts. Interestingly, Starbucks mission statement is fairly far removed from coffee, their main source of profit and business venture. It states: “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks.com, 2013). While the statement is inspiring, as a mission statement it fails when held to the standards put forth by Fred David. Although the mission statement for Starbucks addresses some of these, it only lightly highlights some and completely misses others. According to Strategic Management Concepts and Cases, a mission statement must satisfy/address nine concepts (David, 2011): 1) Customers – Addressed by reference...
Words: 6572 - Pages: 27
...Final: A Starbucks Case Study Brian Davis Business Ethics BUSM 4263 Dr. Johnson April 5, 2012 Incorporating Coffee and Business the Starbucks Way The Early Years Starting a Small Group – During a business trip Howard Schultz visited Seattle, WA, investigating why a local coffee shop was outselling Macy’s in specific drip coffee makers. His visit brought him to Starbucks where he first met Jerry Baldwin, Zev Siegl, and Gordon Bowker. Inspired, Howard Schultz sought and achieved employment with Starbucks as the head of marketing, forming a small group of owners and leaders. A small group interaction is, “the process by which three or more members of a group exchange verbal and nonverbal messages in an attempt to influence one another” (Tubbs, 2007, p. 6). As a new member of the Starbucks group Schultz brought fresh new ideas and a vision for future growth and expansion. For example, Schultz helped develop customer-friendly skills that employees utilized to build better relationships with clientele. This process was the beginning of teamwork in the Starbucks Company during the Schultz era. Group Dynamics – Group dynamics is defined as, “the interactions that influence the attitudes and behavior of people when they are grouped with others through either choice or accidental circumstances” (Dictionary.com, 2012, p. 1). Over time the dynamics of the cohesive Starbucks team shifted, after hiring Schultz, causing dissention...
Words: 4272 - Pages: 18
...STARBUCKS CASE ANALYSIS QUESTIONS Please answer all the following questions as they relate to the case. Please utilize as much outside resources as you deem necessary to reinforce your answers—especially the last question. Remember that this case is over 10 years old and Starbucks has changed since then. 1. In the early 1980’s, how did Howard Schultz view the possibilities for the fledgling specialty coffee market? What were the most important factors in shaping his perspective and its success? 2. By 1987, Schultz bought Starbucks from its original founders. It has grown from six stores to over 3300 locations. What were the critical drivers of Starbucks success? 3. Why did Schultz think he successfully import the Italian coffee bar concept to the U.S.? 4. Why do YOU think Starbucks grew so quickly? Did they have to control so many aspects of the value chain in order to lead the market? 5. How do Starbucks stores function as brand creators and validators? 6. It is 2013 and you are on a panel regarding the past troubles of Starbucks. Please state some of the problems they have had over the last couple of years and how they are trying to recover from these setbacks to their business and their brand. Do you believe they are now on the right track to get solid traction in the worldwide marketplace? Do research and show me how they have changed their business model and what are there major areas of growth in the future? What are their roadblocks to success? In the...
Words: 867 - Pages: 4
...Assignment 1: Starbucks’ Strategy MGT 500 July 19, 2015 Week 3 Assignment 1: Starbucks’ Success Strategy Organizational culture (OC) is an important factor in the success of any business. Organizational culture (OC) defined as the morals and protocols contributing to the distinctive social and psychological atmosphere of any company ("Businessdictionary.com", 2015). The OC of a company encompasses many different components essential to the foundation of the business. These components comprises the cm culture; future prospects, organizational practices, beliefs, and the ideals or standards companies use to govern themselves ("Businessdictionary.com", 2015). They are the glue that hold a business together. The OC of a business influence how the firm thinks and reacts to the daily challenges it faces. They can make a business venture successful or cause it to fail if not developed properly. Most companies demonstrate organizational culture (OC) in the way they conduct business, treat employees, customers, and the communities in which they reside. This paper will take a look at Starbuck's organizational culture to identify the possible key elements that aid in the company's success in today's global economy. This paper will evaluate the efficiency of Starbucks management decisions regarding their innovative offerings to customers in a competitive market to obtain their current advantage. Then uncover a key management competency most successful Starbuck managers might...
Words: 1507 - Pages: 7
...a demand for another Master’s of Arts program in the area? 5) Measurement Questions- How many teachers needing to receive their master’s degree would consider this program for their continual education? 2. Evaluate the appropriateness of the exploratory stage of the research design. This particular case used a communicative research design. By using focus groups consisting of local educational professionals and a mailed survey the University was able to collect the required data. The focus group narrowed in on the elements needed to build a strong program and determined the likelihood of its success. The distribution of the survey was a cost effective way to reach out to a large number of teachers in and around the area to receive and test the demand for the program. Although, out of 2,000 questionnaires only 763 surveys were returned giving it a total of 31.8 percent response success I do believe both methods of the exploratory stage were fitting and appropriate for the data needed as the best way to measure the addition of the...
Words: 1955 - Pages: 8
...STARBUCKS HISTORY As with any corporation in America or throughout the world, Starbucks started out as a dream or a vision ready to be delivered to the world. Starbucks was born in the early seventies (Starbucks, 2005). In 1971, three friends, Jerry Baldwin, Zev Siegel, and Gordon Bowker got together on numerous occasions to discuss what type of business would be successful during their time. During the early 1960s coffee was a major success in the US Market; however, overtime the popularity declined due to the dreadful taste of the coffee. Jerry, Zev, and Gordon together had the opportunity to travel to Europe where they had the chance to indulge in the dark, rich coffee made there. It was not until Jerry visited a coffee store in Berkley, California that he was reminded of their trip to Europe and of the luscious coffee there. Moreover, this convinced the three friends that they should embark in opening a gourmet coffee shop. The three friends followed the appropriate procedures for establishing their vision. When asked to for the name of the company they were unsure and deliberated for names. They finally agreed to name the shop after Seattle’s seafaring heritage, Starbucks. However, it was also said that they named it after the coffee loving first mate Herman Melville’s Moby Dick (Starbucks, 2005). Starbucks was no longer a dream or an idea but an organization in the making. By the 1980s, four stores were up and successfully running in Seattle. It was...
Words: 2478 - Pages: 10
