starbucks organizational design

Presented by:

Hesham Elbaharawy.

Nourhan Akram.

Nourhan Selim.

Presented to:

DR. Heba Samer.

History:In 1971 Starbucks' founded as a Seattle coffee

bean roaster and retailer, the company has expanded

rapidly.

In April 2003, Starbucks completed the purchase of

Seattle's Best Coffee.

In September 2006, rival Dietrich Coffee sell it’s

owned retail stores to Starbucks.

History: In early 2008, Starbucks

started a community website

(My Starbucks Idea).

IN 2009, Starbucks began

beta testing its mobile app for

the Starbucks card.

In January 11, 2011 Starbucks

released its complete mobile

platform.

In September 2014, it was

revealed that Starbucks would

acquire the remaining 60.5

percent stake in Starbuck

Coffee Japan that it does not

already own.

Organizational design

Elements

1-Specialization:

Jobs at Starbucks are specialized especially at

the retail level.

Example:

some stores operate with a drive thru windows.

At any given time there will be four employees

working to operate the drive thru window: one to

take orders, one to handle cash, one to work

the espresso machine, and a “floater” who can

fill in where needed.

Organizational design

Elements

2-Span of control:

Having district

managers visit from 8-

10 stores and having

the right number of

employees ,a manager

can handle to be the

most productive.

Organizational design

Elements

3-Departmentalization:

Organizational design

Elements

4-Centralization and Decentralization:

Organizational design

Elements

5-Chain of command:

Starbucks organization structure consists of

board members who make decisions with the

CEO. The CEO then discusses plans with their

chiefs in order to implement rules .

6-Formalization:

Starbucks does a great job with formalizing

their jobs through training their employees.

:Swot analysis

:Strengths

Global Brand Recognition.

Human resources management .

High quality products .

Diverse product mix .

Customer base loyalty.

Use of technology.

:Weaknesses

Expensive products.

Overdependence in the U.S. market .

Culture clash in different markets.

Negative large corporation image.

Opportunities:

Expansion into upcoming market.

Technological advances.

Expansion of its product mix.

New distribution channels.

Expansion of retail operations.

Threats:

Developed countries’ economies.

Increased competition.

Changing consumer tastes and

preferences.

Price instability in the coffee market.

Market saturation in developed

economies .

Segmenting ,Targeting and

Positioning

Segmentation: Demographic segmentation (markets by age, gender,

income, ethnic background, and family life cycle).

Geographic segmentation (markets by region of a

country or the world, market size, market density, or

climate).

Target Marketing for young adults (aged 18-24 )

Starbucks target this group through the growth of

technology and innovative ideas.

Market Positioning Starbucks has positioned

themselves as a highly respected brand, which gives

them an advantage.

Mission:

To inspire and nurture the human spirit

– one person, one cup and one

neighborhood at a time.

Existing Components of Mission

Statement:

:Missing Components of Mission

Statement

Starbucks is a Multinational Corporation

which has several stores located in

different countries,

It uses polycentric approach stuffed with

host country nationals.