Starbucks case study 3 Q1. What type of departmentalization are being used? Explain your choices. Ans. Types of departmentalization being used are : a. Retail Expert b. Administrative c. Manufacturing d. Sales & Marketing Q2. Do you think it’s a good idea to have a president for the US division and for the international divisions? What are the advantages of such an arrangement? Disadvantages? Ans. Yes, it will be good idea to have a president for US division and international Divisions. As US itself is a big division to handle and there are many operations which go parallel in Starbucks.
For international divisions there should be one president as t would globalize all the divisions and would help them to be on the same platform all together. Advantages: * Better co-ordination. * Better Management to achieve good results. * Division of responsibilities which would impact the operations. Disadvantages: * Difficult to monitor standards country wide as there are two presidents, so more coordination is needed to be on the same platform. * There can be some conflicts in decision making. * Lack of coordination can lower the standards of starbucks. Q3.
What examples of the six organizational structural elements do you see discussed in the case? Describe. Ans. Following are the six organizational structural elements discussed in the case: * Human resource management * Financial management * Accounts management * Facilities management * Sales management * Supply sales management Q4. Considering the expense associated with having more managers, what are some reasons why you think Starbucks decided to decrease the number of stores each district manager was responsible for, thus increasing the number of managers needed?
Other than the expense, can you think of any disadvantages to this decision? Ans. Starbucks decided to decrease the number of stores as it would make work more manageable and accountable for district managers. Disadvantages to this decision would be: * Less number of stores. So the demand could fall. * People could diversify to different brand. * In order to achieve, the price of the coffee would have to be increased. Q5. Give some examples of the types of communication taking place at Starbucks. Ans. Types of communication taking place at Starbucks are: Media communication, it conveys information to partners about company’s news and announcements. * Giving chance to partners to talk with company’s top management. * Internal communication audit. It allows partner to give feedback on how to make company’s communication more effective. * Physical visits at stores. Howard Schultz visits 30-40 stores a week, which gives him upfront view of what is happening out in the field. Q6. Suppose that you are a Starbucks store manager in st. john’s, Newfoundland and Labrador. How do you find out what is going on in the company? How might you communicate concerns or issues that you have?
Ans. Every store manager of Starbucks can participate in a 360 degree diversity assessment to identify their strengths and the area of improvement. By developing executive diversity learning series, store manager can communicate their concerns and issues. Q7. Starbucks long-term goal is to have 15000 US stores and 30000 stores globally. In addition, the company has set a financial goal of attaining total net revenue growth of 20 percent and earnings per share growth of 20 to 25 percent. How will the organizing function contribute to the accomplishment of these goals? Ans.
To accomplish their mission, tasks and, responsibilities, they must plan and develop effective strategies. These plans and strategies are then used to implement the direction of the organization in growth, employee development, role in communities and in society, and, products or services provided to name a few. To help the organization in realizing these goals effective management must plan, organize and, implement. Q8. Starbucks has said that it wants people who are “adaptable, self-motivated, passionate, and creative team players. ” How does the company ensure that its hiring and selection process identifies those kinds of people?
Ans. Starbucks uses a variety of methods to attract potential partners. The company has an interactive and easy-to-use online career center. Job seekers – who must be at least 16 years old- can search and apply online for jobs in any geographic location. Starbucks also has recruiting events in various locations in Canada throughout the year, which allow job seekers to talk to recruiters and partners face-to-face about working at Starbucks. Q9. Select one of the job openings posted on the company’s website. Do you think the job description and job specifications for this job are adequate? Why or why not?
What changes might you suggest? Ans. The job description which I would select would be “systems analyst lead, Advanced Supply Chain Planning Systems (ASCP), Global Technology”. The specifications for the job are adequate as Starbucks has mentioned the job summary and mission very clearly. Also they have detailed the various responsibilities such as leadership, production support, solution delivery. According to me no changes are required as every aspect of the job is mentioned very clearly as well as the applicant can go through the criteria of requirements before applying for the job. Q10.
Evaluate Starbucks training efforts. What types of training are available? Ans. Starbucks offers variety of training ranging from basic computer skills to conflict resolution to management, which focuses of Starbucks passion for coffee and its core products. Types of training: * 23 hours of initial training. * 29 hours as shift supervisors. * 112 hours as Ass. Store manager. * 320 hours as Store manager. * 200 hours as distinct manager. Q11. Pretend that you are a local Starbucks store manager. You have three new hourly partners (baristas) joining your team. Describe the orientation you would provide these new hires.
Ans. Starbucks will provide additional training and coaching to new hires as a part of their orientation. Direct employment relationship will help to ensure a great work environment. Q12. Which of the company’s guiding principles affect the organizing function of management? Explain how the one(s) you chose would affect how Starbucks managers deal with : (a) structural issues; (b) communication issues; and (c) HRM issues. Ans. The guiding principles that effect the organizing function of management are : * Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way Starbucks does business. * Develop enthusiastically satisfied customers all of the time. * Contribute positively to our communities and our environment. * Recognize that profitability is essential to future success. * Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Structural Issues : These principles will help in dealing with structural issues as it would make work environment more professional in terms of level of authority, being formal at work place, decision making, motivation of employees to achieve organizational goals.
Communication Issues : These principles will help in dealing with communication issues as it would make people more aligned to the mission and vision of the organization, people will be responsible for their performance means they will do their best, more discipline, respect and dignity amongst people. HRM Issues : These principles will help in dealing with HRM issues as it would help in dealing with negative situations, better implementation of vision statement, mission statement and values. Also will help in conflict resolution, dealing with difficult people at work. better cooperation and team work.
