Starbucks Management Functions

This report explains the importance of management within the business which includes the various types of management functions and the managerial roles between 2 companies. Our group has decided to choose the world renowned coffee retail outlet, Starbucks and also one of the most famous fast food restaurant across the world, subway. In our report we will compare and contrast the different management functions and managerial roles between these 2 companies. Firstly, an introduction about these 2 companies. Starbucks started in 1971 with 3 business man Gordon Bowker, Zev Siegl and Jerry Baldwin. when it originally started, Their main business is to sell high quality coffee beans. They carried on and only opened their first retail outlet in

Planning is very important to Starbucks as it provides direction by helping Starbucks to set and achieve their desired goals such as earning higher profits and having positive financial results. It also helps to set control standards in Starbucks by performing activities differently and better than other businesses, creating good reputation and better work standards such as customers’ service. Starbucks uses various types of plans, including strategic and long term plans to manage their company. Strategic plan is a plan that emphasizes on the major goals and the strategies to achieve those goals. Starbucks wishes to grow revenue by 10% each year by satisfying customers by all means and having employees to be involved and contribute in making Starbucks a better company. Long term plan is a plan that usually last for 3 years or more. One of the plans which is a five-year plan Starbucks has is to open approximately 12,000 new stores globally by 2021. The planning function for subway is slightly similar , it provides direction and set goals and attain them to make sure that the business is doing

Starbucks uses both feedforward and feedback control. Feedforward control takes place before a problem occurs. It is to use managerial actions to prevent problems instead of curing them. In Starbucks, the employees are being provided with control manuals and trainings before they are allowed to serve the customers. This is to ensure that they have sufficient customer service experience such as using the digital timers and order confirmation screens. Feedback control is using feedback given by customers to enhance employees’ motivation and performance during work where managers only know about the problems after they have occurred. Financial statement and reports are examples of feedback. Thus, the feedback received is important and meaningful as it shows how effective the planning was and helps the managers know which part of the plan should be improved. With the feedback given by customers, Starbucks can know the preferred taste and demands to each of the beverages of the customers so that they can adjust to their