Organizational Structure Of Starbucks
Starbucks
Company Context
Starbucks is the largest global premium retail chain specializing in coffee and other related beverages. The company purchases, roasts and sells whole bean coffees along with handcrafted coffee, tea beverages and a variety of fresh food items, through its company and licensed operated stores.
At a time when coffee consumption in America was on free-fall but specialty coffee was beginning to pick up, the company operated six stores when Howard Shultz, a former employee, bought it in the year 1983. Shultz began the company´s expansion in 1987 concentrating on the mid and North West of America. In 1992, the company went public, with 140 outlets and revenue of USD 73million.
Today Starbucks employs around 200,000 people
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It contained a list of the reasons of why, in his view, Starbucks was losing ground: insufficient training of the baristas, smell of burnt cheese, tall coffee machines that intercepted the sight of the barista making coffee among others. This memo seemingly undermined Jim Donald´s power within the company (Shultz, “Onward”, 2011) and served Shultz to start orchestrating his return in …show more content…
Starbucks is known for its inclusive employment and internal promotion policies (80% of Retail/Implementation Corporate team members have worked at the store level). Every employee that works more than twenty hours a week has healthcare coverage, top-up contributions to 401K plans and enjoys the company´s stock program. All employees are called “partners”.
In 2008 Shultz felt that there was the need to update these incentive plans, align salaries and bonuses and re-state the need for all to have health care coverage in order to re-inforce its binding element as company´s culture. Similarly, the company engaged further in Ethical Sourcing programs, signing new agreements (RED, 2008) to contribute to the development of the regions where coffee is grown and elevating its image as an environmental aware corporation adapting LEED (Leadership in Energy and Environmental Design) in its stores
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