1

Starbucks Coffee
The organizational Structure
Lester Narvaez, Mandy Green, Michael Phoung, Michelle Boyles
Todd Bell
MGT 230: Management Theory and Practice
Monday, May 19, 2014
Steven Friloux

Situation Assessment
Starbucks is an organization that has used their organizational structure to grow by leaps and bounds. Each year they are making their mark on the industry but each brand, marketing strategy, ethical belief all lead to the whole approach under their matrix organizational structure that began with one simple coffee store in Seattle to the world wide organization that we know today.

2

Agenda








Starbucks
Starbucks Competitors
Marketing Infrastructure
Financial Maneuvering
Competitor Facts
Competitor Organizational Structure
Starbucks Organizational Design

3

Starbucks Facts


151,000 employees



20,000 locations



In more than 55 countries



Opened in 1971

4

Organizational Structure
Matrix Organizational Structure
 3 Divisions


– China/Asia which includes all markets within
– Americas which includes Canada, Mexico,
Latin America and United States
– EMEA which includes Europe, United
Kingdom, Middle East, Russia and Africa

5

Dunkin Donuts Facts


Subsidiary of Dunkin’ Brands



More than 10,000 locations



In 36 of the United States



Locations in over 32 countries
6

Organization Structure
Functional Organization Structure
 U-Type form of corporate leadership


– One parent company owns several smaller companies 7

McDonalds Facts
More than 35,000 locations
 In more than 100 countries
 Only 19% of locations operated by
McDonalds Corporation
 54% Franchisee owned


8

Organization Structure
Functional Organization Structure
 CEO, COO top level management
 Department below top level


–
–
–
–
–

Marketing
Regional Managers
Finance
Human Resources
National Operations
9

10

11

Human Resources Structure


Executives Include:
CEO: Howard D. Schultz
CFO: Troy Alstead
COO: Arthur I. Rubinfeld



Starbucks HR has five key behaviors expected out of their system
To be knowledgeable (especially about the coffee), genuine, considerate, welcoming and involved (as in accountable for their performance and the outcome at stores). (www.worldcityweb.com,
2011)



12

Human Resources Continued...








Being a Worldwide organization, Starbucks is heavily influenced by its consumers across the Globe
Starbucks has no centralized hiring process
Each manager at location hires separately and must know what “success” looks like to hire new employees, ensuing the motto, “To have the right people hiring the right people”. ( www. dhiliassgnment.blogspot.com, 2011).
New employees get 25 hours of in-store training
Full healthcare benefits for all employees including part-time As a result of good organization by HR, Starbucks has a job satisfaction rate of 82%

13

Starbucks Operations







Owns its coffee farm operating in Poas Volcano,
CostaRica.(www.supplychain247.com, 2014)
It has 6 roasting plants worldwide
Produces more than 70,000 deliveries to retail stores worldwide on a daily basis
Operations can be influenced by all different countries besides Costa Rica i.e. where the cups are made, milk, straws and even the napkins
Since the coffee comes one country, it is easier to operate and it is a centralized system with one goal. To produce the best coffee in the world.
14

Organization Design
Starbucks Mission Statement
“…When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection.
Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster. Always full of humanity” (Starbucks,