Org 581

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ORG 581

Facilitating Change Paper
Timothy Kirk
ORG/581
William Gillis, PhD
December 22, 2012

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Introduction

Starbucks Facilitating Change to China

Starbucks current structure is categorized as a mechanistic organization, which is comprised of highly vertical and horizontal complexities, highly formalizations, highly centralizations, tapered lengths of control, and highly standardizations. The CEO of Starbucks, Howard Shultz, has worked to create a more efficient and streamlined structure where information can flow freely from customer and low-tier employee to the corporate level. To facilitate this process has allowed Starbucks to expand to locations like China. Starbucks divides its labor into cross functional work teams, which allows employees to report to multiple supervisors. “This structural behavior has allowed the corporation to have successful communication upward, downward and laterally with its employees” (“Successful Application of Organizational Behavior: Starbucks,” 2009). The matrix structure seems to work for Starbucks, as they maintain effective communication, great product development, efficient production, and exemplary customer service as a result. Starbucks CEO, Howard Schultz helped facilitate in the companies structure a matrix of communication that both works internal and external, this key to the primary benefits of the success of the company. On the inside, Starbucks’ reinforcement of exposed communication among workers, higher administration, and administrators permits more open innovation in ideas, correcting problems through a process of identifying, discussing, plan of action, and follow through to solutions in a timely manner.

On the outside are the clients that are loyal and are given ownership in that the company solicits their input on a regular basis. For instance, Starbucks integrated a community website for networking where clients help to shape the future of Starbucks as we know it today. The loyalty of the customers help in developing an emotional bond that creates a family type network open to discussion, ideas, and innovation to services and merchandise. As an example of the recommendations presented to the challenges of the existing organizational design, our recommendations in this paper will assist in summarizing the need for positive changes in current strategies at Starbucks. One recommendation is to add programs that would highlight staff successes / achievements and assist in locations both locally and internationally for more exposure. In the second recommendation, social media programs would be implemented to allow broader cross training, updates on corrective actions to local issues with products, equipment issues and solutions, and selling techniques. Starbucks already has a winning situation by expanding efforts to achieve these ideas in their company services in China and also to a global market using their website as an anchor with Facebook pointing back more opportunities. While Starbucks is setting new standards for selling products, marketing services, and the development of new products, there are always room for improvement. Each day as the Staff and Managers begin their day there is a sense of loyalty that permeates throughout the organization that is in the air. While the last recommendation that seems to have a major impact is when customers enter into the stores there is a feeling of calm and peace, but not so much interaction outside the corner. Customers are more willing to buy and linger in the store and browse. This opens of doors of opportunity if the staff is watching to see the roaming of customer in asking them if they had something in mind as they browsed the floor. Maybe when a staff member observed a customers looking at...
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