Starbucks Case Study 3

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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...
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