Starbucks Control Mechanisms

Topics: Starbucks, Management, Coffee Pages: 5 (1639 words) Published: September 26, 2010
Business control systems, although sometimes complex in practice, are quite straightforward in concept. Control systems are designed and implemented as a means to control resources and to ensure that employees act in a manner that is beneficial to their organization. Effective managers can use control systems as a tool to make sure activities are carrying on as planned. Starbucks is a nationwide coffee house specializing in variations of coffee. Starbucks implements control functions like budgetary, financial, market, and clan.

Control Mechanisms
Starbucks, like most major corporations have many control methods, one method used which is typical with almost every company is hierarchy control. With many levels of management, the most secretive is the undercover manager, which Starbucks calls secret shopper or snapshot. Another type of control is a regulative control- which stems from standing policies and standard operating procedures. Starbucks’ third principle is applying the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee (Starbucks, 2006). The third type of control is Starbucks financial control, and Starbucks recognizes that profitability is essential to their future and success. The final form of control is the clan control, relationships are enhanced by introducing a cooperative and goal oriented organizational structure with effective operational processes and international expansion strategies. Employees are referred to as "partners" with both part and full time staff treated equally by offering both stock options and full medical coverage (Schultz, 1997).

Compare and contrast these control mechanisms.
These control mechanisms are intertwined to the success of Starbucks, together and individually the controls test policies and principles for effectiveness and quality. Hierarchy like clan control deal with employment and managerial structure at Starbucks, as with many corporations authority has many levels, but every employee is treated as partners. Regulative and financial controls are applied to the product development, quality control, and revenue. The success of Starbucks is dependant on the products it sells and has very high standards for the materials and ingredients used in their products. In result Starbucks sold nearly 10 billion dollars worth of coffee and products in 2009 (Marketwatch, 2009).

When a company such as Starbucks becomes the chain phenomenon that it is today, there has to be an obvious effectiveness to the way they have decided to run things. Starbucks has put into effect the hierarchy control which allows for managers to play the part of customers. The employees would have no idea that they are anything other than the normal customer, and this would give the company a clear idea of exactly the way the customer service end of the business is run. This method is extremely effective due to the fact that the real life aspect of the way people are treated by the Starbuck employees is being witnessed on a first hand basis. As for the product that one receives from any Starbucks restaurant, there is a standard in which that product is delivered, prepared and served. This is all controlled and monitored with Starbuck's regulative control system. This system allows Starbuck's to precisely regulate the purchasing, roasting and selling of the coffee. In order for Starbucks to properly succeed and grow there must always be a form of profit being made at all of their locations worldwide. If a profit isn't being made, then there will never be the option for growth. If the company is not able to grow and profit, eventually it will no longer exist. These profits and such are monitored under the financial control system. This control system allows for all of the money that is being made to be properly monitored and distributed as needed. Starbucks being an equal opportunity employment...
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