Starbucks Organizational Analysis
Business Strategy
Organizational Analysis
Starbucks Coffee Company
2011/02/15
Table of Contents
Executive Summary 3
Company History 4
Organizational marketing strategies 4 Starbucks as a Private Company (1987–92) 4 Starbucks as a corporation (1993-2010) 6
Organizational design and effectiveness 7
Starbucks Organizational Structure 9
External environment 9
Internal environment 11
International environment 13
Product and Service 14
Information technology and control systems 15
Organization size, life cycle, and possible decline 16
Organizational Culture 16
Ethical value 18
Innovation and change 18 Store Environmental Design 19 Sensory Innovation 19 Service Innovation 19 Consumer Education 20 Environment Impact 20 Fair Trade 21
Decision making processes 21
Conflict, power and politics 22
Summary of key finding 22
Reference 25
Starbucks Structure 27
Starbucks’ logo (1971~2011) 28
Store layout and design 29
Executive Summary
With its green logo, a “twin-tailed mermaid”, Starbucks is an international coffee and the largest coffeehouse company in the world. More than 15,000 stores in 50 countries sell Starbucks coffee to their customers every day. The enterprise began coffee business in Seattle, Washington, in 1971. In 1982, Howard Schultz joined the company. After a trip to Milan, Italy, he advised that the company should sell coffee and espresso drinks to create “community gathering places”. The idea was not accepted until 1987, when Schultz successfully took over coffee house and served more than million customers every day. Their coffee stores provided different kinds of coffee and used the best quality coffee beans to cook for their customers. The stores also offered delicious pastries and fresh food. Therefore, customers could order a cup of coffee and pastries and enjoyed wonderful time in the store. Customers really liked this kind of feeling, so drinking coffee in the Starbucks became fashion
Organizational Analysis
Starbucks Coffee Company
2011/02/15
Table of Contents
Executive Summary 3
Company History 4
Organizational marketing strategies 4 Starbucks as a Private Company (1987–92) 4 Starbucks as a corporation (1993-2010) 6
Organizational design and effectiveness 7
Starbucks Organizational Structure 9
External environment 9
Internal environment 11
International environment 13
Product and Service 14
Information technology and control systems 15
Organization size, life cycle, and possible decline 16
Organizational Culture 16
Ethical value 18
Innovation and change 18 Store Environmental Design 19 Sensory Innovation 19 Service Innovation 19 Consumer Education 20 Environment Impact 20 Fair Trade 21
Decision making processes 21
Conflict, power and politics 22
Summary of key finding 22
Reference 25
Starbucks Structure 27
Starbucks’ logo (1971~2011) 28
Store layout and design 29
Executive Summary
With its green logo, a “twin-tailed mermaid”, Starbucks is an international coffee and the largest coffeehouse company in the world. More than 15,000 stores in 50 countries sell Starbucks coffee to their customers every day. The enterprise began coffee business in Seattle, Washington, in 1971. In 1982, Howard Schultz joined the company. After a trip to Milan, Italy, he advised that the company should sell coffee and espresso drinks to create “community gathering places”. The idea was not accepted until 1987, when Schultz successfully took over coffee house and served more than million customers every day. Their coffee stores provided different kinds of coffee and used the best quality coffee beans to cook for their customers. The stores also offered delicious pastries and fresh food. Therefore, customers could order a cup of coffee and pastries and enjoyed wonderful time in the store. Customers really liked this kind of feeling, so drinking coffee in the Starbucks became fashion