Functions Of Management

Functions of Management within Starbucks

Since 1971, Starbucks has created more buying power, blending abilities, roasting methods, and more excellent service experience for coffee enthusiasts. Starbuck products include more than 30 blends of coffee, handcrafted beverages, merchandise, fresh food, entertainment items, consumer products, and finally one of the most popular gift cards around; the re-loadable store valued-card. Starbucks is found in all 50 states plus the District of Columbia along with 43 stores in countries outside the United States. Not only does Starbucks have robust products with international presence, it has a robust employee benefit package and a corporate social responsibility commitment supported by 170,000 employees. It is no wonder Starbucks is one of “the 100 Best Companies to Work For” and one of the “Ten Most Admired Companies in America” by Fortune magazine. According to Howard Schultz, Starbucks chairman, president and chief executive officer, “You get more than the finest coffee when you visit a Starbucks вЂ" you get great people, first-rate music and a comfortable and upbeat meeting place.” Is the proof in the cup or is it in the leadership of Starbucks? This paper explores how Starbucks manages through the four business functions of planning, organization, leading, and controlling as they effectively navigate through external and internal factors of globalization, technology, innovation, diversity, and ethics by means of delegation (Starbucks 2008).

In the beginning, Starbucks sold coffee beans and equipment only. Howard Schultz started working for Starbucks in 1982 and after a business trip to Italy, he tried to convince Starbucks owners to sell coffee and espresso drinks to the public. Howard Schultz was an entrepreneur type individual who believed fast paced Americans would rave about the idea of buying coffee to go, but the owners thought otherwise. They eventually parted ways while Schultz pursued his dreams, but later they reunited with a new business model known today as Starbucks and with their reunion, Starbucks’ planning for expansion and globalization began.

By 1992, Starbucks had 165 locations in the United States and Canada and by 1996 it opened its first location outside the North America in Tokyo. With the company’s expanding to new nations, Starbucks’ derived a vision for the company to be implemented worldwide. Today, Starbucks’ mission statement can be found directly on the website; “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principle as we grow.” And according to Howard Schultz, it is Starbucks’ mission and guiding principles that have been the catalyst to Starbuck’s tremendous growth and success (Starbucks 2008).

Starbucks’ vision is to governs its’ business on six principles. The first principle is to provide a great work environment and treat each other with respect and dignity. The second principle is to embrace diversity as an essential component in the way Starbuck’s does business. The third principle is to apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of coffee. The fourth principle is to develop enthusiastic satisfied customer experience all the time. The fifth principle is to contribute positively to the community and environment. And finally the sixth principle is to recognize that profitability is essential to Starbucks’ future success. Choosing to be a global company, with advanced technology internally and externally, with innovative products offerings, with strong ethical values and a diverse workforce is instrumental component of Starbucks’ strategy and to execute takes organization and collaboration.

Now that Starbucks’ have created and set forth the company’s vision, it takes great organization to implement the goals throughout the fifteen thousand stores in forty four countries. By organizing, the company ensures it has all the resources to support its’ global consumers and continue to stay innovative. Starbucks is diverse in using resources to keep the company successful which begins with staff and stock. Starbucks employs 170,000 employees to provide excellent customer service. In addition, the company ensures the store is supplied with the stock it needs to keep the business running in tip top shape every day.

Currently Starbucks ships everything through cargo ships, Simi trucks and airplanes. The cargo ships bring their coffee beans to the distribution warehouse in California, Washington and North Carolina. From this point the trucks and airplanes will distribute their product throughout the 15,000 stores with the help of Fed Ex, UPS, and private trucking companies. However, shipping is not the only technology that Starbucks takes advantage of.

Starbucks researches new technology everyday for ways to make their business run smoother, and electronic employee slide cards do just that. The employee slide card keeps track of employee hours. By saving all the employee’s hours and information onto the computer at the local store, all the information can be sent to the corporate office electronically. With keeping the payroll and human resources departments organized top company leaders can focus on different divisions within the company such as the marketing and design team making sure the company proceeds with the goal of staying innovative while globalize.

When one walks in to a Starbucks most will notice the similarities between different locations, this is done on purpose. Designers for the company have sketched out and drawn up multiple ideas for how the set up of a Starbucks is supposed to go. Each store is set up to offer all its customers the same menu with small local variances and at the same atmosphere that customers would expect in their home town store. Since Starbucks does not franchise out any of their locations and are all corporately owned this ensures that all Starbucks will be the same no matter what location you walk into worldwide.

Although it is important for the physical locations of Starbucks’ around the world be on one accord, it is most important that all individuals within the company be on one accord with the company’s goals and vision. Leading is a key function of management as this is the element that mobilizes people and inspires them to take in the culture and pursue the vision of the business. At Starbucks, Howard Schultz had the original vision and is the original leader who is responsible for inspiring the subsequent leaders of