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Paper代写-Analysis of Starbucks

2019-01-08 | 来源:51due教员组 | 类别:Paper代写范文

下面为大家整理一篇优秀的paper代写范文- Analysis of Starbucks,供大家参考学习,这篇论文讨论了星巴克。星巴克的组织结构是扁平化的,其专业化的管理,保证信息的有效传递,使市场需求不断得到满足。然而,成功从来不是一夜之间发生的。星巴克一直在探索和改革,以更好地适应外部变化。如今,星巴克的组织结构不断演变,以适应商业环境,实现企业目标。

Starbucks,星巴克,英国论文代写,论文代写,paper代写

Organization Structure

Starbucks has a unique matrix organizational structure in order to serve best and most suitable products and services globally. First, the structure is determined by business functions based on projects. For example, retails, legal & corporation affairs, finance, and supply chain operations could be responsible for all stores according to their own duties. Top management team in headquarters takes charge in directing Individual departments. The whole system is approximate to vertical or line management. Second, district management is applied. Starbucks divides the market into three regions – China and Asia Pacific, Americas (United States, Canada, Mexico and Latin America), and EMEA (Europe, UK, Middle East, Russia, and Africa). Each region is segmented into small ones with various stores equipped with managers, supervisors, as well as baristas, etc.  The U.S., as an instance, constitutes of four internal markets, that are Western/Pacific, Northwest/Mountain, Southeast/Plains, and Northeast/Atlantic. Third, similar to functions, product lines are involved in deciding its organizational structure. Thus, one product group could focus on a single line, so as to improve the management quality. Fourth, as referred above, stores or teams made up of few employees provide fresh products and face-to-face service at the market end. They preside over daily works in stores, representing the branding and images. (Pauline, 2017)

In this way, Starbucks could flatten organizational structure and professionalize management to ensure information transmission is effective and efficient and that market needs are satisfied continuously. However, success never happens overnight. Starbucks keeps exploring and reforming to better adapt to external changes all the time. In the year of 2008, the Great Recession hit Starbucks to near-collapse. The CEO, Howard Schultz, together with his team saved the company by both implementing a deep, comprehensive return to its core values and, at the same time, investing in a range of new products, customer experiences and organizational capabilities designed to make the company fit for enduring success in a turbulent global economy (Koehn, McNamara, Khan, & Legris, 2014). Measures on restructuring human resources like senior management replacement and layoffs and rebuilding financial structure such as operating expenditures reduce were taken as well. Organization structure of Starbucks always evolves to conform with business environment and achieve enterprise objectives.

Management Structure

Starbucks experienced a turn from concentration to decentralization in management structure. Before 1992, when Starbucks went public, the roasting plant and headquarters were located next to each other and the retail stores were at close area so that Howard Schultz, one of the owners, could take part in daily operational planning and enterprise control (Paryani, 2011). Later, Starbucks’ management chain elongated in the process of approaching the goals to differentiate and expand, by helping growers improve coffee bean varieties, constructing coffee roasters, as well as opening up international stores and so forth. Senior executives and employees’ participation in stock plans, meanwhile, diluted the firm’s ownership.

On account of the investor relations section on official site, Starbucks’ BOD has 13 directors with a substantial majority meeting the independence requirements. Three committees – Audit and Compliance Committee, Compensation and Management Development Committee, Nominating and Corporate Governance Committee – are established to assist in corporate administration. Governance principles and committee charters are signed and applied BOD and committees. Senior officers and district leaders govern on the basis of own obligations. For instance, current CEO Howard Schultz presides over the operations of the company in all. Senior vice president in Store Development Andy Adams is in charge of store opening, site selection, design, closing, etc. worldwide. President in Starbucks Europe, Middle East and Africa Martin Brok works for growth in this geographic division for Starbucks. Wholly owned stores spreading over the continents execute plans in details as the smallest units.

Starbucks strives to create a diversified and inclusive culture and reckons employees as “partners” for business success (Morais, et al., 2014). The firm attaches great importance to human resources to show respect and dignity since its opening. All staff including part-time workers enjoys equity incentive plans, mentioned before, making personal and corporate objectives consistent to some degree. They can provide suggestions for company-set missions at every stage. What’s more, compared to industry, employees are well paid, get attractive benefits even cover family members, and acquire professional training, etc. Advertising fees are spent on individual career progression too. These actions greatly enhance personnel’s loyalty, evident by lower-than-average employee turn-over rate.

This kind of “Pyramid Upside Down” management structure was originally introduced in 1970s by Jan Carlson, past president of Scandinavian Airlines System (SAS). Unlike normal management model where decision makers are at the top, followed by middle-layer managers and then basic-level stuff, “Pyramid Upside Down” reverses the order. Responders in front line who are actually able to influence decision making devote more passion to work, aiding in improve corporate cohesiveness and performance. Besides, gap between final market and decision makers shortens, and customer service is optimized. Starbucks management structure fits with internal demands and arouses the employees’ initiatives efficaciously to cater to the market. Nevertheless, lack of custody of branches, like performance-oriented evaluation system, and equity dispersion, both derived from the value on humanity, may cut down profits with low efficiency and impair rights and interests of stockholders.

Client Relationship Management of Starbucks

Mission Statement

According as Starbucks webpage, its mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. The relationship with customers and neighborhood is described to set up human connection and make contributions. The company cares about the source of coffee – beans, roasting method, and suppliers. Starbucks acts as a professional intermedia linking the coffee production with consumption end in a symbiotic way. Relationship and social responsibilities are quite vital in its culture.

By showing ideas or viewpoints on related parties, Starbucks illustrates incline to relationship marketing which attempts to involve and integrate customers, suppliers and other infrastructural partners into a firm's developmental and marketing activities, and emphasizes interdependence and cooperation rather than absolute independence and competition. (Sheth & Parvatiyar, 2005). Therefore, analysis on CRM is under hypothesis that Starbucks is a company valuing relationship in marketing.

Approaches Analysis

Marketing Strategy and Customer Profile Analysis

A core marketing strategy analysis looks at segmentation, targeting, positioning, and differentiation (Haskova, 2015). Starbucks positions itself as a 3rd place between living space and working place to offer a gathering or discussion location by rendering high-quality product and in-store service. Main targeted group is 25-40 years of age with high incomes, and the secondary layer is 18-24 years of age belong to richer families (Haskova, 2015), who seek light luxury style of life. Howbeit, a recent slight change happens. More and more non-target buyers involve, such as families or elder generation, partly due to economic upwards, suitable menu, as well as word of mouth, etc. In general, Starbucks segmentation contains upper-middle class and high-education ones, contrast to some competitors (Rafii, 2014)

Products and Services Provided

The name of Starbucks originates from Moby Dick by Herman Melville, referring to an extremely calm and charismatic first mate named Starbuck who loves coffee. The story implies the ambition to capture the group of enjoyment-oriented, leisure, and knowledgeable purchasers. On the other hand, the symbol altered as time went by from earliest brown double-tailed mermaid to the simplified green one we saw nowadays, yet maintaining the main concept of being attractive and cozy.

The products and services are in accordance with implication of the name and symbol. At first, Starbucks insists in using best quality materials. Its internal purchasing departments and agricultural scientists work with coffee growers to explore unique types of beans, from which technical tasters choose to promote. Special roasting methods are applied too. Then, Starbucks offers a wide range of products and services aiming at serving the target market. Beverage covers Coffee, Teavana, Frappuccino, as well as Chocolate. Desserts or food like muffins, croissant, sandwiches, cakes, brownies, rolls, cookies, sugars, as well as nuts are in the list. Products of coffee beans, instant coffee, and related equipment are sold. Consumers could enjoy free Wi-Fi, mugs, seats and green action bonus, etc. Stores in specific countries conduct training sessions to interested buyers. Lastly, Starbucks invests a lot in innovation except for existing various of choices. It strives to surpass excellence by meeting the five factors, including innovation commitment, of spirituality at work and showed a consistent pattern of re-engineering the company (Lemus, von Feigenblatt, Orta, & Rivero, 2015).

Supply Chain Management

Supply chain management (SCM) is the business function that coordinates all the network links, thereby, coordinates efficient movement of goods through the supply chain from suppliers to manufacturers to distributors, and promotes sharing of information such as the demand forecasts, sales data, and sales promotions along the chain (Paryani, 2011). In the past, the quality and price of coffee beans was quite unstable thanks to weather and/or production. Starbucks was the first to lock the swinging properties by cooperating with farmers in large scale at home and abroad. This action ensured differentiation from competitors and good final products to customers.

Network and Social Media

Starbucks is the leading company in use of social media, such as media products, My Starbucks Ideas, Twitter, Facebook, YouTube, etc. In other words, social media is the cardinal CRM approach of this corporation. In March 2012, Starbucks was adjudged the most socially engaged company in the study by PhaseOne, an analytical-based research and consultancy company (Perepu, 2013). Similarly, Starbucks ranked 1st in social media involvement in NRN report with a score of 107.09.

Starbuck started with official site of Starbucks.com and media products like CDs with its technical background. The initial intent was to build an internet company through online sales, but the process moved slowly, especially after Howard Schultz’s relief. In the year of 2008 when Starbucks encountered severe crisis, Howard Schultz came back to the position and reopened and speeded up the way to take advantages of social media or digital tech.

As early as 2001, Starbucks commenced collaborate with Microsoft to release paid Wi-Fi service. At that time, the service caught the market’s eyes and appealed to lots of prospective customers. Three years later, together with T-Mobile, Starbucks applied Hot Spot service in stores, followed by free Wi-Fi in 2010. The next step was to unite Apple and Yahoo to provide free digital books, news, movies, music, as well as free iTunes service. In another three years, ultra-high speed internet service based on fiber-optical was equipped in store. The series of movements constantly renewed clients’ expectations and erected benchmark for other service-related industries. The notion of 3rd place became more realistic.

Starbucks set up a dedicated team to operate social media affairs in 2004. Afterwards, it entered mainstream social media platform – YouTube, Facebook, Twitter, Foursquare, Google, etc. They interacted with consumers by sharing relevant information that customers were interested in. Store management teams were able to communicate with local buyers in a more connective way, for instance, pushing promotions on Twitter, sending feedbacks on Facebook, or publishing community-based campaign on YouTube. In addition, Starbucks enhanced their brand image through public services. The company donated $250,000 for AIDS via Foursquare and contributed to support initiatives about employment creation on GoogleOffer. These measures elevated citizens’ favor on Starbucks. The results of efforts were impressive and inspiring. As of 2012, Starbucks was one of mostly followed companies on Twitter and Facebook (Perepu, 2013). By April 17, 2013, Starbucks YouTube account subscribers reached 17,587 with videos clicks more 7,490,000 times; Likes on Facebook exceeded 34,260,000 times; Fans were beyond 1,180,000 on Instagram, 3,650,000 on Twitter, and 1,530,000 on Google+.

Online network, My Starbucks Idea, was launched in the year of 2008 by Howard Schultz’s. The most essential function of the network is “feedback”. The emergence of social media has transformed online users from content readers into content publishers, making their role more significant (Alton Yeow Kuan & Snehasish, 2013). Users could type in suggestion and ideas or comment on the products and services, on which Starbucks may rely to make adjustments. At its 5rh year of operation, 277 advices from about 150,000 were adopted in execution. Customer-based strategy won loyalty and trust of customers and guided market-wanted changes.

Mobile payment was also paid attention to. My Starbucks was formally launched in September, 2009, in which clients could easily check location and menu. On one hand the function facilitated consumption and recognition for clients; on the other hand, it expanded sales channels and cut promotion costs of new products for seller. Soon after that, mobile payment on the basis of Starbucks digital cards and then Square Wallet was introduced to the market. Relying on marketing activities like “buy $10 get extra $10”, digital payment encouraged large growth in sales and transactions. Contemporaneous Mobile Pour in seven America cities to provide online to offline delivery service amazed Starbucks fans again.

Other peripheral Apps such as Early Bird to help users meliorate habits with a cup of discounted coffee. Cheaper product might not be the core; the endeavor to shape a healthy lifestyle hit the clients’ requirements.

Starbucks experiences a long journey in creating proper social media to interact and the results are gratifying. It indeed derives more value from customers by implementing strategies that increase customer value by providing more value to their customers (Epstein & Yuthas, 2007).

Word of Mouth

Starbucks’ advertising expenses totaled $227.9 million in last year, about 1/3 of that in McDonald’s in 2015. As we all understand, the company depends more on word of mouth (WOM) than most participants.

WOM is often related to social media. Users post, forward, comment on Starbucks information or activities, virtually attracting new entrants. It is certainly taken as a better marketing selection because the long-run elasticity for WOM referrals was about 2.5 times higher than the average advertising elasticity reported in the literature and that it is relatively cheap (Trusov, Bucklin, & Pauwels, 2008). Substantial subscribers, fans, or likes bring off-line customer flow in reality.

Experiential Marketing

Form Dr. Schmitt’s point of view, every customer touch-point offers companies an opportunity to maximize the customer experience and establish a bond that will never be broken (Schmitt, 2004). Starbucks puts it into practice in multiple ways.

As discussed before, the firm desires to create a 3rd place joining working and social life, so it takes time to improve product quality and store environment. A group of artists and designers are hired to design and decorate each store, mixing local style and features, with a purpose to create warm, fragrant, relaxed atmosphere. So, soft music, exquisite books, and/or sound of coffee-making could often be found in the stores.

Intimate service is a major part of Starbucks. Starbucks’ workers are trained by what called Starskills to advance communication skill, in order to best deal with coming-in customers. They remember clients’ names and preference, tag beverage with names, and keep eye contact during service to make purchasers to feel relaxed and gracious. They care about experience more than simple products selling.

Extension or out-of-store experience, social media interaction, community contributions, public service, and member electronic periodicals for example, strengthens consumers’ feeling about actually affecting a company’s strategies.

Key Setbacks

Setbacks exist in connection to customer management, a major one being lack of custody. In the section of management structure, a decentralized governance is talked over. Letting employees to be stock holders could probably maximize their potential, but decision and implementation on CRM might be unconnected and cursory. Some stores are exposed to use inferior selling means to encourage cup upgrade, damaging customers’, especially loyal ones’ experience.

Moreover, social media amplifies negative news or image, true or not. It usually has massive effect and is not unique to Starbucks. Worse still, defenders may take advantage of this drawback. In one campaign in Spring 2009, Filmmakers behind the “Stop Starbucks” documentary critical of the firm’s labor practices encouraged protesters to take photos in front of the posters while holding protest signs and post them using the same hashtags, with 50,000 YouTube views (Gallaugher & Ransbotham, 2010). Recent plan to engage ten thousand refugees by Howard Schultz is another example. Howard Schultz personally is the supporter of former presidential candidate, Hillary Clinton who claimed to receive more refugees. His behavior instantly caused boycott on Starbucks by current president’s proponents and residents who were concerned about unemployment, striking consumer perception and consumption intention. Howard Schultz was even considered to quit the position next month.

 Starbucks encounters cultural conflicts when doing business all over the world and attempt to integration. In July, 2007, a Starbucks store located in the Imperial Palace in Beijing closed after two-month dispute. At the beginning, a famous anchor presented thoughts that Starbucks as a foreign culture operating in the palace was a blasphemy to traditional Chinese culture. He protested and asked for a move of Starbucks. Despite public divergence on the issue, the store determined to stop. Such incidents happen occasionally, leading to bad impression and loss.

Starbucks used to stick in other incidents as well. In 2015, Christmas cup design was regarded “declaring wars on Christmas” by deliberately putting off elk, Christmas tree, and slogan of Merry Christmas. Any negligence or inattention could possibly go against intent of CRM.

Recommendation

Balancing centralized and decentralized governance and control

Starbucks strategy of decentralization is proved effective generally; however, how to manage day-to-day business of stores and avoid management team deciding bypass the authority needs further consideration. Auditing system, and performance-based evaluation method might be external and internal drivers to incite standard and qualified products and service. According to corporate governance theory, withdraw of non-controlling shareholders might play a part in solving the problem of potential excessive management rights. By withdraw we mean that if management damages owners’ equity, like destroy good customer relationship, stockholders may sell and structure may be reorganized. In the situation where management does a good job, partners will still hold stocks and work for themselves. In this way, strategies on CRM could be unified.

Use of bid data

Big data, sweeping into every industry and business function, is deemed as next frontier for innovation and competition by McKinsey Company (Manyika, et al., 2011). Starbucks CRM has a deep relation with social media, which provides large amount of data. To analyze customers or market demand via big data supplies more exact and comprehensive information for judgements. More than that, Starbucks can go so far as to set profile for each customer, thus accurately recommend products and push suitable promotion messages. That is to say, the firm customizes customer relationship management strategy for every single client with comparatively low cost. Complying with the developmental tide constantly seems to be one of Starbucks guidance; therefore, to grab next wave of innovation could definitely enhance client relationship management practices and processes.

Bibliography and References

Alton Yeow Kuan, C., & Snehasish, B. (2013). Customer knowledge management via social media: the case of Starbucks. Journal of Knowledge Management, 17(2), 237-249.

Epstein, M. J., & Yuthas, K. (2007). Managing Customer Value. Mississauga, New York, and London: The Society of Management Accountants of Canada, the American Institute of Certified Public Accountants and The Chartered Institute of Management Accountants.

Gallaugher, J., & Ransbotham, S. (2010). Social Media and Customer Dialog Management at Starbucks. MIS Quarterly Executive, 9(4), 197-212.

Haskova, K. (2015). Starbucks Marketing Analysis. Prague: Bulletin of Prague College’s Centre for Research and Interdisciplinary Studies (CRIS).

Koehn, N. F., McNamara, K., Khan, N. N., & Legris, E. (2014, 6 2). Starbucks Coffee Company: Transformation and Renewal. Harvard Business School Case 314-068.

Lemus, E., von Feigenblatt, O. F., Orta, M., & Rivero, O. (2015). Starbucks Corporation: Leading Innovation in the 21st Century. Social Science Electronic Publishing, 7(1), 23-28.

Manyika, J., Chui, M., Bughin, J., Brown, B., Dobbs, R., Roxburgh, C., & Hung Byers, A. (2011). Big data: The next frontier for innovation, competition and productivity. McKinsey Global Institute.

Morais, U. P., Pena, J., Shacket, K., Sintilus, L., Roiner, R., Rivera, Y., & Mujtaba, B. G. (2014). Managing Diverse Employees at Starbucks: Focusing on Ethics and Inclusion. International Journal of Learning & Development, 4(3), 35-50.

Paryani, K. (2011). Product quality, service reliability and management of operations at Starbucks. International Journal of Engineering, Science and Technology, 3(7), 1-14.

Pauline, M. (2017, 1 31). Starbucks Coffee Company’s Organizational Structure. Retrieved from Panmore Institute: http://panmore.com/starbucks-coffee-company-organizational-structure

Perepu, I. (2013). starbucks: Brewing Customer experience through social media. Retrieved from IBS Center for management Research: http://www.bu.edu/goglobal/a/goglobal_courses/tm648/spain/starbucks.pdf

Rafii, L. (2014, 1 23). The Starbucks or McCafé Crowd: Who Counts More Politically? Retrieved from the Huffington Post: http://www.huffingtonpost.com/ladan-rafii/the-starbucks-or-mccafe-c_b_4262104.html

Schmitt, B. H. (2004). Customer Experience Management . Hoboken: John Wiley & Sons.

Sheth, J. N., & Parvatiyar, A. (2005). The Evolution of Relationship Marketing. International Business Review, 4(4), 397-418.

Trusov, M., Bucklin, R. E., & Pauwels, K. (2008). Effects of Word-of-Mouth Versus Traditional Marketing: Findings from an Internet Social Networking Site. Journal of Marketing, 73(5), 90-102.

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