STARBUCKS – 7S McKinsey Model

RajanBL | 09AA28

Strategy

 Rapid store expansion strategy

 Product Line
 Coffee purchasing strategy

Staffing

 Employee benefits package includes base salary, health care benefits, stock option plan, and
Health care benefits include preventive care, crisis counseling, dental care, eye care, mental
health, chemical dependency, and medical costs for terminal illness up for 29 months.
 Employees trainings that include basic 24 hour-training, Star Skills, Coffee Master Program,
Servant Leadership Workshop, Career Power and Career Power for Coaches Workshop.
 Awards for partners, which range from frequent awards to high-level cash awards.

Structure

 Matrix Organizational Structure

 Operates under 4 US Divisions
o Western
o Northwest
o Southeast
o Northeast

Systems

 Centralized control over individual stores by headquarters

 Total Quality Management (i.e. Just-In-Time)
 Information system to support business operations.
Skills

 coffee making
 customer service
 sales techniques

Style

 Increase motivation through reviews and raises.

 Employees are allowed to make decisions and participate in

Shared Values

 Fun working environment

 Treat each other with respect and care
 Diversity is encouraged.
 Maintain highest quality standards for products
 Satisfy customers and compensate the unsatisfied ones.
 CSR.
 Respect employees by calling them partner.
 The importance of profitability for future success.

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