Assignment 4

Q1: Write Summary of case study of Starbucks?

Like many start-up businesses, Starbucks’ original founders organized their company around a simple
structure based on each person’s unique strengths: Zev Siegl became the retail expert; Jerry Baldwin
took over the administrative functions; and Gordon Bowker was the dreamer who called himself “the
magic, mystery”. As the company grew, Howard Schultz joined the company, he expanded the company
to the brand it is today, and hired professionals with experience from many different companies.
Company’s main work is divided in the support centers, zone offices and roasting plants.

The zone offices oversee the regional operations of the retail stores and provide support in human
resource management, facilities management, account management, financial management, and sales
management. In the retail stores, hourly employees (baristas) service customers under the direction of
shift supervisors, assistant store managers, and store managers. These managers are responsible for the
day-to-day operations of each Starbucks location. Finally, without coffee and other beverages and
products to sell, there would be no Starbucks. The coffee beans are processed at the company’s
domestic roasting plants in Washington, Pennsylvania, Nevada, South Carolina, Georgia, and
internationally in Amsterdam.

Starbucks also has recruiting events in various locations in the United States throughout the year, which
allow job seekers to talk to recruiters and partners face-to-face about working at Starbucks. In addition,
job seekers for part-time and full-time hourly positions can also submit an application at any Starbucks
store location. The company also has a limited number of internship opportunities for students during
the summer. Starbucks’ workplace policies provide for equal employment opportunities and strictly
prohibit discrimination. Diversity and inclusion are very important to Starbucks as the following statistics
from its U.S. workforce illustrate: 64 percent of its total workforce are women and 33 percent of its total
workforce are people of color.

Q2: What types of departmentalization are being used? Explain your choices.
I. Retail Expert
II. Administrative
III. Manufacturing
IV. Sales & Marketing
Q3: What examples of the six organizational structural elements do you see discussed in the
case? Describe.
The six organizational structural elements discussed in the case:
I. Human resource management
II. Financial management
III. Accounts management
 IV. Facilities management
V. Sales management
VI. Supply sales management

Q4: Starbucks has said its goal is to open 1,200 new stores globally. In addition, the company
has set a financial goal of attaining total net revenue growth of 10 to 13 percent and earnings per
share growth between 15 to 20 percent. How will the organizing function contribute to the
accomplishment of these goals?
Organizing creates the framework needed to reach company's objectives and goals. Organizing is
the process of defining and grouping activities, and establishing authority relationships among
them to attain organizational objectives. By planning to open new stores strategically within the
stated years Starbucks can accomplish it’s goal of 1200 new stores globally, and with the growth
of company stores the financial goal for growth of 10-13 percent will be achieved as well.