Corporate communication

COMPANY: STARBUCKS
1. Vision, mission, and values (write as it is)
Starbucks Mission
To inspire and nurture the human spirit – one person, one cup, and one
neighborhood at a time.

Starbucks’s vision
To establish Starbucks as the premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we grow

Starbucks Values
With our partners, our coffee, and our customers at our core, we live these values:
 Creating a culture of warmth and belonging, where everyone is welcome.
 Acting with courage, challenging the status quo, and finding new ways to
grow our company and each other.
 Being present, connecting with transparency, dignity, and respect.
 Delivering our very best in all we do, holding ourselves accountable for
results.
 We are performance-driven, through the lens of humanity.

2. Logo: (journey of logo, image from Google)

3. Organisation structure:
Organizations have traditionally been organized with centralized leadership and a
well-defined chain of command.
In a centralized organizational system, each function has extremely clear
responsibilities, with junior roles relying on their superiors for guidance.
For example, the company's chief officer is a higher-ranking employee than an entry-
level associate.

Functional structure
It is often known as a bureaucratic organizational structure, which divides a
corporation into departments based on the specialization of its employees.

The functional organizational structure creates a fixed set of departments based on

certain functions like HR, accounts, marketing, etc. It segregates the workforce based
on the requirements of each department. For example, an accounting
department will employ accountants and work to manage the firm’s finances in the
best possible manner.
Likewise, the HR department will look after the recruitment, payroll, and
administration of the firm. Moreover, the functional OS allows the employees to
work in a particular functional role without worrying about the other departments.
So, for example, a sales executive won’t be worried about a firm’s accounting work
and vice versa.

Divisional or Multidivisional Structure

The second type is common among large companies with many business units.
Called the divisional or multidivisional (M-Form) structure, a company that uses this
method structures its leadership team based on the products, projects, or
subsidiaries they operate. A good example of this structure is Johnson & Johnson.
With thousands of products and lines of business, the company structures itself, so
each business unit operates as its own company with its own president.

Hierarchical
This is a type of centralized organizational structure. There is a hierarchy of workers
with leaders at the top, the workers below, and supervisors placed in between to get
the work done. It is more of a linear OS where the delegation of power emanates
from the top management. It is a widely popular form of OS and is seen in
companies like Amazon.
This system concentrates decision-making at the top level. As a result, the
organization lacks creativity as innovative ideas must work their way up through
various levels of management. Also, each employee communicates with their
immediate superior and subordinates only. This reduces coordination at various
levels of power and departments. Nevertheless, it is a salient feature of most
government organizations.
 (Question: can an organization have two organizational structures?) coz Starbucks
has both functional and matrix structure

Starbucks’ Organizational Structure

Starbucks utilizes a matrix organizational structure that combines several functional and
product-based divisions. This means there are multiple overlapping divisions and reporting
structures within the organization, which makes sense considering its size and global
presence.
Ultimately, Starbucks is controlled by a board of directors and the overarching functional
hierarchy, which is one of the three main elements that make up Starbucks’ overall
structure. The other two are product-based divisions and geographic divisions.  

Functional Hierarchy. The functional hierarchy feature of Starbucks’s organizational structure refers
to grouping based on business function. For example, the coffee company has an HR department, a
finance department, and a marketing department. These departments are most pronounced at the
top levels of Starbucks’s corporate structure, such as at the corporate headquarters. This
characteristic is hierarchical. The corporate HR department implements policies applicable to all of
the company’s cafés. The functional hierarchy of the corporate structure facilitates top-down
monitoring and control, with the CEO at the top. Functional groups are responsible for the
organization-wide development and implementation of Starbucks Corporation’s generic competitive
strategy and intensive growth strategies.
 MAIN: An organizational structure is a system that specifies how specific activities are
carried out to achieve a strategic goal.

Starbucks, one of the world's largest and most popular café chains with tens of thousands of
locations in 70 countries, employs two types of organizational structures.

1. Organizational structure:
 It combines several functional and product-based divisions.
 Multiple overlapping divisions and reporting structures are there within the organization
 It is controlled by a board of directors and the overarching functional hierarchy

2. Functional Structure
 It is a structure where grouping is done based on business function
 For example, Starbucks has an HR department, a finance department, and a marketing
department
 It facilitates top-down monitoring and control, with the CEO at the top.

Image: https://fourweekmba.com/starbucks-organizational-structure/
 4. Type of communication in the company:
The four main types include upward communication, downward
communication, lateral communication, and external communication. 
https://smith.ai/blog/types-of-business-communication#:~:text=The%20four
%20main%20types%20include,lateral%20communication%2C%20and%20external
%20communication.

(According to the organizational structure, which is hierarchical, the communication

will be downwards. But the doubt is that along with downward, external, lateral, and
internal communication also happens. So, can several types of communication exist?
Or it must be only one?)

Starbucks’ Functional Hierarchy

In a functional hierarchy, departments are grouped according to business functions. Examples of
business functions might include marketing, business operations, and product. 
At Starbucks, most of the day-to-day decision-making is centralized in this functional hierarchy,
which is led by the CEO and includes the heads of the company’s functional departments, product-
based divisions, and geographic divisions who exercise top-down control over the departments and
individuals below them.

MAIN:
At Starbucks, most of the day-to-day decision-making is centralized as it follows the
functional hierarchy. It means decisions are taken by the CEO along with the heads
of the company’s functional departments, product-based divisions, and geographic
divisions who exercise top-down control over the departments and individuals below
them. Thus, it follows the ‘Downward Communication’.

Downward communication refers to the exchange of information from the top of an

organization down to lower levels of the organizational hierarchy. 
Figure 1 crop this image from upwards

MAIN: TARGET MARKET

It's easy to assume that "everyone" enjoys coffee, but Starbucks' target market is a
specific demographic. its target audience includes:

 Both males and females,

 It focuses on the ones who are in age group of 22 to 60 years
 It focuses on the ones who are mostly tech-savvy and highly educated
 It focuses on middle to high-income office employees looking for premium quality
products
 It mainly targets urban customers.
 5. Target market and customers:
Who is The Target Market for Starbucks?
It’s easy to postulate that “everyone” loves coffee, but in fact Starbucks target
market is a particular demographic. So, who is Starbucks’ target market, really?

Starbucks markets to both males and females, in a wide age group of 22 to 60 years,
with a focus mostly on urban and suburban centres. The target market is relatively
affluent – middle and upper class – as well as educated, socially aware, active and
busy.
Starbucks' target markets focus on middle to high-income office employees looking for premium
quality products. Since Starbucks has chains internationally, the company makes local delights
showing cultural characteristics among customers. Besides locals trying out local treats offered by
Starbucks, tourists traveling to countries and visiting a Starbucks chain can try the country's local
food through the products that they have.

The Starbucks target market is specific. It consists of the rising middle class that can comfortably
purchase slightly high-priced quality beverages between the ages of 22 to 60. There is also the tech-
savvy teen audience and the middle-aged demographic using smartphones to make life easier. 

Starbucks Target Market: -

Starbucks is a premium coffee brand that targets affluent customers mainly.

It mainly targets urban customers.

The brand has positioned itself as a premium brand that offers a premium coffee experience.

Apart from excellent quality coffee, its elegant stores offer the space customers need to relax and
enjoy their cup of coffee.

The focus of the company is not just on the product but on the entire experience.

The company trains its baristas to offer best-in-class customer service.

Its customers are mainly in the 25 to 40 age group which includes high-wage earners. 

Customers in the 18-24 age group are also an important target segment for Starbucks.

However, these are urban customers from affluent families.

Its customers are mostly tech-savvy customers that are also highly educated.

6. Stakeholders
https://panmore.com/starbucks-coffee-stakeholders-csr-analysis

https://www.howandwhat.net/stakeholders-starbucks/
MAIN:
A company’s shareholders are the people and organizations who invest in it and share in the
benefits or losses of ownership. Starbucks has many different stakeholders, it can be
categorized as Internal stakeholders and external stakeholders

(A) Internal Stakeholders

1. Customers:
most important stakeholders of Starbucks as they buy products and provide the
revenue and furthermore, they provide feedback on their Starbucks experience.

2. Employees:
Another important internal stakeholder of Starbucks.
Their performance affects how successful Starbucks is by doing their job

3. Suppliers:
Starbucks has tons of suppliers around the world which includes farmers, traders
and roasters.

(B) External Stakeholders:

1. Competitors:
one of the most significant external stakeholders of Starbucks which affect the
sales of the company
Examples of external stakeholders are Dunkin’ Donuts, McDonald’s, and Caribou
Coffee

2. Local communities:
Opening a new store can have a negative impact on the community because the
local coffee shops may have to close. Thus, it is important to consider the impact
on the local communities.

3. Government:
It is also affected by the government of the country in which it operates. It must
abide by the rules and regulations, tax, and other relevant issues.

4. Activist groups:
Starbucks has been the target of activists who have protested outside its stores
for various reasons, including human rights, union issues, and animal cruelty.
7. USP

Starbucks is known for its commitment to tailor-made high-quality coffee, “We’ll always make
it right”.

The unique selling proposition for Starbucks is simple enough: “Love your beverage or let us
know. We’ll always make it right”. Starting off as a small coffee shop in Washington, Starbucks
had a long way to go to become one of the most recognized brands in the world. However,
they managed to accomplish their goals by choosing an important unique selling point.

Starbucks don’t define themselves as the cheapest, most luxurious coffee around. Instead, they
focus on drilling down into the ultimate desire of all coffee connoisseurs – finding their perfect
beverage. Yes, Starbucks source high-quality beans, and they are known for their luxury.
However, the main driver behind their success is the fact that they make your drink to your
standards. No exceptions.

They don’t want to be known as a coffee, sandwich, and beverage establishment. Instead, they
focus on being the coffee shop that offers premium coffee, but also other items that you may
want while grabbing your cup of brew.
What makes them stand out from their competition is that they focus solely on premium coffee
beverages instead of also having the lowest prices

MAIN:
“Love your beverage or let us know. We’ll always make it right” - Starbucks
The unique selling proposition for Starbucks is simple enough: High-quality coffee

They focus solely on premium coffee beverages instead of also having the lowest prices

Starbucks makes the drink as per your standards. No exceptions.

They are known for their luxury.

 8. CSR
https://www.starbucks.in/null

Figure 2 crop a little from below

MAIN
Some of the CSR Activities done by Starbucks are:
1. Empowering Girls and Young Women
Starbucks believe that EMPOWERING GIRLS AND YOUNG WOMEN, is an equitable step towards
building a society that creates equal opportunities for education of girls and skill development of
young women.

Their aim: Improve lives of 2000+ girls and young women every year, by supporting their learning
and skilling journey. These girls are based out of rural and educationally backward villages across
20 districts of Rajasthan, Madhya Pradesh, and Uttar Pradesh.

2. CHAI Project

Community, Health, and Advancement Initiative (CHAI) is the only organization working
with tea estates in Northern India to enhance the standard of living.
Starbucks has collaborated with CHAI to help improve the quality of life for 190 tea and
botanical communities in a sustainable way.
Results to Date
Overall: More than 75,000 people and their families have been directly impacted by CHAI.
3. Swastha

Starbucks in collaboration with Tata supports the expansion of 'Swastha,' a school for
children with special needs, and aims to increase its capacity and outreach into the rural
communities in the coffee-growing region of Karnataka.
 9. Crisis communication
https://www.linkedin.com/pulse/starbucks-crisis-management-analysis-report-2018-
gauri-shukla

10. Branding, advertising, and marketing under CC:

https://www.linkedin.com/pulse/starbucks-communication-tools-explained-joan-
mutinda

https://research-methodology.net/starbucks-marketing-communication-mix/
#:~:text=Starbucks%20marketing%20communication%20mix%20consists,public
%20relations%20and%20direct%20marketing.

https://www.studeersnel.nl/nl/document/hogeschool-tio/corporate-
communication-management/corporate-communication-starbucks/4491309
MAIN PDF

11. Communication cell, legal cell, and employee’s welfare: no information, write your
imaginary statements

The communication cell is responsible for maintaining internal and external communication
happening in the company. https://www.northeastern.edu/graduate/blog/what-is-
corporate-communications/

The legal cell is responsible for https://www.mylawquestions.com/what-does-the-legal-

department-of-a-business-do.htm
https://www.dilitrust.com/what-is-the-role-of-the-legal-department-within-a-company/
#:~:text=The%20legal%20department%20is%20the,considered%20the%20company's
%20legal%20counsel.
Employee welfare department is responsible for
https://zoetalentsolutions.com/what-is-employee-welfare-how-do-you-manage-it/
#:~:text=Employee%20welfare%20refers%20to%20all,plans%2C%20and%20other
%20support%20services.
EXTRA: