Ministry of Education and Science of Ukraine

Sumy State University

Department of Management

Term paper
on the subject “Organization theory”
Topic “Analyzing of Starbucks organizational structure”

Student's name Kaliuzhna Sofiia

Group M91an/1y
Superviser Baystryuchenko Natalia

Sumy, 2020
 Content
Introduction 3

1.1 General information about enterprise 4

1.2 Main idea, mission, purpose and values 6

1.3 Target group of Starbucks 8

2. The goals and objectives of enterprise. 10

3. Analyzing of external and internal environment of organization. 12

3.1 External environment……………………………………………………........12

3.2 Internal environment of organization……………………………………........16

4.1 Analyzing organizational structure of Starbucks………………………..........17

4.2 Analyzing organizational culture of Starbucks………………………...……..21

5. Calculation of Starbucks organizational structure effectiveness………………26

6. Adjustment of Starbucks organizational structures…………………………….28

Conclusions……………………………………………………………………….29
References ………………………………………………………………….…….30

2
 Introduction

In this work, according to the topic, should be organizational analysis of

enterprise «Starbucks», like organization based on the knowledge we received
while studying the course «Theory of organization». And also using data from
Internet resources, books, works of other analysts and our personal calculations.
Organizational analysis is the process of evaluating the growth, staff,
operations, and work environment of an organization. Organizational analysis is
beneficial because it allows management to identify weaknesses and then find
approaches to solve problems. Important aspects of organizational analysis include
evaluating external elements that may affect organizational performance.
Organizational analysis also includes a strategic assessment of the organization's
potential and resource base.
The aim of the course work is to determine the idea of enterprise, what is
their target group, their goals and objectives, analyze external and internal
environment of enterprise and organizational structure and understand how
effective work organizational structure of «Starbucks». That’s mean to make a
detailed analysis of the entire enterprise, to calculate the effectiveness using
formulas, etc.
According to the goal, the tasks of the work will be:
 tell about enterprise and their main idea;
 analyze organizational structure of enterprise;
 make detailed calculations about effectiveness;
 to summarize all the calculations and analyzes of the enterprise
«Starbucks».
Accordingly, the goals and objectives of the main part of the course work
consists of three chapters. The general structure of the work is as follows: title
page, table of contents, introduction, main body, conclusion and list of literature
used in writing the work

3
 1.1 General information about enterprise

Starbucks, the American company, which is the largest chain of coffee

houses in the world, that has their own emblem ( Picture 1.1 ). Starbucks
Corporation is a leading global coffee manufacturer, trader and retailer. Its
operations include over 7,300 coffee shops and stalls in the United States and
nearly 3,000 in 34 other countries, with the largest numbers located in Japan,
Canada, the United Kingdom, China, Taiwan, South Korea, the Philippines,
Thailand, and Malaysia. Mexico, Australia, Germany and New Zealand.

Picture 1.1 – Emblem of Starbucks

In addition to a variety of coffees and coffee drinks, Starbucks also has

Tazo teas; pastries and other food products; espresso machines, coffee makers, and
other coffee and tea related items; and music CDs. The company also sells many of
these products by mail and online at starbucks.com. They also sell their coffee to
restaurants, businesses, educational and medical facilities, hotels and airlines.
Through a joint venture with Pepsi-Cola, Starbucks bottles Frappuccino drinks and
Starbucks Double Shot espressos, and also sells them in supermarkets, shops, and
4
pharmacies. Thanks to a partnership with Kraft Foods, Inc. the company sells all
Starbucks coffee and ground coffee at grocery stores and convenience stores. Third
joint venture with Dreyer's Grand Ice Cream, Inc. develops ice cream with
excellent coffee ice cream and distributes it in American supermarkets.
From the only small store that opened in 1971 to the 21st century status of
Coffee Giant, Starbucks revolutionized coffee in the United States and beyond.
More than 50 countries, including Wales, have more than 16,700 Starbucks seats,
which we are sure are not a country. In a particularly turbulent period, in the late
1990s and early August, Starbucks opened a new store every business day. By the
beginning of the 21st century, Starbucks was present in dozens of countries around
the world and operated more than 20,000 stores.

1.2 Main idea, mission, purpose and values.

Starbucks mission slogan: «To inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.»
Starbucks mission statement: make Starbucks the premier provider of the
finest coffee in the world, while maintaining our uncompromising principles while
we grow. The following six guidelines will help us measure the correctness of our
decisions: ensure an excellent working environment and treat each other with
respect and dignity. Take diversity as an integral part of our business. Use the
highest quality standards when purchasing, roasting and freshly delivering our
coffee. Develop enthusiastically satisfied customers constantly. Make a positive
contribution to our community and the environment. Recognize that profitability is
essential for our future success.
Purpose statement: « To establish Starbucks as the premier purveyor of the
finest coffee in the world while maintaining our uncompromising principles while
we grow.»
The power of purpose is not to be underestimated. It gives companies a
competitive edge, not least in the realms of recruitment and employee retention.
5
Employees want to know they are working for a company that is operating for the
greater good — and that, in turn, is good for business. Deloitte found that purpose-
oriented companies have higher productivity and growth rates, along with a more
satisfied workforce who stay longer with them. The research shows that such
companies report 30% higher levels of innovation and 40% higher levels of
workforce retention than their competitors. "People are looking to work with
companies that share their values, that actively express what they're doing to be a
good partner with the world," explains Carol Cone, Founder and CEO of Carol
Cone.
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.»
Starbucks mission, purpose and values are motivated by 74% of Starbucks
employees. In addition to remuneration, the “company mission” is the most
important thing in their work for 16% of Starbucks employees. 8% of employees
say the main reason they stay at Starbucks is because of Starbucks' mission. When
asked who they consider to be the most loyal at work, 21% of employees answered
the question about the mission and vision of Starbucks. Comparable data clearly
shows that a focused mission statement and agreed core company values are vital
to maintaining employee coherence.

6
 1.3 Target group of Starbucks

It's easy to imagine that everyone everywhere should be in the Starbucks

target audience with more than 28,000 brand stores in 75 countries. Why not? The
company revolutionized the concept of a cafe, so customers line up for the pleasure
of paying top dollar for their favorite coffee mix made from high-quality beans,
prepared for every taste and reaching what they like.
Even caffeine-free lovers have their favorite menu items, and, like past
coffee houses, Starbucks has sandwiches, desserts, and other snacks. In truth, the
company succeeded, knowing exactly what its target audience was, and tried its
best to serve these people.
The Starbucks target market is often referred to as rich or highly profitable
(about $ 90,000). That's why every affluent neighborhood has Starbucks nearby.
However, numerous Starbucks cafes are surrounded by middle-income areas where
people do not have such high incomes.
Starbucks demographic segmentation is 25 to 40 years with high incomes,
the second target group is from 18 to 24 years old and belongs to richer families.
Most Starbucks customers own Generation Y, which was born between 1977 and
2000. Psychographic segmentation shows that clients belong to the middle class
and wealthy clients who have received education.
Starbucks marketing strategies are located between mass marketing and
segment marketing; they are aimed at general public. However, they soon realized
industry growth opportunities and developed strategies wider range of market
segments. Starbucks also segmented its markets demographically and
geographically choosing a store location with educated and coffee lovers.
Why? Because these people also have discretionary income and are willing
to spend it on premium coffee drinks. They may not splurge on other things as
7
often as the higher income customers, but they enjoy treating themselves to their
favorite coffee and, sometimes, a breakfast sandwich, snack or dessert to go with
it.
While Starbucks also has regular customers who are black coffee purists,
those people aren't the company's target market. Starbucks courts those who are
willing to plunk down $10 for a snack and beverage without thinking about the
cost.

8
 2. The goals and objectives of enterprise

Starbucks has developed a mission that includes cultural development,

innovation, high performance and responsibility as elements of the company's
values. A corporate mission statement defines the goals of the company.
Starbucks' mission is "to inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time." The company aims to meet this goal
through the development of a culture that embraces acceptance and is supportive of
personal growth. As stated in the company's values, personal growth occurs
through challenge and grows the company as well. This goal of acceptance extends
into the company's diversity and accessibility policies. Company leaders are
developed to lead multicultural teams of individuals with diverse perspectives and
insights that ensure company growth and improved service delivery for customers.
The company seeks to grow relationships with a diverse network of suppliers
through strategic community relationship-building.
Starbucks also strives to be open and sincere in its relationships with
suppliers, employees and customers. This is reflected in the company's mission - to
increase productivity without sacrificing individual and corporate humanity. The
company implements this value as part of its community building policy, which
stimulates the development of the region through investment. Starbucks values are
the best service and responsibility when expectations are not met.
Starbucks has the main objective of increasing its market share as it will try
to expand its sphere of influence in the market and create loyal customers, it will
use more branding to upgrade its image and market itself more of a “Status
symbol” which it already is to a extent and all this helps to achieve another
objective which is to make as much as profit as possible, as they try to increase
themselves as a better brand than their rivals they will face another objective which
is providing better “Customer service” than their rivals. Also most likely they will
have the objective of growing into other countries because believe it or not, they

9
are countries which have little to no outlets of Starbucks and that means a untapped
market which they will try to tap into.
Finally, Starbucks would seek to better or adjust their core values to create
a better more positive cooperate culture

10
 3. Analyzing of external and internal environment of organization

3.1 External environment

Recent market studies show that consumers do not reduce their coffee
consumption. Instead, they switch to lower priced options. This means that a firm
can still influence purchasing power by offering cheaper products.
Starbucks has taken steps to become part of the mobile computer
revolution. He worked with Apple and introduced discount coupons through
iPhone apps. They also try co-branding and cross-selling. Starbucks is well
prepared to take advantage of the smartphone revolution.
US consumers are also increasingly aware of ethics. This means that the
brands they buy from must comply with social and environmental standards in
production. Consumer awareness challenges Starbucks.These are the most obvious
factors affecting a firm’s business. But there are many other factors that need
attention.
I divided and organized these questions according to PESTLE factors.
Below you will find detailed information on how these factors affect your business
for Starbucks.
Impacts of Political Factors on Starbucks
The main political factor is the search for raw materials. This attracted a lot
of attention from Western politicians and countries of origin. For this reason, the
company wants to adhere to social and environmental standards. He is ready to
follow sourcing strategies. This attaches great importance to fair trading practice.
Another consequence is the need to comply with laws and regulations in
countries where Starbucks purchases raw materials. Activeness and increased
political awareness in developing countries have made this necessary.
Regulatory pressure in the US domestic market is also a factor.
Multinationals based in the United States are currently undergoing a more

11
thorough analysis of business processes. The company must also monitor political
stability within the country.Some other factors to consider
 Tax policy
 Employment Laws
Impacts of Economic Factors on Starbucks
The ongoing global economic downturn is a major foreign economic factor
for Starbucks. As I said, this factor negatively affected Starbucks profitability. This
convinced buyers to switch to cheaper alternatives. Since they have not stopped
buying coffee, Starbucks should look for an opportunity here.The company has to
deal with rising labor and operating costs. The inflationary environment and falling
yields cause a lot of stress.
Some other economic factors that may affect Starbucks:
 Local Currency Exchange Rates
 Local economic environment in different markets
 Tax rate
Impacts of Socio-Cultural Factors on Starbucks
As mentioned, Starbucks may offer cheaper products, but you may have to
sacrifice quality. This is the main socio-cultural problem that a startup faces. This
will expand the consumer base, including buyers from the lower and middle
income levels.
“Green” and “ethical chic” consumers are also worried. They worry about
the social and environmental costs of brands. Starbucks needs to know about this
trend.
The baby boomer generation is resigning. This means that the costs of older
consumers will decrease. Starbucks will now have to use Gen X and Millennials as
customers.

Other sociocultural factors to consider:

 Changing family patterns in the US and Europe
 Consumer preferences
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  Change working models
 Lifestyle changes
 The level of education of the population in local markets
 Change in values among the population
Impacts of Technological Factors on Starbucks
Starbucks is in a good position to take advantage of the new mobile wave.
Apple’s partnership with Apple to create app-based discount coupons makes it
easy to navigate the mobile wave.
The company has already introduced Wi-Fi capabilities at its points. The
Internet is important to consumers. Now they can browse the web and work while
sipping Starbucks coffee. This is the added value for the brand. This improves the
overall consumer experience.
Starbucks also allows mobile payments. They test it in pilot places in the
USA.Some other technological factors should be considered:
 The advent of innovative technology
 Biotechnological developments
 Agricultural Development
Impacts of Environmental Factors on Starbucks
Starbucks' many business practices concern activists and international
advocacy groups. Even consumers have expressed problems. Therefore, the
company must take this into account in order to maintain consumer
confidence.Starbucks needs to worry about some other environmental factors:
 Environmental standards
 Environmental disasters in countries producing coffee beans
 Global warming and other environmental issues at the global level
Impacts of Legal Factors on Starbucks
Starbucks needs to make sure that it does not violate any laws and
regulations in the domestic market and in countries where they buy raw materials.

13
Care should also be taken with health authorities setting policies and rules for the
production and consumption of caffeine.
Other factors that may affect the company:
 Introducing more stringent customs and trade rules
 Industry Licensing Rules
The above PESTLE analysis proves that Starbucks has a fairly stable
environment. The main reason for this may be that he works in the food and
beverage industry. This means that consumers can partially reduce consumption,
but will not stop buying completely.
Therefore, since recession is the most important factor, Starbucks must
lower costs and increase value. Thus, he can maintain his consumer base, as well
as gain customer loyalty.

3.2 Internal environment of organization

Starbucks SWOT analysis

The best way to analyze internal environment of organization is using the
method of SWOT analyzing. You can understand all strengths, weaknesses,
opportunities and threats just constructing one graph. In picture 3.1 I make SWOT
for Starbucks.

14
 Strengths
1) Strong Market Position and Global
Brand Recognition
2)Products of the Highest Quality
3)Location and Aesthetic appeal of
its Stores
4)Human Resource Management
5)Goodwill among consumers due to
Social Responsibly Initiatives
6)Diverse Product Mix
7)Use of Technology and Mobile
Outlets
8)Customer base loyalty
Opportinities
1)Expansion into Emerging Markets
2)Expanding Product mix and
offerings
3)Expansion of retail operations
4)Technological advances
5)New distribution channels
6)Brand extension
Picture 3.1 – SWOT analyze of Starbucks
Weaknesses
1)Expensive Products
2)Self-Cannibalization through
overcrowding
3)Overdependence in the United
States market
4)Negative large corporation image
5)American/European coffee culture
clash with that of other countries
Threats
1)Increased Competition
2)Price Volatility in the Global
Coffee Market
3)Developed Countries Market
Saturation
4)Developed Countries Economy
5)Changing Consumer tastes and
lifestyle choices
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 4.

4.1 Analyzing organizational structure of Starbucks

As shown in Figure 4.1 , Starbucks launched a matrix organizational

structure, which is a hybrid structure that includes elements from basic types of
organizational structure, such as functional and regional divisional structures. The
Starbucks organizational structure includes geographic breakdowns into regions
that are considered operational segments.

Starbucks
corporation

CEO Howard Schulz

President Kevin R.
Johnson

USA, Canada China, Europe, Channel

Middle Other
and Latin Asia/Pacific Development
America East and
Africa Teavana
company company
operated company
operated Scattle's
and operated
and Best Coffee
liccnscd and liccnsd
stores linccnsd
stores stores Evolution
Fresh
Digital
Venture
Business

Developing
Business
F
igure 4.1 -Organizational structure of Starbucks
16
 The organizational structure of Starbucks is a matrix structure and is one of
the best examples of a successful organizational structure. The matrix structure is a
combination of several organizational structures. The authority in the matrix
structure follows from several methods.
Employees respond to more than one manager, and messaging occurs in
several ways. Other different types of organizational structures that integrate with
Starbucks' organizational structure are the geographical structure of the unit, the
functional structure, the structure of the team, and the structure of the unit based on
the product.
In the functional structure of the organizational structure of Starbucks,
Starbucks has various groups of employees performing various functions. Human
resources, finance, marketing, sales and so on. This structure is respected in the top
hierarchy of the company. The rules that they apply to all Starbucks cafes.
The geographical structure of the division forms three main regional
divisions, including China and the Asia-Pacific region, America and Europe, the
Middle East, Russia and Africa. In addition, in the United States, units are western,
northwest, southeast, and northeast.
Each Starbucks organizational unit has its own senior vice president, who
oversees things in that unit and is accountable to central management. Thus, each
lower-level manager is subordinate to two managers, a geographical manager and a
functional manager. Each geographic division is flexible enough to develop
products to suit the preferences of people in the field. The division’s product
structure is also part of Starbucks’s organizational structure. This structure divides
employees into different groups in such a way that each group works for its
product. For example, Starbucks has product divisions such as mugs and books,
bakery products such as sandwiches, and coffee and other beverage divisions.
Starbucks' organizational structure also includes a brand-based
organizational unit.
Starbucks owns several brands: Starbucks and Seattle's best coffee, which
produce coffee and other beverages. Teavana, which produces various types of tea,
17
La Boulange, which produces French pastries, Evolution Fresh, which produces
juices, and Tazo tea, which produces tea, herbs, and spices. With this structure,
each division can focus on different products to make them better.
The organizational structure of Starbucks plays a large role in the
development and innovation of its products. The structure of the team is generally
observed at lower levels of organization, for example, in the systems of preparation
and delivery to cafes. This Starbucks organizational team structure helps provide
customers with better, more specialized service.
Advantages of Starbucks organizational structure
The matrix structure that Starbucks follows has the benefits of all the other
organizational structures that make up its structure. First, geographic divisions
allow the company to meet the special needs of different customers in different
countries.
For example, people in some countries like strong coffee, and people in
other countries like the lighter version. Secondly, more productive as they gain a
sense of ownership and belonging. Thirdly, the product division allows each
division to focus on its product and work on its development and innovation.
Functional units make work smoother, faster and more reliable, as
specialists do the work, and the likelihood that they will make mistakes is minimal.
Finally, the matrix structure allows the company to effectively use its human
resources, hiring them for more than one task.
Disadvantages of Starbucks organizational structure
Like the advantages, the Starbucks matrix structure also accumulates the
disadvantages of all other organizational structures in it. Firstly, the matrix
structure creates a situation in which an employee must answer immediately to two
heads, functional and geographical managers.
Such duplication of authority can be harmful and confusing for employees.
Because they must decide whose orders to follow and whose work should be
prioritized. Functional structure means that each department performs its function.

18
 Lack of coordination between them can be harmful for the company, since
no one knows what the other is up to and what he needs.
4.2 Analyzing organizational culture of Starbucks

«The Starbucks culture believes there is only one organizational chart that
truly matters to a consumer-first business, and that one has only employee
symbolically reporting to the real boss - customer»
Starbucks is committed to an entrepreneurial strategy that must be
successful and collective, and must achieve results. Starbucks management
provides its corporate culture a lot of time, which is why only the best should work
there.

CEO
Howa
rd

Schult
Board ofzdirectors

Upper Management

Regional (Middle) Managers

Store Managers

Shift Supervisors

Clerk Supervisors

Baristas

Figure 4.2 – Starbucks organizational hierarchy

The lowest level of the company’s structure is the barista, a person who
works directly with guests, makes coffee and other drinks, and also maintains

19
cleanliness in the hall ( Figure 4.2 ).Then comes the shift supervisor. These people
monitor the safe, solve organizational issues, help their employees, are responsible
for ensuring that the whole shift goes smoothly, and are responsible for the waiters
and the coffee house as a whole. The shift superiors report to the deputy manager
and the manager himself, and those, in turn, report to the territorial managers.Such
a structure is tempting for the younger generation, since rapid growth is possible
along the career ladder. Company policy motivates young and energetic people to
work hard. coffee shop entrepreneurship staff competency.
Starbucks is constantly trying to motivate its employees. Thanks to a
variety of events that take place almost every week, a person realizes that he is part
of something whole. An exchange of experience takes place, valuable tips are
given on how to make your work even more enjoyable and efficient. For example,
partner forums are held regularly. They award the best, treat them with delicious
food and prepare the best coffee drinks. After such events, a person realizes that
they care about him, respect him, and try to work as much as possible.
There are also other ways to motivate staff, these include all kinds of
checks, such as audit Shoppi. It is held every month and consists in the fact that
every coffee shop is visited by a secret guest and checks the level of service, the
cleanliness of the coffee shop and the qualifications of those who work there. He
asks questions about coffee, about products, orders the most complicated drinks
and waits for a conversation to be opened with him. He also controls how the
cashier works, whether he clearly states the amount of the order and the amount of
change. In the event that the employees passed the secret guest well, they are given
bonuses, all kinds of awards, the whole company is told about them. If the barista
turned out to be incompetent, then various fines and sanctions follow, which can
even lead to dismissal. Thus, every employee of the coffee shop knows that any of
the guests can be a secret check. But no one suspects when he will come, and what
he will look like. Such inspections motivate company employees to always work
with full dedication, fulfill all the requirements of the company and do something
beyond that.
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 Starbucks always strives to support its employees in their endeavors. In
addition to moving up the career ladder, there are many programs to increase the
level of knowledge in various fields of activity. One of the most entertaining is the
Coffee Master. Employees of all coffee houses are united in groups, then master
classes are held. After all this, time is given for self-training and it all ends with the
fact that employees pass a special test that checks the level of knowledge. Those
who successfully pass the test are honorably presented with a black apron (usually
everyone wears green), and these workers are hailed as people who know
everything about coffee. This program is an example of non-material motivation,
because no monetary rewards are issued for this. An employee becomes the person
to whom they will first seek help and advice, the opinion of which will be
respected and appreciated. Of course, it’s easier for coffee masters to upgrade their
positions, as managers realize that such people are ready to devote all their time
and energy to the company, which is very much appreciated.
Of course, the company has problems. For example, staff turnover.
Usually, students who want to earn some money, but also study, also go to the
position of waiters. Since young people form the basis of the workforce, here the
company's management makes concessions and offers a flexible work schedule.
The bosses are always happy to help draw up a convenient schedule, free up the
necessary days, adapt working hours to the study schedule. Thus, the company
shows that every person who works for her is important to her. Another plus -
Starbucks does not accept formal appeals. Regardless of their position, employees
call each other by name. A friendly, positive atmosphere sets people in a positive
mood. Management always welcomes new creative ideas for creating coffee
drinks, decorating the hall, and conducting non-business events.
Starbucks has a green booklet called The Green Apron Book, which lists
guidelines common to all employees.
1. Self-awareness. The success of a company depends on the distinctness
and honesty of the idea of who the company is and who is not, what it wants to
achieve and how.
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 2. Understanding goals: do what is right and not what is good for a career.
The path to success begins with action for the right reasons. If a person does not
know what he wants to achieve, and everyone else does not strive for the same,
then one cannot succeed at this rate.
3. Independence. People are not "personnel", but still people who are
capable of incredible deeds and accomplishments. The company must get rid of the
rules - written and unwritten - and encourage independent thinking in themselves
and in others.
4. Sensitivity: care must be sincere. Sensitivity is a sign of strength, not
weakness, and it must be genuine both within the organization and in relation to
customers.
5. The ability to hear the truth. If the manager listens to his employees, then
he can understand what exactly the customers want and where the enthusiasm of
the employees has disappeared, and he will be able to find a solution to these
problems.
6. Frankness. It is necessary to say what should be said, with all
responsibility for their words, attention and respect for the listener. Do not hide
anything, do not lie, do not keep silent about anything and do not shy away from
the answer.
7. Activity. It is necessary to find the optimal ratio of enthusiasm,
determination and constancy. Feel, act, think.
8. Confronting difficulties. Even in difficult times you need to be guided by
the same principles as always, to do what you can. But we must remember that
people should always be in the first place.
9. Authority. Leadership style can be loud. We must not forget that
managers are also people who carry out their work.
10. Bold dreams. Bold dreams are great goals, great hopes and joys. A
person should be happy about what he is doing and help others to experience this
joy.

22
 If we look at Starbucks in terms of typologies of organizational culture of
Charles Handy, then, in my opinion, we can attribute it to the Raleigh culture
(Apollo culture).
In this culture, the basic assumption is "tomorrow will be like yesterday."
Thanks to this, all previous experience is carefully analyzed and based on it, a
comprehensive set of rules and roles are developed that clearly describe what and
how to do.
10. Bold dreams. Bold dreams are great goals, great hopes and joys. A
person should be happy about what he is doing and help others to experience this
joy.
If we look at Starbucks in terms of typologies of organizational culture of
Charles Handy, then, in my opinion, we can attribute it to the Raleigh culture
(Apollo culture).
In this culture, the basic assumption is "tomorrow will be like yesterday."
Thanks to this, all previous experience is carefully analyzed and based on it, a
comprehensive set of rules and roles are developed that clearly describe what and
how to do.

23
 5. Calculation of Starbucks organizational structure effectiveness

Assessment of effectiveness is an important element of the rationality

analysis of the organizational structure, which allows to determine the level of
progressiveness of the current structure or projects of planned activities that are
designed and carried out with purpose to find the most rational version of the
structure or the way to improve it.
Firstly we need to calculate Coefficient of effectiveness of management
organization structure (Cе), is determined by formula:

where Fr – final result obtained from functioning of the organizational

structure of management and equally 26,508,600 $ (data of 2019 year)
Cm – management costs (wage fund, costs on premises maintaining,
purchase and repair of office equipment, reception and transfer of management
information and equally 19,020,500 $ ( data of 2019 year ).
Cе = 26,508,600/19,020,500 = 1,39368576
Than calculate effectiveness of the work of the administrative apparatus is
calculated by the formula:

where Рs – volume of sold products in value terms, that equally 15,908,500

$
Na – number of employee of administrative apparatus that equally 346,000
people
Cem= 15,908,500 / 346,000 = 45,9783237
Than calculate reliability that is characterized by no-failure functioning of
administrative apparatus and is determined by reliability coefficient:

24
 where Nun – number of unrealized decisions that equally 346
Ntot – total number of decisions taken in unit or organization that equally
2500
Cy= 346/2500 = 0,1384
In the end, we can make conclusion by making all the calculations that the
organizational structure, selected for this company, performs its functions
effectively, since all the factors that we calculated are not negative.

25
 6. Adjustment of Starbucks organizational structures

Of course, all organizational structure has their disadvantages, as well as

advantages. One of them is overload of top leaders. Firstly, the matrix structure
creates a situation in which an employee must answer immediately to two heads,
functional and geographical managers.
Such duplication of authority can be harmful and confusing for employees.
Because they must decide whose orders to follow and whose work should be
prioritized. Functional structure means that each department performs its function.
Lack of coordination between them can be harmful for the company, since
no one knows what the other is up to and what he needs.
Another problem that has organizational structure of Starbucks is staff
turnover. A lot of students come there for work just for some months. It’s better to
have qualified employees that will work for a regular basis. It may create an
impression that there will be no career growth in this work.
Finally I can say that their organizational structures work smoothly and
efficiently.

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 Conclusion

Finally, in this course work we analyze the idea of enterprise, what is their
target group, their goals and objectives, analyze external and internal environment
of enterprise and organizational structure, understand how effective work
organizational structure of «Starbucks».
In general, we can say that Starbucks Corporation is huge company with
more than 20,000 stores all over the world. They have their main idea which
corporation follow all the time - use the highest quality standards when purchasing,
roasting and freshly delivering their coffee.
Analyzed their external and internal environment understand that they also
have disadvantages, as well as advantages. For example , prices of product are
above the average market price. That’s why they have competitors , but Starbucks
Corporation is still leading on the market, because quality of coffee equal to the
price.
As about effectiveness of their organizational structure - it completely suits
them and corporation develops and enters on a new level.

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