1- Make a list of Starbucks’ goals. Describe what type of goal each is.

A- The expanding goals:The company’s goal for 2014-15 is 1,500 net new stores (new stores
opened minus existing stores closed)

b- The financial goals include revenue growth of 10 percent to 13 percent and earnings per share
growth of 15 percent to 20 percent

c- the quantitative/fiscal goals: Starbucks focuses on continuing to develop new

coffee/tea/juice/bakery products in multiple forms and staying true to its global social
responsibilities

d- The Stated goals : Starbucks’ ambition is to rank among the world’s most admired brands and
enduring companies through its “laser focus on disciplined execution and robust innovation” and
to maintain Starbucks’ standing as one of the most recognized brands in the world.

2- Discuss the type of growth strategies that Starbucks has used.

Starbucks are continuing to grow it company and come up with new,

better ways to make your experiences better at Starbucks. But
Starbucks is not just a coffee house anymore, its a brand. From coffee
drinks to expresso makers, Starbucks is always looking for new ways
to grow their business. When Starbucks came up with the "Starbucks
Card" it became a huge success, this product is now being sold in
countries such as Mexico, Australia, Hong Kong, Thailand, Greece
and Great Britain. Know since they have conquered the world in
coffee, they are now trying to sell music. Customers liked the music
that they where playing in their stores they started asking for copies of
the disc's. Know Starbucks sells a number of artists CD's right in front
of the cash register and they don't just sit their collecting dust. The
store plays what they sell so customers know what they are buying.

3- What type of plans would be needed in an industry such as this one? (long-term or short-term
or both? Explain why?

4- What types of departmentalization are being used? Discuss explaining the degree of
centralization and decentralization used in the case.

The types of departmentalization are being used :

1. Functional structure
2. Geographic divisions
3. Product-based divisions
4. Teams

Functional Structure. The functional structure feature of Starbucks Coffee’s

organizational structure refers to grouping based on business function. For example,
the company has an HR department, a finance department and a marketing
department. These departments are most pronounced at the top levels of Starbucks
Coffee’s organizational structure, such as at the corporate headquarters. This
feature relates with hierarchy in the organizational structure of Starbucks. For
instance, the corporate HR department implements policies applicable to all
Starbucks cafés. The functional structure feature of the firm’s organizational
structure facilitates top-down monitoring and control, with the CEO at the top.
Geographic Divisions. Starbucks Coffee’s organizational structure also involves
geographic divisions. At present, the company has three regional divisions for the
global market: (a) China and Asia-Pacific, (b) Americas, and (c) Europe, Middle
East, Russia and Africa. Also, in the U.S. market, Starbucks Coffee’s organizational
structure involves further geographic divisions: (a) Western, (b) Northwest, (c)
Southeast, and (d) Northeast. Each geographic division has a senior vice president.
In this way, each Starbucks manager reports to two superiors: the geographic head
(e.g. President of U.S. Operations) and the functional head (e.g. Corporate HR
Manager). This feature of Starbucks Coffee’s organizational structure supports
closer managerial support for geographic needs. Each division head is given a high
degree of flexibility in adjusting strategies and policies to suit specific market
conditions.
Product-based Divisions. Starbucks also uses product-based divisions in its
organizational structure. These divisions address product lines. For example,
Starbucks has a division for coffee and related products, another division for baked
goods, and another division for merchandise like mugs. This feature of the firm’s
organizational structure enables focus on certain product lines. In this way,
Starbucks effectively develops and innovates its products with support from its
organizational structure.
Teams. Teams are used in different parts of Starbucks Coffee’s organizational
structure. However, teams are most notable at the lowest organizational levels,
particularly the Starbucks cafés. In each café, the firm has teams organized to
deliver goods and service to customers. This feature of Starbucks Coffee’s
organizational structure enables the company to provide effective and efficient
service to consumers.

The organizational structure of Starbucks is decentralized in

nature. The basic principle of the structure is that the company
provides decision making power to each manager. Starbucks has
large number of physical stores that are located all over the world
thus a large number of employees are also there. Each store has its
own manager, authority and a set of customers so each store can
have its own set of rules and regulations. This provides a greater
flexibility and freedom to the employees that encourage them to
work more efficiently

ADVANTAGES
· The decentralized structure of the organization is efficient as it
saves time, money and it has improved the communication
process of the company as well.
· The decision making procedure has highly improved and thus it
has reduced the waiting time or the time lag in taking any decision
about the company.

· The mangers of the store remain closer to the customers and

according to Bill Gates the executives who stay closer to their
customers can respond faster to the changing customer demands
and can take decisions at a faster rate.

STARBUCKS has decentralized authority because they created decision-making for each manager. There
are also lots of stores around the world and each store has different from the authority, managers, and
customers. So STARBUCKS will be an organization and its employees to behave in a flexible way even as
the organization grows and becomes taller. This is the way managers are so interested in empowering
employees: if they work good, they can get good position, and establish cross-functional teams. They
are used to improve communication between the employee group who is responsible for the product
and the group who provides the specific functional skill. For example STARBUCKS’ cross-functional
teams could be someone from one department being responsible to work with an identified person in
making to sell the product: each department within STARBUCKS will know the details of business
activities in the other departments.