Starbucks is no doubt a brand name in the United States and beyond. In fact, the Company is ranked the largest coffeehouse globally. The organization, whose name is synonymous with quality coffee, has made a name on the international scene for various reasons; more especially the fact that it has engaged in a number of strategic alliances, and the prominence it gives to teamwork in its internal environment.
Effective Work Groups and Teams
Speaking of teams, Starbucks encourages the existence of both formal and informal teams in the workplace (Pahl, 2008). The company appreciates the importance of teamwork, which is among the leading contributory factors in its growth over the years. It is largely argued that informal groups are no doubt more effective than the formal teams. This approach is considerably effective because, generally speaking, informal groups breed more effective leaders than the formal ‘forced’ relationships. Through both the formal and informal teams, the company has managed to propagate diversity in its working environment. However, the company should concentrate more on promoting informal teams and work groups. To improve this approach, the company should consider introducing delegation. Delegation creates stronger teams as it creates transformational leaders.
Power, Politics and Negotiation
Much like all other organizations, Starbucks does not exist in isolation. The organization exists in a society with which it must interact. In interacting with the society, Starbucks participates in politics and other social phenomena. Recently, the CEO Howard Schultz has had a difficult time explaining why the organization had endorsed a gay marriage bill. This is a good example of how the company participates in promoting the growth of the society through taking part in political issues that affect the society in one way or the other. The power of the organization ultimately rests with the shareholders, who communicate with the management through the annual general meetings. The shareholders control the organization through the board of directors, who are the main decision makers within the organizational hierarcgy. Speaking of negotiation, the organization has entered into a number of negotiations with other market leaders such as Barnes & Noble, US Airways and PepsiCo for strategic purposes (Simon, 2009). The organization’s approach to politics and social inclusion is quite effective as it reaches out to the potential customers through social responsibility.
Effective Communication in the Organization
Starbucks uphold the presumption that communication is the foundation of good relationships. The organization upholds the paramount nature of communication. For this reason, the organization adopts a flat organizational structure. This structure is one with no unnecessary hierarchies and bureaucratic red tape management (Gilbert, 2008). This structure is coupled with flexibility and participative approaches to reduce the distance between management and employees. For the customers and potential consumers, the organization has twitter and Facebook pages through which it interacts with customers (Schultz & Gordon, 2011). Additionally, all Starbucks outlets are equipped with Wi-Fi connections. These allow the customers to access the internet without much hassle for proper communication. This communication strategy is quite effective and I would not recommend any changes as the communication strategy has incorporated both technology and human factors.
Gilbert, S. (2008). The story of Starbucks. Mankato, MN: Creative Education.
Pahl, N. (2008). The idea behind the Starbucks experience: The main elements of Starbucks' strategic diamond. Munchen: GRIN Verlag.
Schultz, H., & Gordon, J. (2011). Onward: How fighting for what we believe reignited Starbucks. Emmaus, Pa: Rodale.
Simon, B. (2009). Everything but the Coffee: Learning about America from Starbucks. Berkeley: University of California Press.