Question
As a successful company around the worldStarbucks have a suit of wonderfulc controllingsystem for the employees and better to leading the all of stores in
As a successful company around the worldStarbucks have a suit of wonderfulc controllingsystem for the employees and better to leading the all of stores in the sames standards The good controlling mechanism could monitor progress towards goala achievement and taking corrective action when progress isn't being made.
Starbucks sets up the high quality of products and services as the standard. Starbucks'
brand is famous for the best baking coffee beans in the world. They have the
professional procurement system and always travel around Indonesia, East Africa and
Latin America to communicate with local farmers and traders. The all kinds of coffee beans undergo a vigorous process to become the different tastes coffee, like latte, cappuccino.
Except for the high quality, Starbucks owned a suit of training plan for the all of
employees. Dave Olsen said he was very busy in 2001, because he is training each
person for 1 hour around the world. He wants to teach them the most professional
service for coffee. For example, the milk which makes with latte should heat up to 150
Fahrenheit degree, but cannot over 170 Fahrenheit degree. He supports the employees
try to heat up to 190 degree and taste by themselves to feel the customers' thinking. It is
a good way to make them know the importance of their behaviors. It is kind of normative
control which is the regulation of workers' behavior and decision s through widely
shared organizational values and beliefs (McWilliams, W., 2012).
In order to ensure quality, Starbucks try to hold the four principles: Refused to
franchisee; refused to sell the processed coffee beans; refused to enter the
supermarket; do the most perfect baking as the goal forever.
First, Starbucks doesn't use franchising. They want to control over the high quality and
do not affected by the new business operation of franchising buyers. It is reasonable to
worry, because some of franchising owners consider using the brand effect in the
market and decrease the high standard to get the huge profits suddenly. In addition,
Starbucks doesn't sell the coffee beans which add the artificial flavor or color. They
can't stand to use the chemical flavoring to destroy top-grade coffee. For the same
reason, they refuse to enter the supermarket though the super market is a bigger
market to compare with the general store. However, they do not accept the fresh coffee
to fill into the plastic container cause to change the tastes.
Because of the four principles, Starbucks lost some of chance to extend their brand.
The founder of Starbucks Schultz finds the weak side in the competition. Then he
changes his mind and makes the adjustment based on the four principles. For
examples, Starbucks enter the supermarket in 1997 and provide the low fat milk to
make the coffee drinks. Though he worry about the supermarket is a consumption
environment which does not control the quality by their company, it is a best way for the
retail. In fact, the decision is right because supermarket helps to reduce the costs and
takes them huge volume of sales. For the customers of demand, they create new
coffee drinks which use the low fat milk to make and it is suitable for the people who
want to lose weight. Nowadays, more and more Starbucks' products are to appear in
supermarket, such as juice and snack (Venessa, W., 2013).
Though Starbucks change some of principles for the market trend, they still do not give
up the high level controlling in quality. For example, more and more Starbucks stores
join venture with other companies to operate in China; however, Starbucks still hold the
biggest share. In Singapore, Starbucks try to limit the branded shops in 10%. The all of
actions showed the high controlling in the Starbucks. Sticking to the right principles and
comparing with the actual effect to make change. It is Starbucks high-grade controlling
ability.
QUESTION:
1. Briefly discuss the controlling strategies of Starbucks.
2. Based on this article, what is "Starbucks Standards"? And what did they do to maintain
these standards?
3. Starbucks introduced the Four Principles. In your perspective, was it
effective/successful? If you were in their shoes, what could you have done differently to
make controlling much more effective/successful?
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