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Redesigning Organizational Processes: A Case Study of Starbucks

Redesigning Organizational Processes: A Case Study of Starbucks

Starbucks is the targeted company APA Style with numbers in the corner (references and citations)

Examine and describe the processes involved with how your chosen organization redesigned their internal organizational processes.

Examine and describe how your chosen organization redesigned their external organizational processes to competitively position themselves in the external environment.

How did your chosen organization realize its competitive advantage?  Has your chosen organization realized a competitive advantage?


1. Introduction

Starbucks Corporation, the largest coffeehouse company in the world, was formed in 1985. The company is an American company that was started in the town of Seattle by three partners: Zev Siegel, Jerry Baldwin, and Gordon Bowker. Currently, the company offers more than 36 different blends and single origin coffees and has expanded to more than 30 countries. Starbucks also offers food and other beverages besides coffee. The company has enjoyed a great amount of success since it began in 1985. Since the company went public in 1992, the Starbucks stock price has increased drastically. In the mid-1990s, the company began to expand rapidly by opening the doors to its first international store in Tokyo, Japan. This act became a cornerstone for the company’s strategy to expand globally. Besides that, Starbucks reached an important milestone in 2010 by reaching 10,000 Starbucks stores worldwide. The mission of Starbucks is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. This shows that Starbucks is not just a profit-driven company as it has always been concerned with social and environmental issues. Starbucks has also been recognized and awarded for its effort in social responsibility. For example, in 2011, Starbucks was awarded the CARE, Companies for Responsible Business Award recognition for its global responsibility report. However, just like many other successful companies, as the business continues to grow, it faces increasing operational complexities. Also, rapid changes in consumer preferences and the competitive nature of the industry further intensify the challenges. As such, it is crucial to re-evaluate the processes and strategies periodically so that the company can stay competitive. With this in mind, the purpose of this case study is to analyze and provide recommendations on how to redesign six specific internal organizational activities that focus on changes due to both internal and external factors.

1.1 Background of Starbucks

Starbucks Corporation was founded in 1985 and in less than three decades, it has achieved the status of one of the world’s biggest and most well-known organizations, not just in its industry, but in the global trade. From very humble beginnings in 1971 in Seattle to 16,858 stores at the end of 2008, it has a competitive advantage over other companies. The Redesigning Organizational Processes: A Case Study of Starbucks conducted on the Starbucks brand all over the world and its outcomes have been effective just because of the strategies and internal and external approaches chosen for the case study are reflective of the company’s present projects. Starbucks has turned into a great example for learning for a variety of reasons. For instance, the systems are so effective and specific that other companies would benefit greatly from utilizing comparable systems. Moreover, Starbucks is so big and has multiple operations and divisions in several nations. This specifically allows the analysis and outcomes to be reflective of a big business that has both traditional and contemporary systems in place. Also, the distinct cultures. This present paper would revisit the internal and external redesign concepts in Starbucks. The findings of the procedures and the implications have been analyzed in detail. Here, it could be observed and in the conclusion, focuses have been discussed and future work areas and the studies that can be a problem in this research are being seen as the internal and external redesign initiatives.

1.2 Purpose of the Study

The purpose of the study is to redesign and improve the organizational processes and provide a solution base to the management by giving feasible and efficient recommendations. Through this study, the complete process of organizational redesign from the identification of problems to the implementation of the solution will be discussed. The study will be carried out in the context of Starbucks Coffee Company, which is the 2nd largest and the most successful coffee company in the world. In the ever-changing business environment, companies have to undertake and implement organizational change as part of the strategic management to sustain the viability of the business. Millar and Schumpeter (2011) argued that “in the 21st century, the competitive advantages will not pay off in the long run, unless we have the ability to manage innovation and change.” Starbucks has been undertaking a major organization transformation in recent years as stated in their 2013 Annual Report.

2. Internal Organizational Process Redesign

2.1 Analysis of Existing Processes

2.2 Identification of Inefficiencies

2.3 Redesigning Workflow and Communication Channels

2.4 Implementing Technology Solutions

3. External Organizational Process Redesign

3.1 Market Analysis and Competitive Landscape

3.2 Identifying Opportunities and Threats

3.3 Strategic Partnerships and Alliances

3.4 Enhancing Customer Experience

3.5 Expanding Product and Service Offerings

4. Realizing Competitive Advantage

4.1 Leveraging Brand Identity and Reputation

4.2 Differentiation through Innovation

4.3 Focus on Sustainability and Corporate Social Responsibility

4.4 Continuous Improvement and Adaptation

5. Evaluation of Competitive Advantage

5.1 Performance Metrics and Key Success Factors

5.2 Market Share and Revenue Growth

5.3 Customer Satisfaction and Loyalty

5.4 Employee Engagement and Retention

6. Conclusion

6.1 Summary of Findings

6.2 Implications for Starbucks and Similar Organizations

6.3 Recommendations for Future Research


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