Starbucks Corporation: Strategic Human Resource Management (2024)

Human resource management (HRM) is a field that supports the performance of many business organisations. Corporations that implement a proper HRM structure will realise their goals much faster. Proper HRM policies guide companies to empower their workers and ensure different activities are completed in a timely manner. Strategic human resource management (SHRM) is an evidence-based approach whereby companies implement adequate HR practices that can improve the productivity of every employee (Iveta 2012). An effective SHRM approach will promote a positive rapport between the management and the workers. The ultimate goal is to come up with new practices and processes that are beneficial to both parties. The purpose of this report is to describe the major aspects of SHRM applied at Starbucks Corporation.
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Company Profile: Starbucks Corporation

Founded in 1971, Starbucks Coffee remains one of the best performing firms in the coffee shop industry. The firm currently has its headquarters in Seattle, Washington. The company has over 23,000 coffee shops across the world. Some of the destinations include Canada, China, Japan, United Arab Emirates (UAE), the United Kingdom, and Japan (Morais et al. 2014). The shops serve cold and hot drinks to their customers. Other common products include tea, coffee beverages, and smoothies. In 2015, the company’s revenue stood at around 19.16 billion US dollars (Morais et al. 2014). The net income during the same period was around 2.76 billion US dollars. The company has a powerful business model that attracts many employees in order to deliver quality services.
In the recent past, the company has managed to acquire or start a number of subsidiaries. Such firms support the company’s business model. Some of these subsidiaries include Seattle’s Best Coffee, Ethos Water, Hear Music, Teavana, and Tazo. The company has a total of around 238,000 employees across the globe. Starbucks’ mission has been to ‘inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time’ (Morais et al. 2014, p. 37). The mission is supported by these values:
  • Creating a culture of belonging and warmth;
  • Acting with the right courage and desire to challenge the status quo;
  • Respect, transparency, dignity, and being present;
  • Delivering the best in every little thing the firm does.

SHRM: Achievement of Organisational Objectives

Importance of SHRM in an Organisation

Strategic Human Resource Management is something needed by many companies such as Starbucks Corporation. The use of SHRM at Starbucks has made it easier for the corporation to plan strategically and ensure the right goals are realised in a timely manner. The approach is used to identify the unique gaps in the firm and implement powerful practices to maximise performance. With proper SHRM, the managers in the HR department find it easier to empower and develop the workers at a personal level (Iveta 2012). The practice guides the workers to seek adequate support from the leaders.
The HR department has been using the best frameworks to recruit and select more individuals from diverse backgrounds. The individuals are then trained and equipped with the right skills in order to support the company’s values and mission. Conflicts are addressed in a timely manner before they get out of hand. When the right candidates are hired and empowered, it becomes much easier for different departments to focus on the changing needs of the customers (Strutzmann 2013). Leadership is decentralised in order to ensure the emerging issues are addressed in a timely manner.

Purpose of SHRM Activities in an Organisation

Iveta (2012) indicates that SHRM is a powerful process in every business organisation. The practice begins with effective planning in order to ensure the right individuals are brought on board. Starbucks uses effective SHRM to implement the best practices and processes that have the potential to transform the company’s performance (Strutzmann 2013). The success of the company is determined by a number of initiatives such as corporate citizenship, human drive, continuous improvement of customer services, and identification of new ideas that can promote business performance.
Starbucks Corporation has designed a powerful SHRM model in order to ensure various objectives are realised in a timely manner. The first one is promoting the best workforce planning. The SHRM focuses on the best measures to recruit, train, and empower the employees in order to deliver the targeted goals. The department goes further to analyse gaps and offer proper training. The firm has been focusing on the best practices in order to develop a powerful workforce that can deliver quality services to more customers (Vui-Yee 2015). The SHRM has been promoting the best working environment for every employee.
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Culturally competent SHRM practices have been embraced by the company in order to meet the needs of more employees and customers in different corners of the world. For instance, the workers are guided to form teams and embrace the idea of diversity. This practice has led to better working processes that meet the needs of the targeted customers (Iveta 2012). Corporate citizenship is a powerful concept that can be supported through the implementation of a powerful strategic human resource approach.

Contribution of SHRM to Achieve Organisational Objectives

The SHRM initiatives implemented at Starbucks have made it easier for the company to achieve its organisational objectives. The first attribute embraced at the firm is workforce planning. When the right individuals are hired and empowered using the best working environments and resources, it makes it easier for the firm to support the targeted customers (Vui-Yee 2015). The employees engage in continuous improvement in order to come up with better practices that can support the company’s model.
The organisational culture associated with Starbucks Corporation is dictated by the SHRM functions undertaken by the leaders. The SHRM promotes the best practices and behaviours that resonate with the firm’s values and mission. This approach creates the best environment whereby the workers are willing to focus on the targeted objectives. The employees are encouraged to use the firm’s resources and eventually support the company’s goals (Iveta 2012). These practices explain why more people have continued to receive exemplary services from Starbucks.
Teamwork has emerged at the organisation whereby the HR department promotes cohesion, collaboration, and continuous participation. This practice has guided the employees to embrace the idea of corporate citizenship. Guided by the values of integrity, justice, transparency, and corporate social responsibility, the HR practices at the company has made it easier for the workers to drive performance (Vui-Yee 2015).

Human Resource Plans for an Organisation

Business Factors Underpinning Human Resource Planning in an Organisation

Human resource planning is a powerful practice that guides an organisation to align its human capital with targeted business goals. Whenever engaging in HR planning, it is necessary to consider the unique factors that affect or dictate business performance. Starbucks Corporation has been considering a number of factors in order to achieve its objectives globally (Strutzmann 2013). The first factor is the political climate. In the MENA (the Middle East and North Africa) region, the firm considers the changing factors in order to attract competent employees and design appropriate business models.
The targeted business growth and goals are critical factors underpinning the firm’s HR planning process. Whenever recruiting, selecting, and retaining the targeted employees, the firm is guided by the targeted goals. For instance, the company used to attract the right candidates in order to increase the number of its stores across the world (Vui-Yee 2015). The firm outlines the major competencies that should be possessed by the employees. The next thing is to implement powerful support mechanisms and training programs to empower recruited employees.
The coffee shop industry is heavily regulated because it operates within the consumable products sector. This kind of regulation is required in order to ensure the final products are healthy and appropriate for the consumer (Strutzmann 2013). The issues of workplace safety and remunerations have been outlined under the existing policies. Starbucks has been focusing on these legal attributes and regulations in order to empower the workers (Phillips & Gully 2014).
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The issue of diversity is another factor that influences the manner in which HR planning is done in many firms. The wave of globalisation has encouraged people to move from region A to B. The practice has increased the level of diversity across the world. Starbucks Corporation considers this factor in order to support the needs of diverse employees. Throughout the HRM process, the company identifies specific employees and equips them with appropriate skills and resources that can boost the level of performance (Vui-Yee 2015). The firm also encourages the workers to form teams that can offer faster and quality services to the customers.
Technology has been changing very fast in different industries. Starbucks considers the manner in which technology is influencing business operations. The firm has implemented powerful electronic systems to ensure the targeted employees are empowered, guided, and encouraged to focus on the targeted goals (Phillips & Gully 2014). The use of technology is, therefore expected to transform the manner in which human resources are managed in the firm.

Human Resource Requirements in a Given Situation

From the early 21st century, Starbucks Corporation continued with its expansion journey. In order to achieve this goal, several human resource requirements stood out. The issue of business growth was taken seriously by organisational leaders. The HR department in different regions implemented a powerful strategy in order to attract the right individuals who could support the firm’s expansion (Vui-Yee 2015). Attracted individuals are equipped with the right tools and resources in order to support the corporation’s goals.
The company has been focusing on the best approaches in order to implement the use of information technology and boost business performance. This factor has been treated as a major human resource requirement. In the United Arab Emirates and China, the company has been attracting technologically-savvy individuals in order to ensure the changing needs of more customers are met (Vui-Yee 2015). The use of modern technology is something that will continue to support the company’s future business goals.
The desire to transform customer experience is something that has led to different HR practices at Starbucks. From 2006, the company introduced ‘automated espresso machines’ (Morais et al. 2014, p. 41). In order to ensure the machines supported the targeted business goals, the firm went ahead to identify and recruit competent candidates who could support the new strategy.

HR Development Plan

Before implementing a powerful human resource (HR) development plan, a company can begin by identifying the industry’s external forces and factors. Starbucks can come up with a sustainable HR development plan in order to improve performance and focus on the targeted goals (Morais et al. 2014). The first step is to understand the targeted business objectives or goals. Starbucks Corporation is planning to maximise profits and continue delivering memorable experiences to its global customers. With this kind of knowledge, Starbucks comes up with specific skills that can ensure the targeted goals are realised.
The second step will be to analyse the pressure of the major forces dictating the company’s performance such as consumer needs, technological changes, globalisation, regulations, and environmental conservation (Zehir et al. 2016). This understanding will ensure the targeted employees can address the impact of these forces. This approach will ensure the workers resonate with these factors and eventually support the company’s business model.
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The third step is coming up with an HR policy that dictates the kind of employees in the firm. The step will encompass a number of processes such as employee empowerment, provision of resources, and training (Sani 2012). Emerging opportunities in the coffee shop industry can be tapped and considered in order to ensure the workers promote business performance.

How Human Resources Plan Contribute to Meeting Starbucks’ Objectives

The implemented HR plan has the potential to transform the company’s performance and make it a leading player in the industry. After attracting competent individuals, the right resources are presented in order to realise every objective. The emergence of new business opportunities is what governs the practices of the employees (Sani 2012). The workers are guided to identify new opportunities, present appropriate models, and support the organisation’s goals.
Training is usually done at the firm as part of the HR planning process. The managers identify the existing gaps and offer adequate support depending on the skill gaps and strengths of the workers. The workers are empowered to form cohesive teams in order to deliver exemplary services to the greatest number of customers. The emerging changes and factors in the industry, such as technological shifts and regulations are implemented in the HR planning process (Zehir et al. 2016).
The success of Starbucks in the industry is attributable to the HR planning processes implemented at the company. HR managers constantly review the needs and performance of the employees. This practice makes it easier for them to identify the major gaps that can disorient performance (Kesti & Syvajarvi 2015). The effectiveness of every workforce is monitored frequently in order to align its action plans with the company’s objectives. The practice has resulted in a positive resonance, thereby making Starbucks Corporation a successful player in the industry.

Human Resources Policy Requirements in an Organisation

Purpose of Human Resource Management Policies in Organisations

HR policies play a positive role in firms because they define the rules, roles, and actions that should be embraced by the targeted workers. At Starbucks, HR policies are implemented in order to dictate the performance of the employees. The first attribute focuses on structure. The HR policies in the company outline the working hours, disciplinary actions, workplace practices, safety requirements, and performance reviews (Zehir et al. 2016). The employees are allowed to focus on the policies in order to minimise conflicts and interact positively.
The HR department at the company understands a number of legal concerns and regulations that govern the coffee shop industry. The company uses non-discriminatory practices whenever hiring targeted employees. Both women and men are attracted and recruited at the company (Kesti & Syvajarvi 2015). Disabled and elderly people are also hired at the company in order to promote diversity. The managers are usually fair whenever resolving disputes at the firm. Fair employment, empowerment, and retention practices have always defined the company HR philosophy.
The HR department at Starbucks has implemented a powerful code of ethics. This code guides employees to relate positively with one another. The individuals are guided by the code to act ethically and maintain professional relationships with their respective customers. These policies have made it possible for the firm to achieve its business objectives. These practices have promoted a culture of effectiveness (Kesti & Syvajarvi, 2015). The consistency of operations encourages the employees to act ethically. The manager disciplines the workers without any form of discrimination.

Impact of Regulatory Requirements on Human Resource Policies

In the United Arab Emirates, there are various regulatory requirements that impact HR practices and policies. To begin with, the Labour Ministry has rigid guidelines describes the employee-employer relationships. The HR department at Starbucks in the region ensures that the rights of the workers are taken seriously. Issues such as health insurance, proper salaries, safe working environments, and leaves have been included in the HR policy (Sani 2012). The Labour Law of 1980 discourages companies from being biased whenever hiring new employees.
The Health Insurance Permit (HIP) is a license required by companies in different sectors. In the food and hospitality industry, firms should ensure their employees are insured because they are exposed to a wide range of dangers. The provision of insurance cover is considered by Starbucks whenever designing its HR policy (Kesti & Syvajarvi 2015). The organisation has therefore, been focusing on the best practices in order to ensure every regulation is followed. Consequently, the firm has been able to support its business model.

Human Resources Management in an Organisation

Impact of Organisational Structure on HRM

Starbucks Corporations uses various structures because of the complexity of its departments. A divisional structure is embraced when it comes to different functions such as HR, outsourcing, supply chain management, and leadership. The structure is also characterised by a decentralised leadership practice whereby the employees are guided to make decisions while at the same collaborating with their supervisors (Uysal 2014). Additionally, the company also has a hierarchy to define how critical decisions are made by senior managers.
The structure has had numerous implications on the HR practices undertaken at the company. To begin with, the HR department has a manager who guides his or her subordinates to focus on the best approaches that can improve the level of performance. The manager is expected to make specific decisions such as the right materials, technologies, and approaches that should be embraced at the company (Zehir et al. 2016).
With a divisional approach, the employees in various departments will be empowered differently. This fact explains why some employees in a given department might be more satisfied than their counterparts in the company (Uysal 2014). The leadership has also made it easier for more workers to focus on the targeted goals.

The Impact of Organisational Culture on the Management of Human Resources

Hofstede’s model offers different practice levels that describe the nature of organisational cultures in many companies. Several levels of the model are applicable to Starbucks Corporation. The employees are allowed to work as a team and focus on the changing needs of the customers. Problems and conflicts are addressed amicably even without the help of the top managers. The workers take the goals of the company seriously.
They work together, focus on their objectives, and embrace the idea of work-life balance (Strutzmann 2013). This means that Starbucks is associated with a goal oriented culture. According to Hofstede’s model, the company has the following structural attributes: goals oriented, internally driven, open system, high leadership acceptance, and high association with the company (Zehir et al. 2016).
These aspects have made it easier for the company to realise its goals. The culture has created the best environment whereby the workers support the targeted goals. The company goes a step further to provide adequate resources in order to support the business model (Phillips & Gully 2014). The culture has therefore made it easier for the HR department to achieve its goals. The department will also be required to implement powerful systems that can support this kind of culture.

Monitoring Effectiveness of HR

Starbucks understands that effective HR practices dictate the level of business performance. The company has been using a number of metrics and scorecards to measure the effectiveness of every HR program. The first key indicator used to measure HR performance is employee satisfaction. The company uses the approach to identify new improvements and processes that can drive performance (Zehir et al. 2016). A workforce scorecard makes it easier for the company to identify the skills of different HR managers and competencies.
HR metrics are used to monitor how different departments adhere to the existing policies. Changes are implemented depending on the results of the metrics. The concept of benchmarking is taken seriously. This is done by monitoring the performance of different companies and competitors in the targeted region (Zehir et al. 2016). Some of the best practices are borrowed and implemented in order to become part of the HR process.

Recommendations for Improvement

This discussion shows conclusively that Starbucks Corporation’s success is attributable to is positive HR practices. The HRM model at the firm supports the needs of the workers in order to support the targeted goals. The approach has made it easier for the firm to achieve its business objectives. However, the nature of structure in the company has led to several conflicts. It would therefore be necessary to use a unique structure that can support the best HR practices.
A matrix structure can bring more departments together and eventually maximise performance. The second recommendation is implementing a powerful training program especially for individuals from diverse backgrounds (Uysal 2014). The program will equip them with the right concepts and eventually support business performance. New empowerment initiatives such as the provision of better remunerations and packages will ensure the firm achieves its goals. Finally, different departments can be coordinated and allowed to work together in order to make Starbucks the preferred brand in the global coffee shop industry.

Reference List

Iveta, G 2012, ‘Human resources key performance indicators’, Journal of Competitiveness, vol. 4, no. 1, pp. 117-128.
Kesti, M & Syvajarvi, A 2015, ‘Human capital production function in strategic management’, Technology and Investment, vol. 6, no. 1, pp. 12-21.
Morais, U, Pena, J, Shacket, K, Sintilus, L, Ruiz, R, Rivera, Y & Mujtaba, B 2014, ‘Managing diverse employees at Starbucks: focusing on ethics and inclusion’, International Journal of Learning & Development, vol. 4, no. 3, pp. 35-50.
Phillips, J & Gully, S 2014, Human resource management, Cengage Learning, Boston.
Sani, A 2012, ‘Strategic human resource management and organisational performance in the Nigerian industry: the impact of organisational culture’, Business Intelligence Journal, vol. 5, no. 1, pp. 8-20.
Strutzmann, T 2013, The Starbucks corporations: past, present and future, GRIN Verlag, Munich.
Uysal, G 2014, ‘Stages, content, and theory of strategic human resource management (SHRM): an exploratory study’, Journal of Modern Accounting and Auditing, vol. 10, no. 2, pp. 252-256.
Vui-Yee, K 2015, ‘The impact of strategic human resource management on employee outcomes in private and public limited companies in Malaysia’, Journal of Human Values, vol. 21, no. 2, pp. 1-13.
Zehir, C, Gurol, Y, Karaboga, T & Kole, M 2016, ‘Strategic human resource management and firm performance: the mediating role of entrepreneurial orientation’, Procedia – Social and Behavioural Sciences, vol. 235, no. 1, pp. 372-381.
Starbucks Corporation: Strategic Human Resource Management (2024)


What is the human resource management in Starbucks? ›

At Starbucks, HR policies are implemented in order to dictate the performance of the employees. The first attribute focuses on structure. The HR policies in the company outline the working hours, disciplinary actions, workplace practices, safety requirements, and performance reviews (Zehir et al.

What is strategic human resource management? ›

Strategic human resource management (strategic HRM) provides a framework linking people management and development practices to long-term business goals and outcomes. It focuses on longer-term resourcing issues within the context of an organisation's goals and the evolving nature of work.

Does Starbucks have a HR department? ›

We work closely together as advisors to attract, support and develop the right people at the right time. We work in functional teams such as HR, Recruitment, Learning and Development, Education, Total Rewards (Comp and Benefits) and Payroll.

What is the marketing strategy of Starbucks? ›

Use a Multi-Channel Promotional Strategy. Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. It also uses sales promotions, events, direct marketing, print media, and PR in an integrated manner to multiply the impact of its promotions.

What has Starbucks done to improve and maintain strong employee relations? ›

Over many years, Starbucks has built a capability to foster a relationship-driven, employees-first approach, which encourages staff to form close bonds with each other. Called “partners” rather than employees, even part-time staff (in the U.S.) receive stock options and health insurance.

What is an example of strategic human resource management? ›

Examples of strategic HR functions include compensation planning, recruitment, succession planning and employee development.

What is the difference between HRM and strategic HRM? ›

The process of HRM is reactive in nature. On the other hand, SHRM is a proactive management function. In human resource management, the responsibility of manpower lies with the staff specialists, whereas in strategic human resource management, the task of managing the workforce, is vested in the line managers.

What are Starbucks resources? ›

Starbucks' Key Resources

Human resources, high-quality coffee farmer centers, product developers, and stores.

Does human resource play a strategic role in the value creation process of Starbucks? ›

Abstract. The Starbucks Corporation utilizes its human resources practices and policies as a strategy to gain competitive advantage and drive the overall success of the company and its globalization efforts.

How does Starbucks take care of their employees? ›

Compensation is an important aspect of employee happiness and at Starbucks, 62% of employees feel they are paid fairly, 80% are satisfied with their benefits, and 75% are satisfied with their stock/equity. 82% of Starbucks employees feel their work environment is positive meaning Starbucks is a happy place to work.

Why is strategic human resource management important? ›

Why Is Strategic Human Resource Management Important? Strategic human resource management is the foundation of a strong business because, when properly applied, it ensures that the company as a whole is working together to reach its goals. This gives the business a greater chance to succeed.

What are three main marketing strategies used in Starbucks? ›

Starbucks Marketing Strategy main points:

Consistent brand experience. Use of unconventional techniques for marketing and branding. Image of an ethical brand. Excellent brand merchandise.

What makes Starbucks successful? ›

It is so successful because it was able to provide an experience that changed how much of the world thought about coffee shops and how many of us drink coffee outside of our homes. Starbucks created a third place between home and work where people can relax, enjoy a cup of coffee and experience the inviting ambience.

What values does Starbucks have how well do they connect to the present strategy and to the manner in which the company conducts its business? ›

What "values" does Starbucks have? How well do they connect to the present strategy and to the manner in which the company conducts its business? To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time.

What are specific ways in which Starbucks has shown top management commitment to diversity? ›

Starbucks' latest commitments to diversity include a new mentorship program, piloting outreach workers at its cafes and pledges to have more minorities in its corporate workforce. In 2019, just 15% of Starbucks' senior leadership were people of color.

How does Starbucks manage to keep good relationships between their manager and employees? ›

How does Starbucks manage to keep good relationships between their managers and employees? Answer: The managers of Starbucks treat each employee equally and all of the staffs are called partners.

What are the 7 steps of the strategic management process? ›

7 stages of strategic planning
  • Understand the need for a strategic plan. ...
  • Set goals. ...
  • Develop assumptions or premises. ...
  • Research different ways to achieve objectives. ...
  • Choose your plan of action. ...
  • Develop a supporting plan. ...
  • Implement the strategic plan.

What does SHRM mean in human resources? ›

SHRM, the Society for Human Resource Management, creates better workplaces where employers and employees thrive together. As the voice of all things work, workers and the workplace, SHRM is the foremost expert, convener and thought leader on issues impacting today's evolving workplaces.

Where does Starbucks get their resources from? ›

As a company that buys approximately three percent of the world's coffee, sourced from more than 400,000 farmers in 30 countries, Starbucks understands our future is inextricably tied to the future of farmers and their families.

Where does Starbucks get its resources? ›

The company's key suppliers are domiciled in the United States, Singapore, Hong Kong, Mexico, Indonesia, India, France, Canada, and other countries.

What is Starbucks international strategy? ›

Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. Market research is at the core of many of the market entry strategies Starbucks is employing.

What type of organizational culture does Starbucks have? ›

Starbucks Coffee's Organizational Culture Type and Features. Starbucks Coffee's organizational culture is a culture of belonging, inclusion and diversity. The combination of the company's key cultural characteristics is unique and specific to the nature of its coffeehouse chain business.

What is the business model of Starbucks? ›

Starbucks is a retail company that sells beverages (primarily consisting of coffee-related drinks) and food. In 2018, Starbucks had 52% of company-operated stores vs. 48% of licensed stores. The revenues for company-operated stores accounted for 80% of total revenues, thus making Starbucks a chain business model.

What is Starbucks business structure? ›

Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.

How does Starbuck empower their employees? ›

Starbucks recognizes partner contributions at all levels of achievement through formal and informal programs. These employee resource groups bring together partners with common interests, helping connect them to growth opportunities and ways to serve communities.

How Starbucks motivate its employees? ›

Gaining knowledge and being able to perform their job well is a basic intrinsic motivation. In addition, Starbucks provides performance-related payment so the more employees contribute to the business, the more they get paid, which motivates employees to work more to gain more money.

What is Starbucks management philosophy? ›

The team effort maximizes results, minimizes costs and allows our employees to have authorship and integrity in their accomplishments as well as sharing in the financial rewards of their individual and team efforts.” “We believe in hiring exceptional people who are willing to work for excellent results.

What role did human resources play in Starbucks success? ›

The Starbucks Corporation utilizes its human resources practices and policies as a strategy to gain competitive advantage and drive the overall success of the company and its globalization efforts.

What does Starbucks look for in an employee? ›

Your expectations of the Starbucks work environment. How well you work as part of a team. Your ability to work in fast-paced settings. Any experience you have in customer service, working with cash registers, preparing foods and making coffee and other beverages.

What are the policies of Starbucks? ›

Starbucks Business Principles:
  • Coffee: emphasize coffee quality and the ethical sourcing.
  • Partners: all employees are treated with respect and dignity.
  • Customers: connecting with customers by making each visit a great experience.
  • Stores: creating stores as a third place away from home.
  • Neighborhood: supporting the community.
Apr 7, 2015

What is Starbucks business structure? ›

Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.

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