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Starbucks Control Mechanisms

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Starbucks Control Mechanisms
Introduction Business control systems, although sometimes complex in practice, are quite straightforward in concept. Control systems are designed and implemented as a means to control resources and to ensure that employees act in a manner that is beneficial to their organization. Effective managers can use control systems as a tool to make sure activities are carrying on as planned. Starbucks is a nationwide coffee house specializing in variations of coffee. Starbucks implements control functions like budgetary, financial, market, and clan.

Control Mechanisms Starbucks, like most major corporations have many control methods, one method used which is typical with almost every company is hierarchy control. With many levels of management, the most secretive is the undercover manager, which Starbucks calls secret shopper or snapshot. Another type of control is a regulative control- which stems from standing policies and standard operating procedures. Starbucks’ third principle is applying the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee (Starbucks, 2006). The third type of control is Starbucks financial control, and Starbucks recognizes that profitability is essential to their future and success. The final form of control is the clan control, relationships are enhanced by introducing a cooperative and goal oriented organizational structure with effective operational processes and international expansion strategies. Employees are referred to as "partners" with both part and full time staff treated equally by offering both stock options and full medical coverage (Schultz, 1997).

Compare and contrast these control mechanisms. These control mechanisms are intertwined to the success of Starbucks, together and individually the controls test policies and principles for effectiveness and quality. Hierarchy like clan control deal with employment and managerial structure at Starbucks, as with many corporations



Cited: Droege, Scott B. (2006). Gale Virtual Reference Library. In M. M. Helms, Management Control Encyclopedia of Management (pp. 490-492). Detroit: 5th Edition Detroit Gale, 2006. Lee, S. (2007). Are Starbuck 's Prices Too High. Retrieved July 3, 2010, from Customer Think: http://www.customerthink.com/article/are_starbucks_prices_too_high Marketwatch. (2009, November). Vending Market Watch. Retrieved July 01, 2010, from Vending Market Watch: http://vendingmarketwatch.com Starbucks. (2010). Business Ethics and Compliance, Standards of Business Conduct. Retrieved June 30, 2010, from Assets.Starbucks: http://assets.starbucks.com/assets/sobc-english-2010.pdf Starbucks. (2006). Starbucks. Retrieved July 1, 2006, from Media Starbucks: http://media.starbucks.com Starbucks. (2009). Year in Review 2009. Retrieved June 30, 2010, from Starbucks.com: http://www.starbucks.com/responsibility/learn-more/goals-and-progress/fiscal-review-2009

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