Starbucks Control Mechanisms
Starbucks Control Mechanisms
Tian Henry
Chelsea Ferreira Karen Henderson
University of Phoenix
Starbucks Control Mechanisms
Control systems are developed and implemented as a means to control resources and to
ensure that employees act in a manner that is beneficial to their organizational goals. Starbucks
was started in 1971 in Seattle, Washington with a goal to imports the world’s finest coffees to the
cold, thirsty people of Seattle. Starbucks has since become a worldwide phenomenon with more
than 16,000 stores in 48 countries. Starbucks, like most major corporations have many control
methods. This paper will discuss hierarchy control, regulative control, financial control, and clan
control and how they are used within the Starbucks Organization.
Regulative controls are described as coming from standing policies and standard operating procedures (Encyclopedia of Management, nd.). In today’s corporate society, many companies have started using a more decentralized and flat organizational structure. Because of this, their boundaries blur, and include “suppliers in inventory management and customers in new product development, forging cooperative alliance with competitors, and developing virtual organizations in which employees are geographically dispersed and may meet only a few times each year” (Encyclopedia of Management, nd.). In some instances, it is possible that regulative controls could actually prevent companies from obtaining goals. Financial controls can include budgets, balance sheets, and profit and loss statements (Bateman & Snell, 2009). According to B Corporation, they “are the means by which an organization’s resources are directed, monitored, and measured.” These controls hold managers responsible in an effort to secure profits for companies (Encyclopedia of Management, nd.) and place limits on spending. Financial controls are important ways of protecting resources and making sure that a
Tian Henry
Chelsea Ferreira Karen Henderson
University of Phoenix
Starbucks Control Mechanisms
Control systems are developed and implemented as a means to control resources and to
ensure that employees act in a manner that is beneficial to their organizational goals. Starbucks
was started in 1971 in Seattle, Washington with a goal to imports the world’s finest coffees to the
cold, thirsty people of Seattle. Starbucks has since become a worldwide phenomenon with more
than 16,000 stores in 48 countries. Starbucks, like most major corporations have many control
methods. This paper will discuss hierarchy control, regulative control, financial control, and clan
control and how they are used within the Starbucks Organization.
Regulative controls are described as coming from standing policies and standard operating procedures (Encyclopedia of Management, nd.). In today’s corporate society, many companies have started using a more decentralized and flat organizational structure. Because of this, their boundaries blur, and include “suppliers in inventory management and customers in new product development, forging cooperative alliance with competitors, and developing virtual organizations in which employees are geographically dispersed and may meet only a few times each year” (Encyclopedia of Management, nd.). In some instances, it is possible that regulative controls could actually prevent companies from obtaining goals. Financial controls can include budgets, balance sheets, and profit and loss statements (Bateman & Snell, 2009). According to B Corporation, they “are the means by which an organization’s resources are directed, monitored, and measured.” These controls hold managers responsible in an effort to secure profits for companies (Encyclopedia of Management, nd.) and place limits on spending. Financial controls are important ways of protecting resources and making sure that a
References: www.helium.com/items/1811312-advantages-and-disadvantages-of-control-systems-in-business-management (Ganly, 2010) www.enotes.com/management-encyclopedia/management-control www.organicconsumers.org/starbucks/sbux5.cfm (June, 2001) www.strategic-control.24xls.com/en112 (2005) Bateman, T.S., & Snell, S.A. (2009). Management: leading & collaborating in a competitive world, (8th ed.). Boston, MA: McGraw-Hill Companies. B Corporation (nd). Implementing financial controls. Retrieved June 17, 2011 from: http://www.bcorporation.net/resources/bcorp/documents/B%20Resources%20-%20Implementing%20Financial%20Controls.pdf Encyclopedia of Management (2011). Management Control. Retrieved June 16, 2011 from http://www.enotes.com/management-encyclopedia/management-control