PDT - Starbucks

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Marking Scheme

Group Component (70%)

Assumption 10%

Coherence 10%

Diagram & Figures 10%

Analysis 10%

Format 10%

Reference 10%

Presentation of Deliverables 10%

Individual Reflection (30%)

Report Content 20%

Reflection 10%

Total (100%)

PROFESSIONAL ENTERPRISE DEVELOPMENT GROUP ASSIGNMENT – STARBUCKS

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Workload Matrix

Name Task

Chuah Cheng Jun - Introduction- Organisational Structure

Gunaseelan A/L Ramachandran - Conclusion- Professional issue and Computer

Ethics

Cheong Gze Xie - Executive Summary- Organisation Culture

Agha Naqeeb - Overall Recommendation- Organisation Socialisation and

Mentoring


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Assumptions

No. Area Assumptions

1. Organisational Structure It is assume that Starbucks having a matrix structure is to maximise communication channel between the customers, partner and leader to focus on customer experience (Schultz, 2008)

2. Organisational Culture Based on the principle in Starbucks, it is assume that Starbucks are running adhocracy culture with flexibility over stability. (Starbucks, n.d)

3. Organisation Socialisation and Mentoring

It is assume that Starbucks mostly focused on mentoring for new recruits because their aims and objective is to train every employee that enhances their confidence and competence in delivering customer service. (Starbucks, n.d)

4. Professional Issues and Computer Ethics It is assume that Starbucks has an issue on encryption vulnerability that causes information leakage. (Ingham, 2014)


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Table of ContentsMarking Scheme.............................................................................................................................1

Workload Matrix............................................................................................................................2

Assumptions...................................................................................................................................3

Executive Summary........................................................................................................................6

Introduction....................................................................................................................................7

1.0 Organisational Structure.....................................................................................................8

a. Functional Structure............................................................................................................8

b. Divisional Structure............................................................................................................9

c. Matrix Structure................................................................................................................11

1.1 Starbucks Organisational Structure...................................................................................12

1.2 How does Organisational Structure Affecting Starbucks..................................................14

1.3 Limitations and Recommendation....................................................................................17

2.0 Organisational Culture......................................................................................................18

a. Clan Culture......................................................................................................................19

b. Adhocracy Culture............................................................................................................19

c. Market Culture..................................................................................................................19

d. Hierarchy Culture.............................................................................................................19

2.1 Starbucks Organisational Culture and How It’s Affecting Starbucks...............................20

2.2 Limitation and Recommendation......................................................................................23

3.0 Organisation socialisation and Mentoring.........................................................................24

a. Organisation Socialisation................................................................................................24

b. Mentoring.........................................................................................................................25

3.1 Starbucks Organisation Socialisation and Mentoring........................................................27

4.0 Professional Issue and Computer Ethics...........................................................................28

a. Fair Employment Practices and Diversity.........................................................................28

b. Discrimination and Harassment........................................................................................28

c. Privacy on the Web...........................................................................................................28

d. Encryption........................................................................................................................29

4.1 Recommendations.............................................................................................................30

Overall Recommendation for Starbucks.......................................................................................31

Conclusion....................................................................................................................................32


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References....................................................................................................................................33

Executive Summary

The main objective of this report is to research and analyse the organisation structure,

culture, socialisation, mentoring and professional issues and ethics of Starbucks based on

its customer service. This report is limited to Starbucks themselves, not involving any

third party or other products/services.

Information was gathered mainly from articles and websites and analysed to find out the

impact of organisational structure, culture, mentor and ethics issues towards Starbucks

customer service. The research in this report is divided into 4 sections as following:

The organisational structure of Starbucks is a matrix structure that would maximise

the communication channel and bond every employees and customers together.

The organisational culture of Starbucks is adhocracy culture that focus on flexibility

and external environment.

The mentoring in Starbucks has done good to make sure every employees especially

the baristas are well-trained to be confident and skilful in order to serve the customer.

The Starbucks mobile apps has led to serious vulnerability issue that third party able

to access owner’s information.

The analysis found that Starbucks treats every employee equally and giving them much

benefits being a partner with them. This would increase the satisfaction of the partners,

indirectly promoting and willing to serve customer in a good manner. Their flexibility has

made Starbucks to gain more customer as they can get any taste of coffee they want as

long there are ingredients for it. Furthermore, mentoring of 1-to-1 basic has made it more

efficiently leading and teaching mentee.

Recommendations for Starbucks is to have a managerial staff possessing a good

leadership skills in order to lead the department to avoid confusion and giving out

authority, improvement on privacy issues and the type of beverages is limited due to

geographical areas.


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Introduction

Starbucks Corporation, also known as Starbucks Coffee is an American global coffee

company which has around 20,000 outlets in 64 countries worldwide. Starbucks is

primarily known for serving a variety of coffees, but also sells other beverages from hot

to cold, full-leaf teas, fruit juices, pastries and snacks. They also selling items such as

mugs and tumblers that offers RM2 discount whenever the tumbler is used for ordering

drink, this is to minimizing the usage of cups. On special occasion such as Chinese New

Year or Mid Autumn Festival, they would have different limited edition of Starbucks

card, tumblers and even mooncakes for Mid Autumn Festival!

In this assignment, we are going to focus on Starbucks customer service. Starbucks trains

their partner to say “yes” to any requests made from their customer. Barista always tries

to remember the favour drink of a specific customer, they really try to go beyond to make

you really feel that you are an individual with a name labelled with your preferred drink

(businessholic.net, n.d). It is part of Starbucks culture. We are going to analyse how the

organisational structure, culture and socialisation going to affect the customer services

towards customers.


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1.0 Organisational Structure

Organisational structure is a system used to define a hierarchy within an organisation.

(Friend, n.d). It refers to different levels of management and division of responsibility,

together they operates and assists the organisation to obtain its goals and missions. The

structure is demonstrated in an organisational chart.

There are total 3 types of organisational structure which is functional, matrix and

divisional structures. Every structure has it owns advantages and disadvantages that will

bring direct impact to an organisation. Every entrepreneur has to decide and think wisely

which structure fits for their organisation.

a. Functional Structure

Functional structure is known as grouping individuals into organisational units according

to the function they perform. Such as staff that are dealing with customers complains and

issue will belong to the Customer Service department. Every department has 1 manager

reporting directly to the CEO or Board of Directors.

Figure 1.0(A) 1: Functional structure (Technologyuk.net, n.d)

The advantage is pooling all similar resources and people sharing a common expertise on

the particular field in order to max out the efficiency of these resources. The disadvantage

is communication and coordination restrictions may occur between departments because

working separately and hard to achieve some organisational goals.


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b. Divisional Structure

Divisional structure mostly found in large companies that operate in wide geographic

area, having subsidiary company or a large chain of products or services. This structure

divide the functional areas of the organisation to division in order to handle and focus the

specific needs of the particular area. Each division is equipped with its own resources in

order to function independently (tutorialspoint.com, n.d). Divisional structure can be

broken down into three areas which is geographical division (Figure 2), product

division (Figure 3) and marketing division (Figure 4).

Figure 1.0(B) 1: Geographical Division (lardbucket.org, n.d)

Figure 1.0(B) 2: Product Division (tutorialspoint.com, n.d)


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Figure 1.0(B) 3: Marketing Division (Distelzweig, n.d)

From the three figures above we can see that almost every division shares the same

functional groups and have a president or vice president controlling that division which

more likely the division will receive resources from the headquarter (Gillikin, n,d). The

drawback of this structure is communication is inhibited between divisions as employee

are not working together. This structure is costly because it requires more expertise and

resources to handle every single products/area/market.


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c. Matrix Structure

Matrix structure is the combination of functional and division structures to max out its

advantages in order to carry out company operations. From the figure below (Figure 5),

the vertical structure act as a functional structure while the horizontal act as a division

structure. Employees are still reporting to own functional managers but in the same time

they are also supporting the respective production team when needed. This not only

utilise the human resources but also departments able to work together and communicate.

Figure 1.0(C) 1: Matrix Structure (kfknowledgebank.kaplan.co.uk, n.d)

The disadvantage is the internal complexity of this structure. Some employees may

become confused to whom should they report to. If miscommunication and misleading

occurs, this could result in employee dissatisfaction. Furthermore, the workload of an

employee may increase when he needs to focus on this functional job, while also

focusing on the respective production team. This brings down the motivation and passion

of the employee too.


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1.1 Starbucks Organisational Structure

Starbucks current organisational design is a hybrid organisational design, encompassing a

division geographical structure and a functional structure which defined as matrix

structure. Starbucks is then broken down into 3 geographical regions globally which is

the China and Asia, America and EMEA (Europe, U.K, Middle East, Russia and Africa)

(figure 6) and 4 geographical regions in the United States (figure 7) and this allows it to

target the varying geographical markets quite differently based on each location, culture,

climate, and lifestyle. Each division will be led by a senior vice president, reporting

directly to the U.S President (Schultz, 2008).


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Figure 1.1.1: Starbucks International Organisational Structure. (self made)

Figure 1.1.2: Starbucks US Organisational Structure (Self made)


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1.2 How does Organisational Structure Affecting Starbucks

Starbucks choose matrix structure for its organisational structure is to maintain all

communication channels are being well maintained. Before Howard Schultz taking back

the role of CEO in Starbucks at January 2008, Starbucks has moved away from its actual

mission which is the customer experience due to rapid expansion of outlet before 2008.

After Schultz take over Starbucks, he immediately reorganised the whole organisation

structure to matrix, adding and changing some functions that allows leadership to be

closer to the customers.

Matrix structure has the advantages of maximising communication channels from

upward, downward and laterally with its employee which allow them to be actively

communicate. Schultz believes if partners are well taken care in communication rich

environment where they are respected, then they will enrich the lives and truly connect

with the customers (Owens, Shirley, Smith & Wagner, n.d). This could enhance the

overall customer experience in Starbucks. A good example of this can be seen in a recent

posting of the structural changes the organization made in order to maintain stability and

continue excellent customer service (Shultz, 2008).

This structure is also counted as decentralised structure which authorise the partners to

making own decision and building up responsibility, the manager also able to ensures that

all employees especially the barista which directly dealing with the customer carry out

their tasks perfectly.

According to BrandAutopsy.com (2011), Starbucks always remind its partners that the

customers are always their bosses and every hierarchy inside the organisation chart are

linked to the customer. Below is the illustration of the organisational chart.


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Figure 1.2.1: A figure that illustrate how Starbucks treats its customer. (Brandautopsy.com, 2011)

Starbucks trains their partners to say “yes” to any requests made from their customer.

Barista always tries to remember the favour drink of a specific customer, they really try

to go beyond to make you really feel that you are an individual with a name labelled with

your preferred drink (businessholic.net, n.d). Furthermore, they make sure to keep

customer satisfied from the beginning till end of visit. This action would made a

consumer feel being treated as a friend instead of a customer drinking inside a coffee

shop.

Micah Solomon (2013) having a chat with an employee of Starbucks and the employee

claims that he had worked for a long time and thinks Starbucks takes care both customers

and employees equally. This shows that Starbucks not only focusing on customers

experiences but also taking care the welfare of their partners because Starbucks believes

when they are satisfied with the current job, they would possess a positive mindset

serving its customers.

According to 2012 Temkin Experience Ratings, Starbucks acquires the highest customer

experiences rating among the fast food industry, having the result of 80% overall

experiences (Figure 9). This proved that the current matrix structure has bring a positive

impact to Starbucks and bringing back its customer experience that once decreasing in

2008.


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Figure 1.2.2: 2012 Temkin Experiences Ratings, Starbucks has the highest rating among all.(experiencematters.wordpress.com, 2012)


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1.3 Limitations and Recommendation

In the matrix structure, there is some disadvantages. There is limitation of number of

employees who report to the project manager directly because most of the tasks are given

out from department managers. This may lead to uncertainty in the organisation and

employees may be unwilling to accept their situation is changing frequently.

Furthermore, the extension of authority of manager to employee coming from other

sections can cause complexity in the organisation. These issue would decrease the

motivation and passion of the employees, indirectly or directly affecting the quality of

customer serving experiences.

Starbucks uses matrix structure as organisation structure. Matrix structure brings

complexity and confusion to the organisation and employees. The recommendation for

Starbucks is train up their managerial staffs to be well-organised and having good

relationship between its partners to build up communication channel to avoid

misunderstanding and confusion due to multiples managerial staffs. A good leadership

must possessed in every managerial staff in order to lead their employees to achieve the

mission and goals in Starbucks, also boosting up motivation of the employees in order to

serve the customers better, increase overall customer experiences.


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2.0 Organisational Culture

“The values and behaviors that contribute to the unique social and psychological

environment of an organization.” (BusinessDictionary.com, n.d.)

“Organizational Culture can be defined as the collective programming of the mind that

distinguishes the members of one organization from others.” (Geert-hofstede.com, n.d.)

Both of the statements above had defined the terms of “Organizational Culture”. Based

on the statements, organization culture can be explained as the common mindset among

members of an organization that used to react to various environments and

circumstances, and this will be distinct from other organization.

There are 4 types of organization culture based on the Competing Values Framework

(CVF), which are clan cultures, adhocracy culture, market culture and hierarchy culture.

All these 4 types can be distinguish from others, mainly by differentiate their focus area

and operational values.

Figure 2.0.1 Competing Values Framework


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Clan Culture – Internal focus and values Flexibility

Adhocracy Culture – External focus and values Flexibility

Market Culture – External focus and values Stability and Control

Hierarchy Culture – Internal focus and values Stability and Control

a. Clan Culture

This type of culture commonly focused on employee perspectives and put employees’

involvement and job satisfaction at the first priority. It encourage employees to involve in

decision making which authority control in organization are less emphasized.

b. Adhocracy Culture

This culture are focus on market needs and customers perspectives. Organizations that

practice adhocracy culture are often encourage employee to think outside the box and

produce creative product to fulfill the market needs. Thus, innovations are often happen

in the organization.

c. Market Culture

This type of culture also focus more on the market needs and customers perspectives. The

organization values their employee based on their performance and results on the profit

statistics. The authority mainly emphasizes the productivity and profit gains, in order to

meet the market needs and customer satisfactions.

d. Hierarchy Culture

This culture puts employee satisfaction at the first place. It practices hierarchical

authority to provide control on the employees and often encourage employees to attend

training to improve employees’ skills. It prepare the organization to be more structured

and formalized.


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2.1 Starbucks Organisational Culture and How It’s Affecting

Starbucks

“At Starbucks, we strive to create a culture that values and respect diversity and

inclusion.” (Starbucks.com, n.d.)

“When we are fully engaged, we connect with, laugh with and uplift the lives of our

customers.” (Starbucks.com.my, n.d.)

Based on the principles that found on Starbucks official website, Starbucks Corporation

can be believed that, they are practicing Adhocracy culture, which focus more on the

external environment and values flexibility over stability.

“It has always been, and will always be, about quality.” (Starbucks.com, n.d.)

This is the Starbucks principle on their coffee. They passionate on roasting best coffee in

various way, in order to fulfill the public needs that craving for a luxury pleasure.

Although coffee is the main selling product, Starbucks also understand that some

customers may dislike the taste of coffee or like to have some foods along with their

beverages. Due to this reason, Starbucks had introduced a series of brewed tea and juice

drinks, and also food like bakeries, savories, cakes and desserts, available in the menu for

customers to select.

Due to the consideration from Starbucks, the varieties of the menu and the high quality of

beverages and food had brought high altitude of customers’ satisfaction and gained a lot

of recognition in the market. Certainly, these are still reasons that aided the organization.

Since Howard Schultz (Starbucks chairman, president and chief executive officer)

purchased Starbucks in August 1987 (Starbucks.com, n.d.), Starbucks had put effort on

providing a comfort environment, which claimed to be the third place for customers

between work and home. Soon in year 1994, Starbucks opens its first drive-thru store

(Starbucks.com, n.d.), in order to bring further convenience for customers. All these

caring and efficient business tactics had aided Starbucks on leading the market.

“Partners”, is how Starbucks Corporation address their employees, regardless their

positions, origin or physical condition. Starbucks encourage all channel communication


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among employees, which directly vitalize contribution of employees. Furthermore,

Starbucks encourage their customers to give ideas or opinions, and arrange employees to

improvise and implement the ideas. These promotes the communication between

employees and customers, or even strengthen the cultural values of the corporation.

Customer service is a significant part of Starbucks business. It show professionalism and

enthusiasm of the employees. When there is new employee joined the Starbucks

Corporation, the seniors will guide them on basics and then allow the new employee to

practically serve the customers. The culture pass on during the practical, based on the

guidance of senior employees, or even feedbacks from the frequent customers.

In Starbucks, customers are free to order their beverages according to their own desired

flavorings, and the employees are required to cooperate and brew the beverages

accordingly. The culture of Starbucks can easily pass onto new generations by

experiencing it and the influence of the environment.

Figure 2.1.1 Organizational Structure

Customer perspectives are always the main priority in the corporation. Starbucks believed

that every employees are responsible to serve every customers since it is a customer-first

business.


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Figure 2.1.2 Command line of Ordering System

Figure 2.1.2 show how the customer service works in Starbucks Corporation. It involved

communication between customer, cashier and barista. The figure also shown that it

could be various way of ordering a drink. It is totally depends on customers’ desire and

employees are required to serve it right. This culture also represented how Starbucks

employees being flexible and independent on customers’ ordering and communications

between each other.


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2.2 Limitation and Recommendation

Due to openness of Starbucks and creativity of employees, there is often so-called

“secret” menus leaked out and spread publicly. The menu is actually created by creative

employees and varies in every store. This had bring Starbucks an issue where some

customers might attend a store and order beverages that barista never brew before and

start complaining about the services of Starbucks. Hence, it would be recommended that

if one of the Starbucks store discover a new trend of beverage demand, the store should

share it with other stores so that standardization can be occurred.


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3.0 Organisation socialisation and Mentoring

a. Organisation Socialisation

It is a simple process which helps a person to learn the values and norms so then a person

can participate in the organization. It also motivates a person to do his/her job and get

internally satisfied. There are three phases of organization socialization.

Anticipatory Socialization

Encounter

Change and acquisition

Anticipatory Socialization

When a person get interested in an organization, this phase helps a person in the

transition to an organisation or group the person does not belong.

Encounter

This is the phase helps when a person get accepted in to an organization, by the use of

onboarding programs which helps employees integrate and transition to new jobs by

making them understand organization policies, by making work responsibilities

understandable.

Change and Acquisition

This phase requires employees to master and understand their role in the organization

properly to proceed further. This is the last phase of organization socialization and only

happens when the employees fully understand their work role.


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b. Mentoring

In simple words it is a relation between two people a Mentor and a junior person or new

recruit. It is a huge impact for organization in public and private sectors. This helps new

recruits to learn the way of doing a particular job in a particular field.

Mentoring benefits through organization

Benefits for the company:

Every company gains some benefits from mentoring such as

Improves employee retention.

Helps overcome learning curves.

Promotes highflyers.

Develops under-performers.

Benefits for the mentor:

There are benefits even for the mentor, such as learning something’s from their juniors

and teaching back what they learned from their mentors, every mentor was once

student/protégé before.

Benefits for the protégé/juniors:

They gets a lot of chances to learn from experienced people, meet different people across

organization. New opportunities in every way related to their particular field.

In Starbucks every employee has to go through a training process which comes under

mentoring. There are four types of training programs in this organization.

Barista basic training program

Shift supervisor training program

Retail management training program

District manager training program


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The first and second training program has huge impact on customer service, where every

barista gets trained to serve their customers well.

The barista basic training program provides the basic training for new employees,

teaching skills and giving proper knowledge required for employee. This program teaches

them through one to one delivery showing how to attend a customer in proper Starbucks

barista way, which enhances confidence and capability in delivering a good customer

service.


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3.1 Starbucks Organisation Socialisation and Mentoring

Starbucks organisation socialisation and mentoring is really important because there are a

lot of things comes under it such as customer service. Customer service play a wide role

in any organization specially Starbucks. Organization socialization and mentoring helps

in creating best baristas for their café’s all over the world. Because providing best and

friendly customer service is one of the most important goal of Starbucks, when the staff is

good their rating goes up. An organization need to have a good relation with their

customer for long term business. Having good relation with customers by providing good

customer services, these services can be anything from greeting to providing everything

possible to the customers. Starbucks creates amazing offers for their customers to keep

them happy in every way possible.

Organization socialization and mentoring is important in every organization, especially in

restaurants and café where the business is running as long as customers are happy. As in

the report it’s mentioned socializing and mentoring is really important for customer

service. With good mentoring, employees learn a lot of thing which helps them in

proving good service and because of that organization is running properly.


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4.0 Professional Issue and Computer Ethics

a. Fair Employment Practices and Diversity

Starbucks committed to upholding a culture where diversity is valued and respected. So

it’s only natural that as a guiding principle, diversity is integral to everything they do.

The company wide diversity strategy focuses on four areas: partners, customers, suppliers

and communities: Partners is about the look and engage partners who are as diverse as

the communities that serve. Customers are that they extend the Starbucks Experience to

all customers, recognizing and responding to their unique preferences and needs. Their

aim to provide an exceptional customer experience by connecting with their customers in

a culturally relevant way. Communities support and invest in local neighbourhoods and

global communities through strategic partnerships and economic develop opportunities

that deepen our ties in the communities where we do business. Suppliers are the trustable

and welcoming company for suppliers. Starbucks is dedicated to creating a workplace

that values and respects people from diverse backgrounds, and enables its employees to

do their best work. They honour the unique combination of talents, experiences and

perspectives of each partner

b. Discrimination and Harassment

Starbucks promotes work surroundings where multiplicity is embraced and everywhere

our differences are appreciated and respected. Starbucks disallow discrimination and

harassment based on race, gender, gender identity and etc. Business Ethics and

Compliance is a program that supports Our Starbucks Mission and helps protect our

culture and our reputation by providing resources that help partners make ethical

decisions at work. The Standards of Business Conduct booklet is a resource distributed to

all partners to help them make appropriate decisions at work. The standards are a brief

statement of some of the company's expectations of how we are all to conduct Starbucks

business, consistent with our Mission and core values. This would train the partners to be

non-biased to every customer that visit Starbucks, providing them a biased-free

environment.


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c. Privacy on the Web

Starbucks collects customer information from the website such as name, address, contact

number, email address, financial account information during Starbucks account

registration. They somehow disclose part of your information to limited third party

companies such as credit card company, affiliated company, website and blog that

collaborate with Starbucks you participate in and etc. Starbucks also ensure that the

information is secured inside the database and doesn’t share out to unauthorised third

party.

d. Encryption

Encryption is an expertise that allows protected transmittal of information next to the

Internet through encoding the transmit information through an arithmetical method that

scramble it. Without an equivalent "decoder," the broadcast would look like baloney text

and would be unusable. It able to be used with many applications, including electronic

commerce, email messages and responsive papers. Fundamental encryption involves the

broadcast of data from one party to another.

Starbucks released a new mobile app, but soon came under fire for vulnerability issues.

Starbucks wants to offer ease, all the details used to access the app, including the

password are stored on the phone. Unlike storing passwords on the computer when

asking a browser to remember the details, the information is stored in plain text. No

encryption service is used, making it possible for anyone to see the information. All a

person needs to do is connect the phone to the computer and download the information.

Email addresses, location and usernames used on the Starbucks app are also visible. A

hacker would not even need to unlock the phone to be able to get the information. The

danger is that hackers could gain access to a bank account to buy as many drinks as he or

she wants, as it is possible to allow the app to automatically fetch money from the bank

account when there are not enough funds stored within the Starbucks account. Linda

Mills, a spokesperson for Starbucks, admitted that there were vulnerability issues with the

app. The company is currently working on an upgrade to provide a fix for these security

problems that always face by user.


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4.1 Recommendations

According to Stewart (2013), Starbucks mobile apps business drove 10% of the sales in

the US, so it would be recommended for further building to stream lining ease of use and

payment process which would help drive more customers, decrease wait time in stores

and increase efficiency. Integrating Starbucks loyalty program with the mobile

application would also be recommended. But before all of this changes, the encryption on

the mobile apps must be fix to avoid information leakage and misused by third party.


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Overall Recommendation for Starbucks

According to all the research above, Starbucks obviously is having a good career

environment for employees that provide equals rights, right mentoring and guidance to

boost up their confident and motivation. From this view, it directly affect the quality of

customer services. In the matrix organisational structure, it stated that it would lead the

authority confusion, so the way to overcome this is maximising the communication

channel and the manager must possess a good leadership skills. Furthermore, its secret

recipe from Starbucks is limited due to geographical location since not every country

sharing the same ingredients and recipe, causing customer unable to get the favourite

drink anywhere they want. It is recommend to standardize all the ingredients worldwide.

Besides that, Starbucks having information vulnerability issue in their mobile apps,

causing anyone could take a look on their credential information. Starbucks should fix

this bug since 10% of its revenue in US came from mobile apps ordering.


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Conclusion

From the overall report, Starbucks uses matrix structure as their organisational structure

after 2008 to maximise communication channel and pulling the relationship between

employee and customer together. Furthermore, Starbucks culture is adhocracy that focus

on external environment and values of flexibility over stability. Starbucks outlets having

the interior design that would make customer feeling relax while enjoying their beverage,

it has become part of community for people to gather and having a talk.

Besides that, Starbucks mentoring has given a full training programme to newcomer on

1-to-1 basic, this would ensure guidance and training is fully captured by the new

employees. Lastly, the ethical issue of Starbucks is their mobile apps having a great

security flaws causing credential information leakage.


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