Last Updated 12 May 2020

Control Mechanisms of Starbucks

Category Starbucks
Essay type Research
Words 662 (2 pages)
Views 331

Introduction.

              Starbuck is an organization which is multinational and deals with both production, storage and selling of such products.  For instance, the Starbuck multinational coffee and coffee house company which is based in United States.  This is termed as the largest coffee house company in the world with 8,505 company owned and 6506 licensed stores in 42 countries.  It sells drip brewed coffee, Expresso-based hot drinks, other hot and cold drinks, snacks and items like mugs and coffee beans.  Also through its Sawbuck’s Entertainment division and hear music brand, the company also markets books, music and films.

An organization like this one requires an aggressive competition to have high sales.  It should compete in an “out put en acing” pro-consumer way other than seeking to find ways to reduce output and rise price (Jackson K, 2004).

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Some of control mechanisms have been put in place to enhance these organizations run effectively.  Such include:

Monitoring of the employees.  In such an organization, there should be cost of monitoring the employees which prevent shirking.  This should be quite intrusive.  Replicability requires close monitoring which on the other hand arises the problem of incentives.  To ensure proper supervision, there should be provision of incentives.

Capital in such an organization plays a major role as a control mechanism.  The capital can be raised from public offering of stock.  Also when the capital is enough ensures provision of job security and health care for its workers.  The provision of products also ensures extra capital is invested which instead goes to  doing out gold-plated health care- no copays, no deductibles to workers and plumping up their pension fund.

Saving Environmentalism through markets is another mechanism which refers to mandate in regulation of policies to deal with green mantra. It shows world’s approach towards environmental policy making. Mostly, it stresses on rights over “commons” which include fisheries.  For instance these rights are abused because they belong to everyone and no one.  These policies have proved to work because of noted drop in over-fishing and limitation in emissions trading. Advanced environmental science has also been noted.

Provision of an optimal experience to the customer is another type of control mechanism.  For this case, when the customers learn for a certain   products in the market, they are assured every time of getting such products without having changes in t he brand.  This in turn creates more customers are assured of getting what he wants in the market.

In comparing and contrasting the control mechanisms identified, it is clearly noted that the organizations and companies which practice control mechanisms are doing well in production as compared to those which don’t apply.  For instance, the cause of employment monitoring, the organization which monitor the working of employees are more advantaged because workers perform effectively unlike those who are not monitored.  This in turn increases profits in employee monitored organizations due to full utilization of work time.

For capital provision, the organizations with high capital yield more profits which ensure effective payments to workers and carrying our of organization activities.  Unlike the ones which does not invest capitals. Environmentally wise, the organizations which apply measures of conserving environment have been well placed in the market place which increases their sales unlike the ones which don’t apply such methods. Also the organizations which practice optimal experience to the customers have been noted to do better than the ones which do not.  Generally, control measures in Starbuck have increased profits in organizations as compared to the ones which do not apply such (Jackson K, 2004).

Control mechanisms are important to every organization. It would be difficult to determine whether or not the planning, organizing and leading functions of management are effective and productive for the company. Although some mechanisms are used widely though out many organizations and companies, some mechanisms are tailored to fit a specific organization management must determine the most appropriate control mechanisms for the company.

 Reference:

Jackson K, (2004). Building Reputational Capital: Strategies for Integrity and Fare Play That Improve the Bottom Line .New York.

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Control Mechanisms of Starbucks. (2018, Feb 11). Retrieved from https://phdessay.com/control-mechanisms-of-starbucks/

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