Starbucks Network Design Research Paper

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Network design is a key business decision as well as a technological decision. The main reason is that, network within a business system plays crucial role in executing decisions made throughout the organization. A decision made may be good or right but fail to be accepted and acted upon by the company employees.

Network can either be formal or informal (Weygandt, 2009). Employees’ informal networks within an organization tend to harbor implementation of good decisions. A good network design helps in elimination of unproductive approaches of making decisions in an organization. This helps the leaders in ensuring that decisions made and interactions within the organization efficiently support strategic objectives (Weygandt, 2009).

A good network design supports critical elements of business. Such elements include; good customer service, employee increased productivity and increased revenues. Network design is customer oriented (Weygandt, 2009). It understands the clients, their requirements and values.

As a leader and a decision maker in a company, one should strive to meet the expectations of clients from the services or products offered. Suppliers need to be well oriented in customer’s buying process because the behavior of the final client affects the movement of services. Network design also is highly flexible to its employees in order to facilitate openness of employees to new decisions, ideas and methods (Weygandt, 2009). Network design measures the growth of a business which in turn lead to increased revenue.

Network design is also a technological decision. The reason is that there are numerous options in designing a network. Such options include the cost and the solution of the network being designed.

A good network design enhances efficient flow of information. Businesses need to invest on technology which allows efficient and great access to information in order to facilitate changes in a business by the parties involved. Availability of information helps in decision making while at the same time providing information on stages of goods ordered by a customer (Weygandt, 2009).

Starbuck has a good network design in United States of America. It has over 11,000 coffee outlets in US only. The reason is that, it is loyal to its customers and creates an atmosphere to attract more consumers. It is focused on satisfying its customers by offering a great experience to its consumers (Schultz, 1997).

Starbucks realized that consumers look for tea and coffee of superior quality delivered in a good environment depending on their (consumers) lifestyle and the current activity as they consume their coffee. This has made Starbucks to be the preferred choice and has expanded over the years. It still holds its position in the competitive advantage in the market (Schultz, 1997).

Starbucks has also managed to maintain employee high level of performance. It hires and retains young employees; with more than half being part-time workers. The employees have all the information about the products offered, skilled, eager and well developed personality. The company supports its employees thus building their self confidence, reduce training and hiring costs. The company has many programs for its employees which has increased their productivity. This makes it stay on top of its competitors (Schultz, 1997).

Technologically, Starbucks has an integrated network which provides information to producers and its customers. It has invested on advertisements as well as website where its information is readily available. Such information has led to increased expansion and an organized market structure. Generally has adopted tactics of staying ahead of its competitors and introducing new products to the market (Schultz, 1997).

In conclusion, from the Starbucks utility one can make the following business reports; shareholders decisions, annual presentations by shareholders, presentations by investors and analysts, corporate actions, annual and half year reports and IPO (Initial Public Offering) reports (Weygandt, 2009).

References

Schultz, H. (1997).Pour your heart into it: How Starbucks built a company one cup at a time. New York. Hyperion.

Weygandt, J. (2009). Managerial accounting: tools for business decision making. USA. Wiley.

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