Is the Best Yet to Come
When the problem inside is detected and removed than the external environment can turn back Into stable stage of development. The consultants at McKinney & Company suggested to analyses the organization using 7 key elements: ; Structure ; Systems ; Style ; staff ; Skills ; Strategy ; Shared values. [Pl] Source: http://www. Middleton. Com/pages/article/newest_91 . HTML As model includes next items: ; Structure: shows the way organization Is structured and Interrelation of business units with each other.
It indicates how employees interact with each other within the organization. ; Systems: the practices in which employees participate day-to-day, e. G. Organizational systems, financial systems etc. ; Style: description of the general way of conducting business within the company. Style is rather top-down image than bottom up concerning the top-management ruling the company and analyzing the attitude of deferent level employees on It. ; Staff: refers to the employees within personal development. ; Skills: refers to gained professional abilities of employees within the company. Strategy: the general plan of company’s management to induct its business currently and in the future. Strategy usually is made by corporate level managers to analyze the internal and external environment of the company and respond to changing demand within its specific industry. ; Shared values: refers to the core values of the company, for what it is created and what mission it has in society. In addition there are also ethics principles serving as the guidelines for the company. Now we will analyze Struck based on McKinney As framework. 1 .
Structure The general structure of Struck is very diversified and functional, basically including marketing, HER, CARS, Legal, and Finance etc. Figure 2. Struck’ structure [pick] Source: http://MBA. Tuck. Dartmouth. Deed/PDF/2002-1-0023. PDF Generally speaking, the structure of Struck doesn’t have strict hierarchy and is rather democratic. According to the case, full-time and part-time employees regarded as ‘partners of the company, and every one of them is granted a stock option in proportion to their base pay. In 1991 each partner was granted stock options worth 12% of base pay, and this continued then each October every year.
In general the organizational structure is build in order to avoid high turnover rate and reduce staff retention as much as possible. The motivation of employees is high, and Struck’ turnover for store management is about 25%, compared to about 50% for other retail channels. 2. Systems Struck developed outstanding system techniques which helped sustain the leading position in the world among coffee-makers. Its unique system includes: ; Licenses stores and specialty sales licensing agreement, which managed market and distributing whole-bean and round coffees in grocery and mass-merchandise channels across the U.
S. At the same time Struck controlled how customers would perceive Struck when they encountered it in grocery aisles. The company also created its own sales group that provided its coffee products to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs and select retailers. ; Purchasing system Struck personnel traveled to coffee-producing countries to build relationships with growers and exporters, searching the sources that would meet its demands on quality and flavor.
Because coffee industry depends a lot on weather conditions and different harvests, Struck set up fixed purchasing price to protect itself and get the bargaining power. ; Employee training Struck really believes that reducing the staff retention will help it to build strong brand, because the longer employees stay with the company, the more loyal customers the company will get. That’s why employees were trained and educated about coffee market, and afterwards shared their knowledge with customers. Thus Struck has developed system to build brand loyalty among its customers.
Their raining covered also practices as set forth in the company’s operating manual, information systems, and the basis of managing people. 3. Style The managerial style of conducting business in Struck is characterized as oriented on leadership (trust, collaboration, people development, and ethics), creating the opportunities for employees further career development (employees provided with coaching and feedback) and educating style (company raised employees according to personal needs giving them coffee knowledge and expertise seminars).
In general Struck is perceived as innovative, team-oriented and strong rand company. 4. Staff As long as Struck expanded internationally, company launched special hired high-motivated people who shared its love for coffee and had strong interest in it along with top-management. This has made Struck really unique and distinctive from its competitors company. In addition employees were guided by three principles: 1) maintain and enhance self-esteem 2) listen and acknowledge 3) ask for help.
Thus employees became one of key figures to take part in company’s decision and empowered by top-management. The whole total care of employees has rough Struck reputation of well-respected company and helped it generate high-profit to satisfy shareholders’ needs. 5. Skills The workers of company are quite high skilful due to intensive training and recognition. Every partner/barista received at least 24 hours of training on coffee history, drinks preparation, customer service, coffee knowledge and so on.
Customer service: we can see from the case that due to the employee coaching highly knowledgeable staff brought benefit to the company using friendly attitude to every customer, who wanted to come again and again to enjoy a cup of coffee in Struck. Customizing drink to customer specifications: workers were able to prepare grinding beans, steaming milk, learning to pull perfect cup of espresso, memorizing the recipes of different drinks – led to winning the prize among the target market. . Strategy Struck strategy was set up in order to build brand awareness, brand recognition, and brand association among its customers worldwide. Hence main strategies were implemented: A. Employee’s loyalty strategy: core strategy to win employee loyalty and commitment to company’s mission B. Store expansion strategy: choosing the best action in large cities and suburbia, creating best retail team in the coffee bar industry.
World expansion has spread to Europe, China, Japan, South Korea and Taiwan by 2005 by choosing licensing rather than franchising to tight controlling over its operations. C. Coffee purchasing strategy: Struck relied mostly on direct suppliers from coffee-producing countries rather than on media-suppliers, that helped to reduce costs and make economies of scale D. JP and acquisitions strategy: partnering with famous brands as PepsiCo, Dryer’s Grand Ice Cream Brands generated gross sales of over $8 million annually.
Purchasing Ethos Water lead to expanding the line of beverages in the U. S. Overall operations has driven extremely high profit for Struck that achieved its strategic objectives. 7. Shared values Struck positions itself as contributing to the community and to the environment in which it operates. Along with care for employees, building trust and respecting techniques, it also set up one of the best valuable CARS strategy in the world, becoming an environmental leader in all facets of its business.
For example using recycling material, avoiding genetically modified ingredients Struck has built a strong belief of customers in healthy products produced by the company. General As analysis shows that Struck doesn’t have any gaps in every sector of McKinney model. The company has very good top-down and bottom-up strategies, ensuring well-being of top-managers, customers and employees. But this analysis is mostly suitable for internal analysis of a company that helps to understand problems, which might appear when industry environment starts to change.
