Perceptual Map

Perceptual maps are diagrams used for marketers/ businesses, as they provide valuable insights into consumer preferences. By mapping out the different product it allows marketers to better understand how their products compare to their competitors and also what changes could be made to stay ahead of competition. Also, perceptual maps help businesses understand the products that are most important to consumers and how they can better their products on the market. Starbucks perceptual map involves comparing its offerings against those of different competitors such as McDonalds and Dunkin. Starbucks differentiates its goods and services using the unique sales proposition idea. Starbucks is noted for its exceptional customer service and in-store experience. Below is a perceptual map of the coffee industry, comparing the competitors in direct competition with Starbucks. Successful strategy creation does not ensure successful strategy execution. Strategy creation and strategy execution are distinct despite their interdependence. Strategy execution is change. The consensus is that "the actual work starts when tactics are defined." Motivated managers and people are needed to execute a plan successfully. It is alarming to consider that one person may ruin the plan execution (David et al., 2020)

High Price

Low Price

High Value Proposition

Local Cafes

Starbucks

McDonalds McCafe

Neighborhood coffee

Low Value Proposition

Dunkin Donuts

Diagramming Existing and Proposed Organizational Chart

Starbucks currently uses a matrix organizational structure. The company is controlled by a board that has a few main pieces to it. When you visualize this, the chairman, Mellody Hobson, sits at the top, followed immediately by the CEO, with the rest of the board just below, all on one level. Their functional hierarchy is centralized and run by the Chairman and Chief Executive Officer, Howard Shultz. There are heads of functional departments, product-based divisions, and geographic divisions who control their separate divisions, departments, and teams that operate below them.

Product-based divisions include merchandise, food items, and other brands that operate under Starbucks such as Teavana. Geographic divisions are more complicated. Starbucks currently operates in over 80 countries globally. They have created three international divisions: Americas, China and Asia-Pacific, and EMEA (Europe, Middle East, and Africa.

The new proposed organizational chart for Starbucks has the chairman at the top, with others following on tiers two and three. The CEO, Howard Shultz is on the second tier, at the same level as the CFO, Rachel Ruggeri, CTO, Deb Hall Lefevere, and SVP EMEA Duncan Moir along with others. The third tier contains the COO, John Culver, along with other heads of global divisions.

These specific changes that are being recommended would not create many associated costs, as the changes being made are minor. The current organizational structure of Starbucks is set up in an efficient manner. The minor changes that are recommended to be made are not the remove or add positions, but to modify levels by moving one down below the COO.