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Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

Principles Of Management Project On Starbucks


  • Life Time – 1841 – 1925
  • Profession – Mining Engineer & Mgt. Theorist (French)
  • Education – Educated from Mining Academy at St. Etienne in 1880.
  • Position Held – Founded the Mining Company ‘Compagnie De Commentary – Fourchambeau – Decazville.’ and became its Managing Director in 1888 and remained till 1918.
  • Contribution – Mainly 14 Principles, which were referred to as administrative in that they have a Top-Down approach concerning Top Mgt. And other managers conduct.


Henri Fayol (1841 – 1925) was a French management theorist whose theories concerning the scientific organization of labor were widely influential at the beginning of the twentieth century. He was graduated from the mining academy of St. Etienne in 1860 in mining engineering. The 19-year-old engineer started at the mining company. ‘Compagnie De Commentary – Four Chambean – Decazeville,’ ultimately acting as its managing direction from 1818 to 1918.

He wrote Administration Industrielle Et Generale. It was published in English as General and Industrial Management in 1949 and is widely considered a foundational work in classical management theory.

Principles of management advocated by Fayol are known as general principles of management as these are applicable in all types of organizations in all countries. In light of this, this project has been undertaken to find out the extent to which Fayol’s principles are being applied in Starbucks Corporation.


One of the most famous corporations in America is recognized worldwide by its distinctive logo and the signature scent – coffee. Since the very first store opened in Seattle, Starbucks has continued to grow and change, adapting to become a better and more successful company.

Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects


The first Starbucks store opened at Pike’s Place Market in downtown Seattle in 1971 as a whole been coffee seller. By the beginning of the 1980’s it had grown to S stores and included a roasting plant and a wholesale business selling to local restaurants. At this time, the organization also had an employee named Howard Schultz, who was the manager of retail sales and marketing, saw huge growth potential in the coffee business, and open his coffee shops in 1985 called “II Crionales’s.” After a rocky start throughout the rest of the ’80s, Schultz took the company public in 1992. Schultz’s company continued to grow, Starbucks maintains ownership of all its North American retail stores.


The mission of the company is simply laid out according to the Starbucks

  • “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time.”
  • Environmental Mission: “Starbucks is committed to a role of environmental leadership in all facets of our business.”


“Share great coffee with our friends and help make the world a little better.” These ideas have allowed Starbucks to grow into its current incarnation: a publicly traded, for-profit, international selling, a highly successful corporation based in Seattle, Washington.


According to Fayol, authority is right to give orders and obtain obedience and responsibility is a result of authority. The two types of authorities are:

  1. Official Authority
  2. Personal Authority

Authority is both formal and informal authority. Managers require authority and commensurate with responsibility. There should be a balance between authority and responsibility. An organization should build safeguards against the abuse of managerial power. At the same time, the manager should have the necessary authority to punish the sub-ordinate for willfully not obeying a litigate order, but only after sufficient opportunity has given to sub-ordinate.

Conclusion – We conclude that four employees have full authority, while two employees do not have full authority.


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

According to Fayol, there should be only one boss for every individual employee. If an employee gets orders from two superiors at the same time, the principle of unity of command is violated. The principle states that each participant in a formal organization should receive orders from only one superior. If this principle is violated, then “Authority is undermined, a disciple is jeopardy, order disturbed, and stability threatened.” Dual subordination leads to confusion among subordinates, and they also get a chance to make excuses.

Conclusion: – 3 employees report to only one boss while the other 3 have different bosses.


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

The overall pay and compensation should be fair to both employees and the organization. The employees should be paid for at least providing them a standard of living with their wages and should be in the paying capacity of the company. Remuneration should be just and equitable. This will ensure healthy relations among the workers and management.

Conclusion: 5 employees are satisfied with their remuneration while one is unsatisfied.


The interest of an organization should take priority over the interest of any one individual employee, according to Fayol. Every worker has some individual interest in working in a company. But the company has its objectives.

Conclusion: 4 employees give top priorities to the organizational goal while two employees give priority to their individual goal.


The concentration of decision-making authority is called centralization, whereas its dispersal among more than one person is known as decentralization. The degree of centralization depends upon the circumstances in which a company is working. Large companies have more decentralization than small ones.

Conclusion: 3 employees are in favor of centralization, and the other three employees are in favor of decentralization


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible. The principle emphasis kindliness and justice in the behavior of managers and towards workers. This will ensure loyalty and devotion. There should be no discrimination against anyone. Nowadays, in multi-national corporations, ’ people of various nationalities work together in a discrimination-free environment.

Conclusion: All six employees feel that there is equity in the organization.


Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an intelligent person. The initiative should be encouraged. But it does not mean going against the established practices of a company for the sake of being different. A good company should have an employee suggestion system.

Conclusion: 4 employees feel free to initiate their ideas, while two employees are not of the same notion.


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

“Employee turnover should be minimized to maintain organizational efficiency,” According to Fayol. Personnel should be selected and appointed after the due and rigorous procedure. But once selected, they should be kept at their post for a minimum fixed tenure. They should be given time to show results. Any aphorism will create instability among employees.

Conclusion: We conclude that personnel is stable in Starbucks as four employees have served for more than one year.


According to Fayol, “People and materials must be in suitable places at the appropriate time for maximum efficiency.” The principle of the order states that ‘A place for everything in its place.’ Essentially it means orderliness. If there are fixed places for everything and is present there, then there will be no hindrance to the activity of the business. This will lead to increased productivity and efficiency.

Conclusion: All six employees agree that follow proper order while working in the Starbucks cafe.


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

Work is divided into small tasks/jobs. A trained and competent specialist is required to perform each job. Thus, the division of work leads to Specialization. The division of work intends to produce more and better work for the same effort. Specialization is the most efficient way to use human effort. In business, work can be performed more efficiently if it is divided into specialized tasks, each performed by a specialist or trained employee.

Conclusion: 3 employees are in favor of the division of work.


Discipline is obedience to organizational rules and employment agreements, which are necessary for the working of the organization. According to Fayol, “Discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.” Discipline is applied when both workers and management honor their commitments without any prejudice towards one another.

Conclusion: We conclude that Starbucks follows disciplinary policy as most of the employees agree that they have to maintain the code of conduct.


All the units of an organization should be moving towards the same direction and the same objectives through coordinated and focused efforts. Each group of activities having the same objectives must have one head and one plan. This ensures unity of action and coordination.

Conclusion: This principle is duly followed, as all employees follow the same goals & direction of the workplace.


Principles Of Management Project On Starbucks, Principles Of Management Project On Starbucks, HSC Projects, HSC Projects

An organization consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as a scalar chain. According to Henri Fayol, “Organizations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates.”

Conclusion: 4 employees cannot directly contact the highest authorities.


Management should promote a team spirit of unity and harmony among employees. Management should promote teamwork, especially in large organizations, because otherwise, objectives would be difficult to realize. It will also result in a loss of coordination. A manager should replace ‘1’ with ‘We’ in all his conversations with workers to foster team spirit.

Conclusion: Team spirit is followed and accepted by most of the employees.


The primary purpose of this study was to obtain deep insight into the principles of management given by Fayol. Implementing the principles of management is one of the most important functions of a manager as these are widely applicable to managerial problems and have cast a profound impact on management thinking today.

Since going public in 1992, Starbucks Corporation has grown to become an international retailer in more than 50 countries across the globe. According to Google Finance, that $17.00 per share price trading at $40.00 today and Schultz is showing a fiscal year total compensation of just over 24.8 million dollars. The company boasts over 17,000 stores worldwide, with over 2,10,000 employees, encompassing not only their signature Starbucks blends of coffee, but the corporation also markets Tazo brand tea, specialty candies, and numerous kitchen supplies such as cups and coffee making as well as other merchandise. They acquired Seattle Coffee Company in 2003, making the “Seattle’s Best” Coffee Brand part of the Starbucks “family” of coffees. This Brand has recent lyre-invented itself and is marketing its updated blend of coffees, further adding to the constantly changing and advancing market.

In its 40-year history, the Starbucks brand has seen huge growth, becoming a worldwide icon of highly caffeinated beverages, recognized from Sydney to Tokyo, to London and back to its home of Seattle, Washington. With an adaptive mindset and a Mission and Vision that drives the company to stay number 1 in its industry, Starbucks Corporation will continue this trend and stay at the leading edge in business.


This is to certify that of Commerce of Guru Nanak International Public School, Model Town, Ludhiana has completed his project file under my supervision. He has taken proper care and shown the utmost sincerity in the completion of this project.

I certify that this project is up to my expectations and as per the guidelines issued by C.B.S.E.

Mrs. Mamta

(Dept. of Commerce)

GNIPS, Ludhiana


I am very thankful to my Business Studies Teacher, Mrs. Mamta, Who helped me in analyzing the application of Principles of Management. She made my concepts more clear, enhanced my knowledge, and help me realize the importance of Principles of Management.

I am also thankful to the CBSE for giving me such an amazing opportunity of doing this project and giving suitable instruction and guidelines for the project.

About Nawaf Gantare

Nawaf, An Twentieth-something savvy Web Designer / Social Media Manager / SEO Strategist based In India. He is Passionate about Web Designing, Programming, And Web Security. He is currently learning Management Studies and is in the Second Year

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