How is the Innovation impact in Starbucks organization Essay

How is the Innovation impact in Starbucks organization - Essay Example Layout for all new stores is developed on computer with software for cost estimating. This not only reduces costs for development, but also helps regional managers to keep costs of new locations below target figures. Planning of new Starbucks spaces down to the last square foot, including layout of cases and brewing equipment allows managers and company representatives to work more efficiently. Starbucks is continuously looking for new ways to offer its products and expand its product lines. Developing partnerships with other food companies such as Kraft, PepsiCo and Dryer’s Grand Ice Cream has allowed the company to reach more customers with more channels for product sales. Starbucks also has established licensing agreements with United Airlines, Marriott Host International, Aramark, Nordstroms and Barnes and Noble to offer products in Hotels, airports, book stores, department stores and college campuses. Strategies for global expansion include choosing â€Å"a reputable and capable local company with retailing know-how in the target host country to develop and operate new stores† (Thomson & Gamble, 1999). Starbucks seeks talent within its organizational structure, so that executives can continue to focus on specific tasks such as buying and planning. Once a hub is established in a major city, managers known as zone vice presidents are relied upon for regional development.