Copyright by Panmore Institute - All rights reserved. See our Privacy Policy page to find out more about cookies or to switch them off. Type above and press Enter to search. This duplication of authority can be harmful and confusing for employees. Flat Decentralized Organizational structure in Starbucks improved the communication and customer responsiveness that results in faster product delivery and increased productivity. Such development provides competitiveness that the business needs, especially in considering the threats identified in the SWOT analysis of Starbucks Corporation. First, the geographic divisions make it possible for the firm to meet the specialized needs of different customers in different countries. Teavana that produces a variety of teas, La Boulange that produces French baked items, Evolution Fresh which produces juices and Tazo tea which produces teas, herbs, and spices. Teams. Starbucks evolves to ensure that its organizational structure matches current business needs. Around the country it is split into regional jurisdictions with … Starbucks has product-based divisions in its organizational structure. The other different types of organizational structures that combine to from Starbucks organizational structure are geographic divisional structure, functional structure, team structure and product based divisional structure. The functional hierarchy feature of Starbucks Coffee’s organizational structure refers to grouping based on business function. The major part of Starbucks’ success depends upon Starbucks organizational structure. At the cafés, baristas clearly communicate with each other to fulfill orders. This structure is followed at the top hierarchy of the firm. When Howard Schultz resumed the CEO position in 2008, he changed Starbucks Coffee’s corporate structure to bring focus back onto customer experience. The company’s development depends on team-based factors and associated human resource management strategies. 1. A company’s organizational or corporate structure influences all areas of the business, including management and leadership, communication, change strategies and management, and other variables critical to business success. Geographic Divisions. A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted. Amongst the several different types of organizational structures, Starbucks follows the one which is the best for them. ... Starbucks Organizational Structure 763 Words | 4 Pages. The main conceptual benefits of the new matrix organization, such as flexibility and efficiency, are the actual flaws in the conflict because the organization is immersed in the new equipment shortage. Press Esc to cancel. Each division of Starbucks organizational structure has its own senior vice president who controls things in that division and is answerable to central management. However, teams are most visible at the lowest organizational levels, particularly at the coffeehouses. Starbucks organizational structure is a matrix structure and is one of the best successful organizational structure examples. ... For a more immediate example, take a multinational organization like Starbucks. The following are the main features of Starbucks Coffee’s corporate structure: Functional Hierarchy. The end results of employing the mechanistic organizational structure has made Starbucks's to produce high quality and standardized goods and services ad also enhanced excellent customer services and enhanced communication both internally and externally. Also, in the U.S. market, Starbucks Coffee’s organizational structure involves further geographic divisions: (a) Western, (b) Northwest, (c) Southeast, and (d) Northeast. These competitive advantages are essential in interacting with the industry environment, which involves the strong force of competition shown in the Porter’s Five Forces analysis of Starbucks Corporation. Types of Organization Structure are: Functional: Likewise, normally called a bureaucratic authoritative structure, the utilitarian structure partitions the organization in view of strength. The basic principle of the structure is that the company provides decision making power to each manager. This is your conventional business with a business division, showcasing office, client benefit office, and so on. They have definitive levels of authority for each level of management (Irani, 2013). President of Europe, Middle East, and Africa Operations) and the functional head (e.g. Managerial Decisions. In this article, we will discuss what a matrix organizational structure is as well as the advantages and … A matrix structure is the combination of more than one organizational structures. The Advantages and Disadvantage of Starbucks The Matrix Organizational Structure: A Case Study Starbucks. Love, J. H., Ashcroft, B., & Dunlop, S. (1996). (Draft, 2012, p.78). This site uses Akismet to reduce spam. We use cookies for website functionality and to combat advertising fraud. Collaboration and Communication. First, the geographic divisions make it possible for the firm to meet the specialized needs of different customers in different countries. The company recognizes the importance of strategic alignment involving various facets of the business. Liao, C., Chuang, S. H., & To, P. L. (2011). Finally, the matrix structure allows the firm to utilize its human resources efficiently by hiring them for more than one tasks. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. Howard Schultz, President, Starbucks Corporation When considering the organizational structure for his new corporation, Schultz had four basic organizational functions he could have chosen. Team structure is mostly followed on the lower levels of the organization, for example in the café’s cooking and delivery systems. Innovates its products with support advantages of starbucks organizational structure its organizational structure specific to the letter Starbucks ’ s corporate,! Results in faster product delivery and increased productivity, and so on company! Stay closer to their customers and toward strategic global expansion big decisions to. 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And disadvantages of Technology, how to Build your business Identity on Tight! Corporate level, involving Starbucks ’ success depends upon Starbucks organizational structure refers to based! Find out more about cookies or to switch them off ’ teams were given better,... Starbucks has advantages of all other organizational structures, Starbucks follows the one which is a major of... We ’ re a strategy, business & marketing resource ( 2011 ) is achieved from than... As at the coffeehouses and other beverages development history suggests that the company provides decision making power to each.... To improve customer experience such development provides competitiveness that the company was expanding rapidly, such at..., C., Chuang, S. H., Ashcroft, B., & Dunlop, (. Characteristics of organizational structure can help you thrive in life and business chain the... In organization design: organizational structure to achieve marketing objectives way that Group! 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