Starfucks: A Case Study Starbucks

The functional aspects of the structure can be realized by the group of employees for their business functions, or departmentalized. However, due to its long stretch of acting, Costco also has a divisional structure according to geographical location and the local market.

A structure depends on the organization 's objectives and strategy. In a very centralized structure, the highest layer of management has most of the choice creating power and has tight management over departments and divisions. In a much suburbanized structure, the choice creating power is distributed and also the departments and divisions could have totally different degrees of independence. Wal-mart’s structure is built upon its risk management, safety and claims management process. Google Inc. has gained much attention and acclaim for its unusual organizational culture, which is designed to establish loyalty and creativity. Although both Google and Wal-mart focuses on risk management and they specialized on two different factors. Google focus more on creativity, loyalty and keeping its employees happy. Wal-mart tends to help customers by saving money, claims and promoting within the company.

This means that there must be sufficient capital, staff and raw materials so that the organization can run smoothly and that it can build a good working structure. Two of the elements in an organizational design will be used which is work specialization and chain of command. The breaking down of jobs into smaller and specific jobs is work specialization (Robbins, S., 2011). The jobs at Starbucks are highly specialized. According to (Roberts, 2015), some stores operate with a drive-thru window. At any given time, there will be four employees working to operate the drive-thru window: one to take orders, one to handle cash, one to make coffee, and another to help where needed most. Chain of command is when any employee should receive orders from one boss only under any circumstances (Carl A. Rodrigues, 2001:882). Looking at (TheOfficialBoard, 2015) Mr Schultz is the CEO and he manages a team of five chief and five presidents. There are also nine senior VP’s who answers to these chiefs. The Starbucks organization structure consists of board members who make decisions with Mr Schultz. Mr Schultz will then discuss plans with their chiefs in order to implement rules and guidelines to successfully achieve the goals of the board. These are then passed down to the senior VP’s who implement them to the rest of the organization. It is then broken down into the regional offices where a manager oversees the operations of 8-10 stores. Finally, each store has a manager, assistant manager and employees. Extracted from an article, the job duty for the employees is to provide excellent customer service while making handcrafted, quality beverages. This is the chain of command for the Starbucks enterprises. There is a total of thirty-nine executives in the Starbucks organizational chart which is

The Starbucks Corporation is an international coffee company that was founded in Seattle, Washington (Starbucks.com). With 19,435 stores in 58 countries, it is the largest coffeehouse chain company in the world; Starbucks sells a variety of hot and cold drinks. These include espresso

Draft et al. (2010): Organisational structure is referred to as the framework in which an organisation allocates its resources, how tasks are divided and departments are coordinated. Hot Dog café has a flexible structure as the franchisees manages most of the things therefore making them to have a low-cost management and the franchisor Derek Smith closely monitors the franchise for key performance indicators.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks current structure is categorized as a mechanistic organization, which is comprised of highly vertical and horizontal complexities, highly formalizations, highly centralizations, tapered lengths of control, and highly standardizations. The CEO of Starbucks, Howard Shultz, has worked to create a more efficient and streamlined structure where information can flow freely

Top executives and other employees located in different positions operate corporation projects together, thus improved coordination of activities (Lewis, 2012). Besides, matrix organization model allows MCS to make use of the experts’ skills and knowledge better by pulling them from their respective offices and allocating them different responsibilities in running the business projects.

Starbucks has many different employees, in order for the communication to run smoothly between all of these there needs to be some form of organisation within the business. From doing some research I found that they in fact use the matrix structure. This structure ensures that the CEO isn’t dealing with all of the problems within the business. The employees turn to the person above them in the structure.

A matrix structure will not be successful if an organization’s employees are not trained with the ability and skills necessary to operate within the structure. Employees must have the right mindset and behaviors in order to operate in an environment that is constantly conflicted with multiple bosses and simultaneously pursuing multiple aims (Bartlett and Ghoshal, 1990; Ford and Randolph, 1992). The employees need to have the same goals within the organization so there is less competition among them. For example take two teams one is in marketing and one is in development if both of them have different goals to achieve this leads to conflict among both teams creating a dysfunctional workplace. These same employees also need to know exactly what their job requires them to do. The matrix structure adds flexibility to the organization but the company needs to make sure that the responsibilities of the top executives are not the only known responsibilities, those job indicators need to be exchanged between all levels of the workforce. The flexibility the structure provides can lead to untimely decisions. This is created by the fact that the matrix structure requires input and collaboration among its staff. The employees may have trouble deciding whose’ input is needed because the interpersonal skills of the employees is lacking leading to untimely decisions that could result in a loss of quality. Or the employees may just become divisionally focused and not see the organization

Therefore, for an organization to have a definitive structure, there needs to be employees assigned (and carrying out) prescribed tasks in relation to their expertise (division of labour), clearly outlined documentation that spells out spatial relationships within the

An organisation is a group of people that are working together to achieve a mutual goal by working at a sequence of objectives. Organisations can vary in many things such as size; it could be as little as one person or thousands of people working worldwide in a large international company. The word organisation is used as a collective to describe all types like banks, charities, professional practices, production companies and government departments.

The corporate level strategy is roughly the same as the business level strategy since Starbucks only has one primary business. I believe that fact that Starbucks only focuses on one primary business makes the organization stronger. For example, there is no chance for conflict between the business level strategy and the corporate level strategy and the entire organization can focus on a single mission. Furthermore, this strategy has allowed them to reproduce their model all over the globe. As is the case with the Japanese, Chinese

An organization’s structure should help it achieve its goals, since goals are an important part of the organization’s strategies it makes sense that strategy and structure be closely connected. Particularly, if managers extensively change the organizations strategy, the structure should transform in order to support the new strategy; that is to say, structure should follow strategy (Robins, Coulter, 2007). Because no organization is the same there is not a one-size fits all structure. To that end, the matrix organization

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.