The Matrix Organizational Structure: A Case Study Starbucks

1434 Words6 Pages
The matrix organisational structure; a case study Starbucks
An organisation is a defined and stratified entity composed of people, who are united by association (e.g. through employment) toward meeting a specific goal (Business Dictionary, 2017). The foregoing definition lends insight into the existence of diverse roles and responsibilities expected from members of an organisation, which roles interface with supervisory, subservient and inter-personal interactions.
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
…show more content…
These are found at all service outlets (Starbucks Cafes) and are at the frontline of service and product delivery which is vital for the effective and efficient transaction of business (Meyer, 2017).

Figure 1 below summarises the Starbucks organisation hierarchy (Jincey, Shraddha, & Richa, 2015).
As seen in the figure, functional structure comprising top level management is embedded in levels 1-3. The geographical divisions are embedded in level 4. Product divisions are embedded in levels 5-7 and the frontline teams, the teams at level 8. Figure 2 above illustrates the Starbucks organogram in context of the global enterprise (Starbucks International Marketing Strategy, 2010).

Critical evaluation of a matrix organisational structure
As seen from figure 2, the matrix organisational structure is complex and aligns functional and divisional organisational structures merged into a hierarchical structure. The student observes that with this comes the potential to on the one hand, improve interdepartmental collaboration through avoiding silo-functioning and yet, on the other hand, blur the unity of command structure in an organisation that can be counterproductive. A critical analysis of two major advantages and disadvantages of this organisational structure here
…show more content…
It helps to provide guidance on power relations and roles expected between different levels of staff in an organisation. It is not cast in stone but rather, should be adaptable to the environment- both internally and externally in order to meet the demands of consumers in these two distinct market places. Internally, the employees are the consumers. Often, the external consumers for whom products and or services are destined are the focus but as can be seen from the case study of Starbucks, focus on the internal customer can salvage dire situations that an organisation experiences

More about The Matrix Organizational Structure: A Case Study Starbucks

Get Access