Mana- starbucks - Starbuck organization structure PDF

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Starbuck organization structure...

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II. Organization of Starbucks coffee Organizational structure Starbucks has a matrix organizational structure, which is a mix of different features which are functional organization, geographic divisions, product-based divisions, and teams. The first feature is functional structure which indicates to grouping based on business function. According to this structure, the CEO is placed at the top followed by different department, such as HR department, finance department, and marketing department and other. This feature is hierarchical. For instant, the HR department implies policies applicable to all Starbucks coffee. This structure facilitates top-down monitoring and control, with the CEO at the top. The second feature is geographic division which includes global market and U.S market. There are three religion divisions for the global market: China and Asia-Specific, Americas, and Europe, Middle East, Russia and Africa. In the U.S market, the organization structure involves Western, Northwest, Southeast, and Northeast. Each geographical division has a senior vice president. Hence, the manager of Starbuck reports to two supervisors: the geographic head, or the President of U.S Operation, and the functional head, or Corporate HR manager. This feature helps closer managerial support for geographic needs. Each division head has flexibility in changing policies and strategies to match different market conditions. The third feature is product-based divisions which address product line. This feature includes coffee related, food related, and merchandise divisions. This feature of Starbuck organizational structure enable focus on product development. Thus, the company enhances and modernizes its product from its organizational structure. The last feature is teams which are most available at the lowest organizational levels, especially at the coffeehouse of Starbuck. All the employees and partners of Starbuck work together as a team and focus on quality customer service and customer satisfaction. Starbuck has a strong emphasis on a policy that the organization will appreciate individual contribution no matter what where you are in the hierarchy. For example, in each café, the firm has a team organized to delivery goods and services to customer. This feature helps the company provide effective and efficient service to customers. The organization’s development depends on team factor and human resource management strategies. Starbuck has reformed its organizational structure over time, and the current structure is a result of this reform to improve the customer experience and the firm’s financial statement. Decision making Four geographic zones of Starbuck meet every quarter to discus about the changes and decisions in the company. Each manager has made their decision based on a regional and geographical, and then the manager reports both the pros and cons result at the corporate levels. This supports the communication between the head office and the regional offices. Starbuck allows both its regional and international managers to make independent decisions, and encourages them to think on their own for the company’s development, which helps them become investment business people later on.

Decision making process

There are six main steps of decisions making process of Starbucks, such as making a goad, generating alternatives, finding pros and cons, choosing options, implementing option, and learning from feedbacks. For example, when a Starbuck’s managers plan to make a new drink, they have to consider about the limited of seasonal drinks to fit each country, hot and cold, and the cost estimated. Then they will evaluate both advantages and disadvantages, for example, the customer can enjoy various new taste, and at the time or situation, but different countries have different taste. Because they do not want to lose the customers, they decide to make a limited of seasonal drink, and fit each country. Finally, they will choose some stores to sold it and researches sales. Advantages The decentralized structure of Starbucks is effective because it saves time, money and improves the communication process of the organization. Beside that, the decisions making procedure has highly improved and reduced the waiting time or the time lag in taking any decision in the company. Additionally, the store’s managers remain closer to the customer, and thus they can respond faster to the customer demands and take decision faster. Disadvantages The decentralized structure builds up an environment of uncertainty that leads to a chaotic situation in the organization. Decision making is very quick, but decision maker just thinks about the future of that store only and its effect on other stores is deserted. Each manager has power, so most of the manager ignore the other’s point of view. This act creates imbalance in the company and affects the overall development of the firm....