In this type of organizations, there can be multiple overlapping chains of command. There are various teams used in different parts of Starbucks coffee’s organization structure. Starbucks has a matrix organizational structure, which is a hybrid mixture of different features from the basic types of organizational structure. However, for a global organization which operates in multiple geographic segments and with multiple product categories, the matrix organizational structure can be quite beneficial. The same holds true for marketing communication. Starbucks went public on June 26, 1992 at a price of $17 per share and closed trading that first day at $21.50 per share. In this type of organizations, there can be multiple overlapping chains of command. Write CSS OR LESS and hit save. Starbucks is the leading coffeeshop chain in the global market. Let us now look at how the organizational structure of Starbucks has helped the company to achieve its long-term success. Starbucks Organizational Chart ( Organizational Chart) ... Matrix Structure. … In this case, the structural design involves intersections among various components of the business. Download PDF (72K) The organizational structure of the company also includes the geographic divisions. The company keeps changing its structures to suit their needs and that of the consumers. It is a company organization structure which determines is management, leadership, communication and ofcourse success and Starbucks is a good example of how divisions and responsibilities must be separated and placed within a company. Starbucks has a matrix organizational structure, which is the least bureaucratic and the most excellent human resource policy. 4.3636 (11) Web. On the other hand, in terms of product segmentation, the business operations have been segregated into: Beverages; Food; Packaged and Single serve coffee and tea; and Others. This structural arrangement ensures that the company is always capable to provide effective and efficient service to its clients and customers. The organizational structure of a firm determines how the certain activities like task allocation, employee coordination and supervision are directed in order to achieve organizational goals. These departments are only utilized at the top levels of Starbucks’ organizational structure, mainly its headquarters. All you need to do is to place your order with us and let your experts take care of the rest. Specify the page count, deadline, academic level and other variable to quickly find out the cost of your essay. The matrix organizational structure provides an outline for a project that may demand a more global approach. For this company, the matrix structure has proven to be beneficial as it aligns with the mission statement of Starbucks. This structure of Starbucks organization or hierarchy is a structure which indicates to a grouping based on the business function. At Penmypaper, we are committed to deliver you the best possible quality papers which are custom written to your specific instructions or requirements. Ever since its inception, the company has managed to expand its operations into 80 countries, across over 30,000 company-owned and licensed outlets. A localized promotional campaign becomes more relatable to the target audience in the host market, than a standardized promotion. This structure of Starbucks organization or hierarchy is a structure which indicates to a grouping based on the business function. By this time, you should have had a thorough understanding of the organizational structure of Starbucks and how the company operates with its overlapping chain of command. The study Some of the main departments in the company are the HR department, the finance department, the marketing department and others. This allows the company to have a centralized control over its operations even though it has regional headquarters across the world. I will consider the same organization to be a hybrid since it entails different features. The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. (2010). The aim of the report is to shed light on the international expansion of Starbucks in Pakistan. The success of the firm depends on the harmony between the its structure, and internal culture and activities. The organization is controlled by a Board of Directors who functions from the Group HQ based in Seattle, Washington. In terms of geographic segmentation, the entire operation can be divided into: the Americas; the Europe, the Middle East and Africa (EMEA); and China and Asia Pacific (CAP). Starbucks operations are divided into the following geographic divisions or segments: Americas (US, Canada and Latin America) Europe, Middle East and Africa (EMEA) China/Asia Pacific (CAP) Channel Development All … In this article, we have presented a thorough discussion on the organizational structure of Starbucks, which highlights the hierarchical structure within the company and the its corporate governance. We can say that Starbucks is more focused on a Flatter/Horizontal Organizational structure, With more authority given to the employees at the lower level of Hierarchy. This is the division which addresses product lines. Thus, one employee may report to two different supervisors. Therefore, Starbucks ensures that the international regions are able to take certain decisions independently, which are specific to the given market. Each of the geographic divisions in the company has a Vice President and this means that the managers report to two of their superiors who are the geographic head and the functional head. The central purpose of SWOT matrix is to identify the strategies that a company can utilize to exploit external opportunities, counter threats, and build on & protect Starbucks strengths, and eradicate its weaknesses. Starbucks organizational structure can be classified as divisional and the business is divided into the following divisions: 1. This company defines the organization as a matrix structure. (RTTNews) - Starbucks is reportedly planning to make "significant changes" to its organizational structure, including corporate layoffs at top levels. Penmypaper.com. Starbucks is therefore categorized under the mechanistic organizational structure. Starbucks is a global coffee chain that currently owns almost 29,039 stores around the world. 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