Organizational Paper Starbucks Essay
Organizational structures are used by companies to help build a successful business - Organizational Paper Starbucks Essay introduction. Each company has their own individual structure to ensure departments and employees are knowledgeable of proper direction to take. Individual organizational structures are described as a formal composition task and reporting relationships. Companies use organizational structures to control, coordinate, and motivate employees with a common goal to be achieved. Starbucks incorporates organizational structure in the day-to-day business.
To help ensure success, companies like Starbucks, use different functions of management and organizational resources. There are many different organizational structure types. Companies use their own unique way to pull together the components in to one outline to portray the necessary relationships. Throughout this paper I will address Starbuck’s organizational structure, organizational functions that influence and determine Starbuck’s organizational structure, and how organizational design determines Starbuck’s needs.
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When companies create a structure, management looks for the most effective way to categorize departments and their coordinating relationships to achieve the highest levels of productions. Starbucks updated their structure to better accommodate customer satisfaction. They use a matrix organizational structure. Starbucks now operates under four U. S. divisions. Having a matrix organizational structure can offer advantages; one is having maximized communication channels. Depending on the changes made, Starbucks can create products that appeal quickly to customers.
Starbucks uses the continuation of support functions in addition to their organizational structure. They support goals and visions of each of the U. S. divisions, including international circuit, while operating as their own department. There are many different types of organizational structures, including: Hybrid- An organization that mixes elements, value systems and action logics of various sectors of society. Horizontal – The form of managing workers in which decision-making is spread among workers along horizontal lines, as opposed to a hierarchical or yramidal management structure. Flexibility and quick responses is key in a horizontal structure.
Divisional- A divisional structure groups its divisions according to the demands of products, markets or customers. Each has there advantages and disadvantages. Companies use the organizational structure the fits best with their business. Businesses break down their organizational structure by market to specific groups of customers. When dealing with a large company that handles many accounts, they might accommodate the needs by delineate structure using marketing groups.
Geographic structure is used in the beginning stages of an organizations global expansion. This will help to meet the growing needs of their many different clients. In some cases an organizations product base outgrows the client base. In these cases a product structure would be ideal to do product research. Once finished they can develop and market their products with the correct knowledge. Starbucks has come a long way and opened their first coffee house in Japan. They decided it was time to venture into international market. Now a relationship has been built.
Starbucks and its leaders chose Japan for its consumer’s high disposable income and also large population. They took it upon themselves to do some research and motivated to change their business model, to the Japanese culture. Great partnership is in place for Starbucks and their success. Starbucks utilizes its matrix structure to avoid the communication breakdowns that occur In an organization that uses vertical differentiation, as the number of levels of authority increase the more vertical the organization. In order for Starbuck’s employees’ to use multiple supervisors, they divide its labor into cross functional work teams.
This has allowed communication to be done in all possible ways between employees. Here are some reasons why Starbucks does well with the Matrix structure: * effective communication * outstanding product development * efficient production * `This results in great customer service throughout the company. Effective communication and help to facilitate lead to both internally and externally. This is also important to the success of the business. Some advantages of using the matrix for Starbucks Internally are: * open communication between employees * higher management * Outstanding efficient production, exemplary customer service The Matrix organizational structure when incorporated in an organization has helped facilitate communication. Externally, customer feedback is collected regularly on a daily basis. All aspects of an organization is done through decision making.
They use centralized decision making techniques and the most vital to Starbucks is ethics. They have created a six point model for ethical decision making. This is an outline of those steps: * Identify the ethical problem * List possible solutions and any obstacles to resolving the problem * Seek input from others Determine the best approach * Ask for guidance if the path is vague * Follow through on your decision Starbucks promotes ethical, local, and global responsibility. Each one is broken down. Ethical is providing farmer support and sourcing coffee, tea, cocoa and store products ethically. Starbucks is environmentally friendly and the recycle and reduce waste. They recycle by using reusable cups and providing environmentally safe products. Community service programs, youth programs, and foundations, are some other great things Starbucks has done for us.
To communicate goals and visions to the public, Starbucks uses technology, marketing tactics, and employees to communicate its goals. These goals are laid out are in a mission statement. Starbucks is making an effort to protect and maintain the environment and satisfying their customer. They have put a lot of time in developing their organizational structure. They have come a long way and continue to grow and develop new ideas. The organizational structure they have chosen seems to be working. Their mission statement provides guidance, motivation, legitimacy, and standards.