Question

In: Economics

How is starbucks coffee company structured?

How is starbucks coffee company structured?

Solutions

Expert Solution

Starbucks is the largest coffeehouse chain in the world and its corporate structure is the main reason for its success. This influences all of its management and leadership and all the variables need for a business to be successful.
Starbucks has a hybrid mixture of organizational structure which can be called a matrix organizational structure. This structure includes features from many of the basic organizational structures as a mixture in its best form.
The main features of this organizational structure are:

  • Functional Hierarchy - Grouping based on the business function is a feature of the organizational structure of Starbucks. The company has many departments who have their functions as the HR department, the Marketing department and the administration, etc.
  • Teams or Lowest organizational level - They are present in the lowest parts of the structure like in coffee houses. teams are organized for customer satisfaction in each cafe. This is an efficient and effective way that makes Starbucks successful.
  • Product-based divisions - Product lines are addressed by these divisions in the organizational structure of Starbucks. There are many divisions each having their role, like division for merchandising, division for baked goods, etc. Hence products developed by the company are innovative and successful.
  • Geographic divisions - These divisions are based on physical location of operation and usually, the operating locations are Asia, Middleast, Europe, Africa, and America.

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