Selecting Corporate Structure for Diversified Firms. Consumption, production, and the politics of Starbucks Coffee.
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. For example, work specialization may lead to higher productivity but can reduce job satisfaction.
The functional hierarchy of the corporate structure facilitates top-down monitoring and control, with the CEO at the top.
For instance, Miner et al. Power is shared equally between the project manager and the functional managers. As companies grow they tend to become more complex and hierarchical, which leads to an expanded structure, with more levels and departments. The company recognizes the importance of strategic alignment involving various facets of the business.
Characteristics of organizational structure relating to hybrid competitive strategy.
There are both advantages and disadvantages of the matrix structure; some of the disadvantages are an increase in the complexity of the chain of command. Bythe company was expanding rapidly, such that it shifted focus away from customers and toward strategic global expansion.
Through the effective design and development of its organizational structure, Starbucks Corporation keeps growing despite competitive pressure from these firms in the international market.
This structure ensures that there is a proper focus on each of the products and things remain streamlined. When using divisional structures that are organized by either markets or geographic areas they generally have similar function and are located in different regions or markets.
The occurrence of infighting among units may cause delays, reduced commitment due to competing interests, and wasted time, making projects fall behind schedule. This structure can combine the best of both separate structures.
Consider the mechanistic model and the organic model. Photo Credits coffee beans image by dip from Fotolia. The empire filters back: This allows business decisions and activities coordinated locally. The structure of the Starbucks Company differs greatly from the corporate structure of mom and pop coffee shops that dot the corners of small towns.An organizational structure defines how activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims.
Organizations need to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive advantage. Starbucks organization structure and departmentalization form analysis Starbucks is the biggest coffee shops network with over stores all over the world.
The company has gained consumer by providing new perspective on coffee drinking. The functional structure feature of Starbucks Coffee’s organizational structure refers to grouping based on business function.
The following are the main features of Starbucks Coffee’s organizational structure: Functional structure Geographic divisions Productbased divisions Teams Functional Structure/5(3).
This structure supports the company’s concerns in global expansion and diversification. or climate). which is a hybrid mixture of different features from the basic types of organizational structure.
Market Positioning Starbucks has positioned themselves as a highly respected brand. Organizational Structure Kimberly Chappell MGT/ February 4, Otha Starr Organizational Structure Organizational structure is a system used to define a hierarchy within an organization It identifies each job, its function and where it reports to within the organization (Friend, n.d., para.1).
· Work specialization - the degree to which tasks in the organization are subdivided into separate jobs. Division of labor and the early auto assembly plants in the US are examples of this. · Departmentalization - the basis by which jobs are grouped together.Download