The Advantages and Disadvantage of Starbucks. A functional organizational structure is one in which the organizations guidelines are followed to the letter. Matrix is a highly decentralized whereas bureaucratic is highly centralized. The major part of Starbucks’ success depends upon Starbucks organizational structure. The current corporate structure of Starbucks is a result of reform to improve customer experience and business financial performance. Type above and press Enter to search. Teams are used in different parts of Starbucks Coffee’s organizational structure. Finally, the matrix structure allows the firm to utilize its human resources efficiently by hiring them for more than one tasks. 18+ Risks and Disadvantages of Technology, How to Build Your Business Identity on a Tight Budget. For example, the coffee chain offers stock options and health … This team structure of the Starbucks organizational structure helps provide customers with better and specialized service. Managerial Decisions. This structure fits within conventional typologies of organizational structures. The functional divisions make the working smoother, faster and reliable, as specialists people are doing the jobs, and the chances of them making errors are minimal. However, after Howard Schultz resumed as the CEO in 2008, he changed the organizational structure to make customer satisfaction their priority again. The company competes against large and small coffeehouse businesses, as well as food service firms like McDonald’s, Dunkin’ Donuts, Wendy’s, and Burger King. The empire filters back: Consumption, production, and the politics of Starbucks Coffee. A matrix structure is, strictly speaking, where we have multiple bosses – more than one formal reporting line, whether solid or dotted. They have definitive levels of authority for each level of management (Irani, 2013). Save my name, email, and website in this browser for the next time I comment. Claver-Cortes, E., Pertusa-Ortega, E. M., & Molina-Azorín, J. F. (2012). This duplication of authority can be harmful and confusing for employees. This structure divides employees into different groups in a way that each group works for a different product. Starbucks SWOT (Strengths, Weaknesses, Opportunities, Matrix Structure: Examples, Definition, Advantages and Disadvantages, Hierarchical Structure vs Flat Structure: Pros and Cons, Types of Branding: Learn more about branding and its significance. By 2007, the company was expanding rapidly, such that it shifted focus away from customers and toward strategic global expansion. The matrix structure followed by Starbucks has advantages of all other organizational structures that come under it. The company’s development depends on team-based factors and associated human resource management strategies. The organization is controlled by a Board of Directors who functions from the Group HQ based in Seattle, Washington. Starbucks has product-based divisions in its organizational structure. When Howard Schultz resumed the CEO position in 2008, he changed Starbucks Coffee’s corporate structure to bring focus back onto customer experience. Amongst the several different types of organizational structures, Starbucks follows the one which is the best for them. The competition amongst teams is beneficial for the firm till it is healthy, but after that, it can prove to be detrimental for the firm. Advantages of Level Decentralized Structure In Starbucks the Managers and subordinates likewise are working with communications better. Starbucks wishes to grow revenue by 10% each year by satisfying customers by all means and having employees to be involved and contribute in making Starbucks a better company. 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