February 5, 2013
Organizational structures are used by companies to help build a successful business. 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. 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...