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Starbucks Structure

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  • December 2012
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Kawana Waters

MGT 330

Georginne Parisi

08/15/11

Job descriptions for the recruiting process the business entails is that Starbucks employees are hired due to the enjoyment of them drinking coffee & motivated by buy-in options. Job specifications the employees had to love to drink coffee, enjoy brewing coffee while serving consumers giving friendly service, the ability to suggest ideas to help improve the business. When the employees’ ideas were accepted, Starbucks’ rewarded their employees.

The form of departmentalization that Starbucks should use is the departmentalization by product. This is because the company focuses on selling coffee, Mr. Schultz is making his decisions on continuous operations that he has been doing to try and make the business more successful. I feel that the form the business should be changed to concerning in stores would be changed to departmentalization by function to broaden customer’s perspective on the variety of items to purchase with their coffee or items besides just purchasing coffee.

When Starbucks’ began to experience financial problems, I feel that they should have decentralized the operation. There was too much over expansion(Reilly p. 77, 2011) due to trying to sell too many products at one time that may have not been selling as well as the coffees were selling. It became too overwhelming for the company at its new locations instead of the company continuing on with their first plan. Management believes that these problems have been justified by the incremental sales and return on new store investments. These increased competition and other factors, may continue to put downward pressure on the Company's comparable store sales growth in future periods.

Matrix organizations would be the best form to fit the Starbucks’ company. Employees would basically have to adjust to change and accept roles being part of the daily routine. Tasks

for employees would vary every day. The company was...