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Starbucks Case Study 3

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Starbucks Case Study 3
Starbucks case study 3

Q1. What type of departmentalization are being used? Explain your choices.
Ans. Types of departmentalization being used are : a. Retail Expert b. Administrative c. Manufacturing d. Sales & Marketing

Q2. Do you think it’s a good idea to have a president for the US division and for the international divisions? What are the advantages of such an arrangement? Disadvantages?
Ans. Yes, it will be good idea to have a president for US division and international Divisions. As US itself is a big division to handle and there are many operations which go parallel in Starbucks. For international divisions there should be one president as t would globalize all the divisions and would help them to be on the same platform all together.
Advantages:
* Better co-ordination. * Better Management to achieve good results. * Division of responsibilities which would impact the operations.
Disadvantages:
* Difficult to monitor standards country wide as there are two presidents, so more coordination is needed to be on the same platform. * There can be some conflicts in decision making. * Lack of coordination can lower the standards of starbucks.

Q3. What examples of the six organizational structural elements do you see discussed in the case? Describe.
Ans. Following are the six organizational structural elements discussed in the case: * Human resource management * Financial management * Accounts management * Facilities management * Sales management * Supply sales management

Q4. Considering the expense associated with having more managers, what are some reasons why you think Starbucks decided to decrease the number of stores each district manager was responsible for, thus increasing the number of managers needed? Other than the expense, can you think of any disadvantages to this decision?
Ans. Starbucks decided to decrease the number of stores as it would make work more manageable

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