Organizational Structure Starbucks has cafes in over 50 countries around the world and still serves the same high quality product and customer service in every café. The matrix organizational structure originally arose out of the aerospace industry in the 1960s when firms who wanted to contract with U.S. government employees needed to create specific charts to show the structure of the project management team. The organization is controlled by a Board of Directors who functions from the Group HQ based in Seattle, Washington. Source: Matrix Organizational PowerPoint template. It was established by Jerry Baldwin, Zev sieal, and Gorblon Bowker in 1971. Starbucks Coffee Company's Organizational Structure Functional Structure Refers to grouping based on business function This feature relates with hierarchy in the organizational structure of Starbucks. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. na The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. Excerpt from Case Study : Matrix Structure for Organizations Within an increasingly complex commercial environment, the manifestation of matrix organisations is increasing. Employees in the organization are … Matrix organizational structure has been used for Starbuck Company, which is combine of different features from the basic types of organizational structure. An organizational structure defines how activities such as task allocation, ... A matrix organization frequently uses teams of employees to accomplish work, in order to take advantage of the strengths, as well as make up for the weaknesses, of functional and decentralized forms. The company’s success is as a result of its organizational structure that influences the management and leadership, change and communication. As an organizational strategy, Starbucks employs a matrix configuration structure through integrating divisional and functional structures. Starbucks has embraced matrix organizational structure which facilitated grouping of employees by both product and function. The organizational chart of Starbucks displays its 98 main executives including Kevin Johnson, Rosalind Brewer and Brady Brewer Instead, employees will report to a functional team (for example, the sales department) as well as to a product team (for example, the manufacturing division). Starbucks Announces New Leadership Structure to Drive Global Growth. Starbucks Matrix Or Multidivisional ORGANIZATIONAL BEHAVIOR FINAL PAPER STARBUCKS Arranged by: Yonathan Harla Weredatama 12/336148/EK/19185 Introduction Making your company in success is not easy, and it needs things like organizational theory and behavior Those two things are vital because it determines how organizations do in an industry. Starbucks's operation is based on coffee products. Starbucks uses a matrix organization structure similar to most big corporations. You can edit this Organizational Chart using Creately diagramming tool and include in your report/presentation/website. Starbucks Corp is planning an organizational restructuring including leadership changes, according to a memo from its Chief Executive Officer Kevin Johnson. I am familiar with Starbucks Corporation, and they are using a matrix organizational structure. According to CEO Howard Schultz disclosures in 2008, the company is transforming towards matrix organizational structure (Financial Report, 2008). The matrix structure is a flexible structure that does not follow a traditional hierarchy. Share on Facebook; Share on Twitter; Share on LinkedIn; Share in email; Kevin Johnson to become chief executive officer and assume full responsibility for Starbucks global business and operations. The The change is being implemented to ensure an increase in internal communication, coordination, and learning, which would translate into enhanced customer satisfaction and hence the profitability. While employees are divided among projects and products, they also report to a functional manager. The organizational structure of Starbucks` coffee company has recently been rearranged so as to better realize customers` satisfaction. The Organizational Structure. A Matrix Organizational Structure divides the workforce by project or product. It's a complex system, but if done properly, it can promote information sharing and more balanced decision making. Introduction of Starbucks Starbucks is an American coffee company and it is MNC (multinational cooperation) due to it runs their business in foreign countries. These organizational functions are referred to as: functional, divisional, network, and matrix organizations. The functional feature of Starbucks’ departmentalization is having an HR department, finance department and a marketing department. Starbucks Industry Profile and Organization Analysis Spring 2013 MGMT-4900-01 Lindsay Holleman, Alex Lawson, Garrett Pinciotti, Russell Pellichino Starbucks divides its labor into cross functional work teams, which allows employees to report to multiple supervisors. A functional organization is structured based on skills required and business functions. Starbucks has 23,768 of outlets worldwide. The initial matrix organizational structure has been expanded and they currently operate under four divisions within the US and these constitute; Pacific, Mountain, Plains and Atlantic divisions. It has become increasingly clear that through the forces of globalization, competition and more demanding customers, the structure of many companies have become flatter, less hierarchical, more fluid and even virtual. Starbucks’ Organizational Structure (Matrix Structure) Intense competition has forced the company to adopt and implement organizational structure to allow it respond more quickly to rapid changes in the business environment. December 01, 2016 • 10 min read. Matrix organizational structure of Starbucks slide 2 1. I will consider the same organization to be a hybrid since it entails different features. This organizational structure is unique to Starbucks, although it can be characterized based on a conventional typology of organizational structures. 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