Organization Structure and Performance - Essay Example

Organization Structure and Performance of Starbucks Corporation. 29 January Introduction Organizational structure is a vital part of any organization and plays very important role inthe success of any organization. The Starbucks Corporation has become a well-known globallysuccessful company. Starbucks Coffee Company has been committed to ethically sourcing androasting the highest-quality Arabica coffee in the world (Ford, 2005). This paper will provide (a) the structure of Starbucks Co. and differentiate it from other types of organizational structures (b) describe and analyze the organizations strategy and its structure and leadership (c) assess the role of leadership in determining the organizations structure.

Organizational Structure and Performance of Starbucks Corp.Organizations are categorized into two types of structures: vertical and horizontal (Hodgetts, 1999). Vertical structures operate on a strict hierarchy. Horizontal structures operate with no strict hierarchy. Starbucks Corporation is the “flat organization” with no hierarchy structure as they provide an equal opportunity for all members to voice their opinions and provide feedback. There is democratic leadership in Starbucks Co. that pulls subordinates into the decision-making process.

The Chairman of Starbucks, Schultz decided to treat employees as family, and called them partners. He provides a work environment that encourages hardworking among employees and they treat each other with dignity and respect.Starbucks is aiming to succeed through quality of product, diversity in business and location, tosatisfy customers and shareholders, through its competitive advantage. Its retail business is currently structured as Starbucks U.S. and Starbucks Coffee International (SCI) has presence in 55 markets including United States (Anonymous, 2011).

Starbucks will move to a new three-region organizational structure: (1) China and Asia Pacific: All Asia Pacific markets and China, (2) Americas: United States, Canada, Mexico and Latin America and (3) EMEA: Europe, U.K., Middle East, Russia and Africa (Ford, 2005). A President for each Region will oversee the company-operated retail business, working closely with both the licensed and joint-venture business partners in each market. They will also work closely with Starbucks Global Consumer Products and FoodService team to continue building out Starbucks brands and channels in each region (Rainey & Thompson, 2006).

The fit between organizational strategy, structure and leadership is Starbuck’s Mission and its set of Principles that address the structure and leadership in the organization whilst strategically directing the organization to achieve the customer satisfaction at all times. Application of these principles can be used as a guideline for all employees from managers to workers to aim to achieve the company’s goals, while maintaining required standard in professionalism.According to its mission statement, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time,” the organization is uniquely united at one point which is satisfaction of all (Starbucks, 2012).

The role of leadership in this wake is to provide partners (employees) a challenging and effective working environment. Furthermore, to develop organizational culture that satisfies the needs of partners and give them the sense of ownership so that they can make optimum use of their capabilities to achieve organization’s mission. Consequently, the leaders have to give accountable approach to Starbuck’s shareholders in order to continue to hold their interest, to get best supply needs and to deliver best final product.

ConclusionStarbucks Corp. is no doubt a successful organization with producing high quality productsin different areas of the globe. But it is also the fact that growth rate in outside America doesnot meet the standards and they have much focus on expansion rather than internal factors.Leadership must play important in this aspect and give much value to internal factors. Lawler and Worley (2006) argues that “Starbucks has no formal organization chart and does not work with hierarchy structure.

It consists of to main departments, functional department consists of marketing, supply chain, operations, finance and human resources, and cross functional teams, consisting of local store marketing and marketing campaigns”. The decision making process in Starbucks is bottom – up process, where the employees are empowered even to take decisions without referring back to the management. Wilson, Gordon and Johnson (2004) postulated that “there is a conflict in the corporate structure where some employees are reporting to two different divisions which in some cases causing confusion and over lapping”.

Empowered employees are the asset of this organization but empowerment at this level has its own drawbacks like for the satisfaction of employees they are paying much higher than the other so it increases the cost and also increases the price and it can be reduced by the intervention of leadership. Leadership must think on the reduction of cost so they can reduce the prices.ReferencesAnonymous, (2011). Starbucks announces new leadership. Beverage Industry, 102(8), Pp: 8. Retrieved January 29, 2012 from http://proquest​.umi​.com/pqdweb​?

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Public Administration Review, 66(4): pp. 596-604. Retrieved January 29, 2012 from http://proquest.umi.com/pqdweb?index=13&did=1081557931&SrchM ode=3&sid=9&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1235837731& clientId=29440&aid=7Starbucks, (2012). Starbucks Mission Statement. Retrieved January 30, 2012 from http://www.starbucks.com/about-us/company-information/mission-statementWilson, P. A., Gordon, J., & Johnson, D.E., (2004). An alternative future force: Building a better army. Parameters, 33(4), 19-39.

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