Starbucks' Structure - Essay Example

Case Study: Starbucks’ Structure Starbucks should utilize a functional departmentalization structure. Starbucks should decentralize its operations and authority to allow for efficient communication and improved employee morale. Case Study: Starbucks’ Structure Introduction Job description A job description focuses on the functional qualities of the position. Below is the job description of Starbucks Assistant Stores manager. Job description Job summary and mission This will contribute to the overall success of Starbucks by executing store operations.

The job assists the store partners in the supply chain operations that create, enhance and maintain Starbucks customer experience. Summary of key responsibilities Communicate effectively, concisely and clearly in order to ensure store operation information is send to the store manager. Access the resource availability and execute the stores initiatives as directed by the store manager. Contribute to positive team performance by assessing team members’ morale and communicating the recommendations to the stores manager.

The job holder will be responsible for conducting strategic business reviews The job holder will review the store environments to identify concerns and opportunities for improvement in the achievement of excellent customer experience Ensure the licensee follows and complies with the set legal and operational standards The job holder will utilize analysis tools and financial reports to identify and address the trends in the market Increase sales volumes and company profitability through developing new sales outlets Evaluate customer needs and adhere to Starbucks culture and values in delivering customer experience (Starbucks, 2012) Job specification Job specification is the list of knowledge, technical skills and abilities that are needed for effective performance of the job.

Minimum qualifications Retail management experience (5 years) Experience in business development and analyzing sales records and financial reports Prior working experience in hospitality or beverage industry (at least 2 years) Required knowledge, skills and abilities Ability to build and maintain working relationships Problem analysis and solving skills High level negotiation and influencing skills Effective communication skills both oral and written communication Ability to work under tight deadlines and varied hours including weekends (Starbucks, 2012) Education Bachelor degree in stores management Valid driving license Job location: New York Job type: Permanent and full-time Question two Starbuck should use functional departmentalization structure.

Departmentalization is the organization of work in to units that are responsible for certain functions. Functional departmentalization structure will allow for timely decision making to efficient flow of information. Employees with shared skilled will have to be placed within the same department like finance department, IT, marketing and logistics. Functional departmentalization will reduce the duplication of efforts and enhance communication within Starbuck’s organizational structure. Employees will be able to become experts in their fields of work.

The form should not be changed in the stores that offering food products and lunch (Reilly, Minnick & Baack, 2011). All Starbucks product lines are related thus changing the departmentalization according to the products will lead to additional costs and duplication of efforts. If the form is changed in the stores, it will be difficult to coordinate the different product departments. The changes are not necessary since they will lead to overspecialization of employee in one product such as the food product or lunch.

Starbucks customer needs keep on changing thus departmentalization along the products may lead to a decline in market share. Starbucks product portfolio is diversified, it is totally impossible to employ a manager for each product offering (Reilly, Minnick & Baack, 2011). Question three When Starbucks began experiencing financial problems, the leadership should try to decentralize decision making and authority to the subordinates. The management should decentralize the operations to allow for faster decision making (Daft & Marcic, 2009).

Decentralization of the operation enhances team work by facilitating the formation of cross-functional teams that are responsible for the success of a particular product (Daft & Marcic, 2009). Decentralization of power to the functional units will improve employee morale thus workers become loyal and more productive in their jobs (Daft & Marcic, 2009). Decentralization of power authority and decision making will enhance lead to enhanced horizontal communication which is essential in reducing employee grievances.

Decentralization will lead to creativity, innovation and development of employee capabilities in the organization. New ideas and strategies may be discovered since the concerned employees have the opportunity to give ideas on the work processes (Reilly, Minnick & Baack, 2011). Question four The organizational configuration that best fits Starbucks is divisional structure. The divisional structure has allowed for diversification in several markets. Starbucks has introduced a new regional structure in its operations (Reilly, Minnick & Baack, 2011).

It is currently structured as Starbucks US and Starbucks Coffee International. The three regional organization structures include American market that comprises of Latin America, Mexico, Canada and United States (Peng, 2011). The European region market comprises of Europe, UK, Middle East and Africa. The third region is the China and Asian Pacific market. Conclusion Starbucks should follow a functional departmentalization since all the products are related. This will enhance decision making and communication.

When faced with financial problems, the management should decentralize power and authority to allow for employee innovation and faster decision making. References: Daft, R & Marcic, D. (2009). Understanding management. Mason. Cengage South Western. Peng, M. (2011). Global business. Mason. Cengage South Western. Reilly, M., Minnick, C., &Baack, D. (2011). The five functions of effective management. San Diego,CA: Bridgepoint Education. Starbucks. Assistant store manager job description. Retrieved on21st April 2012 from http://jobs.starbucks.com/job/Minot-assistant-store-manager-Minot%2C-ND-Job-ND- 58701/1730820/