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Starbucks' Structure - Essay Example

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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.
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

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Summary

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.

Author : jonkassulke
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