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Organizational Structure Paper - Essay Example

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The firm is a multinational firm, operating in all the six continents. Since its inception, the firm has changed its organizational structure a number of times (The Associated Press, 2011). This is always geared…
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Download file to see previous pages Starbucks’s reorganization of its structure has come in the trail of its rapid growth. With rapid growth, the firm has encountered more challenges in satisfying its customers and this has increased the concern on how the firm will operate in the future.
To deal with these new challenges, the firm, under the leadership of Howard Schultz, has deiced to take a matrix structure. A matrix organizational structure is considered to be the best organizational structure since it helps the organization to better utilize its resources (Galbraith, 2008). In a matrix organizational structure such as found in Starbucks, all resources, especially human resources, are not fixed on one function but are loosely attached so that they can be deployed to be used in any part of the organization when they are needed there (Simms, 2008). Starbucks has employed this structure, to go align with its new needs for human resources. The matrix structure in Starbucks is implemented over the functional structure which forms the chassis of Starbucks’ structure. The Starbucks is in contrast to that of its competitor, MacDonald’s (Torresjan, 2014). MacDonald’s is a fast food restaurant that sells fast food as well as coffee and is also based in the US (Jargon, 2013). The firm uses a hierarchal structure headed at the top by a chief executive officer who oversees the firms (Torresjan, 2014). According to (, 2014) the CEO Don Thompson and oversees all of MacDonalds business across the world. However, although the MacDonald’s organizational structure is different from that is Starbucks by taking up a hierarchical structure, it is also similar to the one for Starbucks in that it also takes a functional structure where various functions at certain levels are given to the different people (The Associated Press, 2011). However, the main difference is the ...Download file to see next pagesRead More
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