A company’s individual organizational structure is a formal composition of task and reporting relationships that allows the company to control, coordinate, and motivate employees so a common goal can be achieved (Bateman & Snell, 2009, p. 505). Starbucks last structure is a matrix structure to maximize communication. It was implemented in 2008 to strengthen partnerships, and improve customer service. Starbucks has 4 divisions within the U. S. Each division has its own supporting functions, which report to their own department and the division.
The support functions are “designed to consolidate functional activities into teams that have a shared vision and goals to support the business” (Schultz, 2008, para. 10 ). Organization mission: Starbucks’ mission is to “inspire and nurture the human spirit— one person, one cup, and one neighborhood at a time”. (Starbucks, 2011, para. 7 ). Starbuck is commited to be good to people and the environment. They have implemented several programs to support communities and coffee farmers.
They also make donations to African communities to help people living with HIV. Fiscal Policies: Starbucks has a very strong corporate social responsibility governance. All operations and reports are conformed to legal requirements enforced by the SEC and any other governmental agencies. Competition: “Today, with more than 15,000 stores in 50 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world” (Starbucks, 2011, para. 7).
Starbucks’ biggest competitors are Mcdonald’s, 7-Eleven, Dunkin Donuts, and Caribou Coffee. However, Starbucks has managed to stay ahead because of the unique quality of their coffee and their customer service. Economy: The 2008 restructure implementation has helped Starbucks to overcome the global economic crisis. “During this past fiscal year, revenues increased to a record $10. 7 billion. Operating income increased by $857 million from fi scal 2009 to $1. 4 billion” (Schultz, 2011, p. 3).
Customer demands: Customers come to Starbucks for a unique coffee experience, personalized customer service. Globalization: Starbucks has stores in 50 different countries. Communication can be challenging when dealing with different cultures. Starbucks welcomes diversity. Starbucks believes that ” by welcoming a diversity of people and ideas to our business, we create more opportunities for learning and success that benefit customers, partners (employees) and suppliers” (Starbucks, 2011, para. 5).
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