Starbucks’ Organizational Structure
Define the key aspects of the organizational structure. How does project management impact the overall organization?
According to the Corporate Governance of Starbuck’s coffee company, the firm owes its industrial leadership to its organizational structure. The company employs a matrix form of structure that is, in turn, a combination of myriad features found in basic organization structures (Csaszar, 2013). The major aspects of Starbuck’s structure include; A Functional form of Structure, Presence of Geographic and divisions that are product based and use of teams.
How does it operate?
The organizational structure functions in the same way a normal matrix structured organization works, i.e. individuals are managed with more than one line of operation (Csaszar, 2013). The matrix, in this case, is, however, more advanced and complex due to the induction of basic organizational structures alongside the matrix (Csaszar, 2013).
How does project management impact the overall organization?
Efficient project management at Starbuck’s ensures that everything is run smoothly. Therefore organizational events are each performed at their designated times (Takahara & Mesarovic, 2012).
How does that organizational structure impact the company’s management of projects?
The matrix organization structure helps to manage the companies’ projects where there are a lot of members involved (Csaszar, 2013). A project that has a long list of members is bound to create a web of relationships that are complex and therefore bound to stir up some form of confusion.
The matrix organizational structure, however, ensures that there are multiple-management-responsibility-accountability relationships within the project structure thereby breaking down its complexities (Csaszar, 2013). The matrix design is also the recommended organizational structure that ensures efficient use of project resources where one hundred percent utilization is fundamental for the overall state of the company and the various departments (Csaszar, 2013). The above are the reasons why the Starbuck’s beverage company thrives as a result of the organizational Structure (Csaszar, 2013).
Csaszar, F. A. (2013). An efficient frontier in organization design: Organizational structure as a determinant of exploration and exploitation. Organization Science, Corporate Governance – Starbucks Coffee Company.
Takahara, Y., & Mesarovic, M. (2012). Organization Structure. Boston, MA: Springer US.