Organisational Structure of Starbucks

Added on - Dec 2020

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INTRODUCTIONCoffee shop industry is growing with a decent rate and various firms who are operating inthis sector, are en-cashing this opportunity. This project is based on Starbucks, one of the leadingcompany in Coffee industry(Paryz, 2014). They are operating across the globe and have 28000stores in different locations. UK is a country where tea market is very strong but thisorganisation changed the taste of people by selling high-quality whole bean coffee.FEATURESOwnership- Starbucks was founded by three people Jerry Baldwin, Zev Siegl and GordonBowker. Their founders sold this company to Howarld Schultz, who was former manager of theorganisation. Starbucks went public in 1992 when they had around 140 outlets.Liability- Their liability was approximately£8908600 in 2017.Purpose– Company wast to sell high quality of Coffee by concentrating on every singlecustomer.Sector– Starbucks is operating in Coffee shop industry.Scope– This company has entered in Asia and scope of growth in countries like India isenormous.Size- The market cap for Starbucks stands at approximately£60,10,59,65,000Pound sterling.Number of employees for this international coffee chain are around 277,000. The sales for thisenterprise as of June 6, 2018 is £17,49,92,05,000.00approx (Starbucks,2018).Organisational structure and functional areasAs Starbucks is following matrix organisational structure, that is crossed mixture ofseveral features from the basics kind of structure. In this, combination of different frameworkswork on single project.
(Source:Matrix organisational structure, 2016)There are several functional areas of Starbucks such as:-Technology and product design strategy-Process related to coffee and store designingas well as innovative packaging.Supply chain management system –Maintaining strong relation with suppliers,diversification of supply network and sustainability.Human resource strategy –Value of the staff members and providing them time to timetraining.Production strategy –Quality control process of goods and services offering byStarbucksThis organisational structure help company in concentrating on quality without makingany compromise with company's expansion rate. Starbucks objectives cannot be attained withouthave a matrix organisational structure. Function manager concentrate on daily operation andproject manager focus on specific tasks like find new location for opening stores.Mission- To inspire human spirit, one person at a time with one cup and one neighbourhood.Vision– To become a national organisation and have guiding principles on which employee canproud.Illustration1: Matrix organisational structure
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