Organisational Structure and Culture of Starbucks Corporation

PROJECT ON
STARBUCKS

Table of Contents
INTRODUCTION...........................................................................................................................3
Organisational structure of Starbucks Corporation......................................................................4
Organisational culture of the Starbucks Corporation ..................................................................6
The present condition of the Starbucks Corporation in terms of its performance.......................8
Recommendations for the upliftment of the functional capacity of the company.......................9
REFERENCES.............................................................................................................................11

INTRODUCTION :
Organisation can be defined as an entity in which different types of employees work
together for attaining or achieving a common goal. It can be a company, an association or any
institution which has one or more people working. The report will try to find out what is the
meaning of organisation structure and organisation culture. It will also determine their role and
importance in the working of the organisation. This report will be on Starbucks Corporation, an
American multinational chain of coffee houses headquartered in Seattle, Washington. The
company was founded by Jerry Baldwin, Zev Siegl and Gordon Bowker. The following report
will also include which organisation structure and culture is being followed by Starbucks. It will
also evaluate how effective is these things in the business of Starbucks. It will also examine how
it affects the working of employees of the companies following by the recommendations for
improvement in future.
TASK
ORGANISATIONAL STRUCTURE :
This can be defined as a hierarchy in which the organisation performs its activities. All kinds of
business use organisational structures to maintain a system. A good organisational structure
defines the job of each employee and it also gives the direction for proper achievement of
organisational goal. It is the system which describes how the work is to be done and what are the
activities which are directly related to achievement of organisational goals. It defines a proper
hierarchy within an organisation. It identifies the job and assign the job to the right
person( Петрова, 2019).
TYPES OF ORGANISATIONAL STRUCTURES :
There are various types of organisation structures which the businesses follow. The main
structures are discussed below :

 FUNCTIONAL STRUCTURE : This can be defined as a structure which divides the
work in the organisation according to the specialization of its employees. It creates
different departments within the organisation like marketing, sales and operations. It
gives a sense of bureaucratic organisation structure ( Arora, 2019) .
 DIVISIONAL STRUCTURE : It is generally seen in large organisations which has
various business units. It divides its team on the basis of products , projects or
subsidiaries. In this, the organisation itself creates different business units. This helps in
performing work without any interference from the other business unit. The business
units operates as a separate company and has a separate manager for managing the work.
 FLAT STRUCTURE : This involves relatively low or few levels of middle management.
The main aim of this structure is to reduce the levels of hierarchy. In this structure, the
employees directly report to the managers.
 MATRIX STRUCTURE : It is rarely used in the organisations since it is very confusing.
Under this structure, employee is given multiple work such as duties in both sales and
marketing. This makes the employee confused on which work more focus is required.
STARBUCKS ORGANISATIONAL STRUCTURE :
Starbucks follows the matrix organisational structure which has some components from each
type of organisational structure. The important features of Starbucks Organisational structure
are as follows :
 FUNCTIONAL HIERARCHY : It involves grouping based on different business
functions. Starbucks has different departments like HR, finance and marketing. This
structure helps in monitoring of various activities simultaneously and are responsible for
development of the overall organisation( IKHIDE, 2019) .
 GEOGRAPHIC DIVISIONS : This structure generally create different divisions
according to the geographical location of operations. It helps in providing closer
managerial support for geographical needs. The head of division has the authority of
formulating strategies and policies according to the conditions of market.