Starbucks organizational structure has been rearranged to better accommodate customer satisfaction. Schultz, CEO of Starbucks announced the expansion of their matrix organization structure. They will operate under four U. S. divisions: Western/Pacific, Southeast/Plains, Northeast/Atlantic and Northwest/Mountain (Schultz, 2008). There are some major advantages for this kind of organizational structure which include maximized communication channels.
Once the appropriate adjustments are made, Schultz believes that Starbucks will be able to develop products specifically to market appeal. The continual support in the Starbucks organizational structure support functions operating being their own department and supporting shared visions and goals for each of the U. S. divisions and the international circuit (Schultz, 2008). In 1995, Starbucks opened its first coffee house internationally in Tokyo, Japan (Starbucks, 2008). Successful partnership allowed the company its footing inside foreign country.
The large population and high disposable income from the consumers is what initially drawn the company and its executives to Japanese market. In adapting Japanese culture, extensive researches motivated Starbucks in changing their business model by catering to 40 year old businessmen and provide a smoking environment to enjoy their coffee. The Japanese locations included U. S. menus which the founder of the international segment for Starbucks ignored the advice stated previously. The complication of working in the East and West was understood by a Starbucks business partner, Sazaby.
Japans’ attraction towards the kinds of products contributed to the understanding of the global market and leading Starbucks a success (Japan External Trade Organization, 2006). Unilever has another common organizational structure; the hybrid form. It operates with three divisional regions, two product segments, and five functional segments. It developed and implemented this organizational structure for their company to improve communication and to take advantage of resources that are available to them. This structure is typically organized in a top-down manner.
It flows down to management once the executive level is satisfied with the structure. It is not always visible, however judging by actions and specified reporting protocol this structure is intact and in use. In equity based modes of entry involves managements decision to make foreign investments. This would require a partnership, collaboration, or alliance be made with another company or a distributor for a better grasp on the concept of the economy, culture, and climate in the new area. Exporting, subcontracting, and franchising could be with minimal cost to the company.
Starbucks continues to stand behind their mission statement in all odds of the economy and publicly through public awareness. I read a story about Starbucks charging and not responding to sending the troops in Iraq coffee without charging them. Not every company can help everyone in need and there are times when they do have to say no for other obligations. Most companies already commit to donations to specific groups/organizations and have implemented that cost into their yearly/monthly/quarterly budget. However, there are some exceptions when it does exceed their denomination term.
Starbucks Customer Relations organization handles these types of comments as best as they can satisfying all parties involved. The company retracted its answer in a formal public letter, (viewable for public) stating that “Starbucks has provided over 220,000 3-packs of Starbucks VIA to the USO for their care package program. ” (Starbucks Newsroom) Starbucks are partnered with the American Red Cross and the United Service Organizations (USO) to provide coffee in efforts to relieve times of conflict, donating more than 141,000 lbs of coffee.
Public relations are exceptional with the Starbucks Coffee Company. They have several outlets in communicating to them any questions or concerns and a hotline phone number to be contacted. The company responds within 24 hours most times and they answer all comments no matter how small or large and resolves conflicts as quickly as possible. Starbucks Mission: Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Courtney from Study Moose
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