The Business Structure And Organizational Structure Of Starbucks

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Starbucks company was originated in Seattle Washington in 1971, named after Moby Dicks’s mate, a mermaid, and inspired by the love of the sea as its logo reflects it. Initiated as a single coffee shop specialized in high quality coffee and brewing products that expanded to be the largest roaster in Washington with multiple locations. In 1981, current CEO Howard Schultz along with founder Jerry Baldwin launched what they believed was a great opportunity that had generated from a trip to Italy in a search of new products. Starbucks brand underwent a transformation in 1987 into acquiring a new business form right after Howard realized he could bring the café community he found in Italy to the United States and convert its brand into the Starbucks …show more content…
By empowering employees, managers ensured their satisfaction and as they performed well, they could establish cross-functional teams in which each department within Starbucks will know the details of business activities in the other departments. Starbucks also uses product-based divisions in its organizational structure. These divisions address product lines. For instance, Starbucks has a division for coffee and similar products, another division for baked goods, and another division for merchandise, such as mugs. This kind of the firm’s organizational structure allows focus on certain product lines. Thus, Starbucks efficiently grows and creates its products with support from its organizational structure. The company organizational structure has been modified over time from focusing on strategic global development to a more customer focus model brought by Howard Schultz who organizational structure to bring back focus on customer …show more content…
So far, the company has three regional divisions of the global market: a) China and Asia-Pacific, b) Americas, and Europe, c) Middle East, Russia and Africa. Every single geographic division has a senior vice president. Starbucks manager’s dispatch to two superiors: the geographic head, and the functional head. This particularity of Starbucks coffees’ organizational structure provides closer managerial support for geographic needs. This is the reason why companies like Starbucks arrange their information, planning, and control system so they can centralize into a homogenous, unified global business

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