Communication of Values and Ethics in Strategic Organizational Communication

813 Words May 28th, 2013 4 Pages
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 …show more content…
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

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