4.0 Organization Uncertainty Organization uncertainty is the situation where the management of the firm has little information about it is external environment. The ever-changing environment of an organization creates uncertainty. Uncertainty can bring either opportunities or threats that an organization must deal with in order to succeed. Factors that cause uncertainty are complexity, dynamism and richness.
Starbucks’ coffee beans come from all over the world; from East Africa, Pacific Rim, and Latin America. It was common for small farmers to accept a considerably lower price to be able to get their coffee to market. Starbucks also purchase coffee through agents from individual estates, producer associations, suppliers or directly from …show more content…
Starbucks has established Farmer Support Centres in Costa Rica and Rwanda to provide local farmers with resources and expertise to help lower the cost of production, reduce fungus infections, improve coffee quality and increase the production of premium coffee. Since Starbucks have many supplier located in different countries such as Costa Rica, Honduras, Nicaragua, El Salvador, Panama, Guatemala, Mexico, South America and China., . Starbucks do not face scarce resource during its operation. As they are having a very good relationship with their every supplier they always get good quality of coffee to serve to their end customers. Therefore, Starbucks richness in the term of resources which make their environment …show more content…
In Simple organization, workers can discuss directly with the manager. For e example, a clear organizational hierarchy simplifies relaying communications up and down the chain of command. A complex corporate structure makes communication more difficult as the messages passed by many level of management therefore the message might get lost or change its meaning.
Adaptability
Simple organizations are nimble, able to rearrange themselves quickly to respond to changes in the business environment. When adaptation is necessary, each team can handle one aspect of the change, or one team can handle the change while the others carry on with their previous responsibilities. A more complex corporate structure would find it harder to adapt. It might require significant analysis, for instance, to determine how a complex organization can rearrange itself without jeopardizing vital processes.
Economies of Scale Simple organization might not have many employees, so some will have to multi-task. As a result, a simpler corporate structure might not be able to achieve the same economies of scale as a complex but well-functioning corporate structure. A large, well-functioning organization can use division of labour and specialization to ensure the most qualified workers handle the tasks they’re best at. This enables a complex corporate structure to be
Starbucks’ coffee beans come from all over the world; from East Africa, Pacific Rim, and Latin America. It was common for small farmers to accept a considerably lower price to be able to get their coffee to market. Starbucks also purchase coffee through agents from individual estates, producer associations, suppliers or directly from …show more content…
Starbucks has established Farmer Support Centres in Costa Rica and Rwanda to provide local farmers with resources and expertise to help lower the cost of production, reduce fungus infections, improve coffee quality and increase the production of premium coffee. Since Starbucks have many supplier located in different countries such as Costa Rica, Honduras, Nicaragua, El Salvador, Panama, Guatemala, Mexico, South America and China., . Starbucks do not face scarce resource during its operation. As they are having a very good relationship with their every supplier they always get good quality of coffee to serve to their end customers. Therefore, Starbucks richness in the term of resources which make their environment …show more content…
In Simple organization, workers can discuss directly with the manager. For e example, a clear organizational hierarchy simplifies relaying communications up and down the chain of command. A complex corporate structure makes communication more difficult as the messages passed by many level of management therefore the message might get lost or change its meaning.
Adaptability
Simple organizations are nimble, able to rearrange themselves quickly to respond to changes in the business environment. When adaptation is necessary, each team can handle one aspect of the change, or one team can handle the change while the others carry on with their previous responsibilities. A more complex corporate structure would find it harder to adapt. It might require significant analysis, for instance, to determine how a complex organization can rearrange itself without jeopardizing vital processes.
Economies of Scale Simple organization might not have many employees, so some will have to multi-task. As a result, a simpler corporate structure might not be able to achieve the same economies of scale as a complex but well-functioning corporate structure. A large, well-functioning organization can use division of labour and specialization to ensure the most qualified workers handle the tasks they’re best at. This enables a complex corporate structure to be