Starbucks Part Three

STARBUCKS PART 3 ASSIGNMENT

BELLO ABDUL

QUESTION 1: WHAT TYPES OF DEPARMENTALIZATION ARE BEING USED IN STARBUCKS?

ANSWER

Geographical Departmentalization: Departmentalization by geography is grouping of activities by area or territories. It is widely used in companies operating over wide geographical area. Starbucks Company uses geographical departmentalization to arrange their organizational structure. Geographical organization is an effective way to keep the company running smoothly and connected to the leaders’ vision and strategic direction as Starbucks continue its global expansion and pursues innovative strategic initiatives. Starbucks is an international corporation; geographical departmentalization creates an impression of individual entities; each Starbucks location running as one unit, and as smaller teams within that unit, depending on the country/region/city where each store/office is located.

Functional Departmentalization: A method for separating the activities performed within an organization into groups differentiated by the function they perform. Jobs at Starbucks are specialized especially at the retail level. For example, some stores operate with a drive thru windows. At any given time there will be four employees working to operate the drive thru window: one to take orders, one to handle cash, one to work the espresso machine, and a “floater” who can fill in where needed. And these people have to work rapidly and carefully to get the cars in and out in a timely manner, since the drive thru lane can get congested quickly. Management and other positions are broken down into categories such as finance and corporate social responsibility.

QUESTION 2: DO YOU THINK IT’S A GOOD IDEA TO HAVE A PRESIDENT FOR THE US DIVISION AND FOR THE INTERNATIONAL DIVISION? WHAT ARE THE ADVANTAGES TO SUCH AN ARRANGEMENT? DISADVANTAGES?

ANSWER

I don’t support the idea of having a president for the US division and at the same time for the International...