Starbucks has a matrix organizational structure that is a hybrid blend of different characteristics of the basic organizational structure types. … For example, product-based divisions of the company intersect with functional groups and geographic divisions, which in turn intersect with other parts of the organization. 14
Why does Starbucks use a matrix structure?
The matrix structure appears to work for Starbucks as they maintain effective communication, excellent product development, efficient manufacturing, and exemplary customer service.
Which companies use a matrix structure?
Successful companies using a matrix organizational structure. Some successful organizations that have used a Matrix organizational structure are Phillips, Caterpillar, and Texas Instruments, all of which have used the Matrix structure at some point.
What is Starbucks strategy?
Starbucks Coffees’ primary strategy for intense growth is market penetration. In the market expansion grid or Ansoff matrix, this strategy supports intensive business growth by maximizing revenue from existing markets using the same or existing food and beverage products.
Why do we use a matrix structure?
A matrix organizational structure allows multiple departments to easily communicate and collaborate on a project. Because employees report to multiple managers rather than just one functional manager, issues are resolved faster and interaction across the organization is enhanced.
What are the advantages of the matrix structure?
Advantages of matrix structures
- Clear articulation of project goals.
- Convenient way to integrate project goals with functional goals.
- Effective use of limited human resources.
- Fast flow of information (often interdisciplinary) throughout the project.
- Retaining teams of experts throughout the life of the project.
What are the disadvantages of the matrix structure?
A disadvantage of the matrix structure is the increased complexity of the chain of command when employees are assigned to both function managers and project managers. … Fuzzy authority in a matrix structure can lead to reduced agility in decision-making and conflict resolution.
When would a company opt for a matrix structure?
A company chooses a matrix structure when it wants to encourage innovation and speed up the process of developing new products. The matrix structure allows the company to group its employees in two ways, by function and by product or project.
What is Starbucks’ competitive strategy?
Product differentiation is at the heart of Starbucks’ strategy for achieving sustainable competitive advantages. Starbucks offers such differentiation through a great customer experience and quality coffee. The “Starbucks experience” is achieved through its well-designed stores with good atmosphere and well-trained staff. 20
What is the main purpose of Starbucks?
Inspiring and nurturing the human spirit—one person, one cup, and one neighborhood at a time.