Q1. What type of departmentalization are being used?

Explain your
choices. Ans. Types of departmentalization being used are :
a. Retail Expert
b. Administrative
c. Manufacturing
d. Sales & Marketing

Q2. Do you think it’s a good idea to have a president for the US
division and for the international divisions? What are the advantages
of such an arrangement? Disadvantages? Ans. Yes, it will be good
idea to have a president for US division and international Divisions. As
US itself is a big division to handle and there are many operations
which go parallel in Starbucks. For international divisions there should
be one president as t would globalize all the divisions and would help
them to be on the same platform all together. Advantages:

* Better co-ordination.
* Better Management to achieve good results.
* Division of responsibilities which would impact the operations.
Disadvantages:
* Difficult to monitor standards country wide as there are two
presidents, so more coordination is needed to be on the same
platform. * There can be some conflicts in decision making.
* Lack of coordination can lower the standards of starbucks.

Q3. What examples of the six organizational structural elements do

you see discussed in the case? Describe. Ans. Following are the six
organizational structural elements discussed in the case: * Human
resource management

* Financial management
* Accounts management
* Facilities management
* Sales management
* Supply sales management

Q4. Considering the expense associated with having more managers,

what are some reasons why you think Starbucks decided to decrease
the number of stores each district manager was responsible for, thus
increasing the number of managers needed? Other than the expense,
can you think of any disadvantages to this decision? Ans. Starbucks
decided to decrease the number of stores as it would make work more
manageable and accountable for district managers. Disadvantages to
this decision would be:

* Less number of stores. So the demand could fall.

* People could diversify to different brand.
* In order to achieve, the price of the coffee would have to be
increased.