MATRIX STRUCTURE (STARBUCKS)

Advantage
 Work specialization
Allow for specialization that can help achieve the goal
 Efficient use of limited human resources
Because each employees are focused on different specialization of task
 Improve project manager controls over resource

Disadvantage
 Increases organizational complexity
Because there are many layer of management
 Two-boss problems
Functional and project managers, leaving project members caught in the middle.
 Create a gridlock in decision making
If a manager on one end of the matrix disagrees with another manager.
 Slow down the problem solving
Because managers are in charge of many structures, there is possible slowdowns in
management reaction to events when two structures required for solution 
 Increase in management overhead costs 

HORIZONTAL/TEAM BASED STRUCTURE (WALT DISNEY)

Advantage
 More flexible than organizations that are traditionally structured
As a business owner, you can shift employees from one team to another to maximize
their skills and talent and to also keep them motivated with new challenges
 Improved relationship
When people work on teams, they share the responsibility for completing work on
schedule. If one employee can’t complete the task, another team member can fulfill
the obligation.
 Increased Productivity
When people work in teams, creativity and innovation increase through brainstorming
and process improvement discussions. Working together, they collaborate to solve
problems using their collective knowledge and experience
Disadvantage
 Personality conflicts within the team
Can negatively impact efficiency and group harmony
 Not all employees are suited to teamwork
Some employees work more efficiently on their own, and being part of a group may
not maximize their skill set. 
 Some employees in a team setting may rely on other employees
To make up for their own lack of effort.

HOLLOW/NETWORK STRUCTURE (H&M)

Advantage
 Clearer Focus
If a firm lets go all other functions except its own core competency, it can have a
clearer focus on what it does the best. For example, if a firm specializes in clothes’
designing, it will not go in a hassle of manufacturing the fabric or stitching the
clothes; it would just design clothes.
 Lower Costs
 Using network organizational structure, work can be outsourced to other firms, which
specialize in that particular work. This way, the firm will not only face lower costs
but will also receive a better quality service than if it had done it itself.
 Flexibility
By outsourcing work, an organization is in a flexible position. This allows them to
change its production techniques, quantity, products’ designs or stop the production
completely without facing any major problems.

Disadvantage
 Control and Reliability
When a firm indulges in a network structure, it gets more spread out. As the network
of an organization grows, it gets more and more difficult to control such a widespread
network. On top of that, some of the firm’s partners may be in other countries. This
makes it more difficult to communicate and deliver things around.
 Lack of secrecy
When you outsource some work to another firm, that firm may also be doing work for
your competitors. Your firm’s secret information may get leaked to your competitors
by the firm working for you.
 Sacrificing of profit
When you outsource work, you might also be sacrificing profit that you could have
earned by yourself if you had done that outsourced work yourself. For example, if
you manufacture your goods yourself instead of buying it from outside, there might
be an increase in the potential profits of your firm.

STARBUCKS