Starbucks uses its organizational structure to facilitate business development in the

global coffee industry. As the largest coffeehouse chain in the world, the company
maintains its industry leadership through its corporate structure. Starbucks has
a matrix organizational structure and the company’s product-based divisions
intersect with functional groups and geographic divisions . The following are the main
features of Starbucks corporate structure: Functional divisions, Geographic divisions
and Product-based divisions.The functional division of Starbucks refers to grouping
based on business function. For example, the company has an HR ,Finance and a
marketing department amongst others. For example, the corporate HR department
implements policies applicable to all of the company’s cafés irrespective of location.
Functional groups are responsible for the organization-wide development and
implementation of Starbucks policies and strategies. Starbucks corporate structure
involves geographic divisions based on physical location of operations. The
company has three regional divisions for the global market: (1) Americas, (2) Asia,
(3) Europe, Middle East, and Africa.  Each division head is given flexibility in
adjusting strategies and policies to suit specific market conditions. Basis the above
each local manager reports to at least two superiors: the geographic head (e.g.
President of Europe, Middle East, and Africa Operations) and the functional head
(e.g. Corporate HR Manager).

The products division is centralized and focuses on product developement. They are
responsible for ensuring standardization of Starbucks products across all the
geographies it operates in.

Starbucks believes that one of the main reasons for its success is it customer
service. In order to have great customer service, they believe strongly in treating
their employees well. Every Starbucks employee from manager to the basic working
staff is called a “partner” in order to bring in a feeling of belonging and being treated
equally. They believe that in an industry (the F&B Catering business) where
turnovers (people leaving organizations) are high, a sense of belonging makes the
workplace fun and motivates people to work. Starbucks also provides many benefits
such as medical care and Fair pay along with incentives to keep people motivated.

Starbucks plans to open up 2000 stores in 2022. How will their organizational
structure aid their growth and expansion plans.

Matrix structure- basis product with intersection functional and geographic

 More focus on product

 More focus on region
 Departments can make decisions of their own
 More effectiveness
 More efficiency

With huge expansion plans and a large number of Starbucks employees being
people working in their cafes where the turnover is very high, what would be good
non monetary incentives to keep their “partners” motivated in addition to what is
mentioned above.
  Constant feedback
 Rewards
 Insurance, dental care etc
 Clean and safe environment
 Being considered as partners [social needs]
 Encourage teamwork

Q2. An Article in prominent website “The Atlantic” said that the New Zealand Prime Minister
Jacinda Arden may be the most effective leader on the planet. Quoting the article below

“The coronavirus pandemic may be the largest test of political leadership the world
has ever witnessed. Every leader on the planet is facing the same potential threat.
Every leader is reacting differently, in his or her own style. And every leader will be
judged by the results. German Chancellor Angela Merkel embraces science.
Brazilian President Jair Bolsonaro rejects it. U.S. President Donald Trump’s daily
briefings are a circuslike spectacle, while Indian Prime Minister Narendra Modi holds
no regular briefings at all, even as he locks down 1.3 billion people. Jacinda Ardern,
the 39-year-old prime minister of New Zealand, is forging a path of her own. Her
leadership style is one of empathy in a crisis that tempts people to fend for
themselves. Her messages are clear, consistent, and somehow simultaneously
sobering and soothing. And her approach isn’t just resonating with her people on an
emotional level. It is also working remarkably well.

People feel that Ardern “doesn’t preach at them; she’s standing with them, They may
even think, Well, I don’t quite understand why she is doing that, but I know she’s got
our back. There’s a high level of trust and confidence in her because of that
empathy.”

She is “a communicator,” One of Ardern’s innovations has been frequent Facebook

Live chats that manage to be both informal and informative. In March 2020, at the
beginning of the Pandemic – she held a Facbook Live chat where she sympathized
with New Zealanders and informed them that life as they knew it was temporarily
over. She introduced helpful concepts, such as thinking of “the people who will be in
your life consistently over this period of time” as your “bubble” and “acting as though
you already have COVID-19” toward those outside of your bubble. She justified
severe policies with practical examples.

She expected the lockdown to last for several weeks and informed Ne Zealanders
that “we won’t see the positive benefits of all of the effort you are about to put in for
self-isolation … for at least 10 days. So don’t be disheartened,” she said.

Basis the above information what type of leadership style do you think Jacinda Arden
has shown and why?

-paternalistic, charismatic, transformational,

In the beginning of 2020 – most people didn’t know how the virus would work and
leaders had to take various decisions regarding their own countries. Briefly write the
decision making process you feel the leaders would have take and the kind of
decisions they would have had to take.

-analyse the situation

-deciding attributes- number of cases, how fast covid is spreading, basis on the
cases in different states/region/countries[travel, migration]-----vaccination- how
powerful the vaccine is, will it work or not, time period of vaccine

-arrive at an alternative- lockdown, vaccination

-analyse the alternative[ quantitative-lockdown[basis on the cases in different

region/countries] and qualitative-vaccination[effectiveness of vaccine]]

-select- initial phase-lockdown, extreme phase- vaccine[ basis on all the three points
mentioned in note]

-implement-

-evaluate- response

Decisions they would have to take-

-non-programmed

-major decisions

-adaptive decisions