P4-1. What types of departmentalization are beingused? Explain your choices.

(Hint: In
addition toinformation in the case, you might want to lookat the complete list and
description of corporateexecutives on the company’s website.)
Starbucks is known across the world, they have to deal with different cultures and work
ethics. This is where the international operations is greatly needed, having this you know
that when you walk in to Starbucks anywhere it will be the same. This is made possible with
the use of departmentalization. The two that I found where geographical and functional.
Geographical - With geographical departmentalization, this allows the company to deal with
the "obese" size of the company. By having this in place this has given them presidents in
Canada (President of Starbucks Canada), USA (President of Starbucks Coffee USA) and
Internationally with the President of Starbucks coffee international and senior vicepresident
of coffee and global procurement.
Functional - With this they can assign different jobs for to insure that everything that takes
place is done to pure perfection.
P4-2. Do you think it’s a good idea to have a presidentfor the U.S. division and for the other
internationaldivisions? What are theadvantages of such anarrangement? Disadvantages?
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.
P4-3. What examples of the six organizational structuralelements do you see discussed in
the case? Describe.
Departmentalization - As said in question 1, this helps the company decide which jobs and
operations should be put together to work on.
Decentralization - This is what makes Starbucks so successful. They try and get advice from
all levels of employment and give the freedom to make there own decisions within the
Starbucks rules.
Span of Control - Having district managers visit 8-10 stores and having the right number of
employees a manager can handle to be the most productive.
Formalization - Starbucks does a great job with formalizing their jobs. Through training it
shows that the company will not let their employees on the "dance floor" without their
proper training.