7.

GEOGRAPHIC DIVISIONS - Akshar

a. Starbucks in the US
b. Starbucks around the world
c. Starbucks in India

BUSINESS DIVISIONS

Starbucks has a matrix organizational structure, which is a hybrid mixture of different

features from the basic types of organizational structure. In this case, the structural design
involves intersections among various components of the business. For example, the
company’s product-based divisions intersect with functional groups and geographic divisions,
which in turn intersect with other parts of the organization. The following are the main
features of Starbucks Coffee’s corporate structure:

1. Geographic divisions

The geographical divisional structure forms three main

regional divisions including China and Asia Pacific, America,
and Europe, Middle East, Russia, and Africa. Moreover, in
the United States, the divisions are Western, Northwest,
Southeast and Northeast.

Each division of Starbucks organizational structure has its

own senior vice president who controls things in that
division and is answerable to central management. This
way, each lower level manager reports to two heads, the
geographical head, and the functional head. Each
geographical division is flexible enough to design the
products according to the preferences of people in that
area. Therefore, different countries offer different product
line.

2. Product-based divisions
 Product based divisional structure is also a part of
Starbucks organizational structure. This structure divides
employees into different groups in a way that each group
works for a different product. For example, Starbucks has
divisions for merchandise goods such as mugs and books,
bakery items such as sandwiches and a division for coffee
& other beverages.
Starbucks organizational structure also includes brand
based divisional structure.

GEOGRAPHIC DIVISIONS

Starbucks in the US

c. Starbucks around the world

d. Starbucks in India