Question

Organization name "Starbucks" it's not a case study, i just need general information that required in the question. But without plagiarism please.

- Why does the company use this kind of structure? Provide a brief account of the advantages and disadvantages associated with this structure for your organization.

Answer 1

Starbucks uses Matrix kind of organizational structure for its business.

The company used this kind of structure to get a hybrid mixture of different features from all the basic types of organizational structure.

Moreover, it helps the company maintain effective communication, efficient production, excellent product development, and exemplary customer service.

The advantage of the matrix organizational structure is that it facilitates communication with different departments in the organization, which helps develop better and stronger relations in the organization.

Moreover, it also helps the organization share their resources, which would get wasted or would not be used to their full potential otherwise.

This structure also helps in fostering employee development by exposing employees to multiple types of projects and different ways of thinking. It would also make employees more valuable for the organization and would increase their job satisfaction.

There are also some disadvantages to the matrix organizational structure. One of them is heavy workloads. Employees working in a team get extra duties along with their regular workload, which increases their burden. It also confuses the line of communication, and it induces conflict and confusion between the reporting relationship for the employees working in a matrix organization.

Moreover, it causes additional expenses for the organization for retaining project managers and department heads.