Starbucks has a global presence, which necessitates multiple divisions. For each region, Starbucks must have a management team in place. This team consists of marketing, finance, and operational areas that are specific to that area. For example, the products consumed in China differ from those in the United States. Starbucks offers products that the marketing team has determined would be best suited to the consumers in that region, such as green-tea flavored coffee drinks. Because of this, Starbucks has managed to open over 500 stores in a depressed economy, selling each cup at even higher prices than they retail for in the United States (Rein, 2012). A second example is the pricing structure that has been put in place by the financial team in the Chinese region. They have priced the drinks in that area higher than those in the United States, making the purchase of a drink in that area, or the carrying of a cup as you walk down the street, a status symbol (Rein, 2012). This has allowed for Starbucks to have a high profit ratio from these stores, even though the volume is lower. In the Asian markets, the operating margins are 34.6% in 2011 versus 21.8% in the United States (Rein, 2012). The functions needed to succeed globally have helped dictate the organizational style of Starbucks. The ability for each division to perform the functions specific to the region they serve are essential. The organizational structure has also been affected by the organizational design style applied by the corporation.
The organizational design of Starbucks has been dictated by the globalization of the corporation. It applies a geographic design style which goes hand in hand with the organizational structure and functions. According to David Ingram of the Houston Chronicle, "A geographical organizational structure groups representatives from each functional department into units formed to serve a specific market or region.