One type is Line structure. This type is a straight structure, with no departments or divisions. While Schultz is ultimately responsible for the corporation, there are divisions under him that can handle and diffuse local and regional issues. This type of structure is appropriate for small businesses and is very informal. A second type is line and staff structuring. Under this type there is the same chain of command as with the line structure. The difference is that there is support from staff members in specific departments. This type is suited for a larger company, as it is more formal, but there is no true authority given to staff heads as there is with the heads of departments in functional structuring.
Organizational Functions.
The organizational functions of a company or corporation can dictate which organizational structure should be utilized. 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.
