Organizational and Operational Structure

Organizational and Operational Structure

How does the current organizational and operational structure, including the system of corporate governance, benefit the firm? How does the current organizational and operational system challenge the firm’s success? What would have to change to reverse how structural issues are impeding the firm’s success?

Organizational, Operational Structure And Corporate Governance Benefits

Starbucks utilizes a matrix organizational structure, which incorporates various elements such as functional, geographic, product-based, and teams. Each aspect of the organizational structure addresses an important business element contributing to the company’s success. The most important aspect of the structure is its focus on the customer experience. Employees receive intense training on service delivery, leading to remarkable improvement and highly motivated staff members. Starbucks’ operational structure involves teamwork among the employees. This allows the staff to perform their tasks better, leading to customer satisfaction and high profits. The company focuses on environmental conservation through recycling and waste reduction (Azriuddin et al., n.d.). This has led to goodwill from the neighboring communities.

Challenges

The lack of unique and affordable coffee products currently intensifies the substitution threat. Most individuals pick coffee from outlets that offer this particular service and are affordable. Others make coffee at home at a lower cost than purchasing from Starbucks. Despite the trial to sell coffee makers to counter the threat, its persistence is clear because it is a real market need. Starbucks’ insistence on selling highly-priced products undermines other strengths, such as a diverse product mix, superior quality, and good customer service (Azriuddin et al.,n.d.). In addition, the company’s culture needs to be flexible and adaptive to the regions of operation.

Changes to reverse structural issues

Starbucks needs to incorporate various strategies to remain relevant. One of these is embracing low-cost products to attract more clients that are regular. The company’s products already possess superior quality. However, their cost is inhibitive, making it difficult for clients to buy daily, which could lead to higher sales. In addition, the strategy is ideal for dealing with the possibility of being overshadowed by substitutes and the closure of non-profitable outlets. Most importantly, creating coffee cultures that resonate with the target market in different regions is critical. This should lead to acceptance in new markets and profitability.

References

Azriuddin, M., Kee, D. M., & Hafizzudin, M. (n.d). Becoming an International Brand: A Case Study of Starbucks. Journal of the Community Development in Asia, 33-43. Retrieved from https://pdfs.semanticscholar.org/df32/760cdd2d01e49ca3aa91d420bb936e43056a.pdf

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Organizational and Operational Plans

This is a Collaborative Learning Community (CLC) assignment.

The purpose of this assignment is to assess the effectiveness of a company’s operational and organizational strategies and processes.

Previously, your CLC group conducted an extensive assessment of your selected firm’s external and internal environment and of the elements influencing both. Reflect on this research and analysis as you move forward assessing the next steps for the firm and how to increase value for the shareholders and stakeholders involved. This question of value is largely influenced by the firm’s ability to be optimally organized and operated.

Compose a written assessment of your selected firm’s organizational strategies and operational processes, evaluating what changes need to be made and what procedures need to be maintained in order to outfit the firm for increasing success.

Address each of the following issues in a 1,250-1,500-word paper:

1. How does the current organizational and operational structure, including the system of corporate governance, benefit the firm? How does the current organizational and operational system challenge the firm’s success? What would have to change to reverse how structural issues are impeding the firm’s success?
2. How might the firm benefit from a strategic alliance? What are the risks of a strategic alliance and how might those risks be managed?
3. How might the firm utilize a business-level cooperative strategy to create a competitive advantage? Of the four business-level cooperative strategies presented in section 9-2 of the textbook, which is most likely to be of significant value to your team’s firm? Why? What are the risks associated with this strategy and how might they be managed?
4. What internal governance mechanisms would you propose to monitor managers’ decision making?
5. Section 11-2 of the textbook states that strategy and structure have a reciprocal relationship. Explain how this is true within your selected firm. If it is not true, how might the situation be changed for the better?