Organization Structure and Performance.

Starbucks Corporation is the “flat organization” with no hierarchy structure as they provide an equal opportunity for all members to voice their opinions and provide feedback. There is democratic leadership in Starbucks Co. that pulls subordinates into the decision-making process. The Chairman of Starbucks, Schultz decided to treat employees as family, and called them partners. He provides a work environment that encourages hardworking among employees and they treat each other with dignity and respect.

satisfy customers and shareholders, through its competitive advantage. Its retail business is currently structured as Starbucks U.S. and Starbucks Coffee International (SCI) has presence in 55 markets including United States (Anonymous, 2011). Starbucks will move to a new three-region organizational structure: (1) China and Asia Pacific: All Asia Pacific markets and China, (2) Americas: United States, Canada, Mexico and Latin America and (3) EMEA: Europe, U.K., Middle East, Russia and Africa (Ford, 2005). A President for each Region will oversee the company-operated retail business, working closely with both the licensed and joint-venture business partners in each market. They will also work closely with Starbucks Global Consumer Products and FoodService team to continue building out Starbucks brands and channels in each region (Rainey & Thompson, 2006).

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The fit between organizational strategy, structure and leadership is Starbuck’s Mission and its set of Principles that address the structure and leadership in the organization whilst strategically directing the organization to achieve the customer satisfaction at all times. Application of these principles can be used as a guideline for all employees from managers to workers to aim to achieve the company’s goals, while maintaining required standard in professionalism.

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