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Product-based divisions

Starbucks also has product-based divisions in its organizational structure. These divisions support product lines. For example, Starbucks has a division for coffee and related products, another division for baked goods, and another division for merchandise like coffee mugs. The product-based divisions enable a focus on developing its products with support from its organizational structure.


Teams are used at the lowest organizational levels, namely, the Starbucks cafes. In each cafe, the firm has teams organized to deliver goods and service to customers. This feature empowers the company to provide effective and efficient service to consumers.

By 2007, the company was expanding rapidly; it subsequently shifted its focus away from customers toward strategic global expansion. However, in making this change, Starbucks experienced significant decline in sales, largely due to a lack of attention on the customer experience. When Howard Schultz resumed the CEO position in 2008, he changed Starbucks' organizational structure to emphasize the customer. New regional divisions were created, and teams at Starbucks cafes were given better training. So, the current organizational structure of Starbucks reflects this customer- focus reform and the firm's financial performance.4

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