Starbucks Matrix Structure
Starbucks is a global American coffee company and coffeehouse with operates in over 21,000 locations all over the world. But to function globally as a unit, the perfect organization structure is needed to enable the smooth flow of operations. An organization structure elaborates on how activities such as task allocation, coordination and supervision are appropriately managed to achieve sustainable competitive advantage. Starbucks adopted the matrix organization structure. Despite its shortcomings like long and unclear decision paths, ambiguous responsibility to managers is the right structure to achieve global continuity and success in all its units.
Starbucks operates in different countries and locations globally. Different states have differing and unique consumer tastes and preferences. What was a success at one branch may not a success at another? So the matrix structure allows the organization to meet different demands and preferences from multiple environmental settings. This is because decision making is decentralized. Each geographic division and product-based divisions are given authority and flexibility to adjust products, strategies and policies to meet specific market needs and conditions. Starbucks is, therefore, enabled to develop products faster and with more appeal to customer needs.
No organization structure is perfect. But can only be made to function correctly if the right competent personnel are in managerial positions and all work as a team.
Obama and Google
According to the book Introduction to Global Business. “Google is portrayed as a company that put a great deal of emphasis on attaining market share even if it meant not making any profits” (p.231, 2015). This depicts Google as an overly ambitious company that wants success and dominance at whatever cost in its line of work. Market dominance was attained, so what’s the best way of protecting and growing it other than getting into a working relationship with one of the most powerful governments in the world. The Obama administration needed Google’s technological expertise and influence, whereas Google needed the power and political backing of the government. Therefore, the relationship between the two was one that could be described as a working relationship or partnership. I help you, and you give me something in return.
During Obama’s presidential campaign, according to Yang and Easton, “Google managers and employees were some of the strongest supporters of candidate Obama and donated around $803,000 to his campaign” (2009). Obama used social media to spearhead his campaign for the presidency. This was a clear sign that he is open to the use of technology. Obama supported the expansion of Internet services to poor and rural areas and which company could do that well other than a large, influential tech company like Google. Two entities can only work together if they are like-minded, that is, thinking on the same page and having similar ambitions. Therefore it came as no surprise that Google Corporation and its executives were like and used by President Obama. Thus the relationship between the two was never a concern because the two giants, in politics and technology, could only foster their agendas forward if they worked together.
Works Cited
Introduction to Global Business. Understanding the Environment and Global Business Functions. (2015). 2nd ed. united states of America, p.231.
Yang, J. and Easton, N. (2009). Obama & Google (a love story) – Oct. 22, 2009. [online] Archive.fortune.com. Available at: https://archive.fortune.com/2009/10/21/technology/obama_google.fortune/index.htm [Accessed 4 Dec. 2019].