Work Specialization in Starbuck's Research Paper

Work Specialization in Starbuck's - Research Paper Example In this case, five organizational structural elements are discussed which are: work specialization, departmentalization, and chain of command, the span of control and centralization & decentralization. Work specialization: Work specialization refers to how the operational jobs are divided into several small parts. In work specialization, an organization does not assign a whole task to one employee; rather the organization divides the task to certain sub-parts which are performed by individual employees. It is widely used in production procedures which help to accelerate the whole operation. The positive side of work specialization is that it not only can raise the level of expertise of employees, assist in the improvement of special technology, minimize training expenses; but it can also generate dullness and tediousness by performing the same type of task and also offer fewer prospects for development (Mukherjee, 2009). In Starbucks, the work is highly specialized. In the stores, the operation is divided into several sub-parts. Almost four employees are required to operate a ‘drive-through a window’. One employee is in charge of receiving the order, the second one runs the cash register, the third one operates the espresso machine, and the fourth employee completes any additional requirements when required. In the roasting facility of Starbucks, each employee has his/her own tasks to preserve the product quality of their assigned step in the entire production process (Robbins & Et. Al., 2008). Departmentalization: Departmentalization is the alignment of interrelated organizational actions into divisions. The focus of departments in an organization can be internal or external. Internal departmentalization is characterized by internal tasks or jobs of employees and resources required to undertake the jobs.

Starbucks Coffee Company Essay Example | Topics and Well Written Essays - 500 words

Starbucks Coffee Company - Essay Example The organizational structure of Starbucks consists of the divisional and functional structures. It is also in a monopolistic competition where there are many coffeehouses competing with each other selling different product lines. A lot of companies are trying to win over Starbucks by developing a good marketing strategy focusing on the product mix and primarily the ambiance. It is the strategy of the company to serve the customers with high-quality products similar to its mission and lessen the expenses through highlighting the controllable expenses. Also, maintaining a good environment of the store is their strategy because it attracts loyal customers. The company focuses on high-margin items at the same time creating sales through additional items. The capital and costs structure of Starbucks falls into a low to average budget in every location and its major investments are the property and most importantly the equipment used in the store. The company yields its primary operating costs on labor or employment and cost sales. Thus, the budget of the company goes into its products and equipment mainly and no costs are allotted to advertise the company separately. Accordingly, the company is confident with its ongoing profitability most especially on doing international business. Other competitors such as McDonald’s, which is adding premium roast coffee on their product line, is not a threat to the company because Starbucks has established its brand to be the largest coffeehouse in the world and produces high- quality products.