Orgnizational structure of two companys Essay

Starbucks Corporation is an American global coffee company and coffeehouse chain. It is based in Seattle. It was founded in Pike Place Market in Seattle, Washington March 30, 1971.It is a public business and consist of 149,000 employers as of 2011. In Starbucks the Managers and subordinates alike are working with communications more efficiently. By having a Flat decentralized structure. Flat in the sense that Starbucks has few layers of management and broad span of control and decentralized meaning mangers and employers are allowed to take charge in the decision making instead of headquarters due to the fact that they have close relationship with the customers. Also, since Starbucks specializes in coffee production and sales it cannot be considered a matrix organization. This is because unlike companies like apple and Microsoft where various projects take place on a daily basis, Starbucks just focuses on mainly coffee marketing and coffee production. Wal-Mart Wal-Mart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world’s second largest public corporation. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. WalMart is also the largest grocery retailer in the United States. Walmart has a total of 2.2 million employees as of 2013. Wal-Mart’s management structure and management style model is created or molded by Sam Walton’s principles and values. Increasing size and geographical scope of Wal-Mart determined that the corporate executives should remain in touch with customers and store operations on a daily basis. This means that Walmart engages in a Centralized authority. Also, Wal-Mart’s regional vice presidents are responsible for supervising between 10 and 15 district managers. The divisional structure is divided into three categories: product, market, and geographic. This means also that walmart specializes in Departmentalization. Moreover, due to its type of industry (retail) not much projects need to be done. In other words, Wal-Mart is a line organization. To sum things up, the structure of Wal-Mart clearly defines the roles of employees and lines of authority. By following divisional structure approach Wal-Mart has a flat Centralized structure which enables it to have a wide span of control and this plays a major role in decision making . References http://www.starbucks.com/ http://www.latimes.com/business/money/la-fi-mo-starbucks-ceo-howard-schultz-government-shutdown-20131008,0,4717965.story http://smallbusiness.chron.com/starbucks-its-organizational-design-12857.html http://corporate.walmart.com/our-story/leadership/executive-management http://www.walmart.com/ http://news.walmart.com/news-archive/2010/01/28/walmart-announces-organizational-changes