MGT500 – Modern Management
1. Suggest the key elements of Starbucks’ organizational culture that contributes to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. A company’s culture is likely to shape the attitudes and behaviors of all who are employed there (Weber, 2011). Starbuck’s organizational culture that contributes to its success in a global economy is the welcoming work environment that encourages partners to interact with one another and make Starbucks a place they desire working for each day (Starbuck.com, 2014). Starbuck’s value culture and respects diversity and inclusion, and it is their goal to construct a diverse work environment, broaden skills, implement an inclusive culture and create a varied group of vendors (Starbuck.com, 2014). With their desire to stay connected with each other, their customers and the communities they belong, they hope to foster a deep sense of purpose at Starbucks. They carry the belief that everyone can become a part of something larger and inspire positive change in the world around them (Starbuck.com, 2014). Starbucks uses a relationship orientation concept. Connections with customers, suppliers, partners and employees are key faucets to Starbucks vision. It is the relationships, the network of partners that Starbuck have created for their selves that allow them the global economic success they have. Management’s role in creating and sustaining the organizational culture is to define and communicate signals and symbols that foster corporate culture (Daft, 2012). A manager is able to do this by implementing key values that employees accept and support; by creating a mission/value, statement or purpose that will help convey the organization’s values to employees and help define expectations of them. A manager focus must be for both organization values and performance to foster an above standards culture that promotes accomplishing the business strategic goals. Employees who are aligned with the mission and direction of the company will be motivated to perform at high levels. Managers generate and sustain well performing cultures through cultural leadership (Daft, 2012). It is the managers or senior officials in a company that should define and communicate key values that are part of a transparent mission. They themselves should take high regards the values of the organization through their words, actions and behavior. According to Daft 2012, effective work procedures, budgeting, decision making, reward systems, and other day to day activities are aligned with the cultural values”. The leader’s vision, combined with their personality shapes corporate culture, (Daft, 2012). The Starbuck mission statement stems from CEO Schultz’s belief he could build an environment that would foster relationships: “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Coffee Company, 2014). 2. Assess the effectiveness of Starbucks’ management decisions in providing innovative offerings for its customers (e.g., WiFi, style of coffee, etc.) in order to achieve its current competitive marketplace advantage. Provide support for your rationale. It was highly effective for Starbuck’s management decision to provide innovative offerings to its customers in order to achieve its current competitive marketplace advantage. As technological advances improve, consumers expect the businesses and organizations they choose to use, to keep up with such advances and people like to have easy access to things they enjoy. In addition, some people do not mind paying for the experience they desire, so they would not mind paying for better quality coffee. In 2001, Starbucks revealed wireless Internet service to provide Starbucks’ customers the ability to sip their coffee and eat food while using...
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