Assignment 1: Starbucks’ Strategy
The purpose of this paper is to explore key elements for Starbuck pertaining to their success their approach to organizational culture and management’s role in the proven success it has experience globally. Next, to converse about decision-making strategies that Starbuck’s management has implemented to maintain it competitive position in the market place; share a competency that is used by management and why this particular competency assist in the company’s success regarding organizational culture. Lastly, share my opinion on long-term sustainability in the global industry; in addition could the company continue without Mr. Howard Shultz as CEO. Organizational Culture
In business management it is imperative that strategies are created and implemented so the company can experience growth and increase there revenue; additionally they must consider competition advantage, short and long-term planning to continue to sustain their position in the market, include the global market if it is applicable. In looking at Starbucks as a company a global leader in their respected industry, management had to consider the business strategies previously mentioned. However, management additionally had to consider organizational culture as part as of their strategic planning, along with being culturally sensitive since they operate globally. According to research, “the concept of culture helps managers understand the hidden, complex aspects of organizational life” (Draft, 2012, p.75). When Starbuck’s management strategically design plans to for company success it requires them to look at various elements both internally and eternally. This is important because when dealing globally the must understand the beliefs, values, etc. before operating in a particular area. Furthermore, internally they have to ensure that their employees understand this information as 3
well; by doing this it will make the operation operate smoothly without any interruption to the operation. For instance, gaining an understanding observing things that are visible or tangible which can be critical to internal operation such as, observing employee, beliefs, values, and much more. This requires management to incorporate the company’s mission and vision so it will eliminate conflicts so the company can function, as management desires in order to be profitable and competitive in the industry. The other key element is to focus on external elements, which will attract consumers to their stores, which is important when competing in a global competitive market. An analysis must be conducted to understand the customer; competitor positioning, and marketing plans that will gain and allow the company to build its customer base; this may require understanding customs, symbols, locations, etc. Thus, will increase profits and reduce liabilities and risk. Based on research it describes adaptability culture in both internal and eternal segments. “Managers encourage values that support the company’s ability to rapidly detect, interpret, and translate signals from the environment into new behavior responses. (Draft, 2012, p.78). This type of understanding in organizational cultural behavior promotes achievement and consistency for Starbucks. Managerial Decisions
Starbucks has been successful in their operation for many reasons because management is cognizant that customers need to feel welcomed and relaxed based on the facility layout and location. Additionally, this is back by employees who share in management’s beliefs and values. Furthermore, the company is effective because they offer a variety of products that caters to their customer base. Perhaps one of the best advantages that management offers to their customers are free services such as Wifi, reduced cost on music such as CDs and free musical downloads for electronic devices, along with diverse music that caters to all ethnic groups. 4...
References: Draft, R. (2012). Management (10th ed.). Mason, OH: Cengage Learning.
Reid, D. & Sanders, N. (2010). Operations Management. An Integrated Approach (4th ed.). John Wiley & Sons, Inc.
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