Functions of Management
The Functions of Management
There are four key components involved in effective management. The components are planning, organizing, leading and controlling. Managers will be faced with multiple roles in their jobs; the roles they play are categorized as interpersonal roles, informational roles and decisional roles. Interpersonal roles are multifaceted and are geared at the accomplishment of tasks through the efforts of others. Among the interpersonal roles managers encounter are leaders to their employees and as liaisons to persons and groups both internal and external. In informational roles, managers gather information from a variety of sources and distribute it through the proper channels. The decisional role of management is the one most associated with the position. In this role, the manager makes decisions that affect the company and its stakeholders (Bovee, Thill & Mescon, 2007). Planning
For managers, planning is the process of developing strategies for success, establishing goals and objectives for their organization and the development of courses of action based on their strategy. An important practice for managers is strategic planning. Strategic planning is the outlay of long term goals and planning the actions that will achieve those goals. Part of the strategic planning process is the development of a business model. The business model outlines how the company will generate revenue. There are additional items involved in the strategic planning process. The first of these is the development of a clear vision of how the company will grow and improve in the future. The second is the creation of a mission statement which lays out how to realistically achieve the vision of the company. Third is performing a SWOT (strengths, weaknesses, opportunities and threats) analysis. Fourth, a company develops forecasts or predictions of future occurrences involving what will occur and when and also the impact it will have on the business. Fifth the competition should be analyzed to compare costs, product similarities and unique qualities and to determine the focus strategy for the company. The sixth element of strategic planning is the establishment of goals and objectives. Goals are general accomplishments a company wishes to obtain over the long term, typically 5 years or more. Objectives are specific short term plans, typically 12 months that are developed to help work towards those goals. The final component of strategic planning is the development of action plans. The action plan outlines the steps that will be taken to achieve the long term goals (Bovee, Thill & Mescon, 2007).
In 2008, Starbucks Coffee unveiled new plans to help cope with a faltering economy and to transform the company in an effort to remain competitive. In following the concept of planning, Starbucks executive management began by laying out long-term goals. The goals given by CEO and President Howard Schultz were to strengthen the core-business meaning their coffee and partners, elevate the experience of the customers and making decisions and investments to facilitate the long term growth of the company. In order to achieve these goals, some hard decisions had to be considered. One of the plans being put into action is the closing of 600 company owned stores throughout the US. In addition, a great amount of restructuring was undertaken to position the company for worldwide transformation. One step taken in investment for long term growth was the acquisition of the Coffee Equipment Company, manufacturer of the Clover brewing system, a system that is considered to brew the best cup of coffee out there. In addition, other technological changes have been implemented in existing equipment. In order to strengthen relations with customers and “elevate” the experience, Starbucks began a rewards program to Starbucks card holders, a practice long successful with many hotels and...
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