Module 3 Critical Thinking: Portfolio Proposal The study of managing change in today’s dynamic business environments greatly benefits from an insightful examination of leaders and organizations that have successfully engaged in strategic renewal. Perhaps more than any other recent change effort, the extraordinary revitalization of Starbucks Coffee Company represents a compelling example of successful change. Confronted by the cumulative impact of multiple internal and external performance pressures, Starbucks, led by the return of CEO Howard Schultz in 2008, engaged in a comprehensive well-formulated process for change that brought the company back from the brink of potentially catastrophic failure (Schultz, 2011). In response to requirements for the ORG521 portfolio project, this paper proposes an in-depth analysis of the change process that Starbucks followed in the company’s quest for strategic renewal. A summary description of the Starbucks Coffee Company follows the discussion.
As a part of their mission, Starbucks strives to provide a work environment treating the customer, as well as employees, with respect and dignity. Furthermore, the company embraces diversity as a major component in the way Starbucks does business. In addition, Starbucks subscribes to the highest standards of excellence to the purchasing, roasting and fresh delivery of their coffee. Starbucks believes that the company should satisfy customers every time they serve a cup of coffee and contribute to the communities and the environment while recognizing that profitability is essential to their success (Starbucks.com, 2008). Starbucks owns and operates its own facilities, warehouses, and retail stores Environmental Fa... ... middle of paper ... ... to people who can then receive a higher wage as a result (Transfairusa.org, n.d.).
Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model. Organizational Culture The Starbucks Corporation is built around an experience, the Starbucks experience. While the Starbucks experience is most notably associated with the way customers are treated, one could argue however, that the Starbucks experience transcends just the way customers are treated. The Starbucks experience is an all encompassing culture that revolves not just around customers but also to employees, or “partners” and suppliers.
This move is one of its riskiest ventures to date, to make it possible Starbucks marketing executives want to use its most intangible asset “the brand”. The brand name may be intangible (literally, it cannot be touched), but it is a durable asset whose value increases as consumers associate it with... ... middle of paper ... ...rs on an international level is what Starbucks wants to maintain. The need to meet all their customer needs will give Starbucks staying power with any new venture. Works Cited (n.d.). Retrieved from http://www.starbucks.com/about-us/company-information Michaeals, R. (2011).
It is showing the customer, “here is a look into the life of Starbucks user.” Erin is a go-getter who deserves a personal reward—Starbucks is her choice of indulgence. Mike is a hard worker who deserves quality goods—Starbucks is his choice for quality. By showcasing the lives and personality of so many different Starbucks users (real or otherwise), the consumer begins to image an entire society and culture forming around the brand. All of these customers portrayed in the advertisements are also larger associations to the brand and its persona, in general. The people you imagine using Starbucks products begin to reflect what the customer believes is indicative of the Starbuck’s brand, as a whole.
By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee joint has become America’s most enjoyable place to get coffee. Like many other organizations, executives at Starbucks realized the importance of planning. Planning involves making sound business decisions and goals for the company, specific divisions, a store, and for individuals (Bateman-Snell, 2004, p. 108). Starbucks’ executives have defined their business with the mission statement to “establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” (Starbucks mission statement). Executives have found various ways of increasing their market by examining alternative paths to conduct their business.
Management Style “Before you can have an emotional connection with your customers, you have to have an emotional connection with your people.” (Ouchi A1). The success of Starbucks is partly due to Smith’s strong emphasis on relationships between management and lower ranked employees (also called partners). Similar to JetBlue’s CEO David Neeleman, Smith believes that a good relationship between management and employees will translate into a good relationship between the employees and the customers. In the past, both CEOs have been known to practice a ‘hands-on’ approach by stepping onto the ‘front lines’ of the business. Every quarter, Smith spends at least a couple of days behind the counter as part of their ‘Adopt a Store’ program for the senior executives.
How Starbucks stay on top if their competitors are brand equity and customers loyalty. Starbucks brand equity is the value of their brand with strong and confident community-based corporation help Starbucks to remain relevant to competitors in the market force. The company brand equity focus on the consumers’ recognitions on how the store is operates, logos, and the visual elements. Customers have a perception of high quality, excellent service, feedback and suggestion. You can measure Starbucks brand equity by product level and consumer level with scores of a well-run corporation.
This quote explains that the company cares more about growth than quality. It is important to think about growing, but according to the article, some people think like this about the corporation because of the competition between the coffee shops like Dunkin’ Donuts or other reasons. Furthermore, based on the research, the idea of having “Customer Snapshot” proves that the company cares about quality and service. According to the article, the Customer Snapshot is a measurement of service performance that Starbucks has. Basically, they lead the customers to rate them based on some of the basic services which are cleanliness, product quality, and speed of service.
For Starbucks, creating a culture that inspires its workforce to focus on customer satisfaction differentiates itself from merely a coffee house offering a product to a service-based shop in which the customers’ satisfaction is based on far more than the quality of the product itself. To achieve this culture, however, Starbucks could not simply place a greater emphasis on the customer, as doing so could create a climate in which employees feel underappreciated and in so doing could ultimately risk the potential that the employees will be unable or unwilling to carry-out the company’s desire to achieve customer satisfaction. Instead, Starbucks’ management places its trust in its employees... ... middle of paper ... ...stdick, J. H. (2011, March 6). Rekindling the heart & soul of starbucks. Retrieved from http://www.success.com/mobile/article/rekindling-the-heart-soul-of-starbucks Saporito, T. J.