Strategic Renewal: Starbucks Coffee Company

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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. Reasons for Choosing Starbucks An in-depth analysis of Starbucks’ process for strategic renewal serves an excellent reference for studying the essential elements of successful change. Relative to the learning objectives articulated in the portfolio rubrics (“Course Documents” n.d.), three important reasons emerge from preliminary study for analyzing the Starbucks process for change. First, although the change process that guided Starbucks’ recovery toward a more sustainable business model closely parallels Lewin’s three-stage model of planned change (Schein, 1996), Schultz’s passion for his company added one important dimension – a visionary context for change (Schultz, 2011). The embedding of Schultz’s new vision into the change process created ... ... middle of paper ... ...ewin's change theory in the field and in the classroom: Notes toward a model of managed learning. Reflections, 1(1), 59-74. doi:10.1162/152417399570287 Schein, E. (2004). Organizational culture and leadership (3rd ed.). San Francisco: Jossey-Bass. Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale. Spector, B. (2010). Implementing organizational change: Theory and practice (2nd ed.). Boston: Prentiss Hall. “Starbucks Corporation,” (n.d.): Datamonitor Company Profiles Authority. Retrieved from EBSCOhost database. Starbucks' quest for healthy growth: An interview with Howard Schultz. (2011). McKinsey Quarterly, (2), 34-43. Retrieved from Business Source Premier database. Zegler, J. (2010, June). New initiatives expand Starbuck’s reach. Beverage Industry 101(18), 62. Retrieved from ABI/INFORM Trade & Industry.

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