Management, étude de cas, Starbucks, corporate social responsibility involvement, organizational context, logistic, finance, trainings, rewards, incentives, CEO, board of directors
Management and leadership final assignment Starbucks case study (titre original)
• Leadership:
Starbucks CEO, Orin Smith, and the Board of directors play a central role in the organizational context of the company since they can arbitrate between the internal and external constraints and thus decide what organizational structures and policies have to be implemented.
• Mission and goals:
Starbucks CEO and the board of directors wanted the mission statement to convey a strong sense of organizational purpose and to articulate the company's fundamental beliefs and guiding principles. They also pay attention to employees' and customers' concerns to make the mission statement evolve. Indeed, these mission statements are based on several principles that consider the interests of customers, communities, employees, shareholders, and ecological considerations in all aspects of their operations.
• Structure:
Starbucks has an organizational structure that is not hierarchical but flat and flexible, rather decentralized and federated around teams, so that the company is more capable to facilitate the exchange and the transversal communication. Thus, Starbucks has no formal organizational chart. Last but not least, it has both product based and functional divisions.
• Rewards and incentives:
Starbucks strongly encourages its employees to make initiatives. In fact, it is due to the corporate culture of the company which main components concerning the employees are: empowerment, exceptional benefits, and stock ownership programs.
For instance, employees are capital for the company since success depends on the capacity to generate a very positive experience for the customers in the stores. Therefore, it is required to hire store employees who are knowledgeable about the company's products, conscientious, manage to communicate the company's passion for coffee, and who have the skills and personality to provide constantly pleasing customer service.
Starbucks' corporate culture and employees' benefits are designed to attract, motivate, reward employees and make Starbucks a company that people would want to work for.
Starbucks' corporate culture and policies also allowed generating and fostering trust between management and the company's workforce.
• Support functions:
One of the main systems that permits supporting the operations of the firm is the training program for the employees, but the marketing and the use of all the financial resources of the company are, of course, also designed to do so.
• Relationships:
As described before, the corporate culture towards employees is supportive.
Indeed, employees are empowered by management to make decisions without management referral and are encouraged to consider themselves as a part of the business. So, the emphasis is put on the employees themselves. But to be successful, this policy implies that managers are in the heart of the organization. For instance, their role is capital since it consists in ensuring the adequacy between the vision of the leaders and the reality lived and felt by the employees. In this context, it is required, on the one hand, to encourage the personal visions and the communication while guaranteeing the commonly shared vision, and on the other hand, to support the collaborators thoughts, remarks and their perception of problems.
[...] But to generate the word of mouth communication, it is required to make the company remarkable. And in an attempt to make it happen, Starbucks used the following principles: Be the best, not the biggest: It corresponds to the fact that companies should focus on trying to be the best at what they do. Only this attitude will guarantee the growth of the company. Make the common uncommon: Starbucks just took a simple cup of coffee and made it uncommonly better. [...]
[...] How does Starbucks ensure that its decision allow them to achieve their organizational outcome? How does Starbucks develop their people to ensure that there are no gaps between performance and development? Given the current climate in MNC, what is Starbucks doing well and what is it doing poorly? In the process of marketing, US Corporations historically require their employees to use their product. Given marketing theory vs. marketing practice, how does Starbucks create greater percentage of market share? What greater differences do you notice between the US approaches to the European approach? [...]
[...] Since Starbucks is a very fast growing and successful company, it is sure that they did well lots of things and that they did just few things poorly. But, there is still something to do or things to perfection. Thus, in an attempt to answer this question, we will analyze what were or are Starbucks' main strengths and weaknesses. In the process of marketing, US Corporations historically require their employees to use their product. Given marketing theory vs. marketing practice, how does Starbucks create greater percentage of market share? Starbucks marketing is based on marketing practise, since the company used the word of mouth to communicate. [...]
[...] Rewards and incentives: Starbucks strongly encourages its employees to make initiatives. In fact, it is due to the corporate culture of the company which main components concerning the employees are: empowerment, exceptional benefits, and stock ownership programs. For instance, employees are capital for the company since success depends on the capacity to generate a very positive experience for the customers in the stores. Therefore, it is required to hire store employees who are knowledgeable about the company's products, conscientious, manage to communicate the company's passion for coffee, and who have the skills and personality to provide constantly pleasing customer service. [...]
[...] (France for example) There are countries where coffee always had an historical legacy. It is especially the case of several European countries like France, Germany, Italy, Austria, Belgium In these countries coffee is a product that is part of the people's daily life and sometimes of their culture. And in these countries, the coffee taste, its way of preparation and of consumption are totally different from American ones. Thus, it can be very surprising that an US coffee firm becomes so successful in these countries. [...]
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