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 ...
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...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.
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Zegler, J. (2010, June). New initiatives expand Starbuck’s reach. Beverage Industry 101(18), 62. Retrieved from ABI/INFORM Trade & Industry.
Finally, this report will identify recomendations for Starbucks to minimze future loss and to compete with major competitors like McCafe and Gloria Jeans Coffee.
Schein, E. (1999). The Species of the Species. Kurt Lewin'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. Spector, B. (2010).
Shah, A. J., Hawk, T. F., & A, T. A. (2011). Starbucks' Global Quest in 2006: Is the Best Yet to Come. In A. A. Marcus, Management Strategy: Achieving Sustained Competitive Advantage (pp. c468-c495). New York: McGraw-Hill.
Starbucks not only shapes a defined importance on its product, the coffee, but also the relationships on its partners, its customers and its shareholders to create diversity, “to create a place where each of us can be ourselves” (Starbucks Coffee), to treat all related partners with dignity and respect at the greatest corporate level. In this sense, Starbucks involves its customers, its neighbors and is shareholders to participate in the community to “be a force for positive action—bringing together [its] partners, customers, and the community to contribute every day (Starbucks Coffee).
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
At the end of my interview I will try to suggest what steps should be made to keep the company in continuing its quest to become one of the most recognized and respected brands in the world. Introduction With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has been doing very well for the last 11 years with 5% or more store sales increase, even with the rest of the economy still reeling from the post-9/11 recession. However, recent research, conducted by Starbucks, has shown some concerns regarding the company’s problem meeting customers’ expectations.
... middle of paper ... ... Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html “Starbucks”.
By April 2010, Starbucks had become the world’s premier roaster and retailer of specialty coffees, with 8,812 company-owned stores and 7,852 licensed stores in more than 50 countries. Schultz stepped down as CEO in 2000. Nonetheless, declining stock prices, eroding customer traffic, and perceived dilution of the Starbucks brand caused the Board of Directors to ask Schultz to return to his role as CEO and lead a major restructuring and revitalization initiative. Between 2008 and 2010, Schultz drove a transformation of the...
Starbucks case study: background 1971-87; private company 1987-92. (1997). McGraw-Hill Companies. Retrieved March 20, 2007, from the McGraw-Hill Companies website: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-1.html
The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...
Shultz, H & Gordon, J 2011, Onward: How Starbucks Fought for Its Life without Losing Its Soul, Rodale Books, Pennsylvania.
Change is interdependent on other variables like size, environment, organization type and power. An organization should monitor and re-assess its change strategy as a shift in any of the variables affects its implementation and requires realignment of strategies. For effective change, progress has to be monitored and feedback should be acted upon continuously. Accepting and altering what can be noticed as a wrong strategy in the change process should be acceptable to all, however, it can only be done, if the organization can have a team to monitor the progress of change, Nelson (2003). Walton and Russel, (2004), discuss that restructuring, downsizing, deregulation, explosive growth and change in business models are some of the changes that
Usually that revenue growth is in line with the growth of the economy”. I believe there are thousands of students contributing to Starbucks 's growth today. “As a result, mature companies tend to engage more in inorganic growth to fuel innovation. That means acquiring start-ups or middle-sized companies”. Not all products have been a home run for Starbucks. A lot of their flavored lattes, recipe process, technology endeavors have been part of the declining stage as well. However, Starbucks does have product extension for some items and they tend to return them ever so often due to holiday or
Strategic management is a key element to carry success to global agenda. At the first step of Starbucks’ strategic management, the company’s vision and mission are, ‘’To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” and ‘’To inspire and nurture the human spirit–one person, one cup, and one neighborhood at a time.’’ Shultz wanted to provide people no matter their age, profession, or location with a unique experience that a coffeehouse as a place to relax, work, and socialize. He analyze the market and identify company’s internal strengths & weaknesses and external opportunities & threats. His strategy was offering customers the “Starbucks experience”, that means superior customer service, a ‘community experience which based on the Italian café model, a friendly ambience in its stores. Also it empowers customers to drive change especially in terms of customization, peer to peer marketing and consumer awareness. Moreover, Starbucks seeks brand loyalty and offers perks to frequent customers instead of doing investment to advertisement sector. Starbucks is radically different from the others in this last point.