...MANAGEMENT AND LEADERSHIP PAPER – STARBUCKS Sheila D. Forte Professor Cedrina Charbonnet Management 330 How can we differentiate between management and leadership? The biggest difference between managers and leaders is the way they motivate the people who work or follow them, and this sets the tone for most other aspects of what they do. You have people that can do both the management and leadership aspects. We know the functions of management involves planning, organizing leading and controlling. Leading has a profound effect on manager’s ability to govern as well as plan, organize and control. Basically leadership deals with interpersonal aspects of manager’s job; meanwhile, leadership deals with change, inspiration, motivation and influence (Management functions, n.d.). Leadership involves influencing others toward the attainment of organizational objectives. Effective leading requires the manager to motivate subordinates, communicate effectively, and effectively use power. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort toward the attainment of organizational objectives. To become effective at leading, managers must first understand their subordinates' personalities, values, attitudes, and emotions. (Management functions, n.d.). Comparing and contrasting the difference between management and leadership are as follows: management produces order, consistency, and predictability; leadership produces change and adaptability...
Words: 1933 - Pages: 8
...Management and Leadership at Starbucks Starbucks has been around for over thirty years with the idea of just selling packaged premium coffees but has grown tremendously selling food and specialty coffee drinks. With retail outlets from China to Virginia, Starbucks is able to create and maintain that cozy café atmosphere due to their employees. Management and leadership within the Starbuck Corporation can be credited by the hands on involvement they have with their employees. Within this essay, one will understand how their leaders differ from his or her managers, the vital roles that leadership as a whole contributes to maintaining a healthy culture and how they apply the four functions of management that makes Starbucks what it is today. “Creating an entire industry requires leadership of the highest order, and from its beginning more than 30 years ago, Starbucks has continued to demonstrate that there practically are no bounds to what focused leadership can accomplish” (Clark, 2005). At Starbucks the leaders play a significant role in creating and maintaining a healthy organization. The leaders within Starbucks must contain integrity. “If people don’t trust you, they won’t perform for you” (Clark, 2005). The leaders must have the right vision. As Evelyn Clark stated in her article, “leaders know what they want to accomplish with their group” (2005). Passion is also another key attribute the leaders must possess, for every leader must inspire everyone around them. Great...
Words: 1902 - Pages: 8
...Analysis of a Case Study of Trauma in the Workplace By David M. Noy Sr. University of the Rockies Abstract This paper examines a case study performed on an organization merging two business units into a single entity. The result was the employees from the smaller of the units felt a loss of identity, confidence, and of hope and meaning. The organization realized six months after the merger that there were unresolved issues that had traumatized the employees affected by the merger and how the organization worked with the employee to allow healing and the ability to move on and embrace the new direction of the organization. Introduction Trauma is a real thing within the organizational structure and does affect the emotional well-being and perception of the employee and how the employee views the organization. Organizations engage in restructuring all the time and at times the restructuring comes from the top down and the employee must adapt to the restructuring or fail within the new structure of the organization. This organizational restructuring can cause trauma to the employees who are involved with the restructuring. Case Study In today’s society, we read about cases of workplace violence and visibly see the trauma that the victims experience. Unresolved emotional trauma in many organizations blocks peoples’ capacity and ability to perform (de Klerk, 2007). The de Klerk, 2007 case study looks at how mergers, downsizing, outsourcing, restructuring, and continual...
Words: 1960 - Pages: 8
...why he is during this paper. Howard Schultz is best known as the chairman and CEO of Starbucks and a former owner of the Seattle Super Sonics. Howard Schultz began his career very quickly. It all started after he graduated from college, he was working as a salesman for Hammarplast, a business that sold European coffee makers. As Schultz made his way through the company he noticed they were selling more to a company in Seattle. So, Schultz went to Seattle to see whom they were selling to and once when he walked through the doors of Starbucks he knew he needed to work there, Schultz he said “I can’t explain it. But I knew I was in a special place, and the product kind of spoke to me.” Drawn to Seattle and its extraordinary coffee culture, Howard moved from his native New York and joined Starbucks, in 1982, as director of operations and marketing when Starbucks had only four stores. In 1983, he travelled to Milan, Italy, he saw that there were so many coffee bars, that he came with the idea of coffee drinks. Schultz said, “I saw something. Not only the romance of coffee, but a sense of community. And the connection that people had to coffee- the place and one another”. He left Starbucks for a short period of time to start his own coffeehouse, Il Giornale coffeehouses and returned in August 1987 as chief executive officer to purchase Starbucks with the help of local investors. Today, Starbucks is the premier purveyor of the finest coffee in the world, with more than 23,00 stores...
Words: 2438 - Pages: 10
...Starbucks’ Strategy Starbucks’ Strategy Coffee is one of the most purchased items every morning in the United States. Some people feel that cannot start their day until they have had their “cup of joe”. Starbucks not only supplies this morning necessity but has found a way to make consumers feel that their cup of coffee was made specifically for them. Upon entering any Starbucks, one is greeted with a variety of drinks in three different sizes and a assortment of pastries and snacks to pair with them. Every order is accompanied by the customer’s name, which makes calling out an order much easier and friendlier.. That feature alone helps to build a community between the company and its patrons. Suggestions like these and others have helped to contribute to the success of Starbucks. The success of Starbucks is not only local but also a global success. Success of any company has a foundation in the organizational culture of a company. Overview of Starbucks The first Starbucks opened in Seattle, Washington in 1971 (“Our Heritage”). Starbucks prided themselves on fresh brewed coffee from the world’s best and freshest coffee beans. Ten years later, Howard Shultz became the CEO of Starbucks. Howard Shultz was born and raised in Brooklyn, NY. He attended Northern Michigan University on a football scholarship. After graduating, Shultz sold kitchen appliances before landing a job with Starbucks as a marketing representative (“Forbes 400”). A year...
Words: 1771 - Pages: 8
...Coffee Strategic Management Executive Summary: Starbucks could be an international company operative within the low retail market since 1972. The corporate, that has positioned itself as a merchandiser of premium low merchandise, has greatly swollen its market position and presence within the past 20 years. Despite a positive market outlook, Starbucks is in would like of strategic content because the company faces to not be underestimated challenges within the short- to medium-term. Those challenges emanate from established competitors like some others fast food companies internationally defy Starbuck’s market leadership position by driving aggressive low-pricing methods in established and rising markets. Moreover, new trends within the low business have spread out new segments with high growth potentials. Starbucks remains unsure however tackle new segments and what impact trends may wear its product portfolio. This report is supposed to be a strategic scout that aims at illuminating totally different strategic alternatives within the lightweight of the numerous opportunities and threats that lie ahead. The report will provide recommendation on a way to utilize internal strengths to maximize opportunities and the way to attenuate weaknesses to avoid threats. (Lee, Ristic and Franke, 2014) Question No. 1 Which of porter's competitive strategies is Starbucks using? Porter called the generic strategies "Cost Leadership" (no frills), "Differentiation" (creating uniquely...
Words: 1559 - Pages: 7
...Organizational Commitment and Communication Starbucks uses organizational communication to share important information and messages. The company operates at the international level in coffee supply and coffeehouse chain (Starbucks Coffee Company, 2012). Organizational communication at Starbucks is well developed. Leadership plays an important role with in Starbucks in terms of organizational communication. Leadership helps establish the effectiveness of communication with in the company to help increase growth and success. Starbucks cannot adopt to the different leadership style because of the impact of the working environment and the performances of their employees. If Starbucks were to use autocratic leadership the directions would be given to the associates, where they would be expected to follow the directions. Autocratic leadership suggests a one-way communication process in the company. Therefore, management would keep their authority and have control over the decision-making. Starbucks believes in improving the quality of their business but by using an autocratic leadership style they will loose their group communication and also the success of their long-term goals. If Starbucks were to have a charismatic leader then the managers will be able to influence the employees. The employee’s that receives the motivation will put in greater effort to achieve Starbucks goals, mission, and vision. Charismatic leader can motivate their employees and convince them to get the...
Words: 915 - Pages: 4
...Cand.soc /MSc in social Science Leadership and Strategy in Service Management 03/05/2015 Stefano Di Nicola CPR 081190-3523 Tomás Vaz De Carvalho CPR 190491-4025 Leadership and strategic Management Mini-Project Why Starbucks failed in Israel? COPENHAGEN BUSINESS SCHOOL 2015 Program: Cand.soc Service Management N° of pages: 14 N° of characters: 30,946 Hand-in the 03/05/2015 1 Cand.soc /MSc in social Science Leadership and Strategy in Service Management 03/05/2015 2 Cand.soc /MSc in social Science Leadership and Strategy in Service Management 03/05/2015 TABLE OF CONTENTS 1. Introduction ...................................................................................................... 4 1.1. 1.2. 2. Problem Statement ................................................................................................ 5 Methodology .......................................................................................................... 5 Analysis ............................................................................................................. 6 2.1. Cultural Analysis .................................................................................................... 6 2.1.1. Introduction to Hoftede’s 5 Cultural Typologies Framework ..................................... 6 2.1.2. Israeli culture vs. United States culture...........................................................................
Words: 6270 - Pages: 26
...School of Business A350A0050 Business Research Methods Case Starbucks stock value 2006-2010 ”Fall and rise” Contents Introduction 3 Theoretical framework 5 SWOT 5 Strategic Formulation 6 Porters 5 forces model 8 Problem analysis – Case Starbucks 9 Factors leading to the decline in stock price between 2006-2009 9 Starbucks analysis using the 5 forces model 10 Rivalry among existing competitors 10 Threat of substitution products and services 11 Bargaining power of suppliers 11 Bargaining power of buyers 13 Threat of new entrants 14 Summary of the five forces analysis 14 SWOT analysis 15 Strengths 15 Weaknesses 16 Opportunities 16 Threats 17 Customer Value, Satisfaction and Loyalty 18 Generic strategies from Starbucks’s point of view 18 Conclusions 20 References 21 Introduction In the year 2000, Howard Schultz, a long term director of Starbucks left his position as the CEO. Starbucks was on a steady course and had its stock price on the rise until the year 2006. (lähde haastattelu) The global financial crisis hit the coffee giant relatively harder than other companies in the business sector (lähde annual report 2010). In early 2008, due to the poor performance of Starbucks, Howard Schultz felt compelled to return in to the CEO’s position, as Schultz mentioned in his interview for Harvard Business Report in 2010 “The leadership had failed the 180,000 Starbucks people and their families.” (lähde haastattelu). The global financial...
Words: 4559 - Pages: 19
...Starbucks Corporation Company Information Drinking coffee has become a morning ritual for most people today. About 54% of the United States over the age of 18 drink coffee every single morning, whether it be before going to work, school, or just being at home enjoying a cup while watching the news (Statistic Brain 2013). Starbucks Corporation is one of the primary reasons drinking coffee has become an everyday activity for most parts of the world. The demographics aspect of the business has no doubt had a major positive impact for the company. Starbucks has currently over 17,000 stores in 40 countries throughout the globe ensuring that anyone who wants a coffee will have a Starbucks nearby (Hoovers 2013). Starbucks was established in 1971 in Seattle, Washington by coffee enthusiasts Gordon Bowker, Jerry Baldwin, and Ziv Siegl (Hoovers 2013). The company’s core objective was to “sell the finest quality whole bean and ground coffees” (Hoovers 2013 pg. 1). By the time 1982 came around, Starbucks had five retail stores and sold coffee to local restaurants in Seattle along with other espresso shops (Hoovers 2013). It was this year that Howard Schultz joined and ran Starbucks marketing and retail sales division. Schultz eventually left the company to pursue his own goals and open a coffee retail shop called Il Giornali, which served Starbucks coffee (Hoovers 2013). It was Schultz’s company that eventually bought Starbucks for $4 million in late 1987 and the named was changed to...
Words: 4421 - Pages: 18
...Managing Diverse Employee at Starbucks: Focusing on the ethic and Inclusion Abstract Workforce diversity is a reality of the modern times for every organization and managing it effectively can lead to a sustainable competitive advantage. The purpose of this paper is to discuss how managers lead diverse employees in a global environment and what makes this company so unique. Effective management of diversity is not only employing diverse employees, but learning to appreciate, respect and respond to the needs, value, and beliefs of diverse employee and provide a positive work environment. Therefore, we will analyze the general environment and task forces that affect the diversity, as well as the challenges faced by Starbuck managers when managing diverse employees. Besides, the impact of diversity on the company performance will be subject of analysis through a value driven perspective. Lastly, we will identify some of the best practices for effectively managing diversity and propose some recommendations. Introduction One of the greatest challenges for managers today is managing the increase of diversity in the workplace. Diversity is defined as” dissimilarities or differences among people due to age, gender, race, ethically, religion, sexual orientation, education any characteristic that are used to distinguish between people. According to the Thompson (2005), organization who limits the kinds of people they are willing to hire, are limiting also the talent pool from...
Words: 4459 - Pages: 18
...Starbucks Coffee Company: Transformation and Renewal - Case Study Analysis 1. Starbucks’ decline was highly attributed to its rapid growth in the early 2000s. The accelerated number of stores being built created a number of problems including the saturation the Starbucks Experience it so highly valued as well as a drop in sales due to competition with existing Starbucks stores in any given area. This same-store sales being taken from one another gave Starbucks the feeling of “cannibalism” from within its own company. The desire to achieve high efficiency and reach financial goals led to the dilution of Starbucks’ ability to maintain its differentiation strategy through its most valuable resource, its reputation. The company lost control of its merchant narrative and its intimacy with its customers. Starbucks successful journey in becoming the market leader in the young sector is a result of Starbucks’ resources including its reputation, brand, financial resources, its highly organized and efficient senior leadership team, and differentiated product offering. These available resources Starbucks owns allowed them to give its customers a product and an experience not easily found or imitable elsewhere. It gained a loyal following that continues to grow today and has been seen to be the biggest contributors to Starbucks success today in maintaining its position as the largest specialty coffee retailer in the world. Starbucks’ capabilities include its ability to grow and...
Words: 1103 - Pages: 5
...Organizational Behavior and Communication Starbucks Corporation is a company that has an average of more that $35 million customer visits each week. This company which was founded in 1971 in Seattle, also has stores in more than 37 countries which has more loyal patrons that return more than 18 times a month to purchase this companies coffee. Their stores can now be found throughout the world to include Europe, United States, Latin America and even the Middle East. According to Michelli (2007), Starbucks is more than just a story. Starbucks culture is providing a brand and product excellence. The company has won glowing accolades due to their business and how they run their business throughout the world. In 2007, Starbucks was recognized by Fortune as one of America’s best companies to work for (Fortune, 2008). The company’s senior executive was able to focus on the company’s core values, culture and the principles of the company’s mission statement. The company’s mission is to establish itself as a premier purveyor. Along with this they are looking at providing the finest coffee in the world along with maintaining their principles as they grow. The six principles that Starbucks focuses on are: providing a great work environment along with treating each other with respect and dignity; embracing diversity, which will be an essential component in the way the company does business; making sure that the company uses the highest status when it comes to purchasing, roasting...
Words: 858 - Pages: 4
...believe and what is exactly important to them. A Company such as Starbucks expresses their key beliefs and values daily. Starbucks managers use this concept to understand the hidden aspects of organizational life. Starbucks, being an organization that deals with internal and external problems daily rely on these elements to cope with them. Starbucks visible values are well embedded with the company when you think of this organization. The Starbucks Logo is well known throughout and represents a green twin-tailed mermaid, known as Siren in Greek mythology. The Starbucks logo is so familiar the company has removed the company's name from around the logo and people can still easily recognize the logo as Starbucks brand. This reminds people who they are when customers see this mermaid. I However there are less obvious values that this company that are invisible and can only be perceived from what people believe and justify. For example one could interpret that Starbuck’s slogan is green because of their commitment to saving the environment and recycling. Starbucks paper cups are made of 10% post-consumer recycled content and Starbucks napkins are made of recycled cups, and even encourage customers to recycle. These things allow their customers to justify the things this company value and believe. Starbucks is a company that is very well known for their excellent customer service. The organizational culture at Starbucks values the needs of their...
Words: 769 - Pages: 4
...international operations of Starbucks company. 1. Provide brief examples of strategies at the level of business unit implemented by this firm over last five years. Throughout the startup of Starbucks with the CEO, Shultz, the focus has always been on the people. The strongest strategy to surround himself with good people and not to compromise. This strong belief in his people and the promise of good benefits and stock programs, was a well calculated and well-reasoned business decision early on (www.umsl.edu). It was Shultz’s belief that it was better to give the employees a sense of loyalty so that they can train newcomers and become veterans who can train the next round of newcomers…thus saving the turnover that many of the fast restaurants and small shops experience. CEO Shultz’s belief to “Pour your heart into it…one cup at a time” brought in the introduction of lattes and cappuccinos. The business strategies for product branding and product differentiation, price competiveness, and offering the Starbucks store card that will allow for rewards for being a customer…all provided uniqueness and growth for the store. Increasing multiple stores in same communities created storefront advertising and brand awareness, while saving advertising costs elsewhere. Where most stores will segregate themselves from region to region, this strategy proved strong in putting the Starbucks presence around every corner. Core strengths carried on from earlier Starbucks business plans, were great...
Words: 1039 - Pages: 5
