Starbucks management style changes helped the company to remain competitive. It’s also related to Starbucks leadership style formulated by Howard Schultz. Read this essay to learn more about it.
Introduction
Starbucks Coffee is one of the leading multinational firms in the world. The company has over 18,000 coffee shops in many countries across the globe. The company uses its mission to achieve its potentials. Starbuck’s mission is “to nurture and inspire the human spirit using its coffee” (Paryani, 2011, p. 2). Starbucks Coffee has been competing with different companies across the globe. Some of the leading competitors include Dunkin Brands Group, McDonalds, and Costa. This fact explains why the firm embraces new management styles in order to remain competitive. This paper examines the major changes in the firm’s management style within the past four decades.
Key Changes in Starbucks’ Management Style
Starbucks has been using appropriate managerial strategies in an attempt to remain successful. To begin with, Starbucks implemented a powerful leadership strategy that focused on the greatest goals (Paryani, 2011). The company focused on the best practices in order to offer the best support to its customers. For instance, the idea of a “third place” made it easier for Starbucks to offer quality services to the targeted consumers. The leaders managed “to strike a balance between the economic demands and social expectations” (Harrington, 2011, p. 2). The managers wanted every store to provide quality services to its clients. This approach conveyed a sense of comfort to every customer. The process made it easier for the firm to achieve most of its goals.
Howard Schultz Leadership Style
During the same period, Howard Schultz formulated a powerful leadership approach in order to support the company’s goals. Schultz was always responsible and ready to deal with the challenges affecting the company. Schultz also used a powerful approach to promote the company’s growth strategy. The managers at the firm mentored their employees in an attempt to achieve the best goals. The workers were ready to support the company’s mission. The leadership strategy “embraced at the firm evoked the required passion, tradition, and heritage at Starbucks Coffee” (Harrington, 2011, p. 3). The leaders continued to preserve the company’s core values and practices. This management style promoted a “positive relationship between the firm and the surrounding community” (Harrington, 2011, p. 3). The employees at the firm were also able to offer personalized services to every targeted consumer.
The above management style was effective because it supported the company’s growth strategy. The company was also making huge profits from its retail stores. However, things took a different turn towards the end of 2007. This situation forced Howard Schultz to introduce a new “Transformational Agenda”. The purpose of this agenda was to change the company’s management style. The new management style focused on critical strategies that would support the targeted outcomes (Harrington, 2011).
Starbucks Leadership Style after 2007
This leadership strategy encouraged every employee to offer the required customer support (Harrington, 2011). The leaders empowered more employees to focus on the targeted outcomes. The management approach encouraged every employee to embrace new ideas and practices. Every member of staff became inspired thus improving the level of performance. The leaders at the company also “empowered the targeted customers using different support structures” (Paryani, 2011, p. 4). The concept of innovation became evident at the company.
The above discussion shows clearly that Starbucks Coffee has always been properly managed. The main purpose of organizational leadership is to empower every employee. The concept of teamwork has become common at the company. The firm has also “ignited the best emotional attachment to every targeted customer” (Sarayreh, Khudair, & Barakat, 2013, p. 627). That being the case, Starbucks has become a leading player in the industry. Every store has become a critical aspect of the surrounding neighborhood. The managers have also been promoting the best ethical practices and ideas. The company has been using different practices in order to conserve the natural environment.
The Role of Senior Management in Preparing the Firm for its Most Recent Change
Howard Schultz’s “Transformational Agenda” has been implemented successfully at the company. Howard has “partnered with different senior managers in order to prepare the firm for the targeted long-term change” (Paryani, 2011, p. 7). To begin with, the managers have empowered their employees using different training sessions and resources. The senior managers are also using the best human resource (HR) practices in order to address the changing needs of different stakeholders. The managers encourage their employees to be part of the targeted change. This approach has made it easier for the firm to improve its products. The employees and managers have been collecting the required feedbacks from different customers (Sarayreh et al., 2013). This practice has made it easier for the firm to implement the best practices. These strategies have also made the transition seamless and effective (Paryani, 2011). The company has managed to mentor its employees before implementing this proposed agenda.
The managers have always used modern technologies in order to support the targeted change. Howard has “implemented powerful lean techniques in order to make the firm successful” (Jianfei, 2014, p. 58). The managers also work hard in order to minimize wastes. The senior management has also implemented the best social standards. This approach has made Starbucks a leading player in its industry. The managers have also “empowered every member of staff using various training sessions and rewards” (Jianfei, 2014, p. 58). This discussion explains why organizational leaders should use the best strategies to support their employees. Managers should use such techniques in order to deal with every form of resistance.
The Use of Vendors and Spokespersons
The managers at Starbucks did not use different vendors and spokespersons. This decision made it easier for the firm to focus on the targeted outcomes. According to the managers, the use of spokespersons can create a sense of hierarchy (Jianfei, 2014). This practice will affect the level of performance. The use of vendors could have affected the implementation agenda. That being the case, managers should make the best decisions before using different vendors and spokespeople. Many employees expect their managers to be part of the implemented change. This practice will encourage them to support the targeted change and eventually make the firm successful.
An Innovative Idea that Can Have a Positive Impact on the Company
Starbucks is one of the most successful multinational companies in the globe. The firm has been focusing on the best strategies to increase the efficiency of its employees. The approach has made it easier for Starbucks to offer quality services to its customers. The firm can also use new innovative ideas in order to emerge profitable. The company is currently using a Laissez Faire leadership approach. Howard Schultz should embrace an inspirational leadership approach in every retail store. This leadership strategy will ensure the company motivates its employees (Jianfei, 2014). The approach will produce new ideas and skills thus making the firm profitable.
A powerful business approach is needed in order to implement the above innovative idea. An inspirational leadership practice will ensure the senior managers will embrace the power of innovativeness. The “company will encourage every employee to identify better ways of doing things” (Sarayreh et al., 2013, p. 627). The managers will also gather the required feedbacks and ideas from different stakeholders. The managers should use such ideas to support the company’s goals. The approach will increase the level of efficiency and eventually make the firm successful. The firm should also “increase its presence in emerging markets such as India and China” (Sarayreh et al., 2013, p. 628). The approach will ensure the company increases its revenues through continued expansion.
Starbucks’ Ability to Adapt to the Changing Needs of its Customers and the Market Environment
The above innovative idea will ensure the company supports the changing needs of its customers. The collected feedbacks will make it easier for the firm to produce quality products. Such products will fulfill the changing expectations of the targeted consumers. Starbucks can use modern technologies to increase its competitiveness. The company will also monitor the economic changes experienced in different markets (Harrington, 2011). This knowledge will ensure the company embraces new competitive practices. The company’s financial and competitive strengths will make the strategy successful.
A Key Change in the Management Structure
The management style embraced at Starbucks has continued to support every proposed change. However, a new style will ensure the firm implements new changes. An inspirational leadership approach will create a powerful management structure at the firm. This practice will destroy every form of hierarchy at the company. The managers will also be able to mentor their employees. The senior managers will also “encourage the employees to work as teams and address their challenges” (Sarayreh et al., 2013, p. 628). The management approach will also present new technologies and resources in order to support every proposed change. This approach will ensure the firm provides quality services to the targeted customers. The strategy will eventually make Starbucks a profitable company.
Reference List
Harrington, M. (2011). Strategy: The Starbucks Way: Rediscovering Your Mission. Web.
Jianfei, X. (2014). Analysis of Starbucks Employees Operating Philosophy. International Journal of Business and Social Science, 5(1), 55-63.
Paryani, K. (2011). Product quality, service reliability and management of operations at Starbucks. International Journal of Engineering, Science and Technology, 3(7), 1-14.
Sarayreh, B., Khudair, H., & Barakat, E. (2013). Comparative Study: The Kurt Lewin of Change Management. International Journal of Computer and Information Technology, 2(4), 626-629.