StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The reorganization of Starbucks - Research Paper Example

Cite this document
Summary
This research aims to evaluate and present the decision of Starbucks to radically realignment its leadership structure, a process that show it’s CEO, James Donald sent packing and his place taken over by its chairman, Howard Schultz…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
The reorganization of Starbucks
Read Text Preview

Extract of sample "The reorganization of Starbucks"

Download file to see previous pages

From this research it is clear that Howard recruitment was informed by the need to reverse the trend where almost all the company figures were declining at an extremely fast rate. According to Howard, the root cause of the problem was the fact that Starbuck had lost its luxurious nature thereby losing the sense of uniqueness and high-end characteristics, and therefore became like any other commodity which could now be challenged by coffee outlets such as McDonald and even Dunkin Donut. According to Howard, this Starbucks experience could only be redeemed by refocusing not just on the customer experience but also rebuilding its heritage of innovation.

It was his strong believe that Starbucks performance could only be reclaimed by getting back to what drove its past success, which no doubt was its relationship and focus on customers. That being the case, Howard, assumed office with a clear mind on what was expected of him. First, having being there not just in Starbucks’ good days but also in its most turbulent days preceding his recruitment, there was no doubt that he was the best placed person to turn it around. Noteworthy was also the fact that he was the builder of Starbucks brand and therefore best positioned to take Starbucks back to the path of innovation, while executing a radical organization-wide restructuring process.

Re-igniting the emotional attachment that Starbucks enjoyed with its customers was arguably the greatest feat that Howard achieved in his turnaround effort of this entity. (Rushe, 2006). This is because this is all what was needed if Starbucks was to reclaim the uniqueness of its coffee and hence its brands image, which to Howard was the magic bullet for its financial woes. Howard also reasoned that the mushrooming of Starbucks stores literary in every nook and cranny was also to blame for the financial difficulties that the company was experiencing.

It was in this regard that he initiated a program that saw a number of underperforming stores closed while others replaced with new ones in strategic locations where they could perform profitably, a process that enabled Starbucks to renew focus on what it referred to as store-level unit economics (Howard, & Gordon, 2011). Howard also believed that the company’s huge investment in socially responsible activities was not contributing to its revenue as would be expected. It is for this reason that he significantly cut the social responsible budget which in his opinion was not commensurate to the revenue it was generating while shifting those funds to other profitable ventures.

Howard also restored a number of store design elements that had been lost along the way and which he believed were a major component of the Starbucks’ experience which he was keen to reclaim. Another benefit that his efforts in this regard bore was the accelerated expansion in the international front. This expansion saw the capital resource that was earmarked for Starbucks expansion locally directed to store growth outside US, a move that improved Starbucks consolidated profitability immensely.

Howard was also able to re-align its organization while streamlining its management in a way that better supported customer-focused programs. Lastly, Howard, radically changed the leadership organization of Starbucks, something that experts saw as highly risky especially bearing in mind the size of the company at the time and its stage in development. It is not in doubt

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The reorganization of Starbucks Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/business/1395374-the-reorganization-of-starbucks
(The Reorganization of Starbucks Research Paper Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/business/1395374-the-reorganization-of-starbucks.
“The Reorganization of Starbucks Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1395374-the-reorganization-of-starbucks.
  • Cited: 0 times

CHECK THESE SAMPLES OF The reorganization of Starbucks

Starbucks Marketing Report

In order to reveal the impact of several external environment factors on the business operation of starbucks in global market, a PESTLE analysis has been undertaken.... This essay talks about starbucks which is the leading roaster, brand and retailer of specialty coffee in the globe.... As the discussion declares starbucks has successfully entered in several potential international market places with proper realization and understanding of the impact of external environment factors on the business practices....
11 Pages (2750 words) Essay

Starbucks marketing report

Effective communication with employees, customers and vendors is increasing the brand reputation of starbucks in global market (Pride & Ferrell, 2011).... Starbucks SWOT Analysis SWOT analysis of starbucks will help to determine Starbuck's internal strengths, weaknesses and external opportunities and threats.... Strengths Stable earnings and revenue of starbucks is major strength of the organization.... Effective location of retail stores based on market demand is the most successful business strategy of starbucks....
6 Pages (1500 words) Essay

Critical Evaluation Organization's Resources and Capabilities of Starbucks in China

The author of the paper analyzes the competitiveness of starbucks in China using two theories/models: the Resource-based Theory has been employed for evaluating the firm's competencies and Porter's Value Chain has been used for checking the firm's capabilities.... nbsp; … In regard to Porter's value chain model as a tool for identifying the core competencies and capabilities of starbucks, the following problem seems to exist: in China, the Political and Social environment is quite different from the Western ones, as the PESTEL analysis developed for Starbucks in China has revealed....
7 Pages (1750 words) Coursework

Analysis of Business of Starbucks

Starbucks has adopted a functionality-based approach to business strategy and decision making in the larger context of corporate expansion, both within the US market and other regions. The strategic business environment of starbucks has been transformed in to a more complex and diverse phenomenon with its independent approach to managing an internationally diverse strategic operational environment.... Despite this position of starbucks as a pioneer of costly-to-copy resource development processes still there is competition coming from rivals who have been able to imitate the same product by reducing its cost and using advanced technology, e....
9 Pages (2250 words) Case Study

Planet Starbuks: Caffeinating the World

The Success of starbucks Marketing Strategy in the United States Perfect implementation and prompt execution of a strategic plan are essential for the success of any company.... Planet starbucks is a Seattle, Washington-based coffee company.... It has cut a niche in the business world by changing the way people in America and around the world view Planet starbucks is a Seattle, Washington-based coffee company....
6 Pages (1500 words) Research Paper

Organizational Culture

The visible aspect of organizational culture… In this context, I chose starbucks as a coffee producing company with a visible organizational culture. Sawbucks ‘s culture seeks to first connect with the employees, then with its customers since the company Organizational structure Organizational culture Organizational culture is a system of shared values, beliefs, and assumptions that show employees what is inappropriate or is appropriate behavior.... In this context, I chose starbucks as a coffee producing company with a visible organizational culture....
2 Pages (500 words) Assignment

Ethical Principles of Profit versus Non-Profit Organization: Starbucks and YMCA

The paper contains an intensive analysis of the main problems that are associated with business ethics in non-profit organizations YMCA and profit-making organizations starbucks.... The author states that both organizations have different ethical principles that guide their daily business operations....
9 Pages (2250 words) Research Paper

Starbucks Failure in International Market

The purpose of this report is to outline the various reasons that underpin starbucks failure in the international market and to provide a relaunch strategy that would see the company regain its position as a successful international investor in failed regions.... hellip; This research will begin with the statement that starbucks, a reputable international investor has faced a wide range of challenges while venturing into its global expansion.... The company that is the subject of this research is starbucks, an international coffee and Spice Company that operates in over 60 countries in the global food and beverages industry....
12 Pages (3000 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us