Allen Jones Luna
28 October 2013
MGT 500: Modern Management
Professor: Dr. Tony Muscia
Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture.
Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, ...view middle of the document...
Starbucks’ business model is conceptualized through a humanistic approach. “Human skill is the manager’s ability to work with and through other people and to work effectively as a group member.” (Daft, 2012) As the top level manager of the company Howard Shultz has been known for his excellent conceptual skills, as he is able to see the organizational as a whole and be able to develop relationships.
The key elements of its organizational culture has derived from the managerial approach and concepts of Howard Schultz in making the company appeal as a global entity, while holding true to its values and mission statement. The Starbucks Mission statement is “to inspire and nurture the human spirit- one person one cup, and one neighborhood at a time. The company’s approach is to provide quality coffee, embrace diversity, connect with customers, improve their stores, be good neighbors, and reward their shareholders.” (Starbucks Coffee Company, 2013)
Howard Shultz’s business model has been maintained in its values. These values are visible in every corner of the organization and extend outside of the organization through communities. Internally, Starbucks has always believed in empowering its employees to share ideas and knowledge to management. They have always taken an effort to train their employees with the best knowledge and competency in its product in order to provide excellent customer service. The company extends its reach to local communities by taking a stand on environmental sustainability with partnerships such as Conservation International, The Earthwatch Institute, Save the Children, Mercy Corps, the African Wildlife Foundation, and Planet Green.
Management overall sets the precedence on an organization’s culture in creating, sustaining, and maintaining these concepts to its employees. A pyramid business model could be followed in the case of Starbucks, whereby you have the CEO, Howard Schultz who is the top manager, and middle managers, and lastly first line managers. The mission statement and vision is created by the CEO and communicated to its middle managers down to its first line managers. Starbucks has upheld its values through its strong relationships with its managers and employees. Overall management has an influential role in an organization’s culture.
Assess the effectiveness of Starbucks’ management decisions in providing innovative offerings for its customer (e.g., Wi-Fi, style of coffee, etc.) in order to achieve its current competitive marketplace advantage. Provide support for your rationale.
Starbucks has over 20,000 coffeehouses that are spread over 60 various countries all over the world, while building a very profitable coffee empire. They offer a unique atmosphere that has tried to mirror coffeehouses in Europe. Starbucks’ original goal was to make a coffeehouse that created a warm friendly atmosphere where customers can enjoy their cup of coffee and socialize with...