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A Study on The Business Strategy of Starbucks

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Table of contents

  1. Organizational Culture
  2. Innovative Offerings and Effectiveness of Related Management Decisions
    Essential Management Competency
    Ability to Achieve Long-term Sustainability

Organizational Culture

The Starbucks Company has a cultural strategy that is aimed at bettering their business operations worldwide. There are essential elements that influence the success of the company in the industry. One significant cultural practice at the company is servant leadership, which aims at supporting employees who are ranked low in the company profile. Notably, the company has a servant leadership model that is assumed to be their culture (Gavin, 2013). The company believes in the fact that caring for employees can make them deliver quality services to their customers. The policy was turned into the culture by the ex-CEO at Starbucks a few years ago.

The second essential element in their culture is a relationship-driven approach to handle their business operations. Additionally, the company maintains a culture that puts much emphasis on communication and collaboration amongst employees of the company. Communication is an essential element in the operations of any global company, and there is a need to adopt the right communication strategy. Further, openness is a necessity, and most employees of the company are advised to be open-minded. There is no need for one to fear to interact with their seniors. The organizational culture is precisely focused on ensuring an interactive relationship that allows managers and other junior employees share. Another crucial key element that is being practiced as a culture at Starbucks is inclusion and diversity. Both aspects play an essential role in the well-being of the company. The administration of the company should place much emphasis on the critical elements to maintain their cultural practices when carrying out their operations.

Innovative Offerings and Effectiveness of Related Management Decisions

Decisions to create innovative offerings for their customers was a big success in the market as they have been able to provide the global organization with a marketplace competitive advantage. For instance, adoption of the Oracle technology has proved to be helpful in the expansion of their business. Making of decisions based on technology is highly efficient and can propel an organization to success. According to the company, cloud IT has been helpful all through proving the essence and effectiveness of the strategy. Through such policies, there is improved flexibility and agility, enabling cloud to make decisions faster hence promoting innovation.

IT-related innovations that are notable in the company include the provision of free Wi-Fi for its clients who visit their various shops, creating an online platform for business, coming up with a new application for the company and involving their clients on different social media platforms. Non-innovative offerings can include sell of the chilled drinks through various outlets, creating loyalty cards for their clients, home products, and new recipes. To successfully adopt the decision-making strategies, the company requires robust technological infrastructure to support the innovations. Advancements in technology have played a vital role in the success of the company as people are using technology in their daily lives. The usage has increased recently, and the company’s effectiveness in the decision-making process is being improved. As compared to their competitors, the innovative aspect is giving Starbucks an operating advantage.

Essential Management Competency

A manager at Starbucks Company is required to have specific vital competencies, which can be helpful in executing the company’s mandate. One critical skill that should be present is the understanding of the trends that are occurring in the workforce market (Freeburg, 2012). Understanding the employees and their abilities can help develop an efficient and effective pool of labor. The general workforce trends are vital to maintaining happy and satisfied employees. On the other hand, satisfied employees are productive as compared to when there are a lot of complaints towards a poorly maintained management strategy. The critical competency here is geared towards promoting the culture of the company, which emphasizes the importance of maintaining a servant leadership tendency in the organization.

Notably, Starbucks is one of the largest companies in the industry, and there is a need for their management to be skilled and professional in the execution of their duties. This means that current heads of departments should understand the dynamics of the market and be ready to make necessary adjustments to fit in the business comfortably. The objective can be achieved by embracing innovation and involving every employee of the company. Organizational goals cannot be met by the management alone but involve embracing the corporate culture, which incorporates all other employees.

Ability to Achieve Long-term Sustainability

The organizational culture and vision can drive the company to success without the availability of the company’s CEO. This can be achieved through the adoption of a viable and long-term strategic plan, which is meant to promote the experience customers have with Starbucks. Further, the vision of the company is precise on what should be prioritized at every level of management in a bid to promote rapid, sustainable expansion. The company, on the other hand, has great potential to do better in the existent market as compared to their competitors (Haskova, 2015). A strategic plan that is viable eliminates the dependence on the CEO to execute its mandate and achieve organizational goals.

The company has a policy to reduce the impact business operations have on the environment. The green building policy is a strategy that can drive the company to achieve the desired goals without over-relying on the CEO. Sustainability of the company can be achieved through maintaining the business culture and at the same time adopting new technological changes in their decision-making processes. Considering all the necessary factors, the company can do better on condition that the management adopts the right strategies.

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