Starbucks

Starbucks

Introduction

Starbucks is renowned Coffee serving organization and consists of more than 17000 retail stores in over 55 countries. Since the company's initiation in 1971, it has managed to establish a reputation of serving the best of coffees. However, in 2008 the organization was witnessed of facing many difficulties with its operations, which were due to various, including external as well internal factors. This motivated the need of a change in the operations of the company. It was noted to have been suffering from the “watering down of the Starbucks experience and commoditizing of the brand” (Gilbert, S. (2008).

The complexity of the various operations as well as the increasing growth had managed to stretch the operations of the supply chain and because of that the domestic travails between the management and the employees started to become obvious in the stores of Starbucks, which resulted in causing the deterioration of the productivity. The interpersonal, technical as well as the conceptual skills of the senior management were not being utilized efficiently within various departments of the organization. Furthermore, the logic, sourcing as well as the distribution of the services to the stores suffered greatly, which mainly caused severe disturbances in the organization.

Discussion

The original vision of Starbucks was to create a social experience or a unique place which the people could consider as a third place after their offices and homes, a place where they could relax, have coffee and talk to friends. This situation was in a process of being spoiled completely because the issues regarding the logistics. The true image of the organization was under the suffocation which was a result of the thinking of the cooperate managers who were more focused of expanding the company rather than getting the primary requirements in place, which mainly included the supply chain. Howard Shultz, the president of Starbucks at the time announced in 2008 that he had decided to make a comeback as the CEO of the organization after an 8 year break (Pham-Gia, K. (2009). This was because of the various issues concerning the management, entrepreneurial activity, high tolerance for uncertainty and social objectivity, etc. all these issues demanded the immediate attention of the president. He was determined and motivated to revive the below par performance of the company and restore not only the financial health but also its natural cultural needs.

According the specialists of Organizational behavior, it is believed that every company is distinct and unique in its culture, traditions, beliefs, values, leadership, climate, reward system as well as its communication. Thus, an approach of contingency is required by the senior managers who had been facing the long time threats to the company. This approach is considered to be extremely effective and helpful whereby the plans of sustainability are implemented. These plans are specifically designed for an organization. Shultz applied this approach when he observed that the core organizational behavior, such as power and leadership, interpersonal communication, process and group structure, learning, attitude and change process had to be addressed ...