Continuing CasePart1Student.docx

Continuing CasePart1StudentContinuing Case: Starbucks-Introduction Answers to the questions 1. 2. 3. What management skills do you think would be most important for Howard Schultz to have? Why? What skills do you think would be most important for a Starbucks store manager to have? Why? As chairman and chief global strategist of Starbucks Corporation, Howard Schultz needs to have strong skills in each of the areas identified by Robert L. Katz: technical skills, human skills, and conceptual skills. Among them, conceptual skills are especially important for Schultz to effectively lead his company These skills enable him to make strategic plans that guide the global growth of Starbucks, predict future product trends, and take advantage of opportunities in the external environment. As to each Starbucks store manager, he or she also needs to have the skills identified by Katz in order to manage an individual Starbucks location successfully. The most important skills needed in this level of management would likely be related to human skills. This human skill make a store manager to effectively utilize his/her most valuable resource - the employees, or “partners” - to achieve the goals and objectives of the individual store as well as the corporation as a whole. How might the following management theories/approaches be useful to Starbucks: scientific management, organizational behavior, quantitative approach, systems approach? Scientific management theories might be useful to Starbucks in streamlining routine activities such as the processes as involved in preparing beverages for customers, taking inventory of merchandise, and placing orders for supplies and equipment. Organizational behavior theories and approaches would be not only useful, but necessary, to the successful management of Starbucks. By using organizational behavior approaches, managers can effectively utilize his/her most valuable resource - the employees, or “partners” - to achieve the companys goals. The quantitative approach is useful and essential for Starbucks in order to maintain optimal levels of inventory and to conduct financial analysis of company enterprises. Starbucks managers and top executives alike must view the company as a complete system, realizing that the successful management and operation of each part of the company affects the well-being of the entire corporation. Choose three of the current trends and issues facing managers and explain how Starbucks might be impacted. What might be the implications for first-line managers? Middle managers? Top managers? 1 Globalization markedly affects Starbucks as the company conducts operations in more than thirty-six countries around the globe. Top managers, middle managers, and first-line managers must indeed “think globally,” understanding and respecting differences in culture and varying perspectives in business. The business activities of Starbucks require sensitivity to the global environment. Managers on each level should have a knowledge and understanding of the management of human resources in varying cultures of different countries, the preparation and selection of beverage items and merchandise, and marketing efforts such as appropriate advertising practices in different global environments. Since ethical standards vary from nation to nation, Starbucks must conduct extensive research on cultural characteristics and expectations in different countries where the company operates. Partners must be knowledgeable and respectful of ethical guidelines and practices in the country in which they work, and managers must be aware of the companys policies and expectations concerning ethical questions and situations. As Starbucks recruits and hires for a diverse workforce, managers on every level should realize the impact of diversity and diversity training programs to enhance the quality of goods produced and services delivered by the company. Managers must implement diversity training for partners and lead by example in establishing a business environment of respect and appreciation for the talents and gifts of all individuals in a diverse workforce. Give examples of how Howard Schultz might perform the interpersonal, informational, and decisional roles. Howard Schultz wears many managerial hats during the course of each day. Acting as he as coach and mentor for his Starbucks executives, he plays an interpersonal role. Schultz must be able to work with individuals from diverse backgrounds and cultures in his global company. He plays interpersonal roles as he networks within and outside of the organization as a liaison, using his strengths in interpersonal roles to promote cooperation and commitment among partners of Starbucks. As he represents the company at promotional events, Schultz plays a figurehead role. He performs the interpersonal role of leader as he influences members of the work teams who contribute to the continuing development and success of the company. Schultz continuously monitors and disseminates information, including competitive intelligence from other companies in his field in his informational roles. In making strategic decisions concerning the growth of the company, the introduction of new products, and the expansion of product lines, Schultz plays the role of decision maker. He must be at times a negotiator with suppliers and a savvy disturbance 2 4. 5. 6. handler in challenging leadership situations. Schultz must be constantly alert in developing innovations for products in his decisional role as entrepreneur. Look at Howard Schultzs philosophy of Starbucks. How will this affect the way the company is managed? Schultz has chosen the following philosophy for his company: “We arent in the coffee business, serving people. Were in the people business, serving coffee.” This philosophy presents the reason for the existence of Starbucks and should serve as driving force and a guide for every decision and enterprise undertaken by the company. Schultz clearly has a vision for Starbucks and effectively communicates it to partners in each of the more than 11,000 Starbucks outlets around the world. Go to the companys Web site and find the list of senior officers. Pick one of those positions and describe what you think that job might involve. Try to envision what types of planning, organizing, leading, and controlling this person would have to do. You can select a variety of senior positions within Starbucks for this exercise. As an example, the position of Senior Vice President of Corporate Social Responsibility presents both a responsibility and an opportunity to this executive to lead Starbucks in its dedication to act as a socially responsible corporate citizen of the world community. This particular top manager must plan, organize, and lead programs that will benefit individuals in the varied societies and cultures served by Starbucks. Such programs include beautification of the communities where Starbucks is located, educational programs for children in these communities, sports and recreational opportunities for youth, and ecological awareness initiatives for the public. The design and implementation of control mechanisms for obtaining feedback on these programs would also be part of this executives job. 3