Continuing Case: Starbucks-Introduction

Answers to the questions

1. 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.

2.

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 company

’

s 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.

3.

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?

2

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

company’s

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.

4.

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

3

handler

in

challenging

leadership

situations.

Schultz

must

be

constantly

alert

in

developing innovations for products in his

decisional role

as entrepreneur.

5.

Look at Howard Schultz’s philosophy of Starbucks. How will this affect the wa

y the

company is managed?

Schultz

has

chosen

the

following

philosophy

for

his

company:

“We

aren’t

in

the

coffee business, serving people.

We’re 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.

6.

Go to the company’s Web site [

www.starbucks.com] 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 executive’s job.