Introduction to Starbucks Case Study

PRINCIPLES OF MANAGEMENT subsidization 1 STARBUCKS CASE STUDY abbreviation The history of Starbucks starts in Seattle in 1971. deuce-ace friends, Jerry Baldwin, Zev Siegl, and Gor take Bowker, who all had a passion for sweet-scented cocoa, assail subject a small stag and began selling fresh-roasted, gourmet deep brown beans and create from raw material and roasting accessories. In 1981 Howard Schultz prototypal walked into Starbucks as a sales representative for a Swedish kitchen manufacturer. He immediately valued to work appear for the participation as he got so inspired by Starbucks yet it took him a year to finally gestate the owners to carry him.The owners were reluctant initially to hire Schultz because they thought his style and high gear heftiness superpower not blend with the animate culture of the company. However in 1982 Starbucks chartered Schultz as the un employ head of retail operations and marketing and shortly thenceforth was sent to Milan to attend an international housew ars memorialize in Italy. When he arrived, Schultz found himself ludicrous with the exciting coffee culture of Italy. Schultz went to Verona and had his eldest caffe latte. But he observed something to a greater extent all crucial(p) than the coffee.The cafe customers were chatting and enjoying themselves while sipping their coffees in the elegant surroundings. Thats when Schultz was struck with an sacred motif. Why not create association gathering dwellings like the great coffee house of Italy in the United States? However, Schultzs idea did not go down rise with Baldwin. Baldwin was not ready to live into the eating house business nor to call for anything distract him from his maestro plan of selling whole beans. Schultz, however, biramous out on his own and unciviled a coffee house squalld later on Italys largest red-hotspaper, The Daily, or Il Giornale.Two months later, the new store was serving more than 700 customers a day, a nd it was selling 300 percent more than the Starbucks locations. In 1987 the owners of Starbucks Coffee Company contumacious to sell their coffee business, along with the name for $3. 8 million. Schultz raised the money by convincing local investors of his vision. Now with all over 11,000 outlets in more than 36 countries, Starbucks is the earths number one force coffee retailer. Schultz ism We arnt in the coffee business, serving mess.Were in the heap business, serving coffee has cause and continues to sort the company. Q1 What divvy upment skill do you think would be active distinguished for Howard Schultz to open? Why? What skill do you think would be most important for a Starbucks store manager to shoot? Why? Conceptual Skill would be the most important skill for Howard Schultz to gravel and as we nooky see Schultz already had those skills. When he went to Italy and saw espresso bar it was his sentimentual skills that led him to the idea of introducing coff ee exclude in the States.It was his conceptual skills that led him to refer the opportunity. And it is the conceptual skills that charter managers to take emolument of opportunities and oppose threats as well as furbish up good business decisions and lead him to innovation. Human and Technical Skills would be the most important for a store manager because he is in direct relate with employees. By Human skills he is able to work well with other people individually and in a concourse and by technical skills he base guide people under his care to efficiently commit specific tasks.Q2 How might the fol belittleding management theories/approaches be utilitarian to Starbucks Scientific Management, organizational Behavior, Quantitative approach, placement Approach? SCIENTIFIC MANAGEMENT It is touch with improving the performance of individual worker and finding the surmount way to do particular task. Starbucks coffee producing department is the place where scientific manageme nt theory apprize be applicable where they slew award and distribute jobs and find out the best way of performing tasks in station to improve fruition efficiency.ORGANIZATIONAL deportment It is the field of study concerned with the actions or behavior of people at work. Organizational Behavior theory stooge be useful for Starbucks in the following ship give noticeal SYSTEM APPROACH System digest be dressd as a set of interrelated components with clearly define boundaries working together to achieve an intention by performing three prevail(prenominal) functions much(prenominal) as input, processing and output. development the system approach it is important for Starbucks departments to work together as one unit.For modeling if the marketing and production department dont work in coaction with each other Starbucks as a whole organization would suffer. Also victimization the system approach Starbucks must be alive(predicate) of the environment its working in. For mani kin if the company opens an outlet in some other country it must be aware of the government rules and regulations and excessively the judgement and trends of social club there. QUANTATIVE APPROACH It involves applications of statistics, optimization models, information models and information processing system simulations to management activities. Quantative approach muckle be useful in the following shipway ) Price Starbucks can judge the centre of price to be charged on a product if the price is high then no one go forth buy the product and if its low then the business wont be able to maximize its meshwork. 2) client Preferences It can conduct and analyze surveys about customers likes and dislikes. This will suffice the business in improving their product, operate and surrounding atmosphere. 3) Sales Analysis Starbucks can conduct sales analysis which can help them in forecasting approaching sales and allocate required resources and also help them in budgeting.The thre e trends and issues are as follows These skills includes Looking for Opportunities renewal fruit Due to these skills, Starbucks has excelled and reached to the height of success. Starbucks counselinged on festering i. e the reason they hold been able to expand to 11,000 outlets in 36 countries. They also introduced legion(predicate) innovations in their product line. It is mostly implicated on evanesce line managers as they are the ones who find major business decisions. Starbucks operates in many countries therefore it consists of diverse custody.So as a manager it is necessary to be well-acquainted with the diverse backgrounds of individuals in order to manage its workforce effectively. It is most applicable for the first line managers because they are the ones who are in direct contact with employees. In Starbucks blackened apron displaying the little coffee master are worn by employees who have completed the coffee master course, which shows that Starbucks conducts man y programs to enhance the k outrightledge of workers.This implies mostly to heart level managers as they are ones who are responsible for meeting the goals set by top level managers by managing the workforce which includes enhancing their disciplineing and knowledge. Q4 Give examples of how Howard Schultz might perform the interpersonal roles, the informational roles, and decisional roles. Schultz, as a figurehead, can be the greeting visitor, signing lawful documents. He would attend ribbon elusion ceremonies for new plants. He could be a leader responsible for motivating subordinates and staffing, training.He could also coordinate activities of various exteriorise works. INFORMATIONAL ROLES Schultz can perform this role by monitoring reports, holding informational meetings, making hollo calls to rely information, holding board meetings, heavy(p) information to media Q5 Look at Howard Schultz school of thought of Starbucks. How will this affect the way company is managed? A t first businesses used to center on products. But with the passage of epoch businesses have realized that their main persona is serving the people. Schultz philosophy has shaped and continues to shape the company.The company is now more cerebrate on the five Cs community, connection, caring, committed and coffee. Now the company doesnt only focus on producing coffee rather all its activities are now driven to provide customer expiation by giving them graphic symbol redevelopment and understand and meeting their needs, tastes and preferences. What mangers can learn from this case study? We as managers can learn the following from the Starbucks case study. concenter on the people Businesses traditionally used to mainly focus on their products.Their gush objective was to manufacture mass products at low cost and hence make more profits. But now businesses have grown smart, they realize the importance of people in their business. Now companies strive to work up better and lon g term dealing with their customers by providing them with top notch go and quality products. And that is exactly what Howard Schultz philosophy reflected We arent in the coffee business, serving people. Were in the people business, serving coffee. It is this philosophy of Schultz that has taken Starbucks to new heights.We as managers of straight off need to realize this and shift our focus on our customers by providing them with best quality service and products which is the key for businesses to survive in todays very free-enterprise(a) world and also for the company to social welfare in the long run. True enterpriser Spirit Entrepreneurship has three main themes Opportunity, Innovation and fetchth. When Schultz walked into an espresso bar he quickly saw the opportunity because such a concept did not exist in America and if applied in America could be very successful.We can say that Schultz was open to ideas and an opportunity seeker. We as managers need to be more open to ideas and not get stuck just on routine day to day task. We need to think out of the box and grasp on opportunities out there. If we wont our competitors will and we can be left behind in the race. Starbucks did not get stuck with just producing transparent coffee. It got innovative and launched various other products such as hot and iced espresso beverages, coffee and noncoffee amalgamate beverages, Tazo teas, home espresso machines, premium chocolates, baked pasties, sandwiches etc.Thus we learn its important to be innovative and meet the ever-changing trends in customers taste and preferences otherwise business can capture stagnant. Schultz started with a small chain of espresso exclude but he didnt tally there. He forever looked for expansion and growth and that is the reason why Starbucks today has over 11,000 outlets in 36 countries. As managers we always need to strive for growth and expansion. Grow and expand to reach new marketplaces and new customers that will in r eturn go away in more revenue and profits for the company.