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Key Elements of Organizational Culture
Starbucks has managed to increase its competitive advantage in the industry using its organizational culture. Its culture consists of five key elements which are collectively referred to as ‘The Starbucks Experience.’ The first element focuses on customizing services to ensure they satisfy unique customers’ needs.
The second element focuses on maintaining high operational standards to strengthen the firm’s reputation in the industry (Flamholtz & Randle, 2011, p. 61). The third element focuses on using spontaneous methods when dealing with customers and other stakeholders to strengthen their loyalty.
The fourth element focuses on accepting criticism from customers to ensure all employees acknowledge their mistakes to improve the quality of internal processes. Lastly, the fifth element focuses on participation in different community initiatives through corporate social responsibility programs.
A manager’s role in the organization is to transmit core values that make up the firm’s organizational culture to different stakeholders. Additionally, managers are expected to inspire all employees to attain good performance in their workstations to ensure Starbucks achieves its long term goals in the industry.
This approach has allowed the firm to make its employees a critical part of its vision in the industry and this has enabled it to register high sales revenues in different global markets (Flamholtz & Randle, 2011, p. 65). Also, employees are encouraged to develop their abilities by collaborating to attain good outcomes in their workstations.
As part of its commitment to provide high-quality services, the firm spends more money on training than on advertising. This ensures that employees are equipped with important skills to make them more competent in their duties. Therefore, this has helped the organization to retain its employees in a highly competitive industry.
Effectiveness of Innovative Strategy
Starbucks offers its customers value-added services, and this has enabled it to benefit from high levels of customer loyalty. Additional services such as free Wi-Fi, social media networking and a strong digital network have helped the firm to develop stronger relationships with its customers which have resulted in high revenues (Flamholtz & Randle, 2011, p. 76).
The firm is using technological platforms to bring about desired changes in its operations, and as a result, sales and customer service employees can interact more with customers through its online platforms.
Also, some customers use the firm’s mobile internet application to order and make payments from remote locations, and this has increased the convenience they get from services offered. As a result, the firm understands specific improvements that need to be made to its strategy to enable it to achieve its objectives in the long run.
The firm has thousands of stores that are located in 62 countries — all services offered by the firm focus on giving every customer a unique service experience. As a result, this approach enables the firm to know changes in consumer behavior that is likely to have an impact on its operations (Flamholtz & Randle, 2011, p. 81).
Also, the firm consistently receives positive customer service ratings, which differentiate it from its competitors in the industry. Attention to detail, spontaneity, and high-quality processes are some of the methods which Starbucks uses to strengthen the value of its brand in the market. Consequently, the firm has instituted improvements in all areas of its operations, and this has led to low costs and high levels of customer satisfaction.
Good decision making is a key competency that every successful Starbucks manager must possess. This enables managers to inspire their subordinates to make them more committed to the firm. As a result, managers encourage employees to learn more about internal and external operational processes to make them more knowledgeable in the long run.
Also, good decision-making skills allow managers to set important goals which all employees must execute to ensure the firm maintains its competitive edge in the industry (Johnston & Bate, 2013, 112).
Therefore, this guides managers in Starbucks to manage resources that are allocated to their units more effectively to ensure the firm’s strategic goals are achieved. As a result, this makes all employees in the firm understand specific contributions they are expected to make to attain good performance in their workstations.
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Good decision making conforms to Starbuck’s organizational values because it allows managers to transfer positive values of the firm’s culture to all employees working under them. Since the firm considers its employees as partners, managers are given the authority to streamline internal systems to boost efficiency and productivity. Effective talent management is a key part of the firm’s human resource management processes.
It allows managers to identify and nurture employees’ abilities to make them more effective in their workstations. This fits in well with Starbucks’ corporate strategy because it focuses on developing employees to make them achieve good results in their workstations (Johnston & Bate, 2013, 116).
Therefore, a Starbucks manager needs to delegate responsibilities to subordinates to enable them to learn new ideas. This will ensure the firm attains positive outcomes in its operations.
Howard Schultz’s Leadership
Howard Schultz, the CEO of Starbucks, has helped the firm to achieve long term sustainability in the industry. During his tenure, he has implemented effective policies which ensure Starbucks adheres to sustainable management practices in its operations. The firm has been able to develop a strong stakeholder community consisting of people from different social and cultural backgrounds who appreciate its values.
Also, the firm is responsive to its customers and other external parties who are free to propose ideas which are used to bring positive changes in its operations (Johnston & Bate, 2013, 121).
As a result, Schultz’s leadership has enabled Starbucks to develop meaningful relationships with different stakeholders, and this has strengthened its reputation in the industry. His visionary leadership has made him more aware of key trends that exist in the industry which have an impact on Starbuck’s operations.
Under Schultz’s leadership, Starbucks has been involved in many corporate sustainability programs in different parts of the world. For instance, one of the firm’s remarkable sustainability programs has focused on empowering coffee farmers in different parts of the world by buying raw coffee directly from them. As a result, this has cut out middlemen who are notorious for exploiting poor farmers by offering them low prices for their products.
Schultz’s effective leadership has transformed the firm’s operations in the industry, making it more responsive to the needs of its stakeholders in different countries (Johnston & Bate, 2013, 126). Therefore, this has allowed the firm to develop a valuable brand that connects it to different communities in all countries where its operations are based.
Johnston, R.E. & Bate, J.D. (2013).The power of strategy innovation: A new way of linking creativity and strategic planning to discover great business opportunities. New York, NY: AMACOM.
Flamholtz, E., & Randle, Y. (2011). Corporate culture: The ultimate strategic asset. Stanford, CA: Stanford University Press.