Starbucks Corporation is a global leader in retailing, roasting and a brand of specialty coffee and flaunts more than 15000 company operated and licensed locations in the six continents.
The company’s headquarters are in Seattle and is incorporated in Washington State in America. Among other commodities under the brand name include Tazos Tea, Starbucks ice cream, bottled Ethos water among others (Bramhall, 2009). The future profitability and prosperity of a firm depends on the proactive efforts that the management takes to guide it.
The guided strategy in which a firm takes mostly is out of the resolution of the management. There is no firm that can flaunt that it cannot improve further because the room for improvement is limitless. Thus for Starbuck coffee may undertake the following strategies to improve its global presence, profitability and market share.A) Employee training and developmentEmployees are the most valuable assets that present day blue chip companies. Every firm requires motivated employees.
The only way to achieve laid down strategies is working with a motivated work force. According to Hertzberg’s two factors theory, great motivators are tools that in employee’s view contribute to their personal development (Johnson, 2009). Employee training and development is the greatest motivator that Starbucks Coffee can employ to beat rivals like Macdonald’s, Javas Coffee House among. Moreover, nowadays many corporate are grooming their employees for top positions in house. It is said that this is more efficient and effective in preparing staff for management positions than external recruitment other factors held constant.
Starbucks ought to pursue this to improve the way they pass corporate culture to new management and ensure longevity of the firm.B) Leadership and managementLeadership is vital in guiding a corporate to achieving strategy. Equally the type of management determines the overall success of a firm. At Starbucks, a management that possesses leadership traits is a great stride. Management of this kind is well known to inspire, motivate and address the concerns of employees in a customized manner (Johnson, 2009). And since leadership is a process of working for and through the efforts of employees this is vital in guiding the achievement of the laid down strategy.
In deed, for employees at any level of management at Starbucks to deliver, they require a management that challenges, inspires and in touch with reality. The opposite of the same is reason why many firms fail. The BOD ought to ensure that the management runs the company with the highest ethical and governance values (Starbucks, 2007).C) Rewarding and recognitionAchieving greatness and enhancing employee motivation is the key to achieving laid down strategies (Bramhall, 2009). Starbucks can increase motivation by introducing motivation schemes like promotions on merit, material gifts as recognition for work well done, introducing periodic achievement awards for instance employee of the week category and a culture of ‘thank you’ notes to employees who perform exceptionally (Johnson, 2009). According to Hertzberg’s two factor theory, money is a bad motivator.
In fact, training and employee development tools like frequent seminars, formal and informal trainings and job rotation have a high potency of improving motivation and performance at Starbucks Coffee.D) International businessStarbucks is a global chain of fast foods offering beverage solutions. The company should apply the highest standards in procuring, roasting and delivering coffee in its global chain.
Global business is a challenging affair to corporations (Hult, 2008). In this case, Starbucks ought to demonstrate its commitment to applying the social justice values and environmental protection concern in its global outlets. In this case, commitment to upholding Human Rights, International Labor Organization rights and conditions at the place of work (Starbucks, 2007). Treating employees with respect across the globe is a vital component of achieving global success.Though on paper management can be with the highest ease, practically it can be very challenging. Thus Starbucks ought to customize management with the locality to capture the cultural issues of a particular store location.
E) Ethical, social, and legal responsibilitiesThe producers who are coffee farmers ought to be treated with the dignity that they deserve. In this case giving them fair prices for their produce is a moral justice of enhancing partnership between Starbucks and suppliers. Additionally, developing and implementing global environmental protection initiative is a social responsibility of Starbucks (Hult, 2008). The present Starbucks Business Ethics and Compliance program can do more than it is presently. Among other sit ought to communicate with clarity the firms Standards of Business Conduct that ideally promotes legal acquiescence and ethical guidance (Bramhall, 2009). An Auditline that ensures compliance by the partners of Starbucks to the value of the firm is the way to go (Starbucks, 2007).
Given that legal duty of corporate to uphold the interests of customers in terms of fair products in health, the management must increase commitment in improving ensuring health friendly products are delivered to customers.F) Diversity managementDiversity in management is the contemporary way of doing business. Starbucks with over 17000 outlets globally, extensive work force and suppliers ought to employ modern practices of managing this diverse community of stakeholders. Market research of the interests of each of the stakeholders is vital. This is to ensure that their interests are catered. Global Corporation like Starbucks Corporation ought to arrange its strategies towards enhancing profitability.
In this regard, staffing should be systematic with emphasis on hiring on merit and ability than on other vested issues (Bramhall, 2009).In this case, emerging issues is a vital area in diversity management. Thus an effective and efficient structure that identifies prioritizes and addresses the issues in a systematic and integrated manner across the company and its network of partners is a vital step (Hult, 2008).The Emerging Issues Council is vital in managing the diversity over and above its traditional roles.Additionally, coffee industry though legendary is volatile in many facets including pricing, development and sustainability. Starbucks together with other stakeholders should continuously seek opportunities to strengthen general approach and collaborate with rivals in enhancing sustainability, mitigating constraints and profitably exploiting opportunities. In this regard, strategic alliances of suppliers are essentially vital.
ConclusionManaging a global corporation is a challenging issue in the present contemporary world. This is due to the diversity of the market place and the emerging competition that is a common characteristic of present day business operation. Continuous improvement is the way to go in ensuring that the above factor of improving Starbucks management is concerned. Though the company has achieved some strides in all the above factors, the room for improvement holds enough space to exhaust capacity. Finally, all the above efforts require the full support of the top management to guide Starbucks Corporation to new heights.