This essay strives to explain how the internal culture and external factors of Starbucks affect managers planning, organizing, leading, and controlling. Managers continually strive to get excellence out of their companies while experiencing the challenge of preserving the culture, and adapting to ever changing outside sources. Globalization, technology, and innovation force managers to adapt to an ever-changing marketplace if they want their company to be relevant. Diversity and ethics affect how managers train, and motivate their staff.
A manager’s ability to manage these factors ultimately will determine if the team and company can succeed. The definition of globalization is the development of an increasingly integrated global economy marked, especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets (Bateman & Snell, 2011). With Starbucks coming out so strong and making themselves a well-known name, it seems as though they would have had no problems with that.
During times when the economy is at an all-time low, Starbucks showed that they can make drastic changes to operations. For instance, back in 2002, Carlisle, and Dawson reported, “Starbucks faces slumping morale and employee burnout among its store managers and its once-cheery army of baristas,” (Yahoo, June). It also went on to say that, “in recent years, the organization has had to manage costs by reducing pay and benefits for employees. ” Knowing that these things were happening made the employees feel like just another number.
It was time to take action, and it starts with management. Given the importance of globalization on the organization, there is a clear impetus to consider how this reality will affect business operations in both the short and long-term (Yahoo, June). Starbucks is very well-known within coffee retail industry, and it took some serious planning. Starbucks plan was to have a coffee house on every corner. Globalization did not hinder the planning stage. An enormous factor in the success of the company can be how well it keeps things together.
The leading and monitoring stage are so important because it gives the company creditability. When there is someone overseeing what the company has established, and there are positive, pleasant attitudes, the organization will continue to prosper. Technology is defined as the practical application of knowledge, especially in a particular area. All businesses can benefit from technology. Starbucks has definitely taken advantage of the various technological options available today. Technology is one of the driving external factors that affect the four functions of management.
Starbucks is using technology to hold their title as the coffee house champion. With the Mobile App revolution coming, Starbucks took advantage, and launched a mobile app in the early part of 2011 that offers a mobile payment option. Customers can use even keep track of their credit card balances and reward points. Starbucks also provides free Wi-Fi for its patrons. They have acknowledged that their company can be a meeting place for business ventures to take place. When a customer logs on, he or she will have all of the Starbucks information right there.
Starbucks took to Facebook, Twitter, and Foursquare, marketing their brand like never before and used these social media components to control the image of the company and entice customers back into their coffee shops. Starbucks has increased their communication capabilities between customers and partners thanks to technology. Technology has also provided ways for the company to monitor projects, marketing campaigns, and sales. With the use of technology Starbucks has control of the type of information available.
If Starbucks would not have incorporated new technology into their planning the company sales would have continued to decrease and not have experienced the growth it has recently. Innovation is a key to the four functions of management because it determines the success of an organization. The term “innovation” is “the introduction of new goods and services” (Bateman & Snell, 2011, p. 47). Therefore, a company, such as Starbucks, has to continue to expand on their imagination to keep customers satisfied and to stay above their competitors.
To accomplish these feats, new products should be introduced and advertised. It is the corporation’s responsibility to reach out to the customers to determine what the demands are for the consumer. One of the most recent innovations for Starbucks is the introduction of the Starbucks Refreshers™ beverages brand platform. “[It] is an evolution of the coffee market using a new breakthrough coffee experience that uses green coffee extract, resulting in thirst-quenching, delicious, low calorie refreshment with a boost of a natural energy from caffeine and fruit juice” (Shafer, March).
Internally, Starbucks is working to meet the demands of the consumer as new products like these energy drink type beverages are produced. Starbucks delivers their brand in a way that sets this company a part from their competitors. With stores in 55 countries, each retail store has the same atmosphere. This type of branding sets a company apart from its competitors using the four levels of management. Corporations cannot control external factors that could affect the business negatively. This is why effectively innovating ideas need to be accomplished through good planning, organizing, leading, and controlling.
Diversity is an important factor that could severely affect the four functions of management. Before a manager can develop the direction a company is to go, he or she must first consider the diversity or culture of the company. A company must be able to meet the needs of the community to be diverse. Starbucks has taken pride in their company being known globally as a very diverse place for their employees to work and the customers to visit. Starbucks public views have increased because of the time and planning that have been invested to ensure that they are truly diverse.
Receiving very high ratings with the Human Rights Campaign (HRC) Starbucks has been very proactive in their support of the lesbian, gay, bisexual, and transgender (LGBT) community, even when the company was boycotted because of its stance. Starbucks realizes that supporting their employees/partners is important as well. Starbucks has available partner networks. The current networks in place are Starbucks Access Alliance- a forum for partners with disabilities, Starbucks Black Partner Network, aids professional development for partners of African descent.
There is Starbucks Emerging Workforce Network, which provides flexible workplace solutions. Hora Del Cafe allows partners to build cultural awareness and celebrates the Hispanic culture. The company provides support for United States veterans as well as the current members of the armed forces and their families. Starbucks also provides a competitive yet fair work environment for woman. The company gives women the chance to advance personally and professionally with the company providing them with the Starbucks Women’s Development Network.
According to Ethisphere Magazine, Starbucks is one of the most ethical companies in the world. An article on enviromentalleader. com reads, “The selection process takes into account how well companies’ ethics and compliance programs are aligned with corporate best practices. ” That is quite an honor. As a company, Starbucks believes ethical practices will make more money ultimately. They strive to have a good reputation, and it is important to their business plan. It is so important in fact that Starbucks has a Business and Ethics Compliance Program.
This program facilitates learning about ethical behavior within the company and is a resource available to all employees of the company on the first day they are hired. The Business Ethics Compliance Program is Starbuck’s key to maintain ethics in the four functions of management. While planning, they strive to deliver “strategic value” (Bateman & Snell, 2011, p. 15) in an ethical way. The program assists in the organizing, building, and training of the organization. The culture is apparent from the very beginning, and the program is there to maintain a high level of accountability.
With everyone universal standards leading and controlling become much easier. As long as managers communicate with staff in a way consistent with the program, there is little room for miscommunication. This provides follow-up more quickly and more time for necessary corrections. Starbucks has shown consumers that simple management stages apply universally to both the internal culture of a company, and the external factors that force a company to acclimate. Globalization has put coffee houses and employs baristas around the world in more than 50 countries.
Technology has put Starbucks literally in the palm of consumers’ hands. Innovation has seen new types of coffee, and energy drinks develop to meet the needs of the workforce. It is Starbucks commitment to diversity and ethics within that has turned a tiny Seattle coffee house, into a global caffeine juggernaut. References Bateman, T. S. , & Snell, S. A. (2011). Management: Leading & Collaborating in a Competitive World (9th ed. ). New York, NY: McGraw-Hill. Encyclopedia Britannica. (2008). Merriam-Webster. Retrieved from http://www. merriam-webster. com Environmental Leader.
(May 2012). Ethisphere Magazine. Retrieved from http://www. enviromentalleader. com Starbucks. 2012. Starbucks mission statement. Retrieved June 19, 2012 from www. starbucks. com/about-us/company-information/mission-statement Starbucks. 2012. Diversity Retrieved June 19, 2012 from www. starbucks. com/about-us/comany-information/diversity-at=starbucks Technology. 2012. in Merriam-Webster. com Retrieved June 18, 2012, from www. merriam-webster. com/dictionary/tecchnology Yahoo. (June 2012). Yahoo. com. Retrieved from http//voices. yahoo. com/globalization-starbucks-1901068. html