Starbucks is an international company known for selling its high priced coffee. The company used to attract so many customers despite selling the overpriced coffee. The company first started its operations in the year 1971 in Seattle. It used to provide coffee to espresso bars and restaurants. The original name of the company was Starbucks coffee, tea and spices. Howard Schultz bought the company from the founders in the mid-1980s after he introduced the idea of a coffee house that was successful. The company had a good market share because it targeted the young graduates who did not have problem in spending their money. Starbucks had its locations strategically located that made them easy accessible. The shops were good and comfortable. Their products were unique and the Japanese names that their products had made the customers feel good.
The company has since then experienced a steady growth. It has expanded to different parts of the world. The competitors could not match with the growth rate the Starbucks was growing at despite selling its coffee at a high price. The company engages in socially responsible investments (SRI) like educational campaigns, environment awareness and donations to nonprofit and charitable organizations. However, the pace the Starbucks was growing took a turn when the profits declined in 2008 by 50%. The stock prices fell to $9.44 from 38.46$ that was in the year 2007. The reason for the drop in profits and loss of the customer base is that the company has dedicated most of its resources in expanding the business and has forgotten to satisfy its customers and employees.
Strategic changes
If i get a chance as to lead this organization and restore it to its original state, I will lead in the implementation of strategic changes. Leading organizations, involve a number of approaches that will the organization to a success. The approaches include the human resource approach, structural approach, political approach and symbolic approach. In the structural approach, the managers at various Starbucks outlets will have goals that they will have to meet. They will get all the information they need and they will exercise autonomy in their job. Communication will help the managers at the outlets make decisions. Introduction of new technology will make the company to serve its customers well.
The human resource forms the heart of every organization that has to succeed. The personnel will undergo regular training on how to serve customers well. This training will improve the skills of personnel. The corporate management needs reshuffling for easy administration and planning. The employee benefits and salaries and other emoluments will make employee serve the customers well and this increases employee engagement to work for Starbucks. I will have an ear to listen to all employees and line managers, as this will help me know where the weakness and strengths are. I will empower the employees by participating in the company’s activities like charity walks. This makes the employees feel that the company values them (Bolman, 113). Their morale will improve and they will be dedicated to their work. In the symbolic approach, i will organize the visiting of all the outlets and see the progress they are making. This is important because people give loyalty to the organization that makes them feel important. The employees of Starbucks must know the company’s mission, vision and values. This will make each individual know the purpose of Starbucks and eventually we will come to our original position. Change is an important part of every organization that needs to progress.
Works cited
Bolman, Lee G. Reframing Organizations: Artistry, Choice, and Leadership. Hoboken: John Wiley & Sons, 2003. Internet resource.
