Example Of Case Study On Star Bucks

- Schultz transformed a small firm selling drip coffeemakers into a multibillion-dollar company. This requires great leadership and management, something that Schultz was successful in doing. A leader is one who can direct the behavior of other people. He built loyalty among his employees by offering them many benefits and compensation plans, he believed that human connection is the core of any business, and according to him this is what defines true leadership. He was a true leader in the sense that he acknowledged the fact that in order for any business to succeed you have to motivate your employees.
- The leadership grid is based on the following 2 dimensions; concern for production and concern for employees. Since Howard Schultz is carefully following the both, according to the leadership grid, Howard Schultz would fall in the ‘team leader’ category. This is because Schultz believes that happy employees translate into happy customers who translate into happy stockholders and therefore the business runs smoothly.
- Schultz followed 4 guidelines; don’t be threatened by smarter people, don’t compromise on core values, renew yourself even if your business is going strong and everything matters. Schultz had transformed a small firm into a multibillion-dollar business. He continually looked for opportunities for expanding the business. He was highly involved in the business, he operated as CEO. Schultz has always remained optimistic and even took out time to explain to his employees their work and the opportunities that they have. He was seen as a transformational leader because he motivated his employees and took back the position as CEO to re-ignite the business.
- Howard Schultz has placed a great amount of effort in creating trust among his employees. He was of the belief that in order for your business to succeed, your employees must be happy. He treated employees with great respect, which increased their employee morale. Not only this, Schultz offered many benefits to his employees, he said that employees working for more than 20 hours would get comprehensive health coverage. This increased the loyalty of the employees. Furthermore, he also kept a diverse workforce so that no one would feel left out and this created a positive work environment.
- When following this leadership style internationally, Howard Schultz should keep in mind the fact that every country has different rules and every country has a different culture and set of norms. Shultz may have to face challenges such as, the executives using their power ethically. Some executives misuse their power, making their employees work overtime and underpaying them. Since Shultz can’t be in all places at one time he must carefully select his team. He must provide them with the proper training and educate them about how the company operates and treats its employees. In order for him to succeed internationally as well it would require that every employee at star bucks (starting from the bottom to the top) be well aware of the vision of the company. This would require a lot of time, effort and money. His style of leadership could work in countries that support equal working rights for both men and women. It is most likely to not work in third world countries where the idea of men and women working side by side has not gained the true acceptance that it deserves.
- It is important for every leader to understand the type of personality they possess and adjust the leadership style accordingly. Howard Schultz had a relations-oriented personality, this type of personality allowed him to focus on the result and mad him comfortable in taking action. He showed a lot of empathy and compassion. He followed a relationship theory in his leadership style. He focused on the betterment of his employees, he kept them motivated by offering them benefits and provided them with a positive work environment. He believed that if employees worked were motivated it would translate into a profitable business. All of this enabled Schultz to lead from influence.
- The success of any business is dependent on the ability of the leader. A leader must have a combination of skills and abilities, one of them is communication. Communication is very important in every business, it is often considered the key to a successful business and in keeping a motivated workforce. A leader must be able to communicate with his team effectively. A leader is one who can listen to his employees, give them a chance to voice their opinion and to be heard. A effective leader must also be able to convey to his employees what it is required of them, effective and clear communication is very important here because if the employees don’t understand what is required of them, it could create problems for the business.
- Assertiveness is based on balance, you not only keep your wants and needs in mind, but also the rights of other people. In aggressive management style, you do what is best for you without keeping in mind how this will affect people around you. In passive management style, you might feel powerless and usually end up in withdrawing from the conflict. In implementing the turnaround strategy, the style that would be most suited for Schultz would be assertive. By using the assertive management style Schultz can respond to situations faster and this would also create a sense of mutual understanding. This management style allows you to be dealt with respect and be heard. It is the most effective management style when dealing with any sort of conflict or change.