Problem Identification
The challenges that the business enterprises of the present times face has increased in an exponential manner and this is generally considered to be one of the major reasons why the majority of the business organizations even after establishing themselves in the business market are finding it very hard to sustain themselves in the same (Scarborough, 2016). In addition to this, the constantly changing demands of the customers coupled with the changing landscape of the business world have also contributed in a significant manner towards the problems faced by the business enterprises (Parris et al., 2016). It is significant to note that the problems faced by the various business enterprises vary from one to another and thus the problem that a particular organization faces might not even be a problem for another one (Jeston, 2014). This paper will discuss about the management issue that Starbucks is facing at the current moment and will provide recommendations through the use of which the concerned organization can mitigate it.
Starbucks can be said to be a victim of its own growth and this particular fact gets manifested in the decision of the organization to close down 600 of its stores or outlets in the nation of the United States of America in 2007 (Quelch, 2008). Howard Schultz himself admitted that there are limits to growth however the internal sources of the organization revealed the fact that the organization was losing the aura which has helped it to gain success in the past (Quelch, 2008). Thus, the focus of the organization in the present times was to recreate that old aura which has helped it in the past to gain success. However, this is likely to take a significant amount of effort as well as initiative on the part of the concerned organization and its founder Howard Schultz because of the constantly changing nature of the modern business world and also the increasing business competition that it has to face in the recent times.
The resolution of the management issue that the company Starbucks is facing at the current moment is of paramount significance if the company wants to prosper in the same manner like it did in the earlier times. The major reason why the concerned organization had to adopt the process of divestment is the fact that it is unable to recreate the culture within its framework which helped it in the earlier times to gain success (Quelch, 2008). This is related to the aspect of organization culture that the organization under discussion here is following at the current moment. For example, the organization Starbucks is known for the effective organizational culture that it used to follow in the earlier times and the culture of the concerned organization contributed in a significant manner towards the immense success that the organization has been able to achieve within a very short time (Quelch, 2008). Some of the most remarkable feature of the organizational culture followed by the concerned organization can be said to be the multicultural diverse aspect of their culture, the manner in which they welcomed the newcomers within their organization like the coffee-sipping ceremony and others, the integration of the aspects of values and the beliefs of the employees into the entire culture of the organization itself and others (Starbuck.com, 2018). In short sipping a coffee at one of the Starbucks coffee stores was never just a sip of coffee it was rather drinking the past culture as well as the entire idea behind the foundation of the organization itself. However, in the present times it is seen that with the focus of the organization on the growth activities the concerned organization is losing sight of the original idea as well as the culture which had formed the backbone of their initial growth.
Resolution of the issue from theoretical perspective
Many experts are of the viewpoint that the culture which a particular organization follows is not only an integral part of the entire organization but at the same time the success or the failure of the concerned organization depends to a large extent on this particular aspect of the organization (Novak et al., 2017). The Organizational Culture Theory or model of Edgar Schein proposed in the year 1988 is one of the most commonly used models of organizational culture that the majority of the business enterprises follow within the framework of their organization (Elsmore, 2017). The primary precept of this particular model is the fact that the organizational culture of a particular organization is the conglomeration of three factors, namely, artifacts, espoused values and artifacts (Crane, 2017). The theory thus outlines the view that the effective use as well as the conglomeration of all these three factors only renders effectiveness to the organizational culture of a particular organization but at the same time decides the fate of the concerned organization to a large (Crane, 2017). The organization under discussion here can take the help of this particular theory to create an adequate culture within the framework of the organization which is likely to help it in a significant manner. Furthermore, research works have shown that an effective organizational culture provides various kinds of benefits to the concerned organization (Babnik et al., 2014). For example, it helps in the improvement of the performance of the individual employees and thereby the overall organizational performance, enhances the job satisfaction level of the employees and thereby increases their job satisfaction and in turn reduces the rate of attrition (Fu et al., 2015). Therefore, it can be said that the effective use of this particular theory is likely to help the concerned organization in a significant manner to overcome the problem which it is facing currently.
CSR have gained unprecedented prominence within the cannon of the modern day business world and is commonly used by the various business enterprises to improve their market or business image (Weber & Wasieleski, 2018). In the present times the options which are available to the customers are numerous and thus they generally opt for the services of the companies or the organizations which boosts of a positive image within the business market (Weber & Wasieleski, 2018). The various business enterprises are thus taking the help of diverse kinds of social as well as environments issues and integrating them within the framework of their CSR activities as well as practices to enhance their brand or market image (Roy et al., 2015). Numerous organizations have been able to gain significant amount of success in the present times taking the help of the various CSR activities. In addition to these, the concept that the business enterprises have an ethical responsibility to contribute towards the improvement of the prospects of the society as well as the environment has also gained prominence (Schwartz, 2017). It is a reflection of this particular fact that the various business enterprises are increasingly using this concept for the process of their business. One of the major reasons for the divestment policy which the organization Starbucks had to follow in the present times is because of the fact that it is unable to get the same response from the customers that it in the earlier times used to get from them. There can be various possible reasons for this particular fact like the increasing business competition, the availability of more choices to the customers, the inability of the organization to connect with the customers like the way it did in the earlier times and others. Thus, the use of the concept of CSR is likely to help the concerned organization to overcome the problem that it is facing at the current moment. The effective use of this particular concept will thus not only help the concerned organization to improve the brand or the market image that it has currently but at the same time will help them to increase its customer base as well (Roy et al., 2015).
Organizational Culture Theory
Conclusion and Recommendations
To conclude, the business world has changed in a significant manner over the years and this is one of the main reasons for the increasingly number of problems that the business enterprises of the present times are facing at the current moment. Furthermore, it is also seen that the problems faced by the various organizations vary from one to another. It is significant to note that the resolution or the mitigation of these issues that the various business enterprises of the present times face are of paramount importance to the concerned business enterprises since the prospects of the concerned organization depends to a large extent on the effective mitigation of these issues or problems. It is in particular context that the various theories as well as models of management gain prominence and they are being increasingly used by the various organizations for the effective resolution of the issues or the problems that they are facing.
There are various strategies that the organization Starbucks can use for the resolution of the management issue that it is facing at the current moment. The improvement of the organizational culture is one such recommendation that the organization can follow. The effective use of the concept of CSR is another option that galore the concerned organization for the process of the resolution of the issue that it is facing at the current moment. In addition to these, various kinds of rewards to the customers, increasingly the engagement level with the customers and others would also help the concerned organization in a significant manner.
References
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Quelch, J. (2008). How Starbucks’ growth destroyed brand value. Harvard Business Review.
Roy, S. K., Roy, S., Mubeen, R., Brindha, N., Abirami, A., Leve, S. L., … & Mahadevi, S. (2015). Corporate social responsibility. EduPedia Publications Pvt. Ltd..
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