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Applied Management Project Proposal
The areas where Starbucks may experience problems include; first, outward looking, which is influenced and shaped by the environment. Starbucks is a coffee retailer with a range of other products such roastery reserves. On December 28, 2019, a barista printed the word, “Pig” on the coffee cups used to serve five police officers who were working on Thanksgiving in Starbucks Glenpool, Oklahoma location (McDonald, 2019). The incidence tarnished Starbucks’ image to the outside environment, which prompted an apology from the Starbucks management in Glenpool, Oklahoma and subsequently firing of the manager of the Glenpool location.
Second, a social institution- created by people; contributing to society. Starbucks has a social responsibility to the employees and the community in which it operates. Problems may result from Starbucks’ relationship with the employees or the community if the company does not fulfil its responsibilities. For example, Starbucks has been accused of poor pay and subjecting workers to long working hours (Cramer, 2020). Employees complain of poor working conditions in some of the stores, which increase the chances of physical injuries.
Third, pursuing multiple goals- both financial and non-financial. Starbucks’ main goal is to make profit. Apart from the financial goal, the company pursues non-financial goals which include the corporate social responsibility, employee satisfaction and customer satisfaction. The social responsibility includes environmental conservation (Malecki, 2018). For instance, Starbucks can participate in tree-planting programs in the community to increase water conservation. Failure of the company to comply with social responsibility may lead to problems which warrant a solution. Today, Starbucks still struggles with employee satisfaction due to the outcry of employees receiving low pay for working long hours. While the customers may be satisfied, Starbucks employees are yet to get satisfied with their job.
Fourth, innovative- emphasizing creativity, innovation and entrepreneurship. Starbucks’ success in coffee industry shows its great steps in innovation and entrepreneurship. The company has managed to dominate the coffee industry due to its creativity, innovation and entrepreneurship exhibited by the leaders. For example, Starbucks’s organizational matrix structure has helped to increase communication within the company. The matrix organization structure allows the employees to have dual reporting relationships. Also, the matrix structure allows the intersection of various business components such as product-based divisions and functional groups (Daft, Murphy & Willmott, 2010). However, Starbucks has not paid attention to the higher manager-to-worker ratio, which increases cost and lead to conflicts in the organization. The solution to these problems requires the company’s leadership to fix the loopholes within the matrix organizational structure.
Fifth, focused- answering and aligning resources to the question, “What is our primary business?” Starbuck’s primary business is to sell coffee and other roasteries in their coffee shops. However, failure to align the company’s vision with the employees’ goals may lead to problems. An organization can align its vision with the employees’ goals through transformational leadership. At Starbucks, the management lead to implement transformational leadership to solve the company’s problems.
Lastly, spirited- creating self-controlled and motivated managers. Starbucks’s leadership shows the managers are motivated to do their work. The company has managed to operate in several countries due to good leadership. However, there is the need for continuous motivation of managers to ensure they stay committed to their work (Kehoe, 2007). The theories of motivation such as Maslow’s hierarchy of needs and Vroom’s theory of expectation can help in designing programs that will keep the employees motivated.
Cramer, M. (2020, March 1). Baristas at Starbucks Accuse Service Company of Abuse and Pay Gaps. Retrieved from https://www.nytimes.com/2020/03/01/business/starbucks-discrimination-race.html
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McDonald, L. (2019, December 3). Starbucks manager in Oklahoma becomes the second person to be fired after barista printed the word ‘Pig’ on coffee cups of five police officers. Retrieved December 4, 2019, from https://www.dailymail.co.uk/news/article-7752311/Starbucks-manager-Lola-Price-claims-wrongfully-let-pig-cup-scandal.html.
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