In the case of Starbucks, the company needs to bring change in its operations to meet the customers’ changing demands. The Starbuck’s management has decided in its meeting to make some strategic changes in the organization in terms of restructuring their customers’ experience. The other important change factor is the weak position of the US market and droopy stock price. In this regard, the company is required to make some changes by cutting jobs and some of the jobs need to reshuffle. The company is always intended to win customers’ heart with their products and services. By extending this focus, the company is again expanding its products by adding energy drinks to enter into the health business as well.
2.2 The factors that are driving …show more content…
The most important among them is the economic downturn. In Starbuck’s case, the company is facing several major challenges in the markets all over the world, due to global economic recession and the increasing competition. Both factors have derived the Starbuck’s from bringing change in its strategies and processes. This situation has badly impact on its business through increasing operations’ cost and lesser their profit margins and the customers’ products as well. On the other hand, the unemployment or employees’ turnover rate has also raised that affect the organization and drive it from making changes in its hiring, retaining and training employees’ policies. In this situation the political and legal pressures are become important factors to bring change. These legal changes include regulations related to the food handling, labor regulations and several other restrictions in business practice in marketing and advertising both …show more content…
The resources must be considered and made a part of the change. These resources can be human resources as well such as changing the IT infrastructure, other heads of the departments and team projects. Starbucks also requires bringing changes in its human resource; therefore, certain implications can be made on account of not responding to the strategic changes, such as (Levine, 2000):
Firstly, if the company is facing improper technology infrastructure system, this can make an issue in implementing the new IT framework and other managerial changes and ultimately impact the entire project.
Secondly, the problem to increase the project time may also start due to lack of inactive participation and cooperation of the department heads. This eventually results in increasing the cost of the project in implementing new systems in IT or other departments in the organization and the teams will not be able to meet their
2.2 The factors that are driving …show more content…
The most important among them is the economic downturn. In Starbuck’s case, the company is facing several major challenges in the markets all over the world, due to global economic recession and the increasing competition. Both factors have derived the Starbuck’s from bringing change in its strategies and processes. This situation has badly impact on its business through increasing operations’ cost and lesser their profit margins and the customers’ products as well. On the other hand, the unemployment or employees’ turnover rate has also raised that affect the organization and drive it from making changes in its hiring, retaining and training employees’ policies. In this situation the political and legal pressures are become important factors to bring change. These legal changes include regulations related to the food handling, labor regulations and several other restrictions in business practice in marketing and advertising both …show more content…
The resources must be considered and made a part of the change. These resources can be human resources as well such as changing the IT infrastructure, other heads of the departments and team projects. Starbucks also requires bringing changes in its human resource; therefore, certain implications can be made on account of not responding to the strategic changes, such as (Levine, 2000):
Firstly, if the company is facing improper technology infrastructure system, this can make an issue in implementing the new IT framework and other managerial changes and ultimately impact the entire project.
Secondly, the problem to increase the project time may also start due to lack of inactive participation and cooperation of the department heads. This eventually results in increasing the cost of the project in implementing new systems in IT or other departments in the organization and the teams will not be able to meet their