Mgt 500 Essay

1529 Words Nov 16th, 2013 7 Pages
Starbucks’ Strategy
Assignment 1
By:
Allen Jones Luna
28 October 2013
MGT 500: Modern Management
Professor: Dr. Tony Muscia

Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments” (Barney, 1986). In this paper, I will examine the elements of Starbucks’
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Management overall sets the precedence on an organization’s culture in creating, sustaining, and maintaining these concepts to its employees. A pyramid business model could be followed in the case of Starbucks, whereby you have the CEO, Howard Schultz who is the top manager, and middle managers, and lastly first line managers. The mission statement and vision is created by the CEO and communicated to its middle managers down to its first line managers. Starbucks has upheld its values through its strong relationships with its managers and employees. Overall management has an influential role in an organization’s culture. Assess the effectiveness of Starbucks’ management decisions in providing innovative offerings for its customer (e.g., Wi-Fi, style of coffee, etc.) in order to achieve its current competitive marketplace advantage. Provide support for your rationale. Starbucks has over 20,000 coffeehouses that are spread over 60 various countries all over the world, while building a very profitable coffee empire. They offer a unique atmosphere that has tried to mirror coffeehouses in Europe. Starbucks’ original goal was to make a coffeehouse that created a warm friendly atmosphere where customers can enjoy their cup of coffee and socialize with other people. The concept has materialized as technology and people are more crucial with there time than ever before.

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