The paper “ Starbucks - Porter’ s Competitive Strategy, Schultz’ s Leadership, Structure, Information and Control Systems to Implement Leadership Strategy” is an apposite option of case study on the management. Starbucks uses the differentiation strategy. By using Porter’ s competitive strategy, Starbucks provides high-quality coffee in addition to the exceptional customer experience through its baristas throughout its large number of locations globally. Razak (2011) explains that in using the differentiation strategy, a business seeks to be exceptionally distinctive in the industry along by integrating certain dimensions that the customers value to build its brand. The evidence provided in the case study shows that Starbucks seeks to employ certain attributes greatly valued by its customers, and seeks to position itself uniquely to address those needs.
In turn, the company gets a premium price as a reward for its distinctiveness. For instance, while Starbucks' coffee is expensive, it still manages to get millions of customers each week from across the globe. Starbucks also seeks to sell high-quality products and services. To further ensure quality, Schultz hires smart people and baristas. It recruits its employees from universities and provides them with 24 hours' training in making coffee and lore.
The company believes that this strategy enables it to create a distinctly hip image and quality service. Again, to maintain the production of high-quality coffee, the company roasts its coffee onsite. Indeed, Schultz acknowledges that his key challenge is becoming a brand that is respected and recognized globally over the long-term. Hence, rather than seek cost advantages by selling its coffee at low-cost, Starbucks relies on making quality premium products that set it apart in the industry. 2. Discuss how Schultz uses leadership, structure, information and control systems, and human resources to implement a strategyLeadershipThe key to Starbuck's effective strategy execution is leadership.
Daft et al. (2010) describe leadership as an individual’ s ability to influence other individuals into embracing productive behaviors necessary for implementing an organization’ s strategy into action. Chand (2015) also comments that leaders are supposed to apply motivation strategies, persuasion, as well as influence the organizational culture to influence the individuals to support the new strategy in place. Schultz relies on his leadership to influence employees to engage and align workers to his objective of building a globally respected and recognized brand.
One form of motivation strategy the company uses is training. Schultz uses 24 hours' training to teach employees how to uphold the company’ s reputation for quality coffee. Again, Schultz is indeed persuasive and charismatic. He has managed to change the world's drinking habits through Starbucks. Therefore, it could be reasoned that employees who relate to him are first aligned with his strategy of achieving quality. StructureDaft and Samson (2014) view the concept of structure, or structural design, as pertaining to the duties of the managers, the levels of authority the manager's command, as well as the structuring of departments, facilities, and divisions.
Additionally, it describes the issues of decentralization and centralization and job design and tasks. The company used centralization to execute a differentiation strategy that does not conflict with the company's structural design, specifically in regards to which the authority of the managers is affected.