Essays on Recommendations on Management of Starbucks Innovation Case Study

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The paper 'Recommendations on Management of Starbucks Innovation" is a good example of a management case study. Starbucks has always been a tech-savvy organisation. The firm was among the first to venture into videos and digital media long before most competitors (Gallaugher & Ransbotham, 2010). At the moment, the company has adopted mobile apps and has mobile payments. Starbucks has over 37.32 million Facebook followers and is highly active on social media. This shows a successful social media innovation. An example is My Starbucks Idea which was launched in 2008. This is a web platform that helps the firm understand what the customers want through collecting their opinions and engaging them.

The firm has been able to improve the customers experience through the implementation of digital experiences (Corporation, 2016). This report examines Starbucks use of Facebook innovatively in the light of organising for innovation, serendipity and innovation strategy. The report then gives recommendations on the management of Starbucks innovation. Organising for innovation For an organisation, the ability to come up with innovation requires them to have the capability for renewal (Markides, 2013). The success of Starbucks in their social media innovation can be credited to its organising for innovation (Corporation, 2016).

Flat organisation structure highly supports innovation since it encourages co-creation and idea generation (Panne, Beers and Kleinknecht, 2003). Starbucks success has been based on having a strategic organisation structure which is optimised for growth. The leadership has created a flexible structure which has lateral collaboration and innovation. Starbucks has an appropriate organisational structure which has a high influence on management and leadership. This is a structure that has evolved to meet the current market needs.

The firm has a matrix organisational structure which consists of functional structure, geographical divisions, product divisions and teams(Gallaugher & Ransbotham, 2010). The current organisation structure is based on improving the customer experience and firm financial performance. Organising innovation has enabled Starbucks to use their social media as a tool to fuel consumer-driven innovation. Through the use of My Starbucks Idea Site, the firm was able to collect over 50,000 customer-submitted ideas. This helped the firm to improve on customer experience, corporate matters and its products (Corporation, 2016). In organisation design, Starbucks has been able to come up with a digital team.

This is a team which has a responsibility to come up with the global digital strategy. The global strategy includes social media, web, e-commerce and digital marketing. Through appropriate leadership, the team is able to collaborate with the chief digital officer as the senior leader. The cross-functional partnership makes it possible for digital teams to listen to customers and identify trends and new innovation opportunities. Also, transformational leadership enhance customer experience using the digital strategy (Gumusluoglu and Ilsev, 2009).

In addition, the organisation culture plays a role in enabling innovation (Garrett, Buisson and Yap, 2006). For an organisation to succeed in innovation, they have to maintain an innovative culture. This is a culture that can challenge the existing status quo (Conway and Steward, 2009). The corporate culture at Starbucks is willing to innovate and come up with new products. Serendipity To be successful in innovation, there is a need for serendipity. Serendipity is enabled through informality in an organisation. This is through having an organisation that is flat (Foster & Ford, 2003).

Innovation excellence at Starbucks can be associated with the ability to have diversity in innovation which has enabled serendipity. This is due to the fact that diversity acts as a precursor for serendipity (Cross, Nohria and Parker, 2002). This has helped Starbucks to stay ahead in social media innovations and avoid unanticipated disruptions. Innovation in social media at Starbucks has in most cases been emergent. This is through bringing together different fields and pieces of information. The firm has been able to come up with over 277 emergent ideas (Corporation, 2016).

Innovation through social media has been emergent with most of the social media innovation ideas gained through serendipity.

References

Cassiman, B., & Veugelers, R. (2006). ‘In search of complementarity in innovation strategy: Internal R&D and external knowledge acquisition’, Management science, 52(1), 68- 82.

Conway, S. and Steward, F. (2009). 'Managing and Shaping Innovation', Oxford University Press.

Corporation, S. (2016) Year in review 2015: Starbucks innovations. Available at: https://news.starbucks.com/news/year-in-review-2015-starbucks-innovations (Accessed: 29 November 2016).

Cross, R., Nohria, N., and Parker, A. (2002) ‘Six Myths About Informal Networks -and How to Overcome Them’, Sloan Management Review, 43(3): 67–75.

Foster, A., & Ford, N. (2003). ‘Serendipity and information seeking: an empirical study’, Journal of Documentation, 59(3), 321-340.

Gallaugher, J., & Ransbotham, S. (2010). ‘Social media and customer dialog management at Starbucks’, MIS Quarterly Executive, 9(4).

Garrett, T., Buisson, D., and Yap, C. (2006). ‘National Culture and R&D and Marketing Integration Mechanisms in NPD: A Cross-Cultural Study Between Singapore and New Zealand’, Industrial Marketing Management, 35: 293–307

Gumusluoglu, L. and Ilsev, A. (2009). ‘Transformational Leadership, Creativity, and Organizational Innovation’, Journal of Business Research, 62: 461–73.

Krackhardt, D. and Hanson, J. (1993) ‘Informal Networks: the Company Behind the Chart’, Harvard Business Review, 71(4): 104–11.

Markides, C. (2013). ‘Business Model Innovation: What Can the Ambidexterity Literature Teach Us?’, Academy of Management Perspectives, 27(4): 313-323.

Panne, G. van der, Beers, C. van, and Kleinknecht, A. (2003). ‘Success and Failure of Innovation: a Literature Review’, International Journal of Innovation Management, 7: 309–338.

Prandelli, E., Verona, G., and Raccagni, D. (2006). ‘Diffusion of Web-Based Product Innovation’. California Management Review, 48(4): 109-135.

Roberts, R. M. (1989). ‘Serendipity: Accidental discoveries in science’. Serendipity: Accidental Discoveries in Science, by Royston M. Roberts, pp. 288. ISBN 0-471- 60203-5. Wiley-VCH, June 1989., 1.

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