Supporting Change Within Starbucks Corporation
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Supporting Change Within Starbucks Corporation
Starbucks Corporation was incorporated on 4th November 1985, as a specialty coffee retailer and a coffee roaster with extensive operations in about 82 markets in the world. The Corporation has more than 32,000 licensed and Company-operated stores. Starbucks has been operating through three main segments: Americas, Channel Development, and International (Roby, 2011).According to the recent internal memo right from the CEO of the coffee giant that has been obtained by the Restaurant Business, Starbucks has been struggling with its weak growth of similar-store sales in the most recent quarters. The company is now planning some leadership changes and employment retention (Azriuddinet al., 2020).
Internal and External Factors That Drive and Influence Why Starbucks Corporation Needs to Change
Internal Factors
Therefore, considering Starbucks’ strategic objective of bringing the most excellent coffee globally to its customers without compromising its growth principles, the massive price tags on individual products, even with the most basic coffee, discourage many of its customers. Besides, by looking at the Starbucks culture, while its decent, ethical values and premium quality may seem attractive, some of its customers lack enough money for spending on a coffee cup (Roby,2011).Additionally, considering Starbucks’ in-house capabilities, the companyrequires unique products. That is,although it has been recognized for its Frappuccino, and large chocolate chip cookies, the company does not have precisely an individual market since plenty of its competitors’ coffee chains, shops or otherwise, are providing similar products and only losing out to the company’s big-name(Roby,2011).
External Factors
By considering PESTLE analysis, Starbucks’s critical political factor is sourcing raw materials that have gathered strong attention from the West politicians andseveral source countries. According to Azriuddinet al. (2020), due to this reason, Starbucksneeds to adhere to environmental and social norms since it gives more importance to practices of fair trade.The currentworldwide economic recession has beena prime external Starbucks’ commercial driver (Azriuddinet al., 2020). This factor has dented the Starbucks’ profitability since has convinced customers to shift their interests to the cheaper alternatives. Starbucks may decide to offer some more affordable products but may have then need to sacrifice the products’ quality(Azriuddinet al., 2020). This aspect has been the critical socio-cultural challenge that the company faces. Starbucks would need to expand its consumer base in an effort to include customers from both lower and middle-income levels.
How Change Can ImpactStarbucks’s Business
The leadership style and management styleof Starbucks need to undergo some organizational changes to cater to some of the cultural implications resulting from the odd leadership approaches influencing the value of employees and effectiveness of workplace engagement, especially on communication levelbetween subordinates and the management (Sisson& Bowen, 2017). The changes will check on and ensure the employees are motivated, talented, and are hard-working to reduce and mitigate Staff turnover(Sisson& Bowen, 2017).There is also a need for organizational changes in organizational efficiencies and service levels, especially on current processes such as employee programs by close examination of the key staff roles, potential, and operational efficiency. This aspect will enhance the employees’ effectiveness in service delivery and reduce the impact of internal and external factors undermining Starbucks’ performance.
The Main Factors Involved in The Change Process
The HR should consider Planning for change before commissioning any difference, a there is a need to have a valid and clear mission and reason for this change process. HR shouldensure any undertaking, is measurable, realistic, and achievable.In Communicating the change, the HR would require to communicate the organizational change, and its factorsto all critical stakeholders by first considering the staff, and external stakeholders such as Starbucks shareholders and customers (Schlachter& Hildebrandt, 2012). The communication the change can be kept simple, open and prompt, monitoring quality vs. quantity, and open communication networks.By considering leading the change, Starbucks’ organization is to be adequately adjusted. The HR would need to open up the plans for some consultations with the company’s stakeholders, such as the staff of theorganization, customers, and shareholders(Schlachter& Hildebrandt, 2012). The HR would also need to ensure that the organization finds anapproach to connect with the staff whilemotivating them to continue contributing and working for the business’s success.Schlachter& Hildebrandt (2012) suggest that inimplementation/measuring the change,the HR throughout the organizational change process, it is critical for the organization, its change process, and the broaderorganization’s reactions to such change process to be evaluated at each available opportunity. For instance, by measuringKey Performance Indicators (KPIs), requeststaff feedback, and make every required amendment to the created original plans.
Comparison and Contrast of Different Approaches to Managing the Starbucks Change
By considering Lewin’s Change Model,this change model involves three steps: unfreeze, change, and refreeze. For Lewin’s model, the change process entails creating the perception that there is a need for change, then moves toward a new, desired behavior level and then solidifies such new behavior as the culture (Cummingset al., 2016).Lewin’s change model is an excellent approach, but only when bringing about anattitude change amongst employees and creating awareness of the organizational change advantages without consideration of external risk factors.
Besides, the McKinsey 7S Model, an organizational effectiveness framework, postulates that there existseven internal organization factors that should be reinforced and aligned for the model to be effective(Bismarket al., 2018).However, the model still does not consider external risk factors. However, Ackerman’s change Model, distinguish between key three types of organizational change. For instance, a developmental shift may either by emergent or planned; it is incremental or first order and corrects or enhances existing organization aspects (Anderson& Anderson,2010).The transitional change seeks to achieve anidentified desired status different from the one existing. Transformational change is second-order or radical and requires a shift in assumptions created by both the organization and its stakeholders(Anderson& Anderson,2010). Hence Starbucks would use Ackerman’s change Model since it would result in the organizational change that varies significantly in structure, culture,processes, and strategy. This model can lead to making Starbucks operate in a developmental model that continually learns, adapts, and then improves.
Comparison and Contrast of Different Behavioral Responses People May Demonstrate When the Starbucks Will Be Experiencing the Change
Given Kubler- Ross’s Change Curve model, Kubler- Ross provides an internal emotional transition that people typically experience while dealing with a change. The development consists of several stages: shock and denial,anger, bargaining, depression, and then acceptance (Malone, 2018).In the process of Starbucks’ organizational change, the change process may face profound shock and denial due to extensive consultation with all stakeholders. However, bargaining elements would emerge, and as performance and mood decline further, the HR should also understand that blame may also turn toward self(Malone, 2018). In working towards acceptance. Conferring to Malone (2018),the HR would consider helping the stakeholdersreflect realistically the impacts of the changesat both organizational and individual levels without trying to minimize the disadvantagesattached to the change. The HR needs to identify the cost of thenew change to stakeholdersto understood it well for acceptance.
Ways in Which HR Supports Individuals During the Change Process
During the change process, HR in supportingindividuals would consider Daniel Goleman 5 Steps of Emotional Intelligence.According to Goleman, in popularizing emotional intelligence, HR would find first self-awareness by acting with humility during the organizational change process (Goleman, 2006). HR would also ensure self-regulation to effectively not verbally attack the stakeholders who may be at first opposed to the change, or even make quickand emotional decisions, stereotype some stakeholders, or also compromise their individual and professional values(Goleman, 2006). Further, according to Goleman (2006),the HR would ensure as a leader in the change process is self-motivated and work consistently toward the change desired and have tremendously high standards for work quality during the change process.
References
Anderson, L. A., & Anderson, D. (2010). The change leader’s roadmap: How to navigate your organization’s transformation (Vol. 384). John Wiley & Sons.
Azriuddin, M., Kee, D. M. H., Hafizzudin, M., Fitri, M., Zakwan, M. A., AlSanousi, D., … & Kurniawan, O. (2020). Becoming an International Brand: A Case Study of Starbucks. Journal of the community development in Asia, 3(1), 33-43.
Bismark, O., Kofi, O. A., Frank, A. G., & Eric, H. (2018). Utilizing the Mckinsey 7s model, SWOT analysis, PESTLE, and Balance Scorecard fosters the efficient implementation of organizational strategy. Evidence from the community hospital group-Ghana Limited. International Journal of Research in Business, Economics, and Management, 2(3), 94-113.
Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations, 69(1), 33-60.
Goleman, D. (2006). Emotional intelligence. Bantam.
Malone, E. D. (2018). The Kubler‑Ross Change Curve and the Flipped Classroom: Moving Students Past the Pit of Despair.
Roby, L. R. (2011). An Analysis of Starbucks as a Company and an International Business.
Schlachter, C. T., & Hildebrandt, T. H. (2012). Leading Business Change for Dummies. John Wiley & Sons.
Sisson, D. C., & Bowen, S. A. (2017). Reputation management and authenticity: A case study of Starbucks’ UK tax crisis and “# SpreadTheCheer” campaign. Journal of Communication Management, 21(3), 287-302.