MGT-325-Organizational-Change-Research-Part-1 (10) Starbucks Coffee Company PDF

Preview

Summary

Visit the website for the company you have selected and obtain a copy of the annual report. Locate three to five additional resources that provide data and information about the organization. You will use this research to determine potential areas for organizational change and to address questions r...

Description

Organizational Change Research: Part 1 Directions: Visit the website for the company you have selected and obtain a copy of the annual report. Locate three to five additional resources that provide data and information about the organization. You will use this research to determine potential areas for organizational change and to address questions related to planning and managing change within the company. Company Name: Starbucks Company Vision: “to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.” Company Mission: To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Citation of Sources Criteria

Research Findings

What are the indicators of an awareness of a need for change within the selected organization ?

Starbucks strongly believes in bringing people together, and over the years, it has worked extremely hard to improve its brand with effective change management. At the time, CEO Howard Shultz noticed the need for social change and wanted to transform Starbucks into something more than just coffee. When confronting social change, a good amount of emotional intelligence is involved. Sometimes, the emotional part of change management is missed or avoided. I noticed this in my observances from my professional career implementing change in organizations.

Provide APA citations for the company’s annual report and the other research sources utilized in completing the assignment.

Gillespie, A. (2003). Starbucks: Andrew Gillespie asks if Starbucks is truly an excellent company. (Excellent Companies). Business Review [UK], 9(3). link.gale.com/apps/doc/A97755750/ITOF? u=canyonuniv&sid=ebsco&xid=f3aa987d.

Starbucks Stories & News. (2020). Workforce Diversity at

© 2019. Grand Canyon University. All Rights Reserved.

What role does management play within change for this organization ?

Emotional intelligence helps people handle the sensitive aspects that come with addressing social change within a company. Mr. Shultz's keen awareness for social change prompted him to transform the organization and influence companies hiring policies. In 2020, the company posted an article stating, “The way we hire, develop, and advance our partners (employees) is critical to our journey toward inclusion, diversity, and equity at Starbucks” (Starbucks Stories & News, 2020, para. 1). Tackling something like social change does not take hold immediately. The process can take years, as evident in an article written by Andrew Gillespie in 2003, which lays out Howard Shultz's six guiding principles, with the first to Provide a great work environment and treat each other with respect and dignity (Gillespie, 2003). Howard Shultz was able to see the indicators for the need in social change and used his influence and company to lead the way for other to follow. Starbucks is a huge corporation and is arguably one of the best-known brands around the globe. Without a doubt, companies like Starbucks do not become successful without making changes as they continue to grow. Because of this, Starbucks maintains clear expectations about company culture, servicescape, customer service, and care of their employees. As with any large organization, the management teams play a vital role in ensuring the companies vision and mission come to fruition every day. Accordingly, the management teams at all levels are ultimately

Starbucks. https://stories.starbucks.com/stories/2020/workforcediversity-at-starbucks/

Ferguson, E. (2019). Starbucks Corporation's Organizational Culture & Its Characteristics. Panmore Institute. http://panmore.com/starbucks-coffee-companyorganizational-culture.

Panopto. (2018). How Starbucks Does Training to Create an

2

responsible for changes within the organization. As stated in the Starbucks annual report (2020), the Board of Directors and Board committees provide oversight and support to retail and nonretail partners on many matters, including Inclusion and Diversity programs. Also, they seek feedback from their partners through anonymous surveys. The management and crossfunctional teams help local managers lead people through change and mitigate risks which undoubtedly can be stressful. However, with the proper leadership, there will be a smooth transition. Over the years, Starbucks has changed the way they make products, experimented with cutting-edge technology, changed the customer experience. Thanks to the strong management teams, these changes have been successful. Furthermore, retail managers stay abreast with company policies and effectively communicate the expectations, ensuring everyone is working together towards the same goal. Starbucks seems to be able to achieve this because of their open communication throughout the company, and their willingness to give extra support to management (Ferguson, 2019). One specific example is something called the Starbucks Experience, which is "classes that cover the company history, it's legacy of social responsibility and its culture. The Starbucks Experience is typically taught to groups of new hires at regional training centers or in-store in more remote markets. Each store also has a learning coach — another partner who

Unforgettable Experience. https://www.panopto.com/blog/how-starbucks-doestraining-to-create-an-unforgettable-customerexperience/#:~:text=The%20Starbucks%20Experience %20is%20typically,store%20in%20more%20remote %20markets.&text=The%20process%20of%20training %20the,unconscious%20bias%20into%20the%20training. Starbucks. (2020). Fiscal 2020 Annual Report. https://s22.q4cdn.com/869488222/files/doc_financials/20 20/ar/2020-Starbucks-Annual-Report.pdf

3

has shown a passion for training and teaching — who guides new hires through the Barista Basics hands-on training program"(Unforgettable Experience, 2021 para. 5). Because of this training program, which is taught company-wide, they can keep the culture of Starbucks uniform throughout the company, ensuring every customer is promised the same great experience. How will Stakeholders will view change in many ways. All Pangarkar, N. (2015). Performance implications of strategic this change will affect each type differently in how awareness of everyone reacts to it. A customer for example changes: An integrative framework. Business Horizons, change be may want to try a new product if it is correctly important to presented to them, whereas the investors will 58(3), 295–304. https://doiat least three want to know the projected potential for growth stakeholders within the company and would also want to org.lopes.idm.oclc.org/10.1016/j.bushor.2015.01.003 in the confirm it is profitable. Whereas the employee or organization barista as the case is with Starbucks would want ? to know how difficult it is to make and would then need to learn how to make it to maximize profit for the company. This awareness of change affects all levels so the implementation of the now product will need to have the correct marketing to the correct demographic to achieve the goal of maximizing profit for the investors, teaching employees how to make the product right and ensuring the customer has the drink they want. An article in Business Horizons said, “changes are likely to be most fruitful when their potential to enhance competitiveness is high and the stakeholder commitment is likely to be high” (Pangarkar, 2015, p. 295). Who are the Agents of change are players within an Rangeland Wikhamn, B. (2020). Open innovation change agents 4

agents of change within the organization ?

organization with the personal drive that enables open initiatives, supported by the organization. Also, they continuously manage the demands from all stakeholders. These people can be formal or informal change agents (Tushman and Nadler, 1986 as cited in Wikhamn, 2020). There are many agents of change within the Starbucks organization, starting at the top with Starbucks CEO Kevin Johnson. Johnson stated in December 2020, “We are a purpose-driven company with a mission grounded in the human experience as we seek to have a positive impact on both people and the planet, while profitably growing our business." (Starbucks Coffee Company, 2021). Chief Financial Officer Rachel Ruggeri heads Starbucks plan to store more carbon than it emits, replace fresh water they use and reducing waste. Dennis Brockman, the senior vice president of inclusion & diversity, works diligently to cultivate a more diverse Starbucks culture. Brockman has set out to hire more people with disabilities, helping to make Starbucks the most inclusive company in the world. Starbucks has many change agents in the organization that cultivate positive impacts at work every day. However, thanks to these leaders, Starbucks not only impacts their daily customers but also the greater communities they serve.

in large firms: how open innovation is enacted in paradoxical settings. R&D Management, 50(2), 198–211. https://doi-org.lopes.idm.oclc.org/10.1111/radm.12389 Starbucks Coffee Company. (2021). Mission Statement. Starbucks Coffee Company About Us. https://www.starbucks.com/about-us/companyinformation/mission-statement. Starbucks Corporation. (2021). Starbucks. https://stories.starbucks.com/.

Fantozzi, J. (2021). Starbucks promotes regional vice president What role do these people play in the

Rachel Ruggeri role as the vice president of Global Retail for Starbucks has allowed her to work alongside with Starbucks talent and it’s

Dennis Brockman to global chief inclusion and diversity

5

future of the organization ?

inspiring partners to enhance future growth within the organization (Starbucks Announces Chief Financial Officer Succession, 2021). As a woman holding a top finance job in one of the top growing companies this allows her to not only be a great asset to Starbucks, but it also allows inspiring young women to look up to. Ms. Ruggeri helped develop the Starbucks Card which continues to be a foundation of Starbucks industry digital engagement and potential for significant growth within the company (Starbucks Announces Chief Financial Officer Succession, 2021). As Starbucks continues to evolve technology based, so does the finance aspect which continues to develop to make it easier for consumers to purchase their favorite beverages for years to come. Dennis Brockman role as the senior vice president and global chief inclusion and diversity officer for Starbucks allows him to focus the company's culture with its stakeholder by providing vision advancing, diversity and equity throughout Starbucks. He will continue to build on cultural leadership accountability, instilling ambassadors, fostering mentorship and professional development (Fantozzi, 2021). Not only is there a need for diversity within an organization but it speaks volumes for the future of Starbucks. As the world culture continues to evolve, the impact of diversity and equity is necessary to keep the company neutral steadfast and revolutionize. Many companies focus lose site on how diversify and equality impact a

officer. https://www.nrn.com/quick-service/starbuckspromotes-regional-vice-president-dennis-brockmanglobal-chief-inclusion-and Vending Market Watch. (2021). Starbucks Announces Chief Financial Officer Succession. https://www.vendingmarketwatch.com/management/new s/21205254/starbucks-announces-chief-financial-officersuccession

6

business, big or small. As we know Starbucks has been a leading franchise in the food industry, the culture behind the growth is based on their abilities to stay neutral and parallel. Starbucks is a leader in its field and will continue to grow with positive attributes for the future.

7...