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BUSINESS REPORT ON STARBUCKS

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BUSINESS REPORT ON STARBUCKS

 

 

 

 

TABLE OF CONTENTS

PART 1 – Reflection on Leadership for Aspiring Leaders. 4

  1. Why is a systematic understanding of leadership theories and organisations beneficial for aspiring leaders? 4

Two fundamental questions that leaders need to ask themselves?. 4

Two key aspects of leadership?. 4

What is a leadership theory style?. 4

Two different leadership styles that are appropriate for the current volatile, uncertain, complex and ambiguous (VUCA) business environment?. 5

Why do aspiring leaders need an in-depth understanding of a range of leadership styles?. 5

  1. Why is an ability to evaluate the contribution that individuals, leaders and stakeholders make in creating and executing the mission and vision of an organisation important for aspiring leaders?. 5

What is an organisational mission and vision?. 5

What contribution do individuals typically make in executing the mission and vision?. 6

What contribution do leaders typically make in executing the mission and vision?. 6

What contribution do stakeholders typically make in executing the mission and vision?. 6

Why do aspiring leaders need to be able to evaluate the contributions of the above?. 6

  1. Why is an ability to apply appropriate leadership strategies (including change management) in order to maximise organisational potential in a variety of different business contexts important for aspiring leaders? 7

What is a leadership strategy?. 7

What is change leadership?. 7

What is organisational potential?. 7

What is the business context?. 8

Why do aspire leaders need to understand a broad range of leadership strategies that can be applied in a variety of different business contexts?. 8

  1. Why is an ability to critically evaluate a range of motivational) theories (employee engagement) within a specific organisational context important for aspiring leaders?. 8

What is the motivation theory?. 8

What are the two categories of motivational theories?. 8

What is the contemporary term for employee motivation?. 9

What is the “Appreciative Inquiry (AI)” technique?. 9

Why do aspire leaders need to be able to critically evaluate a range?. 9

PART 2. 10

  1. Introduction. 10
  2. A succinct overview of the ‘servant’ leadership style and the challenges associated with practising it in the volatile, uncertain, complex and ambiguous (VUCA) environment typical of the 21st Century. 10
  3. A critical evaluation of Kevin Johnson’s leadership style (using the appreciative inquiry technique) focuses on Starbucks improved financial performance, its ethical challenges and the views being expressed by some of its current and former employees. 12
  4. Why does Johnson have such a strong personal brand as an effective global leader?. 15

Recommendation. 17

Conclusion. 18

References. 19

 

 

 

PART 1 – Reflection on Leadership for Aspiring Leaders.

A.    Why is a systematic understanding of leadership theories and organisations beneficial for aspiring leaders?

Two fundamental questions that leaders need to ask themselves?

  • I think that leader should ask that he/she is seeking help or trying to help others.
  • I think that leader should ask himself/herself that is enough time is being spent with the individual peer groups so that their perspective and ideas can be better understand.

Two key aspects of leadership?

  • I think that two key aspects are Honestly, creativity and self-integrity are one of the essential required criteria. A leader should understand that his/her followers will duplicate the qualities that are inherited in the leading professional.

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What is a leadership theory style?

The leadership style that is followed by the professional “Kevin-Johnson” is “Democratic leadership” style as such because Kevin-Johnson listens and communicates with other in order to understand the dynamic nature of the business environment and then arrive at a specific decision accordingly. I think that he  is accountable for the business within the global basis which means that he needs to communicate with the external and internal surrounding in order to arrive at a proposed decision (Kgatle 2018).

I can analyze that Transformational leadership, as this style of leadership, has the potential to evolve and adapt with the changing pace of time that will enable a specific leader to push its concerning employees and workers out of its comfort zone. I think that Transactional leadership, this leadership trait has the potential to maintain the motivational level and the satisfaction of the individual working employees and theworkers in order to stick align within the formed organisational objectives. Money and reward programme always being the motivational factor for the employees.

Why do aspiring leaders need an in-depth understanding of a range of leadership styles?

I think that relevant  knowledge in regard to the different variety of the leadership style is required in order to use the best option out of the various alternative styles available and to make sure that it sticks within the organisational ambience and that of the employee’s mindset, and much more.

B.     Why is an ability to evaluate the contribution that individuals, leaders and stakeholders make in creating and executing the mission and vision of an organisation important for aspiring leaders?

What is an organisational mission and vision?

I think that organization mission stands for the set of objectives or the future requirements that a specific firm or organisation aim to achieve. It is the primary means for which an organisation is formulated and activities are carried on accordingly.With the changing pace of time, the mission of the firm stays fixed, but the organisation’s strategies and the manner of working may differ.

I can analyse that an organisation’s vision statement stands for the position in terms of the rivalry market or the achievement that the firm seeks to possess in its coming era of time.

What contribution do individuals typically make in executing the mission and vision?

I think that An individual body performs the set of actions and works according to the formulated strategies in order to make sure that the organisations’ mission is being fulfilled.

What contribution do leaders typically make in executing the mission and vision?

I think that it is the leading professionals who make use of the unique and creative skills to guide each and every individual employee along with the workers of the organisations and makes sure that they all stay in the right path of the organisational activities, and the desired goals are being obtained within the journey (Selladurai 2014).

What contribution do stakeholders typically make in executing the mission and vision?

I think that in times of the financial crisis of the firm, it is the various internal and external stakeholders of the firm that provides support. However, this stakeholder may also provide a piece of advice in times when the firm might be facing decision-making conflicts or the right set of guidance.

Why do aspiring leaders need to be able to evaluate the contributions of the above?

I can analyze that it is essential for the leaders to make sure that contributions from the individual stakeholders might be undertaken by a specific firm but should be according to the planning, and objective criteria. Moreover, being a leadership personality, a leader should always aim towards the elimination of any specific piece of aspect that might be not fruitful for the firm. Hence, aspiring leaders need to be able to evaluate the contributions of the individual stakeholders of the firm (Allen et al., 2016).

C.    Why is an ability to apply appropriate leadership strategies (including change management) in order to maximise organisational potential in a variety of different business contexts important for aspiring leaders?

What is a leadership strategy?

Strategic Leadership is the possibility to impact others to obstinately choose choices that improve the probabilities for the affiliations extensive take satisfaction while holding up momentary cash related quality.  I thinak that it helps in proficiently oversee change, all executives need the aptitudes and instruments for both philosophy plan and use.

What is change leadership?

I thibak that Change management is the possibility to influence and enthuse others by means of near household advancement, vision, and drive, and to get to advantages to create a strong stage for change. The organization is regularly viewed as the way to excellent change (American Management Association, 1994).

What is organisational potential?

I think that an organization has huge potential to penetrate the consumer market, as the brand has already been successful in capturing a major proportion of the potential consumer market. On the other perspective in the recent era of time, the brand has been focusing upon making use of the renewable sources of rawmaterials in order to care for the surrounding environment.

What is the business context?

I tcan anlyze that business context operates on delivering and availing various food drinks that are of wide variety along with the technological advancement within the interior of the organisational premise.

Why do aspire leaders need to understand a broad range of leadership strategies that can be applied in a variety of different business contexts?

I think that the business environment keeps on changing each and every moment of time. It changes on different dimensions and nature such as changes within the domestic context might not be such as changes within the international context. Hence, it is critical for a leadership personality as of the fact to understand such.

D.    D. Why is an ability to critically evaluate a range of motivational) theories (employee engagement) within a specific organisational context important for aspiring leaders?

What is the motivation theory?

I thinak that motivational theory is endowed with finding what drives singular representatives and labourers of the association to stroll in the course of a goal or result. Associations are excited about convincing hypothesis in light of the fact that convinced representatives and labourers are increasingly beneficial, provoking the more prominent monetary usage of benefits (Reredit et al., 2016)

What is the contemporary term for employee motivation?

I can analyze that the contemporary term for employee motivation is “Expectancy theory, Reinforcement theory, Equity theory, and Goal-setting theory”.

What is the “Appreciative Inquiry (AI)” technique?

Appreciative Inquiry (AI), is a change the board technique that spotlights on perceiving what is working splendidly, dismembering why it is working commendably and, in some time, participating in a higher amount of it. The crucial central of AI is that alliance will support in whichever course that people in the association focus on (Spears et al., 2016).I think that it helps all the thought is revolved around issues, by then perceiving issues and overseeing them is the part that the affiliation will do best. If all the thought is revolved around characteristics, regardless, at that factor perceiving attributes and developing those characteristics is the component that the association will do best.

Why do aspire leaders need to be able to critically evaluate a range?

I can anlyze it as the Appreciative Inquiry (AI), is a system of Appreciative Inquiry that requires an exact methodology for presenting guided requests that engage incredible thinking and worker to-delegate participation. The requests base on 4 key domains to be specific, they are “discover, imagine, structure, and convey”.

 

Q5.

a.I think that my potential leadership style is transformational and visionary leadership style for managing appropriate relations with the workers in the business. It helps me in formulating effective activities anbd develop suitable guidance for every members in the company.

b.I can understand that my key strengths are developnmg suitable communication among the workers and develop appropriate motivation among one another. It helps in assessing overall goals of the company and helps in improving my suitable guding style for executinmg suitable operations for the workers.

c.I think thtat my key challenges are to develop appropriate trust among the members and provide suitable collaboration among one another for measuring iverall performance in the company. It is essential for developing appropriate skills my leadership abilities for influencing workers and manage overall relations among one another.

d.I need to develop appropriate interpersonal skills and evaluate specific position of every employees for delivering sustanibility in operations. I have to develop suitable speaking and inderstnadinmg skills and evaluate every problem of the employees carrying on the operatiosn and helps in provoding sense of trust among one another. I think taht it helps in providing enough suitability in the operations and develop long- term relationships with one another in the future.

 

 

 

 

PART 2

A. Introduction

The Starbucks Corporation is considered as one of the largest coffee sellers of America. Established in the year 1917, the firm is headquartered in Washington DC. The firm offers the largest and different types of products like coffee, soft drinks etc. hence it has been regarded as a primary model as well as a second wave coffee chain altogether. Currently, this coffee brand is named as one of the largest coffee sellers in the whole world.

However, Mr Kevin Johnson in his thirty yearlong carriers had served different companies including Microsoft. Furthermore, he has worked side by side with leaders like George Bush and President Barrack Obama. On the other hand, he works with Starbucks currently since 2009. His main focus is currently in development, growth as well as implementing new rules and\regulations in the business (Kgate 2014).

B. A succinct overview of the ‘servant’ leadership style and the challenges associated with practising it in the volatile, uncertain, complex and ambiguous (VUCA) environment typical of the 21st Century.

Basically, the leaders usually value the growths as well as to the follower’s development strategy. Thus, by sharing the powers and acting towards honesty in building societies as well. On the other hand, in this context, the servant leadership styles, as well as implementation of the volatile, uncertain, complex and ambiguous environment that has been currently affecting the 21st century, has also been described. The servant leaders move beyond the transactional aspects of management as well as seeking to develop highly, innovative levels of employee engagements.

In this way, the employees will feel more accustomed to the process as a whole (Eva et al.,2019). Furthermore, the sellers need to continuously develop the rules and regulations directly relating to the aspect of staff training and thus by developing the future leaders for long term visibility of the organisation (Li 2014).One of many companies who offer servant leadership is Balfour Beatty. The CEO of this company Eric Steinman believes that this is how the business should be playing its part. Further, he has also focused on implementing personal and professional success for the business as a whole. Hence the process is as follows:

  • Executive-level listening, the executives after listening to the process effectively needs to model the overall behaviour as well as chalk out the traits they want to see in the business. Furthermore,a certain demonstration is also needed to be implemented in this aspect since they are willing to roll up the process. The same aspect has been highly implemented by some of the great leaders of the world like Martin Luther king, Gandhi etc who have shown the exact vision of change in the servant leadership concept as a whole (Patrnchak 2016).
  • Middle managers and empathy, the middle level managers need to implement certain effective techniques related to the aspect of change management as well. This requires the help of servant leadership theories. The best manager has to understand the way to put themselves in the business through the implementation of potential techniques in the business as well. Thus, it will be helpful for the employees to meet expectation (Ross et al.,2014).
  • The team level and awareness, raising team bonding are important in order to unfold the employees from organizations purpose(Sendjaya 2016). The team members need to articulate the way all the process will be implemented in this regard. This is directly associated with the organizational strategy and the purpose behind this to be more creative to attend organizational goals.

Furthermore, to reap the rewards, there are several things needed to be happening. Thus, in this case, the servant leadership style with an unselfish mindset. Moreover, the ultimate process will be related to the sustainable leadership technique in order to expand the process more. This is a universal concept which has gained much more importance over the years. Furthermore, the servant leader’s growth strategy is highly associated with its followers. The style of leadership always depends upon the implementation of policies, strategies as well as effective implementation of a set of rules and regulations regarding the business as a whole (Le et al.,2016). Furthermore, this process is also very much effective in inspiring leaders. Thus, some of the main characteristics are as follows-

  • The servant leaders must keep themselves motivated as well as inspired regarding the needs and recommendation of the firm or project.
  • Since the workplace environment is very much stressful, it is important to ensure happiness and workplace safety as well through this process.

A critical evaluation of Kevin Johnson’s leadership style (using the appreciative inquiry technique) focuses on Starbucks improved financial performance, its ethical challenges and the views being expressed by some of its current and former employees.

Since Kevin Johnson had taken charge as a CEO of Starbucks, the company had faced major growths in the financial years. This growth had been very much effective in meeting the rules and regulations of the business, a meeting of employee and customer grievances as well as the implementation of effective changed management. Furthermore, he had also implemented a servant management theory within the organisation. Thus, it can be said that being an open-minded person, Kevin Johnson had effectively implemented new aged techniques which had been far more effective for the business of Starbucks to run smoothly. Furthermore, this has also been helpful in mobilizing the efforts related to the business. Hence this had been taken as a major area of growth of Starbucks business. The basic areas where Kevin Johnson’s theory of leadership had been proved to be effective. These are as follows,

Implementation of big changes within the company

When Kevin Johnson had left Microsoft the US economy was facing its low crisis ever. Hence during the first week of the time when layman brothers had collapsed, it was very hard to survive by the company depending upon the current market. However, mar Johnson had held the unexpected things which had been thrown to his way and this had been marked as his success mantra as well as for the Starbucks as a whole. Hence the basic business strategy of Kevin Johnson included the process in which the way of investing quality time for the betterment of Starbucks had been addressed as well as who are the key people that should play an essential role in this aspect. Hence successful had to come from the very first day.

Focusing on and prioritizing the employees

Encouragement, motivation and giving priority to the employees had been the first aspect of leadership theory implemented by Kevin Johnson. Since the employees are considered as the sole reason behind the success of the company, hence encouraging the employees every time for bringing the best of the employees had been a key factor. Furthermore, Johnson had also initiated a programme related to employee engagement. Here employees could submit an application for funds to meet the projected needs. Hence his open-minded approach had encouraged professionals to be innovative and collaborative.

Implementation of technology effectively within the business

In the technology-driven world, it is important that the implementation of effective business techniques within the betterment of the company had been a key leadership feature. This process had included involving the sales and marketing team of Starbucks. Thus, it creates an effective business responsibility within the aspect.  Apart from all the positives, there are certain negative aspects which have also affected the business to a large extent. Hence these negative aspects had been considered as an approach which shall not be effective for operation perspectives of the company. These are as follows,

  • He had applied a defensive approach by acknowledging which the real damage had been done (Whorton 2014).
  • He had also taken his personal responsibility in the event.
  • He had not conveyed a specific understanding of the event to address the victims in this fashion.
  • Kevin had also avoided all the excuses which had affected the business to a large extent. Hence it is also an area which had demanded the slightest bit of demand of the victims.
  • A certain amount of appropriate compensation had not been paid to those victims through bad behaviour or else.
  • Detailing of the plans had not been addressed to this respect especially all the basic systematic issues had been missing to this extent.
  • A proper commitment related to the actions had been missing in the statement of Kevin Johnson.

Key stakeholders of Starbucks,

Starbucks had continued to improve its corporate social responsibility practices in order to address the general concern related to the process of different stakeholder’s engagement (Conzelman 2017). Hence the main stakeholders related to the business of Starbucks are as follows,

  • Employees
  • Suppliers
  • Environment
  • Investors
  • Government

Therefore, these leadership theories implied by Kevin Johnson had been very much effective for some of these stakeholders. On the other hand, there are some stakeholders who had implied a negative impact of these aspects. These are defined below,

The leadership theory of Kevin Johnson in Starbucks had been very much effective for employees. Since the employees are considered as the heart and soul of this company thus it is important to engage them into different engagement programmes as well. Hence giving priority to the training and development, prioritizing the needs and demands of them are basically focused by Kevin Johnson. Hence employees had been benefitted. Similarly, the customers had been benefitted by this process.

Hence these employees through proper training had been giving effective service to them. Furthermore, the suppliers had been very much satisfied through this process as a whole. The investors, government and other environment had not been very much effective since all these aspects had not been effective for them too much (Cater et al., 2015).

In the current leadership approach , developed by Johnson there should be implementation of suitable procedeures for analyzing guidelines and mange operations. The development of an suitable leadership approach has helped in providing suitable evaluation of the appropriate procedures developed for manging operatons and create innovations. It helps in developing suitable expansion strategy and create sustainable operatiosn for managing appropriate style for improving existing operations for the organization. It is vital for managing current policy in the operatiosn for Starbucks and develop systematioc operatiosn with the help of servant leadership approach theory in the market and maintain appropriate performance in the systematic conduction of the operations.

E.     Why does Johnson have such a strong personal brand as an effective global leader?

The importance of personal branding is considered to be very much effective as it serves a true value regarding this aspect. This consists of the aspects the people are into; they believe in and is a path which takes the lead into a new height. Hence these aspects are helpful in creating a brand image. As per Johnson, the CEO indirectly looks to create a leader among labours. Hence in a true sense, it creates a genuine leadership quality among the employees. Therefore, creating a brand image is very much important. Thus, for Kevin Johnson since he had stepped himself as a leader of Starbucks, since then his focus was only towards the betterment of his employees as well as to the customers. Different areas like customer satisfaction, training and development of the employees had been very much helpful for them to establish themselves as an employee of this company.

As per Wineburgh having a strong personal brand will lead to buy-in concept of the employees as well. Hence this situation creates a resilience a helps the leaders to assess certain uncomfortable situation related to the business as a whole. On the other hand, having a personal brand image also helps the business tom grow effectively as well as meet every standard related to the process. Another incident which also creates a good brand image is if the leader has his capability to take actions after assessing possible issues. There are two such aspects which have been defined below-

  • Keeping it authentic, authenticity is an important aspect for creating an effe3ctive brand image as a whole. Hence all it helps is increasing relationship between the employees and business. According to Johnson, it will not take for the employees to move towards contrived personality especially when they find the difference in the personality as a whole. On the other hand, in order to keep a good brand image, it is needful to behave with them as a friend rather than a boss.

Furthermore, effectiveness in communication is also needed to make in this aspect. Hence if all these aspects ticks and justifies properly, then creating a brand image among the employees will be justified highly. Furthermore, it will build trust.

Kevin Johnson had developed suitable techniques for providing adequate motivational techniques among the employees and maintain a suitable balance in the operations. The formulation of a servant leadership approach developed by Johnson has helped in creating as a global and successful leader in the future. It is useful for managing an appropriate brand image for the person and develop competitive advantage. It provides suitable analysis for developing Johnson as a global leader in the market and achieve desired objectives for Strabucks and energe as a global leader in the market. This leadership approach is suitable for managing expectations of workers and every people associated with the functioning of the organization and improve current operations.

Recommendation

In order to maintain a good brand image as well as meeting expected outcomes related to the business, there are two recommendations which are to be provided to Mr. Kevin Johnson. These are as follows:

Dismiss unnecessary people, since meeting targets and keeping customers satisfied is a prior aspect for the company, hence it is important that the company only keeps to people who they think does care about the reputation and set standards. There are more than 100000 employees who are directly associated with this brand. However, not everyone knows everything about the organisation or not all are productive. Thus, there are productive people who love their job and want to flourish their carrier. However,the rest of them is unproductive who care about the prospect of neither the company not themselves. They only care about making money. However, they make mistakes and for that the company faces consequences. Since Mr. Kevin had worked with Microsoft and worked side by side with president Bush and President Obama, then it is important that he must inject the job culture among Starbucks. Hence for this aspect, he must take actions against unproductive employees.

Innovation in the operations

It will be essential for Johnson for developing suitable procedures for improving innovation operations and maintain competitive edge in the market. The rapid development of innovations in the operations of Starbucks helpsmin managing appropriate production and continue to develop overall position in the market. It providesa  sustainable approach in the operations and provide adequate coffee products in accordance with the needs and tastes of the customers for the company.

Proper efficiency in production

There will be development of efficiency in the products for managing adeqwuate operations and mange overall production rate. It will help in preparing best amount of production for the organization in accordance with the competitors and provide wide range of coffe products for the customers.

 

Conclusion

Hence it can be concluded that since Mr. Kevin Johnson had worked with different types of business leaders, then it is obvious that he will carry that legacy into Starbucks also, furthermore it is also said that Kevin had been very much effective because of his focus on the employee wellness. The training and development for their betterment, implementation of servant leadership concept, organization of face to face meeting and lastly creating an effective management- employee relationship has been his focus altogether. Thus, to some extent, he has managed to meet all the standards by fulfilling all the goals, missions and objectives as a whole. Thus, he has created a role model image altogether in the minds of Starbucks employees.

 

 

References

Allen, G.P., Moore, W.M., Moser, L.R., Neill, K.K., Sambamoorthi, U. and Bell, H.S., 2016. The role of servant leadership and transformational leadership in academic pharmacy. American journal of pharmaceutical education, 80(7), p.113.

Cater III, J.J. and Beal, B.D., 2015. Servant leadership in multigenerational family firms. Journal of Applied Management and Entrepreneurship, 20(4), p.25.

Conzelmann, J.D., 2017. Employee perspectives: the lack of servant leadership in organizations. In Servant leadership and followership (pp. 155-175). Palgrave Macmillan, Cham.]

Eva, N., Robin, M., Sendjaya, S., van Dierendonck, D. and Liden, R.C., 2019. Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1), pp.111-132.’

Kgatle, M.S., 2018. Servant leadership: An urgent style for the current political leadership in South Africa. Verbum et Ecclesia, 39(1), pp.1-9.

Le Ng, X., Choi, S.L. and Soehod, K., 2016. The effects of servant leadership on employee’s job withdrawal intention. Asian Social Science, 12(2), pp.99-106.

Li, J., 2014. Servant leadership: A literature review and reflection (Doctoral dissertation, UC Riverside).

Patrnchak, J.M., 2016. Implementing servant leadership at cleveland clinic: A case study in organizational change. Servant Leadership: Theory & Practice, 2(1), p.3.

reredith Albright CMA, C.P.A., 2016. Servant leadership: Not just buzzwords. Strategic Finance, 98(4), p.19.

Ross, D.B., Matteson, R. and Exposito, J., 2014. Servant leadership to toxic leadership: Power of influence over power of control.

Selladurai, R. ed., 2014. Servant Leadership: Research and Practice: Research and Practice. IGI Global.

Sendjaya, S., 2016. Personal and organizational excellence through servant leadership. Springer International Pu.

Spears, L.C. and Lawrence, M. eds., 2016. Practicing servant-leadership: Succeeding through trust, bravery, and forgiveness. John Wiley & Sons.

Whorton, K.P., 2014. Does Servant Leadership Positively Influence Employee Engagement?. Grand Canyon University.

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