Starbucks

ORGANIZATIONAL BEHAVIOR

Case Study : Balancing Culture and Growth at Starbucks

ORGANIZATIONAL BEHAVIOR

Case Study : Balancing Culture Growth at Starbucks

SCHULTZ 'S PERCEPTIONS ANALYSIS

Howard Schultz used the word onward ' to finish his memo this could be perceived to denote that Schultz wanted the employees of Starbucks to continue putting in the hard work and determination they did in performing their jobs and help in reinstating the organizational culture

Schultz felt a change was required in the organizational culture , the immense growth of the organization had somewhat overshadowed the

organizational culture , the organization drifted away from its core focuses and rather started emphasizing on expansion and productivity . He felt that this would negatively affect the values and perceptions customers place with Starbucks and will result in lower customer value or satisfaction . As Howard Schultz mentioned in his Valentine Day 's memo , the uniqueness of Starbucks lied in providing its customers with the feel and atmosphere of a Third Place , the first being `home ' and the second being `work but the organization seemed to have lost its focus on these and although it expanded rapidly with profits soaring each year but it seemed to have become more than a department store where commodities are just provided to the customer without much stress on atmosphere and other intangible features or non-verbal signs

THE NEED FOR AND FORCES WHICH DRIVE CHANGE

Schultz was clever to identify that there was a change needed in the organizational culture before it was too late , he analyzed the need for the change before it showed up through any decline or deterioration depicted in the organization 's financial sheets . There are different types of forces internal and external which drive change . External forces are those forces which do not originate within the organization but has an impact on the organization , its activities and /or its culture . On the other hand , internal forces are forces originating within the organization and affecting the organization 's culture activities and performance

In this case , the external forces could be the technological advancements , the automation of the processes , the new coffee machines installed , the changes in the market , impact of competitors and global competition . The internal forces could be unmet needs or lost focuses of the organization , restructuring of the organization , executive decisions and behaviors and productivity

The type of change Schultz wanted to implement in the organization can be termed as `Adaptive Change ' which is the reintroduction of a familiar tradition or practices in the organization . This is so because previously the organization 's focus and point of differentiation was based on providing the ecstatic feel and comfort to its customers rather than providing them with just superior quality coffee , biscuits etc These type of changes are relatively lower in cost , complexity uncertainty /risky and are likely to face a lower level of criticism and resistance from its employees than compared to changes where a practice new to organization or industry is involved

However , effective leadership and quality skills are required to successfully...