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Apple P.

Revilla PhD-IHM Student


Leadership in Global Management

Leadership Development: The Case of Starbucks

1. Viewpoint: CEO

2. Time Context: 2010

3. Statement of the Problem (Situation):

With the slowdown of business, how can Starbucks ensure that the

importance of leadership development does not overlooked?

4. Objectives:

Short Range Objectives: To give all employees the opportunities to come

forward and show their abilities for the company in everyday operations.

Long Range Objectives: To boost employee commitment and maintain low

employee turnover.

5. SWOT

Strengths Weaknesses
- Number 1 coffee chain in the - The company is mainly
world dependent upon coffee
- Consistent in providing great related products, and need to
taste and services diversify
- High earning organization. - Starbucks marketing is very
Fiscal first quarter profit weak, because company only
soared to $241.5 million, 4% relies upon the word of mouth
higher with the same period and never concentrated on
last year (CNN, 2010 January advertisements and other
20) promotional activities.
- Caramel Brulee Latte was
launced, lifting beverage
sales by 30% (CNN, 2010
January 20).
- Educated workforce with high
satisfaction level
- Offer benefits for part-time
and full-time employees and
higher than average salaries

Opportunities Threats
- Starbucks has the - No one knows if the company
opportunity to enter in the for coffee will grow or stay in
market segment of South favor our consuming
Africa and Hungary. customers
- More co-branding with - Starbucks can be affected
different food and beverage with the rise in cost of coffee
chains and dairy goods
- Introducing new products in - Starbucks’ achievement has
existing cafes to diversify the escort to the market entry of
menu many competitors and copy-
cat brands that pose possible
threats.
- Threats from terrorist attacks.

6. Alternative Courses of Action

a. Continue to train employees about leadership development in quarterly

basis.

b. Treat employees as if they were our partner in the business by

empowering them to share in creating solutions to all the challenges

encountered by the company and to offer a dynamic place to work.

c. Continue to offer the good benefits to the part-time and full-time

employees while maintaining high satisfaction evaluation.

7. Recommendation

I therefore recommend to treat the employees as if they were our

partner in the business by empowering them to share in creating solutions


to all the challenges encountered by the company and continuously offer a

dynamic place to work.

8. Conclusion

Approach: Giving employees empowerment

Deployment: Provide better environment, involve them in decision making,

communicate to the employees the vision by briefing and debriefing them

every day. Keep employee's benefits and create any good conditions to

maximize their potential ability.

Learning: Employee assessment and evaluation, peer evaluation, productivity

in work

Integration and alignment: Rectify the policy

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