CASE STUDY/PROJECT REPORT ASSIGNMENT Starbucks’ Growth Destroyed Brand Value Lea

Question

CASE STUDY/PROJECT REPORT ASSIGNMENT

Starbucks’ Growth Destroyed Brand Value

Leadership & Managing People Case

Starbucks announcement that it will close few stores in Saudi Arabia admission of limits to growth.

The founder Howard Schultz recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering wi-fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.

How will you help company to recover and expand its operation in Saudi Arabia. The Company hired you as CEO of Starbucks coffee in Saudi Arabia

Assignment Objectives & Requirements:

2. Identify and describe the four managerial functions that can be applied in Starbucks business in Saudi Arabia. (200 – 300 words)

3. Explain the different types of planning for the different levels of management in Starbucks in KSA. Include the typical time frame for which each plan is created. (200 – 300 words)

4. Discuss different theoretical perspectives about management in context of Starbucks. Give at least three reasons. (100 - 200 words)

5. Conclude your report. (100 – 200 words)

Learning outcomes (On completion of this Project)

1. Necessary functions of a manager.

2. Essential skills and roles good managers need.

3. Challenges managers face in today's business environment.

4. Planning function of management.

5. Planning and strategic management processes for a business.

6. Organization's vision and mission statement in planning.

7. Internal and external environments of a company to determine its competitive advantage.

8. Organizing function of a manager.

Explanation / Answer

As a CEO for Starbucks my first priority will be identifying the stores which are performing well and making sure that these stores should maintain the flagship of Starbucks. Will conduct meeting with the detailed reports from each store managers with key issues responsible for the business.

2. Following managerial functions can be applied in recovering the business at Starbucks:
A) Controlling:
The existing stores are needs to be monitored in terms of all types of costs, employee performances, customer satisfaction ratings. It also involve setting benchmark sales figures for each stores. There has to be some key performance indicators that staff has to follow to maintain overall better quality in stores.
B) Coordination:
Coordination is the most important function which can help to revive the current situation. I will maintain a platform where people can share there success stories to inspire others. All the store managers has to resolve day to day issues by sharing them with each other.
C) Staffing:
Human resource analysis needs to be done for all the stores. One can not afford too much of HR cost when the group is not performing well.
D) Planning:
High level of planing is needed financial, marketing, operational, strategic HR needs to re plan to get over the current situation. This should be bottom up sort of planning not with a top down approach.

3. As a CEO it will be big responsibility to revive the Starbucks which will need scientific planning with less scope for trail and error.
Strategic Planning: As a CEO I will keep keep the current services like free WiFi, Music as it is and will try to build a taste which none other shop can provide.
I will introduce job opportunities to Females in KSA which will not only create a buzz but also attract women of KSA ultimately leading to more customers.
Instead of buying own music I would have did a cultural assessment and included a taste which people of Saudi will like.
Financial Planning: Will not be expanding until we get positive results with current strategies .
Customer Management: For enriching experience the staff will be trained with Saudi Language overall ambience of stores will be kept in theme of historical places of Saudi and also showing the growth of KSA.
Operational Planning: The operational costs can be reduced by closing the stores which are not making profit and shifting the resources to the main stores. Third party assistance is taken instead of owing the entire operations.

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