Starbucks faces substantial problems caused by the recent economic recession Essay
Today, Starbucks pays a lot of attention to its market expansion and improvement its competitive position in the market. In actuality, Starbucks faces substantial problems caused by the recent economic recession. Nevertheless, the company attempts to recover and take the leading position in the market. In this regard, the company should focus on the development of its key systems and organizational style.
On analyzing the key systems of Starbucks, it is possible to refer to the following study: Reese, J. (December 9, 1996). “Starbucks,” Fortune. This study focuses on the development of such key systems of Starbucks as human resource management and company-customer relationships. The author argues that human resources are crucial for the provision of customers of the company with services and products of the high quality. As a result, the effective human resource management leads to the formation of a positive public image of the company. In such a situation, Starbucks can benefit from its positive company-customer relationships. In addition, the author places emphasis on the fact that the company attempts to maintain the positive image of its brand, which is renowned nationwide and due to its popularity Starbucks attempts to expand its market share. At any rate, the renowned brand facilitates the penetration of new markets and the expansion of the company’s market share.
Loannau, L. (May 5, 1998). “King Bean,” Fortune. The author of the article discusses the problem of the products’ quality and quality management as one of the key systems in Starbucks. The author of the article argues that Starbucks has always been concerned with the quality of its products and services, whereas today the role of the quality of products and services has increased even more. In such a situation, the company can develop its quality management to enhance its position in the market and to improve its organizational performance. In actuality, the company uses its quality management to maintain its competitive position in the market and positive brand image.
At the same time the organization’s style is as important as key systems of Starbucks. At this point, it is possible o refer to Daniels, C. (March 30, 2003). “Mr. Coffee,” Fortune. Thus article explores the management style used by Starbucks. The author of the article attempts to trace the development and evolution of the management style of the company to understand its current policies and position in the market as well as the company-customer relationships. The author arrives to the conclusion that Starbucks used the flexible organizational style, characterized by democratic relationships and loyalty to the brand, to maximize the effectiveness of its organizational performance.
Finally, it is important to dwell upon Patsuris, P. (April 25, 2003). “Can Starbucks Get It Wholesale?” Forbes. This article analyzes the current development of Starbucks and its attempts to develop wholesale. The author argues that the shift toward wholesale will need the change of the organizational style and Starbucks has come unprepared for such change. As a result, the author is quite skeptical about attempts of Starbucks to shift to wholesale.
