Management Case Study: Starbucks

Part 1 - Discussion Questions

Part 1
Discussion Questions

1. What management skills do you think would have been most important for Howard Schultz to have? Why? What skills do you think would be most important for a Starbucks store manager to have? Why?

2. Choose two of the current trends and issues facing managers, and explain how Starbucks might be impacted. What might be the implications for first-line managers? Middle managers? Top managers?

3. Look at Howard Schultz’s philosophy of Starbucks. How will this affect the way the company is managed? Do you think Howard Schultz viewed his role more from the omnipotent or from the symbolic perspective? Explain.

4. What has made Starbucks’s culture what it is? How is that culture maintained? Does Starbucks encourage a customer-responsive culture? An ethical culture? Explain.

5. What types of global economic and legal-political issues might Starbucks face as it does business globally? You’re responsible for developing a global cultural awareness program for Starbucks’s executives who are leading the company’s international expansion efforts. Describe what you think will be important for these executives to know.

6. How does Starbucks manage diversity? What is Starbucks doing to manage diversity in each of the areas of customers, suppliers, partners, and communities? With more than 254 000 partners worldwide, what challenges would Starbucks face in making sure its diversity values are practiced and adhered to?

7. Would you classify Starbucks’s environment as more calm waters or white-water rapids? Explain. How does the company manage change in this type of environment?

Part 2
Discussion Questions

1. Discuss the types of growth strategies that Starbucks has used. Be specific. What competitive advantages do you think Starbucks has? What will it have to do to maintain those advantages?

2. What companies might be good benchmarks for Starbucks? Why? What companies might want to benchmark Starbucks? Why?

3. Describe how the following Starbucks managers might use forecasting, budgeting, and scheduling (be specific): (a) a retail store manager; (b) a regional marketing manager; (c) the manager for global development; and (d) the CEO.

4. What ethical and social responsibility issues can you see with Starbucks’s decision to sell alcohol after 4:00 p.m.? Think in terms of the various stakeholders and how those stakeholders might respond to this strategy.

Part 3
Discussion Questions

1. Do you think it’s a good idea to have a president for the Canadian division and for the other international divisions? What are the advantages of such an arrangement? Disadvantages?

2. Starbucks has said that it wants people who are “adaptable, self-motivated, passionate, and creative team players.” How does the company ensure that its hiring and selection process identifies those kinds of people?

3. Select one of the job openings posted on the company’s website. Do you think the job description and job specification for this job are adequate? Why or why not? What changes might you suggest?

4. Pretend that you’re a local Starbucks store manager. You have three new hourly partners (baristas) joining your team. Describe the orientation you would provide these new hires.

Part 4
Discussion Questions

1. As Starbucks continues to expand globally, what factors might affect partner responses on a partner view survey? What are the implications for managers?

2. Look at the description of the types of people Starbucks seeks. What individual behaviour issues might arise in managing these types of people? (Think in terms of attitudes, personality, etc.) What work team issues might arise? (Think in terms of what makes teams successful. Hint: Can a person be self-motivated and passionate and be a good team player?)

3. Describe in your own words the workplace environment Starbucks has tried to create. What impact might such an environment have on motivating employees?

4. Howard Schultz says, “We all want the same thing as people—to be respected and valued as employees and appreciated as customers.” Does the company respect and value its partners (employees)? Explain. What do you think this implies for its employee relationships?

5. Describe Howard Schultz’s leadership style. Would his approach be appropriate in other types of organizations? Why or why not? Do you agree that leadership succession planning is important? Why or why not?