Leadership in Business Organisations

This document provides an in-depth understanding of leadership in business organisations. It covers topics such as key aspects of leadership, different leadership styles, leadership strategies, motivation theories, servant leadership, and a critical evaluation of Kevin Johnson's leadership at Starbucks.

LEADING BUSINESS
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................5
PART 1............................................................................................................................................5
QUESTION 1...................................................................................................................................5
Fundamental questions................................................................................................................5
Key aspects of leadership............................................................................................................6
Leadership style..........................................................................................................................6
Different leadership styles...........................................................................................................6
Understanding of leadership approaches....................................................................................6
QUESTION 2...................................................................................................................................6
Organisational mission and vision .............................................................................................6
Contribution of individuals do in executing the mission and vision...........................................7
Contribution of leaders ...............................................................................................................7
Contribution of stakeholders.......................................................................................................7
Evaluation of above contribution................................................................................................7
QUESTION 3...................................................................................................................................7
Leadership strategy.....................................................................................................................7
Change leadership.......................................................................................................................7
Organisational potential..............................................................................................................8
Business context..........................................................................................................................8
Broad range of leadership strategies...........................................................................................8
QUESTION 4...................................................................................................................................8
Motivation theory........................................................................................................................8
Categories of motivational theories............................................................................................8
Contemporary term for employee motivation.............................................................................9
Appreciative inquiry technique...................................................................................................9

Evaluation of motivational theories ...........................................................................................9
QUESTION 5 ..................................................................................................................................9
Potential leadership style.............................................................................................................9
Key strengths...............................................................................................................................9
Key challenges..........................................................................................................................10
Personal development in order to develop the leadership ability.............................................10
PART 2..........................................................................................................................................10
Servant leadership.....................................................................................................................10
Critical evaluation of KJ's leadership........................................................................................11
Kevin Johnson's personal brand................................................................................................13
Recommendations.....................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Leadership is a process which is useful in order to guide, direct and influence the
behaviour of their subordinates in order to accomplish the specific goals and objectives. It is the
ability of a manager which helps in order to induce their workforce to work with the proper
confidence and zeal (Rosenbach, 2018). Business organisation depicts the structure of an
organisation as it helps in meeting the goals and objectives. In other terms, businesses are
designed which put emphasis on generating the profits which helps in the improvement of
society. There are mainly two types of business organisations first one is for profit which focuses
on earning more and more profit and the other one is not for profit which put emphasis on the
improving the social services and provide welfare services to general public.
In order to regulate in the environment, businesses need some legal configuration which
is used in order to define the rights and liabilities in the ownership of business. This report is in
the context of Starbucks which is a coffee shop and runs by Kevin Johnson who is the CEO of
Starbucks. This report is going to cover the systematic understanding of leadership theories and
its abilities which is used in order to contributing in an organisation. Moreover, describe an
ability to apply appropriate leadership strategies. Also evaluate motivational theories and
complete the Potential leadership style. It also describe the servant leadership and also describe
the Kevin Johnson's leadership strategy. It also going to describe that why Johnson have such
personal brand as an effective global leader. Moreover, it also provide recommendations in order
to build current success and maintain the sustainability of Starbucks competitive advantage.

PART 1
QUESTION 1
Fundamental questions
Various questions which leader need to ask from itself in order to develop the
profitability and performance of employees.
 What kind of data does a leader have in order to develop a plan or strategies?
 Does a leader have innovative and organising skills in order to develop products and
encourage employees?
Key aspects of leadership
The various key aspects of leadership as discussed as under:
 A leader should be honest in order to explain and encourage their employees about the
assigned work (Bush, Bell and Middlewood, 2019).
 Leader should be creative in order to deal with the critical situations and hence by this,
they come up with the stable and innovative solution.
Leadership style
It is an approach which is used in order to provide guidance, direction, implementation of
plan and also helps in motivating people (Cummings and et al., 2018). The leadership style put
emphasis on the behaviour and traits of leaders which helps them in order to become a great
leader and helps in achieving the success and growth.
Different leadership styles
 Autocratic: Under this style, the power and authority is in the hands of leaders and they
give instructions to their follower. Here, the opinion of subordinates does not matter.
 Democratic: Here, leaders involve their team members and subordinates in the decision
making process and managerial functions by which employees feel that they are
important for an organisation (Gandolfi and Stone, 2018).
Understanding of leadership approaches
Leadership styles are important in an organisation as it is helpful for the leaders in order
to survive in the dynamic business environment and from this leaders understand that how to

analysis the various situations. Analysis of situation is important for leaders because it helps in
developing their decision making skills.
QUESTION 2
Organisational mission and vision
Vision statement is used in order to describe the desired position which is required by the
company. Moreover, mission statement refers to the goals and strategies which is used in order
to achieve the success for business (Slater and Mizon, 2018). Both the mission and vision are
combined in order to make a statement which describes the purpose and values of company.
Contribution of individuals do in executing the mission and vision
In order to execute the mission and vision in an organisation, an individual need to follow
the instructions of their supervisors and apart from this, they also need to use their innovative
ideas and creativity in order to accomplish their assigned task.
Contribution of leaders
Leaders are the important key element which is helpful in order to provide guidance and
motivate the workforces which is useful in order to accomplish goals and objectives. Moreover,
also contribute in order to makes plans and policies which helps in achieving the desired
outcome. Additionally, they are also useful in order to build and boost morale of employees
(Xiong and et.al., 2018).
Contribution of stakeholders
Stakeholders are the main aspect of company and also influence the working environment
and condition of an organisation. Stakeholders are relies under the internal and external
environment. They contribute in increasing the sales and revenues of an organisation and they
are the large investors of the company.
Evaluation of above contribution
It is evaluated that individuals, leaders and stakeholders are the main element of an
organisation which helps in contributing in the success and growth of an organisation. They all
are helpful in the decision making of an organisation. As stakeholders are the one who is
responsible for the ups and down in stake within the company.

QUESTION 3
Leadership strategy
It refers to the potential of leaders in order to express the strategic vision and mission for
an organisation and make various strategies in order to motivate and persuade their subordinates
to accomplish the vision (Eva and et. al., 2018). In the context of leader, they should make
appropriate strategies in order to influence their workforce.
Change leadership
It is a kind of strategy which is used in order to influence and persuade their employees
through their skills, vision and drive and also provide various resources in order to develop a
platform which is useful to adopt change in an organisation (Burnes, Hughes and By, 2018). As
while implementing the change, most of the employees resist in order adopting it and then
leaders use this strategy.
Organisational potential
It refers to the effectiveness and efficiency of an organisation which is helpful in order
attains the objectives and goals of an organisation. It is done through the change process which is
used in order to analyse and observe the situation of an organisation.
Business context
The business context is an understanding of the various factors which influences the
businesses and its decisions which are made in order to achieve the goals and objectives of an
organisation (Crane, Matten and Spence, 2019). It is document which is used to track and
monitor the progress of product.
Broad range of leadership strategies
These strategies are used in order to enhance and direct the performance of an individual
as it influences the productivity of an organisation. Therefore, these strategies are used in order
to describe the scope of various functions of an organisation in the different business context.

QUESTION 4
Motivation theory
Motivation theory is used in order to encourage and inspire the employees as it is useful
in order to increase the performance of employees. It describes the various factors which defines
the needs of individuals and also influences the productivity of an organisation.
Categories of motivational theories
 Intrinsic theory: This theory refers to those factors which influences the internal elements
of an organisation. As these are the factors which naturally satisfy the needs of an
individual as by giving the rewards and compensation to employees (Kruglanski and et.
al., 2018).
 Extrinsic theory: It refers to those behaviour which improve the performance of
employees by giving the external rewards such as money, fame, praise and many more.
This type of motivation come from the external environment and induces the mind of
employee to work.
Contemporary term for employee motivation
In order to describe this term “inspiration” is used in order to motivate the employees as
it is a process which includes various aspects and factors to encourage an individual at the
workplace at their proper potential.
Appreciative inquiry technique
It is a change management approach which is used to focus on identifying the working
style and analysing the it in order to improve it (Stavros, Torres and Cooperrider, 2018). It is the
reflection of performance management as it is used to motivate the performance of employees
and identify their problems to convert into the strengths.
Evaluation of motivational theories
Motivation theories are used in order to motivate an individual and also help in
improving the overall performance of an individual and organisation. These theories are used in
order to describe the needs of employees which is useful for an employer because it is the way
by which they get their work done.

QUESTION 5
Potential leadership style
This style is used in order to determine the development actions and put the potential
individuals into key development in order to achieve success for an organisation (Gandolfi and
Stone, 2018). Sometimes, it defines that becoming the more competent in an area in which they
are already working and also consider that taking the new responsibilities of an organisation.
Key strengths
 Teamwork: A leader is the one who is responsible for building, managing and
coordinating a team (Scholl, 2018). It helps in building an effective team which is useful
in order to improve the reputation of company.
 Problem solving: It is a skill which must be present in an individual in order to resolve
the conflicts which are arise at the time of decision making in an organisation and also
avoid the delay in work.
Key challenges
Negotiation skills are those skills which should be present in the every leader and they
should avoid hard conversation with their employees in order to get get things back on the track
(Stutz and Sachs, 2018).
Personal development in order to develop the leadership ability
In order to develop the skills and abilities of a leader they should develop negotiation
skills which is helpful for them in order to increase the reputation of an organisation. It is also
helpful for leader as it also influences their personality.
PART 2
Servant leadership
It is a philosophy in which an individual interacts with each other either in the
management or with their employees with the purpose of achieving authority instead of power.
This system depicts the decentralised structure of an organisation. Here, the main goal of the
leader is to serve for an organisation which is different approach from all the traditional
leadership approaches (Hoch and et. al., 2018). The servant leader shares powers and put the
need of employees first and also helps the people in order to develop them and perform highly as

possible. A passionate servant leader can proudly carries the legacy of Starbucks for the
connection of human in order to drive the company's core strategies for the growth and being of
services. By considering the Kevin Johnson who is the president and CEO of Starbucks and
consider himself as the servant of company. In 2009, Johnson joined Starbucks and provide its
services to the company as he was appointed as the President. Moreover, while talking about the
Howard Schultz who is responsible for the success of business at the global level as well as
responsible for the core support functions such as marketing, human resources, technology and
digital platforms. Currently, Starbucks is using servant leadership which is characteristics by the
behavioural manifestation of the culture of an organisation among the leaders it indulge
corporate and team leaders as they put emphasis on the support for subordinates in order to make
sure that each and every employee grows in an organisation. This approach translates the
approach of employees first as in this leader is the base of company and manages the
management, employees and customers too and this approach complements the democratic
leadership style (Beehner, 2020). It highlights the importance of caring for employees as it is a
way of improving the morale of employees and providing the satisfaction to customers. The
former president of Starbucks developed this feature and adopt that culture in which he believed
that the employees need care which helps in providing more sustainability to their customers.
Critical evaluation of KJ's leadership
Currently, Starbucks is in pressure in order to increase crowded coffee market as
company is continuously achieving the quarterly sales growth of 5% or above in the US as they
miss their targets in 2016. According to their business analysts they suggested that this was the
result of the acceleration of new store openings as comparison to the other coffee shops and also
provide better quality coffee as comparison to their lower priced rivals. In order to increase their
market they opened upscale reserve and roastery stores which is the luxurious coffee shop and
more expensive as they use latest techniques, cocktails and serve artisanal baked goods. For this
Johnson took more measured approach in order to roll out their luxurious stores. These “Reserve
and Roastery Stores” as it is the latest move which is took by Johnson in his two year tenure in
order to bring more financial discipline of their business and by this they return more cash to
their shareholders (CEO Kevin Johnson's leadership style could shape Starbucks, 2020). For this,
company tends to bring more disciplined approach in their priorities as it helps in extended their
business to the general store growth in USA. There are many difficulties that are faced by

company as it is seen in terms of making sure and executing the servant leadership within the
organisation and it is analysed with the help of current volatile, uncertain, complex and
ambiguous (VUCA) environment. Therefore, some of these difficulties and challenges are
discussed as under:
Try to make big changes: While talking about Johnson as when he left Microsoft in
order to lead Juniper Networks as at time the economy of US was worst and country was facing
crises. By this it was clear that in order to survive that big changes are important in order to take
organisation to the next level. This change style was used by the Johnson in order to handle
unexpected changes. This factor describes that the Johnson invest its time in order to connect
with people and make effective team which include employees, key customers, investors,
partners and directors. Moreover, he introduces changes as per the requirement of their
employees and their adoption criteria.
Prioritises employees: By considering the leadership of Johnson he always give more
priorities to their employees as it help them in boosting their morale and also increasing the
overall performance of employees (CEO Kevin Johnson's leadership style could shape
Starbucks, 2020). He did this by engaging more and more employees in work in order to
encourage them and make the important part of company in order to achieve growth and success.
This approach is very open minded and in order to encourage to become more professional,
innovative and collaborative.
Technology is the important part of business: In order to set up their business and
expand itself in new market it is important to take technology in its side as it becomes easy to
regulate business with the help of technology (CEO Kevin Johnson's leadership style could
shape Starbucks, 2020). But his leadership plays an important role in marketing and sales as it is
concerned with the tech focused teams in order to show the important of technology which helps
in the growth of business. Moreover, technology helps in in the research and development and to
see the sequence in order to take decisions and actions.
Positive and Negative impact of Kevin Johnson's Leadership Style:
Positive: Decisions are based on the benefits: By considering this leadership style, the leaders
take decisions in the context of their teams and employees as servant leadership include
the entire organisation. As by considering the employees and teams, decisions should be

made for the benefit of them as they are the important factor which helps in improving
the overall performance (Johnson, K.J and et. al., 2018). Servant leadership put positive
impact on the performance of employees as in this employees leaders manage the
management, employees and customers too. Encourage empathy: As per this leadership it put positive impact on the performance of
employees as when leaders take decisions in this kind of environment or by considering
the conditions of their employees. Furthermore, it allows that leaders can refuse the
requests if it does not beneficial for each and every employee or when employees are not
feeling comfortable the change. People grow in servant leadership environment: This leadership put positive impact on
the performance of employees as in this style employees grow and learn new things.
Moreover, they also think that they have support in order to grow in the business
environment (Williams, E.A and et. al., 2018). This style is beneficial in order to improve
the overall performance of employees and by adopting this company can retain their
talented employees as it helps in order to increase the productivity of company.
Negative: Decisions take longer to be made: It put negative impact on the decision making as in
servant leadership decision are made by considering the benefits of all employees and it
took much time in order to take decisions as decisions are taken by considering the
perspective of different people (Painter-Morland and et. al., 2016). Moreover, it slows
down the implementation process and also become costly from the view post of revenue. It require retraining: In order to become a servant leader it require more and more time
and training as it is not easy to serve services without considering own profit. To circulate
in this type of environment the leaders need to spend more time and money as it helps in
retraining their employees in order to become a servant leader and also helps in thinking
in such a way. Role of leader is lessened: In this leadership style, it put negative impact on the personal
life of employees as they get less time for their personal life and also deemed that the
request is self serving. As in this style, leaders become more frustrated and irritate in
order to serve for the society.
Ethical Considerations:

Response to the racial discrimination incident:
Before sometime ago, two 23 year old black men were sitting in Starbucks in
Philadelphia and were waiting for their friend. After sometime, when they does not order any
food or drink staff members became suspicious and called police and as a result both of them get
arrested on suspicion of trespassing but somehow get released without charge after eight hours in
custody. Then they told ABC correspondent that they never been asked to leave the cafe by any
of the staff member of the Starbucks before being arrested which become trending and video of
the arrest was released and went viral. For this act, Johnson was very quick to respond and
immediately took apology on twitter and make extensive plan to deliver implicit bias training to
their employees as soon as possible.
Kevin Johnson's personal brand
Johnson have such a strong personal brand as an effective global leader by showing its
various management perspective which helps in order to increase their working standards. By
considering the perspective of management, there 70% staff are students as by this company is
surrounded by like-minded or fresh talent workers (Starbucks CEO Kevin Johnson on Work, Joy,
and, Yes, Coffee. 2020). As Starbucks is dedicated to the academic and career success of its
employees and also offer tuition coverage to their full and part time employees as they can
choose over 70 online degree programs. Moreover, they make the support team which include
dedicated enrolled counsellor in order to guide the process of joining, success coaches and career
advisors in order to get knowledge around variety of subjects as well. As by this, 80% of the
employees are happy with the leadership of company. By considering the viewpoint of
employees as company tries to sell their products and services in the package to partners as they
does not speak to the younger generation as company offer free knowledge and information with
amazing benefits and also guarantee to provide many options for higher pay or the college
achievement programs.
Recommendations
Starbucks is engaged into a multinational chain from the small scale in order to develop
its process which is inevitable for its superiors in order to communicate with staff when
problems occur. As company has many retail stores in which they serve around 50 million
customers every week and have different types of employees all over the world. For this, the

leaders of Starbucks need to be able to work across a range of businesses, culture and also able to
cope up with different sets of circumstances which they will face.
CONCLUSION
From the preceding information it is concluded that leaders have many responsibilities
such as budgeting, hiring, paperwork and many more. Reflection is necessary as it helps in
analysing the current skills and traits and what measures can take in order to develop these skills.
It is summarised the understanding of systematic leadership and its benefits. Ability in order to
contribute the mission and vision of an organisation and critically evaluate the motivational
theories. Business organisations are the structure in which employees perform their functions in
order to meet goals and objectives. As to attain targets and goals they need proper guidance and
support which helps them in order to increase their overall performance. For this, they require
proper leader and appropriate leadership style. In the context of Starbucks they use Kevin
Johnson's leadership which is servant leadership as it help them in retaining their employees and
also increasing the overall performance of their workforce.

REFERENCES
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Online
CEO Kevin Johnson's leadership style could shape Starbucks. 2020. [Online] Available
through<https://www.cnbc.com/2017/04/03/3-things-you-need-to-know-about-new-
starbucks-ceo-kevin-johnson.html >./
Starbucks CEO Kevin Johnson on Work, Joy, and, Yes, Coffee. 2020. [Online] Available
through< https://hbr.org/2019/09/starbucks-ceo-kevin-johnson-on-work-joy-and-yes-
coffee>./