Leadership Theories and Organizational Benefits for Aspiring Leaders at Starbucks

This report discusses the systemic understanding of leadership theories and their benefits for aspiring leaders at Starbucks. It also explores the importance of creating a mission and vision for the organization and the role of leadership in maximizing potential. Additionally, it analyzes Kevin Johnson's leadership style and the challenges associated with practicing servant leadership in a volatile environment. The report concludes with recommendations for Johnson to maintain Starbucks' sustainability and competitive advantage.

Starbucks

Table of Contents
INTRODUCTION...........................................................................................................................4
Main body........................................................................................................................................4
TASK 2.1................................................................................................................................4
Reflective Report.............................................................................................................................4
Why there is a systemic understanding of leadership theories and organisations beneficial for
aspiring leaders?.....................................................................................................................4
Why there is importance of creating mission and vision for the organisation and it is essential
for inspiring leaders?..............................................................................................................5
3 Apply the appropriate leadership in order to maximize the potential in the context of
organisation?...........................................................................................................................6
4 Identify different range of theory in the form of organisation context?..............................6
5 Complete the potential leadership style...............................................................................7
Potential leadership style........................................................................................................8
Key strengths..........................................................................................................................8
Key challenges........................................................................................................................9
Personal development in order to develop the leadership ability...........................................9
TASK 2.2..............................................................................................................................10
A management Report...................................................................................................................10
Overview..............................................................................................................................10
b) The overview of the servant leadership style and the challenges associated with practising it
in the volatile, uncertain, complex and ambiguous in the environment...............................10
c) Effectively analyse the Kevin Johnson’s leadership style focusing on Starbucks improved
financial performance, its ethical challenges........................................................................11
D) Why does Johnson have such a strong personal brand as an effective global leader?....12
e) Provide two recommendations as to what you believe Johnson could do to build on his
current success and maintain Starbucks sustainability and competitive advantage.............13

f) A short conclusion expressing your view as to whether Johnson is an effective role model
for aspiring leaders...............................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Leadership is the art of motivating the people and the group of people achieving the
common goal. In the business there must be effective leadership techniques which help in
developing positive environment in the organisation and improve the efficiency of the individual
(Gino 2019). Along with this the role of the leader is to inspire the employees and shows them
the right path to action effectively. It requires the traits as well as the management duty for
leaders to involve in communication, inspire and supervise the employees effectively. The
present report is based upon Starbucks is an Americana coffee company and the coffee house
chain. Organisation was founded in Seattle Washington in the year 1971. The company is
currently operating in the different parts of the world and have 30000 employees working for the
company. In addition to this, this report is classified in two parts, as first part covers the
understanding of leadership theories and their capabilities that are useful in contributing within
an organisation. It also depicts the competence that is useful in applying the suitable leadership
strategies and also describes the motivational theories. In addition to this, second part covers the
highlight of servant leadership and also the critical evaluation of Kevin Johnson’s leadership in
the company. Along with this, it also describes the prominent reasons by which individuals have
strong personal brand with suitable recommendations.
Main body
TASK 2.1
Reflective Report
Why there is a systemic understanding of leadership theories and organisations beneficial for
aspiring leaders?
a) What are the two fundamental question the leaders need to ask themselves?
The two fundamental question which should asked by the leader are they taking doing
their job with full responsibility and are they really inspiring people.
b) Two aspect of leadership?
The two important aspects for the leaders are they must be ethical and they must be good
initiator for inspiring people.
c) What is a leadership theory.

The leadership theory is categorised by the aspect to define the leaders effectively. There
are different kind of leadership theory such as Trait theory, contingency theory and many more.
d) Name two very different leadership styles that are appropriate for the current volatile
environment.
For the volatile environment the Transactional and Transformational theories are useful
for making quality decision.
e) Why do aspiring leaders need an in-depth understanding of a range of leadership styles?
The in depth knowledge help in providing detail information regarding the problems and
solution can be more effectively for the firm and also for the employees.
Why there is importance of creating mission and vision for the organisation and it is essential
for inspiring leaders?
a) what are organisational mission and vision?
The mission of the Starbucks is to provide quality services to the people and vision of the
company is to become one of the largest leading company in coming five years.
b) What contribution do individuals typically make in executing the mission and vision?
The company must provide the quality service and work hard in order to execute the
mission and vision effectively. There must be set goal and leaders should make sure that all the
employees are working towards accomplishing the goal.
c) Contribution do leaders typically make in executing the mission and vision?
They usually aid in providing path to the employees and correct them if they are heading
towards wrong direction. Their main role is to assist staff and motivate them in achieve the
common goal for the company.
d) What contribution do stakeholders typically make in executing the mission and vision?
Stake holder plays a vital role in developing trust and investing money which help
Starbucks in achieving common goal and objective. There role is essential as they are consider as
the backbone of the firm and take effective decision in full filling the objectives of the company.
e) Why do aspiring leaders need to be able to evaluate the contributions of the above?
The aspiring leaders should be passionate and able to make effectively decision for the
betterment of the organisation. However the main role of leaders is to identify the ability of the
individual and offer them role as per there capabilities which leads towards expansion and
growth.

3 Apply the appropriate leadership in order to maximize the potential in the context of
organisation?
a) What is a leadership strategy? Kay, M.J., 2019.
The leadership strategies are essential as it help in influencing and encourage people for
growth and achieve common goal. There is different kind of leadership strategies such as
encourage the recognition and provide vision to the company.
b) What is change leadership?
This is the ability to influence and motivate other people through various goals and
objective. Furthermore this allows leaders to build the solid platform for the change and often
help in making successful change in the future.
c) What is organisational potential?
This mainly refers to the capability and ability to perform effectively and provide high
quality services to the consumers. This also can be taken as maintaining the demand and the
supply present in the market.
d) What is a business context?
A business context is the method which describes the vocabulary and it may be in the
regarding of the organisation or as the larger business community.
e) Why do aspiring leaders need to understand a broad range of leadership strategies that
can be applied in in a variety of different business contexts?
It is essential to understand the broad range of leadership as it help the employees to
provide the motivation along with the guidance to supervise the employees and also guide them
for their respective task.
4 Identify different range of theory in the form of organisation context?
a) What is a motivation theory?
This is the theory which drives individual to work towards their goals and outcomes. The
organisation emphasis on the theory because it leads towards productivity and economic use of
resource
b) What are the two categories of motivational theories?
The major categories of this theory are content theory and process theory which help
organisation to separate them as per their requirement and needs.
c) What is the contemporary term for employee motivation?

The contemporary term for the employee motivation is equity theory which is based upon
the perception and how individual is treated within the organisation.
d) What is the ‘appreciative inquiry technique’?
Appreciative inquiry technique is the change management process which focus on
identifying the factor what is going well and there is some modification require.
e) Why do aspiring leaders need to be able to critically evaluate a range of motivational
theories within a specific organisational context?
In the case of Starbucks this essential for the leaders to critically evaluation the different
range of motivational theory as there are different kind of theories so the leaders have to identify
the best motivation theory for the company. This help in making effectively decision and
improve the quality of the work.
5 Complete the potential leadership style

Potential leadership style
Key strengths

Key challenges
Personal development in order to develop the leadership ability

TASK 2.2
A management Report
Overview
The present report is based upon the Starbucks which serve coffee and other products to
the consumers. The main purpose of this report is to provide the insight regarding the Kevin
Johnson leadership style as he is the current CEO of the company. He was gratitude from the
New Mexico state university with the bachelor degree in the business. Johnson was appointed as
the as the national security Telecommunication advisory committee (Mooring 2019). During the
first week of the CEO as was curious about the financial problems of the company and he tackle
the problems effectively and try to solve various issues present in the organisation. Since them
the company have achieved the quarterly growth of 5% and organisation is offering high quality
coffee with relevantly low price. Johnson is taking more relationally measure approach and
opening reserve and roaster store for improving the experience of the customers.
The company have the approach to become more financial discipline to the business and
return more cash for the shareholders. He is also continuously working to improve the customer
service pushing the company to develop more innovative approach in offering beverages and try
to reach in china. The efforts of Johnson are showing the progress and they have earned lots of
profit and also tacking there records for making changes effectively. The company is currently
evolving to offer the healthier choice and offer different kinds of food so that they can offer
better products to the consumers. Along with this are also trying to provide sugar free products
as customers have become more health conscious.
b) The overview of the servant leadership style and the challenges associated with practising it in
the volatile, uncertain, complex and ambiguous in the environment.
The leadership style is the method of providing, implementation of the plan as well as
motivating the people to work upon the common goal. By considering the leadership that is
followed by Starbucks is servant leader as it is a philosophy in which the leader offer its services
to the company rather than dictating the whole unit. In addition to this, it is quite different from
the other leadership style as in this the focus of leader is to thrive the company in suitable
manner. For this, servant leadership is a concept in which the whole interest and requirements of
the prominent and respective followers are considered ahead of by the leader for their own self of

interest and needs. In addition to this, it depicts the suitable values of enhancement of followers
that is helpful in developing the communities and also shares their prominent powers and
authority. It is considered as the most appropriate approach in which the managers and leaders
develop their working and potential of company in bid to work and provide their services for
company. Along with this, this leadership also contributes towards the growth and success of
working environment as it follows the individuals and also foster company by motivating other
employees as well.
Challenges associated with the leadership:
Starbucks have seen slow the slow growth rate over the past year as comparable sales
have fallen down all across the globe. The company itself have seen the minimum growth rate in
U.S in recent years. Here are some challenges which Johnson must address in order to be
successful:
Mobile order and pay: The Starbucks latest report have unique complaint from the
customers as the company is not providing Mobile order & pay service as this become the
essential part of the day to day life. This method allows customers to take order remotely and
pick up the respective order on the time on their arrival. Since then Starbucks is experimenting
with the counter stations and display the mobile orders so the customers can easily grab them
without wasting time.
Food: Food has been challenge for the Starbucks for the longer time period. Over the
passage of time the company have overhauled its food menu different times as to satisfy the
consumers effectively. In this case Johnson have to proper research on the changing demand of
the customers and try to offer services to improve the performance of the company. In the recent
meeting Johnson have reviled that there will be lunch time menu which is called Mercato to grab
salads and sandwiches.
c) Effectively analyse the Kevin Johnson’s leadership style focusing on Starbucks improved
financial performance, its ethical challenges
The leadership style is essential for the company as this help in achieving the
organisation goals for the company in the well define manner. The leaders must have different
qualities as it help management to work effectively to achieve the desire goal effectively. This
pull out the performance and also help in developing suitable business model for the company.
Currently Kevin Johnson leadership style is servant leadership in which he serves himself for

the success and growth of company. In this, employees have no leverage in taking decision.
Johnson joined Starbucks in year 2009 serving the company board of directors and since there
has been record setting transformation as well as growth. He is currently responsible for
operating globally and focusing on improving the performance of the company.
Starbucks financial problems
The company have been under pressure as there is increasing crowded coffee market. As
the firm have seen low profit growth in last year (Liu 2019). The organisation have closed all
379Teavana stores in the U.S as they were underperform and they have acquire the Atlanta base
tea seller in Teavana group. In the recent report the company is said that there expected sales will
grow by 2 to 3% but the business analytic Matthew DiFrisco has said that he believes the new
target is still somewhat optimistic. Investors dumped the shares of Starbucks as the coffee giant
reported the down fall in the first quarter . The other company like Mc Cafe which is a coffee
provided by the McDonald's are growing their sales as they are providing lower cost coffee to
their products. The company is moving towards the assets light, cash generating model as they
are facing low sales and unable to make profit.
Ethical challenges:
There are different activities which company have faced and there were some ethical
challenges which are faced by the company are explained briefly.
On the April 13 2018 two people where waiting outside Starbucks the staff member
became suspicious and call the police when they ordering the food ad drink. In the result they
were arrested and were realised after the 8 hours of the custody. Regarding this situation they
inform the new channels about the incident and as they face racial discrimination in the
Starbucks. In reaction to this situation the CEO of the company Johnson quickly responds and
offer and apology on the twitter. There were strict action taken and company close its 8000
stores in the U.S to conduct the racial – bias education in order to prevent the racial
discrimination in the stores. The training will be provided to 175000 employees across the
country and make sure that this racial discrimination may not occur in future.
D) Why does Johnson have such a strong personal brand as an effective global leader?
A personal brand is the unique combination of skills and the experience which makes you
who are you. The personal brand is more effectively as this is consider as the face of the
company. Effectively personal branding will aid in differentiate the person from the other

competitors as this allow to build trust and in the market as well as for employees. It is essential
for the company to encourage the employees and develop healthy relationship with customers as
this beneficial for the company (Kay 2019). Mr. Johnson is working with Starbucks from 2009
and managed to create brand name in the market. He have signed 1.7 billion deals with the
Nestle in order to capture large market share. The aggressive decision taken by him developed
the brand image of his and the company. The company is recently going to open 1000 reserve
stores as this is possible with the new leaders as they have clear mission and vision regarding the
company.
The perfect example for the personal brand is when the video of two black men being
arrested because employee have called the police. In the response the Johnson immediate
responds and made a apology for the inconvenience caused by the employees. This develop the
brand image for the CEO in the public as this is essential to make profit and expand the business.
His response was personal, swift and concrete and he fired the employee who called the police
and agreed to settle to close the stores for making strict actions. This proves that he is a global
leader and become the inspiration for many people.
e) Provide two recommendations as to what you believe Johnson could do to build on his current
success and maintain Starbucks sustainability and competitive advantage.
For building strong sustainable business model firm have to make effectively decision
which is essential for gaining competitive advantages. Johnson must include marketing mix at
the different stages as this help in understanding the current market scenario as this will help in
making effective decision and also provide better coffee to the consumers. Here are two
recommendations for Starbucks as in the detail manner:
 In the terms of marketing the company have to re position itself due to the cultural
conflict in the resistance to the emerging trends of the market. Due to this policy the
company have build healthy relationship with their customers so that effectively
measures can be taken to overcome the racial discrimination problem. Along with this
company must use new and innovative solution to provide better services and improve
the quality of the product so that effective measures can be taken for making profit.
 It is essential for the company to have product advertisement in order to meet the cultural
difference. Beside this company can use non standardized promotion strategies of the
advertisement and counter the specific culture. This is helping Starbucks to offer better

and improved services for the betterment and growth. The company must use license and
franchises venture strategies as this help to capture the larger market share in shorter time
span. The firm can use competitive advantages strategies as this will aid in finding out the
best possible solution to overcome the hurdles and allow them to improve the service in
the well define manner.
f) A short conclusion expressing your view as to whether Johnson is an effective role model for
aspiring leaders.
Kevin Johnson, CEO of the Starbucks recently found him in the situation where he have
to take very importation decision regarding the company. He can be the role model for many of
the people has he have taken a non defensive attitude towards the organisation and set the
example for the other people to take effective decision and not to take step back in the hard time.
Mr. Johnson is have the personality of effective listening as this help in developing skills which
is essential for the company to provide better path towards success.
Apologize is another quality in Mr. Johnson as this is the sign of good leadership. A CEO
have to think virtually all workplace culture problems start at the top, and that culture must be
redesigned from the top down. As the leader it is the responsibility of the individual to have
proper feedback from the employees and take immediate action as this help in reducing the risk
for the company. Along with this it is essential to widely publicize the commitment as Mr.
Johnson has done. This shows the sense of responsibility towards the company and the leader
can be successful in making trust in the minds of customers for the longer time period.
CONCLUSION
From the above mentioned report it has been conclude that the good leadership can make
company great and help in creating goodwill in the market. Along with this, it is essential to
develop the global brand image so that company can make profit. This important of the company
to have different kind of leadership style as this will aid the improving the performance of the
company effectively and assist in delivering better service to the consumer. The existing
economic situations which are contributing to its slouch market share should be keenly observed
and noticed so that in future Co can stimulate it and make it brand strong and preferable choice
for its customers. This will help organisation to capture larger market share for the greater time
span.

REFERENCES
Books and Journals
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