Strategic Leadership Analysis: Starbucks CEO Kevin Johnson Report

This report provides a comprehensive analysis of Starbucks CEO Kevin Johnson's leadership, examining various aspects such as leadership theories, stakeholder contributions, employee motivation, and personal strengths and weaknesses. The report is divided into two parts: The first part explores key leadership questions, leadership styles (democratic and situational), and motivational theories. The second part focuses on Kevin Johnson's leadership style, particularly his servant leadership approach, and analyzes his strategies in the VUCA environment. The report also discusses the significance of employee and stakeholder roles in achieving the company's mission and vision, highlighting Starbucks' initiatives in customer service, employee treatment, and ethical leadership. Furthermore, the analysis includes an examination of the challenges faced by servant leaders in volatile business conditions and the importance of evaluating motivational theories in the organizational context. Overall, the report provides a detailed overview of Kevin Johnson's leadership and its impact on Starbucks' performance and success.

LEADING BUSINESS
ORGANIZATIONS

INTRODUCTION
Leadership is the one of the factor that play crucial role in success of any company. In the
present research study Starbucks CEO Kevin Johnson leadership is analyzed deeply. Entire
research work is classified in to two parts. In first part leadership, stakeholder’s contribution,
employee motivation and self strengths and weakness are discussed in detail. In second part of
the report, servant leadership style, Kevin leadership style is discussed and in this way entire
research work is carried out.
Part one
(1)
(a) What kind of questions leaders must ask from themselves?
Leaders must ask two questions from themselves which are what kind of culture they
intend to create and what is the mission of the company (Renz, and Herman, 2016).
(b) Two aspects of the leadership
Transparency and learning from failure are the two aspects of the leadership. If any
individual is transparent about its business activities then in that case it wins trust of subordinates
and leads them in better way. On other hand, if one learns from failure then it becomes great
leader.
(c) Define leadership theory?
Leadership theory defined as school of thought who tries to explain traits that one must
have to become a leader or ways in which one must lead subordinates (Bush, Bell and
Middlewood, 2019).
(d) Appropriate leadership style
Democratic and situational leadership style is two styles that are most appropriate in
VUCA business environment. By following both styles one can take advise from multiple HR,
can handle situation in better way and can treat resources according to demand of situation.

(e) Reasons behind requirement of deep knowledge of the leadership style in leaders
It is very important for the leaders to develop broad understanding of varied leadership
styles. This is because all leadership styles have some merits and demerits. Many times anyone
who becomes leader does not have particular leadership style. Deep understanding of range of
leadership styles assist managers in leading organization in better way according to demand of
situation.
(2)
(a) Define long term and short-term targets of the firms
Mission and vision are the one of two important statements that reflects company future
business plans (McCaffery, 2018). Vision refers to what company wants to make it in future
defined time period. On other hand, mission statement reflect step that company intend to take to
make its vision actual in future time period.
(b) Explain significance of the role that varied employees of organization play in successful
execution of mission and vision of the company.
Individuals contribute play a crucial role in executing mission and vision. Employees
work at lower level implement plan at ground level. On other hand, employees worked at middle
level govern activities of those that work at low level and guide them in proper manner. Top
managers prepare plan that ensure achievement of vision in future time period. Thus, in this way
individuals play role in executing mission and vision.
(c) Explain significance of the role that leader of organization play in successful execution
of mission and vision of the company.
Leaders play important role in executing mission and vision because credit of efficient
and effective use of resources goes to the leader (Amanchukwu, Stanley and Ololube., 2015). If
leader is following appropriate leader style then in that case it can lead subordinates in better way
and can achieve vision and mission in proper manner.
(d) Stakeholder’s role in achievement of mission and vision
Stakeholders refer to the entity that has interest on the company. One of the major stake
holders are creditors and shareholders. Former entity provide loan to the firm which help it in
expanding its business at rapid pace. On other hand, shareholders pass proposal in AGM. Thus,

approved proposals determine fate of the company. In this way, both these two stakeholders play
important role in achievement of mission and vision.
(e)Need to evaluate contribution of employees and stakeholders from side of leader of the
organization
Leader needs to evaluate contribution of stakeholders and individuals because these are
those are the engines of the company growth. Without their support no leader can lead
organization in better way. If individuals are not supporting firm in proper manner then in that
case leader need to pay attention on them and need to effectively use them at the workplace
(Hallinger and et.al., 2015). If stakeholders are not supporting organization then leaders can hold
meeting with them and can address issues and by doing so can gain support from them which
will ultimately help firm in achieving vision and mission.
(3)
(a) Define strategic leadership
Strategic leadership refers to the influencing other to make decisions voluntary which
lead to long term organizational success and short term financial stability. Strategic leadership is
also a practice under which executives use varied different styles of management and prepare
vision which pave a path of growth for the firm.
(b) Define change leadership?
Change leader refers to the type of leadership under which main attention is paid on
bringing changes on large scale on organization. Many companies follow change leadership and
under this they completely transform their business.
©What is organizational potential?
Organization potential refers to its capability to make best use of resources in the
business and improving competitiveness in the market (Thorpe, 2016). If firm is advancing on
technology front then in that case it can be assumed that organization have strong potential of
business growth.

(d) Define business context?
Under business context relationship is identified in respect to business problem between
varied business entities. Business problem may be any like it can be in relation to internal
business operations or external business environment. On basis of understanding of relationship
between varied business entities managers make varied business decisions.
(4)
(a) Explain motivation theory?
Motivation theory is basically a concept under which varied factors are given by working
on which managers can motivate employees at the workplace.
(b) What are the two categories of motivational theories?
Content theory and process theory.
©What is the contemporary term for employee motivation?
In current time period most of firms believed that employees must be treated equally
irrespective of their caste, creed, religion and color (Gopee and Galloway, 2017).
(d) Define ‘appreciative inquiry technique’?
Appreciative inquiry technique is one under which focus is on identifying which
alternative is working for the firm and finding out core reason behind its success in the company
business.
(e) Reasons behind requirement to evaluate varied motivational theories by the leader by
considering organizational context?
In every business conditions are different, employees behavior vary from company to
company and due to this reason specific motivational theory need to be selected so that
employees can be motivated in better way at the workplace (Gopee and Galloway, 2017).

(5)
(a) Defining personal leadership style
Leadership style is determined on basis of way in which I treat others, show concerns for
others and extent to which involve other in decisions making process as well as delegating
authority and responsibility at the workplace.
(b) What are your key strengths?
Treating subordinates friendly and equally and disclosing thoughts and feelings to the
group members so that inputs can be received from them.
©What are your key challenges?
Defining role and responsibility for each group member in proper manner at the
workplace.
(d) In order to improve leadership capability which skills you think need improvement.
Analysis capability need to be developed so that in better way idea can be made about
employees strength and weakness and accordingly role and responsibility can be given to them.
Part 2
(a)Short introduction in explaining the content of the report
On comparison of Kevin and his predecessor it can be observed that he is to great extent
different from them. Kevin is more calculative and follows analytical approach then rivals. This
is evident from the fact that Schultz was convinced that initiation of reserve and roastory stores
will place a break of consistent tumbling in business profit. In these stores luxury coffee shops
where baristas would brew more expensive coffee using the latest techniques, serve artisanal
baked goods and even mix cocktails were offered (Cherry and Jacob, 2016). When Johnson
comes he follow more practical approach and under this he set a target and decide that he will
do testing and if think that these stores are generating desired results then in that case these stores
will increased to thousand.
Kevin focused on improving customer service and under this Starbucks open its online
app from people can place an order. Johnson also closed its 379 stores that were acquired from

Teavana due to underperformance. After Johnson took charge financial performance of the
Starbucks improved to great extent. Many people believed that Kevin ethnical leadership is the
main reason behind strong financial performance of the Starbucks. This is indicated from the
below given examples.
Understanding customers’ needs and serving products to them accordingly
From few time period business firm is focusing on improving its business product and
under this it cut sugar quantity by 25% in beverages by 2020. It is also focusing on reducing
sugar quantity by 20% in new syrups. Its baristas will make customers any drink they want from
over 80,000 different drinks combinations available. Starbuck is focusing on innovating its menu
card so that more healthier product can be provided. Starbuck is its bakery portfolio.
Response to racial discrimination incident
Racial discrimination happened with Robinson and Rashon Nilson at Starbuck café. They
do not place any order and due to this reason staff members were suspicious about them. Finally,
staff members called police and both were arrested by corps. Police take them in custody for 8
hours. Both black men place a message on Twitter under specific hashtag. All these things
damage image of Starbucks among people. Kevin responds to such kind of situation immediately
and handle situation in proper manner. Such kind of things create positive image of the café
among people.
Starbucks pay due attention on its employees and under this its 70% employees are those
that are students. Starbucks also provide tuition coverage to its employees that are in college so
that they can be assisted in completion of education. Starbucks have team of counselor which
assists employees in choosing course and University for education purpose. These are the
reasons due to which 77% of its employees recommend company name to their friends. Those
who are working on Starbucks get 30% discount on all food and beverage items. Thus, it can be
said that Starbucks is one of the great place to work.

(b) Detailed analysis of the servant leadership style and problems that leader face in
practicing it VUCA environment.
Servant leadership style is the term that was developed by the Robert K Greenleaf. Under
this philosophy it is believed that most effective leaders always make an attempt to serve others
in proper manner. Under this sort of leadership one does not make an attempt to retain more and
more power. If business conditions are volatile then exactly it becomes hard for the manager to
determine direction in which business will go. Sometimes good condition can be observed but
sometimes bad conditions can be seen in the business. In such situation many entities like
customers and employees etc interest are not served in proper manner. Due to this reason
business failed to receive proper support of the stakeholders. One of the major challenges for the
servant leader in such business condition is that it becomes hard for it to serve interest of varied
stakeholders in proper manner. For example due to recession firm is forced to make price hike so
that profit can be maintained at reasonable level then in that case it become hard for situational
leader to fulfill needs of the customers like making available product at cheaper price in the
market (Hallinger and Chen, 2015). These things are the one of major challenges associated with
servant leadership in such a volatile conditions.
Many times due to volatile conditions firm face heavy loss in its business and try to expel
its employees from the job. In such situations it becomes challenging task for the servant leader
to maintain employment of the employees on the jobs. Uncertain business conditions refer to the
condition where manager does not know in which direction particular business condition will go.
In such situation it becomes hard for servant leader to make any decision with full confidence.
So main challenging task for the servant leader in such condition is to prepare a strategy which
cushion company growth rate in unstable business environment. Complex business conditions
refer to business scenario where situation is complicated and it become hard to identify exact
reason behind occurrence of the specific unfavorable business condition. Such kind of situations
becomes very difficult for the servant leader. In such case there is high probability that prepared
strategy failed to solve the business problem (Bush and Glover., 2016). This problem sometimes
develops at fast rate and servant leader become quite confused about situation. In such kind of
cases it become hard for it to actually access business conditions and sometimes make wrong
decisions in respect to saving interest of varied stakeholders. So these are the one of major
challenges that servant leader face in VUCA conditions.

© Starbuck CEO leadership in depth analysis
Kevin Johnson follows a transformation leadership style. Transformational leadership
style is one under which leader motivate and encourage its subordinates to innovate and create
change that will create path of success for the business firm. In today time period it is innovation
of the products and services that make company successful in its business. Companies like
Infosys and Microsoft are the one of the best example of transformation leadership style. Kevin
Johnson follow transformational leadership style and under this it bring changes in the
organization and motivate its employees to do something new on ground level so that business
growth can be accelerated. Johnson do pilot study and analyze data to identify extent to which
idea will be successful in the business. Thus, what Kevin do different is that most of leaders
make heavy investment on any idea and apply it on national international level. But in case of
Kevin thing is done differently and Johnson apply any idea only on specific locations and if idea
generate better results than in that case it was applied at all cafes owned by Starbuck (Ejimabo,
2015). So basically by doing so company entirely transforms its business and in this regard
Kevin also motivates its employees to innovate their business operations so that more and more
and better service can be provided to the customers at café. All these efforts bring elevation in
company performance and also bring stability in it. Thus, it can be said that Kevin Johnson
transforms entire business of Starbuck and play vital role in its business success. Schultz is very
optimistic about Kevin efforts and he believes that in future time period its efforts will lead to
fast growth of the company business. Credit of placing innovation in culture of Starbuck goes to
Kevin because he is first one who gives due importance to innovation in Starbucks business then
its predecessors. It is the Kevin who acknowledges importance of innovation in company
business as by the time he took charge of the company already number of rivals successfully
increases pace of their business growth rate. This lead to diminish growth rate of the company.
This was one of the matters of concern for the business firm. It is the efforts of the Kevin that
proved game changer for the Starbucks.
(d) Reason behind Starbucks CEO powerful image on global platform as leader
Johnson has such a strong personal brand image as an effective global leader. One of the
main things in leadership of the Johnson is that it does not imitate leadership approach of its
seniors or others. Kevin believed that life experiences shaped an individual and what is important
for the leader. This thinking of the Kevin brings innovation in Starbucks business. Johnson

makes use of its businesses experiences and personal experience to bring innovation in the
company business (Pihlainen, Kivinen and Lammintakanen, 2016). Such kind of approach of
transformation make strong personal brand image of the Kevin across globe. Other important
thing is that Kevin like Schultz does not have number of years of experience in the business.
Hence, he believed more on data that is generated in the business process. Data speaks about
business and it indicates points where company is strong and points where company is weak.
Kevin worked on weaker areas to improve business performance. Kevin probably is more
analytical and he publicly acknowledges it. Kevin does not prefer to copy others in terms of
business running approach. Johnson prefers to take informed decisions based on data. On front of
leadership model Kevin follow distributed leadership model. Kevin believed that distributed
leadership model ensure clear accountability of employees and managers, by leveraging analytics
and data easily accurate decisions are made in the business. Such kind of things make Kevin
image totally different among people (Hamlin, 2016). Distributed leadership model ensured
better control of employees’ performance in the business. Kevin basically streamlined company
business and focus more on priorities of the company. For example Starbucks have two brands of
tea so to streamline Business Company sold one of its tea brands Tazo tea to Unilever and kept
Teavana in its business. It closes around 320 stores of Teavana and start selling mentioned brand
coffee from its coffee shop. Kevin also instructs to consolidate some roles and eliminate some
jobs. So that more roles and responsibilities can be added in the specific job role and individual
can be made more accountable.
(e) Recommendation on the efforts that CEO of Starbucks can made to bring consistency
in successful journey and sustainability in the company business
In order to ensure current success and maintain Starbuck sustainability and competitive
advantage Kevin need to make advance use of analytics. There are three levels of analytics like
descriptive, inferential and prescriptive analytics. In current time period Kevin is make use of
analytics at basic level but they can also make use of advance analytics to make decisions. By
making use of advanced analytics Kevin can identify solution to the specific business problem.
By doing so one can identify best alternative to solve specific business problem. Analytics give
accurate picture of the performance of the variable and due to this reason Kevin can identify that
which of alternative is performing best and if there is significant difference between varied
alternatives performance. Thus, overall it can be said that Kevin by making use of analytics can