Comparative Analysis of Management in Rosalind Caf� and Starbucks

This report provides a comparative analysis of the management practices employed by Rosalind Caf�, a small UK-based chain, and Starbucks, a global multinational corporation. The study examines key aspects of management, including leadership styles, decision-making processes, communication strategies, organizational culture, business ethics, and corporate social responsibility. The report explores the differences in approach between the two companies, considering factors such as business size, organizational structure, and geographical reach. The analysis delves into the roles of managers, the methods of communication, and the influence of stakeholders on decision-making. Furthermore, the report evaluates the strengths and weaknesses of each company's management practices, ultimately providing insights into which organization would be preferable for both customers and employees. Finally, it offers recommendations for improvements in both coffee chains.

1
Management

2
Abstract
The following report gives a comparative study of the management practices being presently
followed by UK based small café chain Rosalind and the world-renowned Starbucks. The results
of this analysis have been used to determine which of the two café is more effective in serving as
an employee and the one as a customer.

3
Table of Contents
Introduction ..................................................................................................................................... 4
Comparative Study (Rosalind Café and Starbucks)........................................................................ 5
Management and Manager’s Role .............................................................................................. 5
Communication and Decision Making ....................................................................................... 7
Organizational Culture .............................................................................................................. 10
Business Ethics and Leadership ................................................................................................ 12
Corporate Social Responsibility ............................................................................................... 16
Preference ..................................................................................................................................... 17
a) To be a Customer ............................................................................................................... 17
b) To be an Employee ............................................................................................................ 18
Recommendation .......................................................................................................................... 18
References ..................................................................................................................................... 20

4
Introduction
The report aims at evaluating the management practices of Rosalind, a small café chain in UK
and Starbucks, a multinational, in order to draw a comparative analysis. Both the companies are
in the same industry but there are various differences between them. The business size is
different, products offered; management, culture, ethical standards, communication modes, etc
are absolutely dissimilar. This study would be initiated with a brief overview of both the coffee
chains. Further, a comparative analysis would be done to evaluate the management and
manager’s role, communication and decision making, organizational management and culture,
and business ethics and leadership. Based on the discussions, it would be decided as to which
coffee chain would be chosen to be a customer and which would be chosen for being an
employee. Recommendations would also be suggested for the coffee chains for the limitations
they have
Rosalind’s Café was first launched in a city which was forty miles away from London in the year
2006. Henry and Fiona Owen are the owners of Rosalind’s Café, and now their son Ed takes care
of the managerial functions in the Café. The café sells coffee, cooked food such as soups, ice-
creams of various flavours, coffee, tea, and other snacks. The café has also expanded within the
country and have opened up few more shops in different places round the city. On the other
hand, Starbucks Corporation is a US based company and is engaged in the business of
purchasing and roasting whole coffee beans. It is an international player and is regarded as one
of the premier brands of specialty coffee retailing in the world. It operates in about 61 countries
and has more than 20,366 stores (Starbucks Corporation, 2012a). Starbucks have a very
prestigious image in the market and is itself a brand around the world. Starbucks was established
by Jerry Baldwin, Zev Siegl, and Gordon Baldwin in the year 1971. It sells both cold and hot

5
drinks, such as beverages, salads, sandwiches, snacks, pastries, coffee beans, and also other items
like mugs, tumblers, etc. The revenue generated by the company in the year 2012 is $13.29
billion, and the operating income is $1.99 billion. The total number of employees is 149,000 till
2011. Starbucks was also the first to introduce the system of Starbucks Express, which is an
online ordering system. The customers through Starbucks Express can place their order online
and when they visit the store; their order would be served instantly.
Comparative Study (Rosalind Café and Starbucks)
In this section, a qualitative comparative analysis would be set to examine different aspects of
Rosalind’s Café and Starbucks. The approach of qualitative analysis through meaningful
comparison was developed in 1987 by Charles Ragin (Rihoux, 2012, p. 679–706). This approach
is mainly utilized for resolving problems and also for investigating the factors on which
comparison can be drawn. The qualitative comparative analysis of the issues and factors
associated with Rosalind’s Café and Starbucks would facilitate in making preferences. Rosalind
Café offers best services, high quality and tasty food, like any international coffee shop or café,
whereas, Starbucks is known for its premium quality beverages, and exclusive menu. They also
focus on the ambience and interior designs of their coffee shop. In the same manner, there are
various dissimilarities which can be highlighted between Rosalind’s Café and Starbucks through
a comparative analysis.
Management and Manager’s Role
In order to draw a contrast between the management practices of Rosalind’s Café and Starbucks
and appraise the role of their managers, the first criteria is to comprehend the intricacies of the
management and role that a manager plays in the multifaceted framework of management in

6
organization. The managerial activities are complex and enhance with opportunities. The
managers have the responsibility to deliver four specific responsibilities in the complex business
environment, such as planning, leading, organizing, and controlling. Companies utilize many
resources to pursue their objectives or goals, but without appropriate assistance from the
managers, this task is impossible (Griffin, and Moorhead, 2011, p. 7). The management
functions which come under the control of the managers are human, physical, financial and
informative in nature. Managers have the responsibility of combining these resources to
efficiently attain the goals and utilize the resources skilfully. Here the differentiation is between
a small firm, which is Rosalind’s Café and a multinational called Starbucks. Management begins
with planning, and in case of small firms, an indistinct approach is modified to start the business.
Managers in such firms are generally busy with the day to day functions or operations because
the resources are limited (Clegg, Kornberger, and Pitsis, 2011). Other than this, firms also have
to avoid financial losses and adapt to the changes in the market, so managers plan out strategies
to avoid wastage and optimize the usage of resources, so that financial and human capital is
utilized appropriately (Sabharwal, n. d.). In Rosalind’s Café Ed, the son of Fiona and Henry
Owen was the manager. James was the manager for the other café chain of Rosalind’s Café.
Fiona and Henry Owen have given enough flexibility to Ed and James to take on operational
decision. Generally it is seen that manager in small businesses do not have enough liberty to take
decision and implement them too. However Rosalind’s Café is a family owned business and the
manager being the son of the owner is trusted and allowed liberty to take on operational decision,
but the few specific managerial decisions are still taken by the owner.
On the other hand, the managers in the multinational firms have to have certain special qualities
which can be ignored in the managers of the small firms at domestic levels. The multinational

7
managers need to have knowledge regarding the culture of the country in which the company is
operating, the language, and external environment. They must maintain the corporate mission,
vision and objective of the company. They are carefully recruited to maintain sustainable
relationship with the corporate headquarters, despite of being located at any part of the world. A
multinational manager should have a long term perspective and focused approach towards his/
her goals (Cohen, 2012). Similarly, Starbuck Corporation is a multinational firm which includes
the Cafe chain of Starbucks and II Giornale. Howard Schultz was the CEO of this company.
After the merger of both of these Café chains under Starbucks Corporation, Schultz decided to
integrate suitable human resource and management policies to expand and develop the brand
Starbucks. He decided to include the employees in the decision making process, which led to the
eradication of trade union from Starbucks. The store managers were recruited on the basis of few
specific criteria such as he/ she should have strong love and passion for coffee, and who can
easily adjust to diverse culture because diversity is an integral part of being a multinational.
They recruited managers who loved their job and the true reflection of such a feeling reflected in
their behaviour.
Communication and Decision Making
Strategic Decision making is crucial for making feasible choices for the firm, as these selections
affect the well-being and the survival prospects of the small firms (Schoemaker, 1993, p. 107).
These decisions assist the owner or entrepreneur of the firm to shape the course in future. In the
studies, two viewpoints for decision making are usually discussed; first is the rationality bound
and second is politically bound. In rational perspective, the decision is usually taken by an
individual and he/she have information regarding the whole situation and know how to react in
it. In case of political perspective multiple viewpoints are involved in the decision making

8
process (Gibcus, Vermeulen, and Jong, 2006; Linstead, Fulop, and Lilley, 2009). In case of
Rosalind’s Café, the decision-making process functions on rational basis because Ed and James
were the managers, but the real decision-making was in the hands of Fiona and Henry Owen.
They took most of the decision and decided the course of the business because Rosalind’s Café
was a small family business started by Fiona and Henry, and they knew best about the finances
and operational division of the business. The decisions for expansion in 2010, sell salted beef, or
introduce ginger beer in the café, were all made by Fiona and Henry. Employees were
considered important but the actual decision-making power was with the owners of the café.
Decision making in multinational companies are done on political basis because in multinational
companies there are various people who have the authority to take part in vital decision making
process of the company and because a single decision affects all the stakeholders of the
company. In Starbuck, the CEO was Howard Schultz, who was responsible for the taking the
major decisions in the company, yet he was answerable to the stakeholders for his decisions.
Schulz included the employees too in the decision-making process of Starbucks in order
eliminate the barriers arising out of trade union. The investors and shareholders of Starbucks
Corporations were the major decision-makers. Schulz and his board of directors were responsible
for planning and developing the strategic framework, and approval was taken from the
stakeholders. Major decision like expansion of Starbucks, employee health care programmes,
usage of skimmed milk in the cappuccinos were all vital decisions which were taken on the basis
of investors’ opinion, employees’ demand, customers’ preferences, shareholders’ interest and on
the suggestions of the board of directors.
Managing communication is a logical process which includes preparation, execution,
supervision, and amendment of the channels of communications. The managers’ duty is to

9
persistently communicate the employees and other stakeholders of the company. In small
organizations or firms interpersonal communication is of primary importance. Exchange of
opinion and information among the employees, from the owner to the employees or vice versa,
and also with the customers is important (J. A. Pauley, and J. F. Pauley, 2009, p. 21-25; Fielding,
2006, p. 18-26). In Rosalind’s Café the channel is communication flows from Fiona and Henry
to Ed and Ed manages and monitors other managers like James, or Gina, and the other
employees in the Café. Issues related to the menu of the Café are taken care of by Ed in a
management meeting which includes all the employees of the Café. So in small firms,
transparency in communication is vital, and the management at Rosalind’s Café tries to do it by
training employees themselves and the recipes in the Café are passed on from one staff to
another like an asset of the Café. Fiona and Henry want to communicate with their customers
through their superior offering. Small firms do not spent must on promotion, but they want to get
recognition through their products and services. In case of Rosalind’s Café, the same theory is
applicable.
Communication framework is designed and developed in the multinational companies, keeping
in mind various significant factors. In the multinational firms, the workforce is diverse; they
come from different countries and also speak different languages. Apart from this, the operations
of the company is also spread in various parts of the world, so just interpersonal communication
on individual basis is neither possible nor feasible. In order to make the internal communication
framework effective, even IT integrated solutions are implemented for faster and efficient
services (Born, and Peltokorpi, 2010, p. 97-118). Schultz believed that communication skill
should signify what is stands for rather than what it offers. Starbucks stands for passion,
ambience, brand experience, rather than just coffee, tea or snacks. Multinational firms establish

10
its major communication channel with its customers. Starbucks does not present itself as a coffee
shop, but it depicts that it is into people business which deals in relationship building. They serve
over sixty million customers in a week and recruit hundreds of employees to serve them, so this
proves that they are in people’s business selling coffee. The motive was to build a third place
between office and home, which is interesting and motivating for people. Internally
communication flows from one level to another. Since Starbucks have shops around the world
and several hierarchies, the information flows from top to bottom level. Employees were also
offered shares of the company for treating them as partners and they were allowed to take part in
the managerial decision making process. In multinational firms, the employees are not just paid
workforce, but stakeholders of the firms too, as discussed in case of Starbucks (Gallo, 2011).
Organizational Culture
According to Martin and Siehl (1983), organizational culture is nothing but shared beliefs,
values, attitude and customs that are followed within the organization. Deshpande, Farley, and
Webster (1993), argued that organizational culture assists an individual to recognize
organizational function and makes them aware of the custom to behave in the organization.
O’Reilly, Chatman, and Cladwell (1991) depicted that organisational culture is characteristics of
the organization. Since Rosalind’s Café was a family owned business, the culture within the
organization was homely. The employees were treated like members and they were even taught
to make perfect Rosalind coffee and other items by the managers and sometimes by the owners
themselves. The recipes were like tradition that was transferred from one staff to other in
Rosalind’s Café. However, for the customers Rosalind did not offer ambience, but they only
offered products for their customers because Rosalind’s owners either want their customers to
buy drinks, coffee or food, otherwise occupying the table for long time is not appreciated. Even

11
the customers cannot demand for slow music or for any customization. Fiona and Henry Owen is
very stick is offering what they feel is right rather than what the customers’ requirements are. So
the internal culture of Rosalind is its strength, but the culture that prevails concerns the customer
is its weakness.
The corporate culture of multinational firms is made up of diverse opinion, beliefs and values. It
is made up of certain core ingredients like diversity, tolerance, acceptance, uniformity, etc. The
culture of Starbucks is strong enough to reach every corner of the firm, and it even reaches
outside the domain of the organization. After a complete review of the organizational culture, it
can be said that Starbucks is successful because of its appealing cultural model. The appeal in
their business model is because Starbucks is a global entity, and it offers quality products all
round the world. The customer service is excellent as they are greeted by enthusiastic employees,
who are always happy to serve and are knowledgeable regarding the product, its ingredients,
nutritional value, etc. Rarely does a customer of Starbucks return dissatisfied, so it is clear that
the employees’ strive to offer best possible service to the customers. Starbucks sells ambience,
and not primarily coffee. They do not want their customers to just come have something and
quickly vacant the seat and go away. Starbucks has positioned them to be a place between home
and office. A company offering products as well as services must not neglect the service part
because when it comes to serving people, special attention has to be paid. Starbucks values and
missions are clearly prevalent from its cultural behaviour. If the internal organizational culture of
Starbucks is analyzed, it can be seen that Starbucks encourages the enthusiastic development of
the employees. Special appraisal schemes, employee health benefits, and other activities for the
training and development of the employees are organized at Starbucks. Starbucks is also
involved in many corporate social responsibility (CSR) activities for the society. The company

12
maintains a spiritual culture that states the performance of the company towards its customers,
employees, suppliers, and community. The organizational culture of Starbucks is a mixed bag of
diversity, employee enlightenment, fair trade, values and relationship building, and passion.
Business Ethics and Leadership
Business ethics is the applied ethics, ethical principles, or ethical problems that arise in the
business environment. This is applicable to every aspect of business, including the individuals in
the organization. There are two dimensions of business ethics such as descriptive and nominative
dimension. The corporate practices are usually considered nominative, while scholastic attempts
to explain business behaviour is called descriptive technique. Issues such as profit making and
maximizing behaviour, non-economic aspects, and other issues are reflected through business
ethics (Grey, 2009). Adam Smith explained that people in the same business never meet even
during enjoyment, but they always discuss about each other in order to show themselves greater
than their competitors. These are certain ethical issues that are discussed while considering
ethical standards in business (Fisher, and Lovell, 2012). It simply implies certain behaviour
which is beyond the control or preview of the government or regulatory body.
It is easier to maintain ethical standards in the small firms than it multinational firms because it
case of small firms, all the operational functions takes place under the jurisdiction of the owner,
but in case of multinational firm, a regulated ethical framework is prepared to set standards for
every division of the company. In case of small business, the ethical nature can be segregated
into three specific divisions, namely legitimate business, enterprise performing criminal activities
and enterprise or firm operating in the grey areas. Although the firm is functioning legally, yet
certain unethical practices might hamper the image of the firm, which is not illegal. Rosalind’s
Café functions on the ethics of providing good quality, delicious menu and beverages to the

13
customers. It is a small family run business which has expanded in terms of size and employee
strength, but the management is still with the family members. The major decisions are taken by
Fiona and Henry Owen, while other operational decisions are taken by Ed with his team.
Rosalind’s café functions on simple strategies of any eatery which does not sell ambience to its
customers but only food and drink. The café functions ethically following all the regulatory
norms and policies required to run business. As far as employees are concerned, they are well-
treated and paid according to the laid down policies of the company. Business ethics is followed
in Rosalind’s Café but no such well defined ethical framework was developed because it is a sole
proprietorship form of business which is managed and governed by the owners.
Managing organization across the borders is difficult and includes various ethical dilemmas
(Bansai & Sama, 2000; DeGeorge, 1993; Enderle, 1999). Business ethics in multinational firms
assist the managers in formulating the requirements of the company. Starbucks’ motto is to
conduct business ethically and they consider it to be a vital part of their business. Starbucks also
have their own ethics and compliance programmes to support the mission and protect the culture
of their company. Schultz has set certain guiding principles for Starbucks so as to offer courteous
working environment for his employees, embrace diversity, implement high standards of product
quality, please the customers, and contribute positively to the society and the environment. In
order to provide health benefits, the working hours of the employees at Starbucks is 20 hours per
week, and about 145,000 employees are suitable for the stock options (University of Notre
Dame, 2007). This stock option of Starbucks is there to present their employees as partners of
the company. This would keep the employees interested in the efficiency and sustainability of
the company (Starbucks Corporation, 2012b; McClelland, K., 2007).

14
After discussing on the ethical aspects of both the Cafe chains, the focus would be now on
leadership and management. The ethical practices in any organization cannot function without
suitable leader. The influence of leadership in the organization plays a significant role in
sustaining ethics because the leaders in the business have absolute knowledge regarding visions,
and goals of the organization. Developing and implementing the ethical system in the
organizations, is complex, but it becomes easy when the right organization culture prevails. The
organizational ethics has to be evaluated to comprehend the requirements of the organization,
identify them, assess the needs according to the ethical regulatory standards and implement them
in the organization, so as to set ethical and sustainable working environment in the organization.
The leaders should be the major source of ethical administration for the employees. Many social
learning theories have been put forward to understand the ethical leadership styles and offer
constitutive explanation regarding ethical leadership (Cunliffe, 2009). Organizations have
developed new tools for measuring ethical leadership in the organization. Ethical leadership is
associated with honesty, consideration behaviour, and trust for the leader, charismatic leadership
and supervision. Ethical leadership forecasts outcomes such as the apparent effectiveness of the
leaders, dedication and job satisfaction (Brown, Trevino and Harrison, 2005, p. 117). In case of
Rosalind’s Cafe Fiona and Henry Owen have qualities of a transactional leader who train their
employees and closely monitor them for sustainable performance. They have the authority to
evaluate, train and correct the employees. The employees in such cases are rewarded for good
performance and in case of underperformance; they are carefully scrutinized by these leaders.
Fiona and Henry agree that they have small establishment and this is the reason they avoid
wastage of resources, and even do not appreciate customers occupying a seat for a long period of
time without ordering further. This reveals the fact that the owners are extremely performance

15
oriented. On the other hand Ed has coaching leadership skills, and he trained his employees
himself and also involved his employees in the managerial decisions related to menu. So ED also
reflects the qualities of a transformational leader, who motivate their employees and assist them
to attain group goals for the firm.
In case of multinational companies, there are many leaders in different segments of the firms. A
combined effort of all these leaders makes the multinational business a success. However, here
only Schultz leadership qualities would be discussed because he is the founder of Starbucks
Corporation and the guiding principles of the company is laid down by him. "Being a great
leader means finding the balance between celebrating success and not embracing the status quo."
- Howard Schultz. Schultz believed that there are certain qualities that are necessary in a leader,
to set direction for the organisation, align the workforce through communication, and motivate
the employees (Berfield, 2009). Schultz reveals the true qualities of a charismatic leader because
he was courageous and energetic. His leadership skill is contagious and it even motivates the
employees and other leaders at Starbucks to lead and be like him. He undertook several risks to
take Starbucks from a small coffee brewing shop to a multinational. However, Schultz always
gave priority to relationships, emotions, and values over revenue generation. He always
considers Starbucks to be in people’s business selling coffee to strengthened bonds and
relationships. Schultz is also considered a democratic leader because he allowed his employees
to take active participation in the managerial decision-making process of the company. He
inspired other leaders in his firm and every employee in Starbucks worked on the footsteps of
Schultz.

16
Corporate Social Responsibility
Corporate social responsibility (CSR) can be defined as an approach or an active response of the
management to the business environment in which the company functions (Blowfield and
Murray, 2008, p.3). CSR highlights the social issues, initiatives a company should take to
improve social responsibilities, and charitable works required to be undertaken among others
(Kotler and Lee, 2005). The company has certain responsibility towards the society too, which
includes helping the community to ensure appropriate incorporation of social, environmental,
and economic systems for the firm. Through CSR, companies try to improve the economic
vitality of the society or community, they promote intergenerational and social equity, maintain
and try to make a greener environment, make provisions for employment for the educated as well
as uneducated section of the society, enhance the economic vitality of the community, and
improve the standards of living of the residents in which the company is doing business.
Rosalind’s Cafe is a small business whose sole motive of doing business is to offer customers
best quality and tasty menu, and generate revenue. The future plan of the company is probably to
expand and open up more Cafes under the brand name of Rosalind. However, the concept of
corporate social responsibility cannot be connected with Rosalind’s Cafe because firstly, they are
financially not so affluent to offer something to the society voluntarily, second no such initiative
have been planned by Fiona and Henry Owen.
Starbucks follows a three domain model in case of CSR, namely economic domain, legal
domain, and ethical domain. The economic, legal and ethical impact of the activities on the
company is considered in this case. Starbucks has taken holistic approach to ensure high quality
coffee. The farmers from whom the coffee is bought are also provided loans through Starbucks
and several forest conservation programs are organised by the company (Starbucks Corporation,

17
2012c). The paper cups in Starbucks are recycled and Starbucks is also involved with U.S. Green
Building Council (USGBC) to introduced green solutions for buildings in the retail segment.
Water and energy conservation strategies and activities are also taken into account. Starbucks
also takes part in several community services to help cities, neighbourhood, and countries in
which they operate (Starbucks Corporation, 2012d).
Preference
a) To be a Customer
I would prefer to be a customer at Rosalind’s Cafe because it offers variety of tasty and superior
quality snacks, homemade ice-creams and also beverages at a reasonable price. The food items
are freshly cooked and served. Menu like Ciabattas, chilli con carne, cakes, soup and salt beef
are offered. It also offers ice-creams of various flavours and also beverages such as coffee, tea,
beer, etc. Rosalind Cafe offers good ambience and pleasant music in the background for its
customers, so it can be said that it is a good place have tasty meal, gather around with friends and
family often because the products offered have reasonable price and is easily affordable by
college goers even. Rosalind’s Cafe also offered free biscuits to customer with coffee or tea
previously as a part of their promotional activity. This is not done anymore nowadays, but
newspaper is available in the shop for the customers to read while having coffee, tea, or snacks.
The ingredients of their food do not contain any preservatives or flapjacks. The components are
ordinary household items like butter, syrup, oats, etc. Rosalind’s cafe introduces menu based to
the preferences of the customers, especially college goers, as it introduced ginger beer and salted
beef.

18
b) To be an Employee
Starbuck would be the choice when it comes to selection of employment among both the firms.
Starbucks is devoted to make a work place that respects and values the employees from diverse
environment and assist them to perform best in their work. Growth and globalization has not
diluted the culture of the organisation, and this fact has assisted Starbucks to attain its goals.
During recession too Starbucks has continued to call its employees as its partners. Leadership
growth is the core constituent of business at Starbucks. There are numerous reasons be an
employee at Starbucks. First, Starbucks is a multination coffee chain which has its operation
around the globe. Second, growth prospect is immense in Starbucks because of its well-
structured human resource management activities. Third, the employees have strong identity in
Starbucks, and they are not only the stakeholders, but partners too. Fourth, the remuneration
offered to the employees in Starbucks is according to set standards of a multinational. Last, the
opportunity to work with world-class leaders is there at Starbucks.
Recommendation
This report has presented a comparative study of Rosalind’s Cafe and Starbucks. Rosalind’s Cafe
is a small coffee shop which has few chain stores in other parts of the city. It is a sole
proprietorship form of business which is run by family member and few employees. The
management of Rosalind’s Cafe is handled by Fiona and Henry Owen and their son Ed. The
employees are well treated and trained by the owners themselves. On the other hand Starbucks is
a multinational coffee chain which is spread all around the world. The owners of Starbucks are
its stakeholders because it is a public company. Employees at Starbucks are considered partners
and offered shares of Starbucks too. They are even allowed to take part in the managerial
decision-making process of the company. Well defined human resource department is there at

19
Starbucks to recruit, and train employees and make them fit to work and adjust at Starbucks.
Employee remuneration framework also includes heath programs and plans to support
employees and their families during illness. The characteristics that any sustainable employment
offers to people are there in jobs of Starbucks. So Starbucks was selected as an employer over
Rosalind’s Cafe. Though Rosalind’s Cafe has small establishment to offer such facilities to
employees, but it can have a framework of human resource management based on the available
resources, scope of improvement and employee demands.
On the other hand Rosalind’s Cafe was selected in case being a customer. This does not mean
that Starbucks does not offer quality food or beverages. Starbucks is world renowned for its high
quality coffee bean, beverages, and menu, but Starbucks is costly. This is because it offers a
pleasant ambience along with food and beverages. At Starbucks people not only go to have
beverages and food, but to relax and enjoy. In both of these Cafes, the core product is the food
and beverages. Rosalind’s Cafe also offers good quality freshly made menu and homemade ice-
creams at reasonably low cost because it does not provide augmented product like Starbucks,
such as ambience or a place to relax and have fun. Rosalind’s Cafe is a simple place where
customers go eat or drink, spend some time and go away. Starbucks is not affordable for every
customer. The target customer group of Starbucks also belong to upper middle class or high class
customers from the society. If Starbucks want to attract college goers and students specially, then
the price has to be reasonable or low. However, if the target market of Starbucks is mostly the
professional and office goers then amending the pricing strategies is not required.

20
References
Bansai, M., and Sama, L. M., 2000. Ethical Dilemmas in MNCS’ International Staff Policies. A
Conceptual Framework. Journal of Business Ethics, 25, pp. 221–235.
Berfield, S., 2009. Starbucks: Howard Schultz vs. Howard Schultz. [online] Available at: <
http://www.businessweek.com/magazine/content/09_33/b4143028813542.htm> [Accessed 22
December 2012].
Blowfield, M., and Murray, A., 2008. Corporate Responsibility: A Critical Introduction. New
York: Oxford University Press.
Born, F. V. D., and Peltokorpi, V., 2010. Language Policies and Communication in
Multinational Companies: Alignment with Strategic Orientation and Human Resource
Management Practices. Journal of Business Communication, 47(2), pp. 97-118.
Brown, M. E., Trevino L. K., and Harrison, D. A., 2005. Ethical Leadership: A Social Learning
Perspective for Construct Development and Testing. Organizational Behaviour and Human
Decision Processes, 97, pp. 117-134.
Clegg, S. R., Kornberger, M., and Pitsis, T., 2011. Managing and Organizations: An
Introduction to Theory and Practice. 3rd Ed. London: SAGE.
Cohen, G., 2012. Characteristics of Multinational Managers. [online] Available at: <
http://smallbusiness.chron.com/characteristics-multinational-managers-38438.html> [Accessed
22 December 2012].
Cunliffe, A. L., 2009. A Very Short, Fairly Interesting and Reasonably Cheap Book about
Management. London: SAGE.
DeGeorge, R. T., 1993. Competing With Integrity in International Business. New York: Oxford
University Press.
Deshpande, R., Farley, J.U. and Webster, F.E. Jr., 1993. Corporate Culture, Customer
Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis. Journal of Marketing,
57, pp. 23-7.
Enderle, G., 1999. International Business Ethics. Notre Dame, London: University of Notre
Dame Press.
Fielding, M., 2006. Effective Communication in Organizations. 3rd ed. Cape Town: Juta and
Company Ltd.
Fisher, C., and Lovell, A., 2012. Business Ethics and Values. 4 th ed. Canada: Pearson Education
Canada.
Gallo, C., 2011. Starbucks CEO: Lesson in Communication Skills. [online] Available at: <
http://www.forbes.com/sites/carminegallo/2011/03/25/starbucks-ceo-lesson-in-communication-
skills/> [Accessed 22 December 2012].

21
Gibcus, P., Vermeulen, P. A. M., and Jong, J. P. J. D., 2006. Strategic Decision-Making in Small
Firms: Towards a Taxonomy of Entrepreneurial Decision-Makers. [Online] Available at: <
http://www.entrepreneurship-sme.eu/pdf-ez/n200511.pdf> [Accessed 22 December 2012].
Grey, C., 2009. A Very Short Fairly Interesting and Reasonably Cheap Book about Studying
Organizations. 2nd ed. London: SAGE.
Griffin, R. W., and Moorhead, G., 2011. Organizational Behavior: Managing People and
Organizations. 10th ed. Connecticut: Cengage Learning.
Kotler, P., and Lee, N., 2005. Corporate Social Responsibility. New Jersey: John Wiley & Sons.
Linstead, S., Fulop, L., and Lilley, S., 2009. Management and Organization: A Critical Text. 2 nd
ed. Basingstoke: Palgrave Macmillan.
Martin, J. and Siehl, C., 1983. Organizational Culture and Counterculture: An Uneasy
Symbiosis. Organizational Dynamics, 12(2), pp. 52-64.
McClelland, K., 2007. Starbucks Founder Speaks on Ethics. [online] Available at: <
http://www.ndsmcobserver.com/2.2754/starbucks-founder-speaks-on-ethics-
1.262031#.UNqGAOR18l9> [Accessed 22 December 2012].
O’Reilly, C.A. III, Chatman, J. and Cladwell, D.F., 1991. People and Organizational Culture: A
Profile Comparison Approach to Assessing Person-Organization Fit. Academy of Management
Journal, 34(3), pp. 487-516.
Pauley, J. A., and Pauley, J. F., 2009. Communication: The Key to Effective Leadership.
Milwaukee, Wisconsin: ASQ Quality Press.
Rihoux, B., 2012. Qualitative Comparative Analysis (QCA) and Related Systematic
Comparative Methods. International Sociology, 21(5), pp. 679–706.
Sabharwal, S., no date. Managerial Roles in Small Business. [online] Available at: <
http://www.du.ac.in/fileadmin/DU/Academics/course_material/EP_06.pdf> [Accessed 22
December 2012].
Starbucks Corporation, 2012a. About Us. [online] Available at: <
http://www.starbucks.com/about-us> [Accessed 22 December 2012].
Starbucks Corporation, 2012b. Business Ethics and Compliance. [online] Available at: <
http://www.starbucks.in/about-us/company-information/business-ethics-and-compliance>
[Accessed 22 December 2012].
Starbucks Corporation, 2012c. Goals & Progress: Ethical Sourcing. [online] Available at: <
http://www.starbucks.com/responsibility/global-report/ethical-sourcing> [Accessed 22
December 2012].
Starbucks Corporation, 2012d. Goals & Progress: Environmental Stewardship. [online]
Available at: < http://www.starbucks.com/responsibility/global-report/environmental-
stewardship> [Accessed 22 December 2012].

22
University of Notre Dame, 2007. Starbucks Chairman to Receive Business Ethics Award.
[online] Available at: < http://newsinfo.nd.edu/news/8731-starbucks-chairman-to-receive-
business-ethics-award/> [Accessed 22 December 2012].

23