Starbucks Report: Leadership Styles, Globalization, and CSR Strategies

This business report provides an in-depth analysis of Starbucks, examining its organizational structure across three management levels (top, middle, and lower) and their respective responsibilities. The report explores the leadership styles employed by Starbucks' CEO, including charismatic and tra...Read More

Business Report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................6
TASK 1............................................................................................................................................6
1 Three levels of an organization and responsibilities associated with it....................................6
2 Roles and style of leadership of leadership adopted by CEO of Starbucks..............................8
3 Effects of globalization on organization .................................................................................9
............................................................................................................................................10
4 CSR of organization and responses adopted by it.................................................................10
Conclusion.......................................................................................................................................1
References......................................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Business environment across the globe is getting competitive and it is required company
should adopts strategic approaches to gain success. Starbucks is coffee house chain and it
provides hot and cold drink, whole bean coffee, espresso, caffe latte etc at various locations of
many countries. Starbucks is considered as second wave coffee chain serving in venues in US.
Present report discusses about level of the organization which include stop middle and lower
level. Roles and responsibilities of leadership style used by Starbucks CEO will also be
explained. In addition to that effect of globalization on organization have been discussed.
Corporate society responsibility of Starbucks and the responses adopted by it have also
discussed.
TASK 1
1 Three levels of an organization and responsibilities associated with it
There are 3 levels of use in any organization to manage the operational activities. In
these different level manager of nay entity used to perform various functions. The roles and
responsibilities of manger of Starbucks at three levels are as follows:
Top Level Management: This level of management consist of chief executives, board of
directors and Chief operating officer (Lottrup, Grahn and Stigsdotter, 2013). Top management
of is the topmost source of the business entity and it helps in accomplishing the targets of the
organization. Manager at this level manges goals and makes policies. Planning and coordination
of business activities and functions are given preference at this level. Responsibilities of top
management can be evaluated as follows:
 Top level mangers defines goals or objective and makes policies for the business entity.
 Manger assigns instructions to make budget for the department and provide guidelines for
the process and schedules to be followed.
 Employees of company are responsible for governing and oversee supervising activities
of organization.
 Strategic plans and styles of leadership for enterprise are defines at this level.
 In this level directors middle level worker is assigned.

 Manager of top level are responsible for coordinating and controlling actions of other sub
units of organisation.
 It maintains contact with outside world and provides guidelines and instructions to them.
 To maintain performance of the entity top management supervise the share holder of the
company too.
Middle level management: Middle level comprises of branch manager and manager for specific
department of Starbucks.. Executives of this position reports to the top level management about
their work and progress (Naumova and et.al , 2013). Departmental supervisor generally
includes finance and purchase manager. Branch executives are head of specific branch or unit.
They are responsible organizing and directing function activities. Role of middle level
management of company can be explanted as follows:
 Middle level management provides advise to the top level.
 Policies which are made at top level are executed in this phase.
 Quality and quantity of production are managed by the executives of this part.
 They also maintain good relation of with co-workers in the organization.
 They communicate and coordinate with all sub departments of re entity.
 Discipline and regulation is maintained by them in the company.
Lower level Management : This level also called supervisory level. It comprises of sectional
officers, supervisor and organizers. They are chosen by the middle level of the management.
They are responsible for directing and assigning work to the other worker of the comapny. roles
of lower level manger are as follows:
 They assign jobs and duty to other employees.
 They also provide training to other workers.
 Manager at this level makes daily plans and implement them.
 They require more communication and technical skills.
 They are responsible for maintaining link between middle level and top level.

2 Roles and style of leadership of leadership adopted by CEO of Starbucks
Starbucks is an American company who is having chain of coffee house in the world. It
was founded in 1971. CEO of Starbucks has adopted 3 different leadership styles for managing
work of organisation effectively and efficiently. Here are the leadership style of Starbucks:
Charismatic leadership : Charismatic leadership style is used by Starbucks to create identify the
hidden powers of the leaders. In this style leaders are very skilled and verbally expressive. This
approach tries to convince arguments and evaluate environment and attain the viewpoint of the
employees of organization. CEO of Starbucks is using this approach to provide better
environment for work and including employees in decision making process for the company
(Rowe, 2014). This leadership style helps in achieving rapid growth and expansion of company.
Transformational leadership : Transformational leadership style requires better communication
to meet the objectives of the organisation. In this style leaders of Starbucks encourages and
motivates their employees to increase the productivity and capability by communicating and
coordinating . In this style management gets involved to accomplish the goals of business entity
(Saleem, us Saqib and Zahra, 2015). Leaders generally focuses on the big targets and assign
small duties to the team for achieving goals. This leadership style is mix of autocratic and
democratic leadership style. Usually leaders and team work together through the perspective and
personality of leaders. Transformational leadership motivate employees of Starbucks in
following ways:
Intellectual simulation: leader motivates and encourages to deploy creativity in the employees.
they generally challenges the team to do the work efficiently an creatively .
Individualized Consideration : Transformational leaders persuade individual employee and
followers to get contribution of them ion the decision making process.
Inspirational Motivation: leaders give motivation al speech to inspire staff and employees of the
company.
Idealized influence: Leaders works as role model for co-worker by attaining respect and trust of
them.

3 Effects of globalization on organization
Globalization is defined as integration of all the organization and firm of world into a single
unit. Globalization is the process of unification in terms of cultural, economical and technological.
Here are some effects of globalization on the Starbucks:
Prices: this is one of the major impact of globalization on the coffee market of Starbucks. Prices have
continuously decreasing due to the increased coffee production in world. Production coffee is
associated with variance in prices.
Expanded market: From the business point of view of Starbucks one of the impact is that its market
gets expanded due to globalization. It means that company which used to sell its products domestically
is now started selling products to other countries also. Starbucks was previously selling its coffee
product in USA but after the globalization has tarted it has its market in all over the world (Hummels,
Munch and Xiang, 2014). This in result is enhancing their profit an revenue potential.
Cheaper Resources :Another impact of globalization is that Starbucks can access cheaper resources for
their business. Many companies produces goods in domestic are where labour rate is less expensive.
Cheaper labour cost produces larger profits. But sometime these cheaper cost makes low quality
products and services too. Company also gets low price workforces and raw materials by moving to
new location where labour rates are cheap.
Embrace Competition : Competition among the companies gets also embraced due to globalisation.
Integrated market allows Starbucks to compete for the same clientele. Company need to manage its
products and service quality that should satisfy its customers better than the rivalry one's. This bilateral
trade agreement expands market by concentrating only on price ,quality services to customer.
Diversification in management : Starbucks by expanding its market into new country need to make
amendments into its organisational structure (Milani and Park, 2015.) . It may require to provide
training to new employees which are hired for new branch so that they can be aware of the goals and
objectives of the parent organization.
Technological Innovation: In globalised business environment Starbucks need to invest in technology
to ensure its business operations are making profits. Top produce product and services at less cost
enterprise is acquired to adopt new technologies. New communication ,methods are also acquired by
company to ensure that its customers are able to receive their orders in timely manner . New
communication system will also help Starbucks to be on top of global market operations.

4 CSR of organisation and responses adopted by it
Corporate social responsibility is aimed at motivating and encouraging all the organisations to
be aware about the effect of their business on the society including shareholder and surroundings of the
place (Korschun, Bhattacharya and Swain, 2014). CSR is a method adopted by Starbucks that supports
in accomplishing sustainable development by providing all profits to stakeholders that are generated
by socio economical factors. Starbucks is committed to good governance by conducting ethical and
social responsibility fro creating and increasing stakeholder value. The company has maintained
relationship with stakeholder and taking their input on issues which are of mutual importance. There are
two response which are adopted by Starbucks are as follows:
CSR for Ethical Sourcing: Starbucks believes in serving an buying best coffee to its customers.
Company's goal is to make coffee which is of the highest quality by using ethical trading practices.
Company's aim is to helps and create better future fro framers. Enterprise has developed ethical
sourcing guidelines by taking support from conservation international (Sebhatu and Enquist, 2014).
This practices is helping company to buy coffee that is grown responsibility and traded ethically. It is
working with farmers and their communities directly to generate more responsible growing methods.
Organisation is also working towards ensuring long term supply of coco which is ethically sourced.
CSR for Environmental Stewardship: Starbucks is taking steps towards caring and saving of
environment and also motivating other for the same. Company is relying more on agricultural products.
To save the environment it has started recycling program in which it is making environment friendly
cups. Enterprise is also putting efforts in order to reduce waste which is created by it.
Company is also trying to minimize energy consumption by using renewable energy resources
that can lower impact on the environment. In addition to that company is investing in renewable energy
sources .The Green E certified Renewable Energy Certificates purchased by company is helping in
proving additional revenue to wind farm owners farmers.
To reduce the amount of water used by them, company is trying to evaluate its store design and
equipment. Company is looking for new alternatives that can be used to clean utensils that can
significantly reduce consumption water.

Other than these Starbucks is making its stores green by using material which can help to
decrease environmental footprints. Climate change is a big threat to the regions where coffee is grown.
For this problem organization is implementing strategies to hep farmers and to reduce the impact.
CONCLUSION
Summing up the above report it is required that company should consider globalization
and CSR. Organizational management level and roles of leaders at leach level are discussed in
the report. It is must that each level manager should fulfil its duties and roles assigned to them
for effective management of the company. The functions and activities of Starbucks effectively
company should deploy various leadership styles .Impact of globalisation on organisation have
also been illustrated . CSR helps company to improve its relation ship with the stake holders.
CSR gives company a chance to contribute towards society (Cha, Yi and Bagozz , 2016). It
helps in improving public image of company through monetary donations and partnerships with
public community. Doing something for society ad stakeholders company can increase its
consumer base .it also support sin making brand of Starbucks popular among the people. CSR
gives a platform to the employees of organisation fro working together and helping other in tier
work. This practices build strong relationship between employees
Globalization fro Starbucks is very important to increase it brand value and demand
among consumers. It leads to increase competition around the world. Increased competition will
compel company to improve its quality of service and products. For changing technology that
is used by the organisation globalization is must. Globalization will also increase opportunities
for the company. It affects the economy and business life of organisation. It is required that
Starbucks should adopt globalization in order to accomplish it business goals in various other
countries also.

REFERENCES
Books and journals
Cha, M. K., Yi, Y. and Bagozzi, R. P., 2016. Effects of Customer Participation in Corporate
Social Responsibility (CSR) Programs on the CSR-Brand Fit and Brand Loyalty. Cornell
Hospitality Quarterly. 57. (3), pp.235-249.
Hummels, D., Munch, J. and Xiang, C., 2014.No Pain, No Gain: The Effects of Globalization on
Job Injury and Sickness. Working Paper.
Korschun, D., Bhattacharya, C.B. and Swain, S.D., 2014. Corporate social responsibility,
customer orientation, and the job performance of frontline employees. Journal of
Marketing. 78. (3), pp.20-37.
Lottrup, L., Grahn, P. and Stigsdotter, U. K., 2013. Workplace greenery and perceived level of
stress: Benefits of access to a green outdoor environment at the workplace.Landscape and
Urban Planning. 110. pp.5-11.
Milani, F. and Park, S.H., 2015. The effects of globalization on macroeconomic dynamics in a
trade-dependent economy: The case of Korea.Economic Modelling. 48. pp.292-305.
Naumova, N. and et.al , 2013. Organization of the mitotic chromosome.Science. 342. (6161),
pp.948-953.
Rowe, W. G., 2014. Is Nonprofit Leadership Different from Business or Government
Leadership?.The Journal of Nonprofit Education and Leadership. 4(2).
Saleem, M. A., us Saqib, N. and Zahra, S., 2015. Impact of job engagement and team processes
on organizational learning: examining moderating role of leadership style.Studies. 4(1).
Sebhatu, S. P. and Enquist, B., 2014. Are Corporate Governance and Corporate Social
Responsibility having a role for sustainable Service Business?: An explorative study of
IKEA, Starbucks and H&M. In The 17th QMOD conference, September 3-5, Prague
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Online
Starbucks CSR , 2016. [Online]. Available through: <http://www.starbucks.in/> [Acessed on
18th May 2017]