Strategic Leadership and Organizational Development: Starbucks

This essay provides an in-depth analysis of leadership in the 21st century, focusing on the case of Starbucks. The essay explores the importance of organizational leadership, emphasizing the need for an integrated perspective. It delves into the tools and techniques Starbucks uses for analysis, including SWOT and PESTLE analyses, and examines how knowledge is applied in practical business situations, such as overcoming losses and managing employee shortages. The reflection section offers insights from the perspective of a leader, highlighting the importance of time management and seeking support during crises. The essay also discusses the significance of effective strategies and skills in leadership, drawing on the theories of Adair and Schwab, and the role of individual and team performance. Furthermore, it examines various learning resources, such as creative intelligence, accumulated knowledge, and education and training, and how these resources contribute to problem-solving and overall business efficiency. The conclusion reinforces the key findings, emphasizing the importance of integrated leadership and effective strategic tools for maintaining a strong market position and driving organizational success.

Leadership in the 21st century
and strategic development of
organisations

Table of Contents
1. INTRODUCTION.......................................................................................................................3
2. Importance of organisational leadership......................................................................................3
3. Tools and Techniques used for analysis......................................................................................4
4. Knowledge applied to practical situations...................................................................................4
5. Reflection.....................................................................................................................................5
6. Arguments and Conclusions........................................................................................................6
7. Ability to work efficiently...........................................................................................................6
8. Learning resources.......................................................................................................................7
9. Solutions and thinking underlying them......................................................................................7
10. CONCLUSION..........................................................................................................................8
REFERENCES................................................................................................................................9

1. INTRODUCTION
The below essay explores the leadership in 21st century and strategic developments of
organisations. The chosen organisation here is Starbucks. Starbucks is an American coffee-house
chain and coffee company as well. The essay explores the value and importance of an integrated
perspective to organisational leadership. Along with it, the essay explains a range of analytical
models and conceptual tools and techniques in the analysis of Starbucks. The applied knowledge
to practicals situations of business management. The report also puts light on the ability in
working efficiently as a group member or an individual to carry out tasks.
2. Importance of organisational leadership
As per Adair (2015), an integrated perspective is essential for an organisation to
understand its leadership's qualities and downfalls. A good leadership is essential to take the
organisation further and achieve its goals and objectives. Starbucks being one of the leading
coffee-house chains in the world requires an efficient leadership to keep up with the set
organisational standards.
Comparing to Adair, Adelakun (2015) said that Leadership tends to provide direction to
the organisation and directs it towards the right growth and opportunities. It is the job of the
leadership to transform potential into reality. A leader's job in Starbucks is to communicate and
clarify the mission and vision of the organisation to its people and if not done properly these
people in future will suffer from the lack of organisational knowledge.
A good leadership provides structured approach to the organisation. To meet the
organisational goals this structured approach is capable to generate a plan of action. The
enthusiasm and commitment of a leader shapes and transforms the common organisational goals.
Along with it, it provides motivation to the people of Starbucks for high level performance.
In Starbucks, a good leadership keeps the organisation focused at times of crisis. It
reminds the people of the organisation about their achievements and tells them to set short term

goals that are achievable. It also helps the organisation to develop new ideas with the help of its
people. The leader of Starbucks asks its people for feedback regarding the organisation policies
and the necessary change that needs to be made as per their needs and wants.
3. Tools and Techniques used for analysis
As per Ali (2014), Starbucks uses a variety of tools and techniques to analyse its market
position. The organisation sometimes uses efficient techniques such as determining its strengths
and weaknesses. Strengths such as Starbucks is having a strong brand image that makes the
company to reach in a number of consumer markets. Along with it, the company is having a
good financial performance. Its dependency on coffee beans makes the company suffer from
profitability issues while it faces fluctuations. The company has been accused of violating the
rules of “Fair coffee trade”. Starbucks has seen a growing demand of its coffee houses in
developing economies such as India and China. These countries can make Starbucks can grow its
business on a large scale. The rising prices of coffee beans are a threat for the company. Its
competitors such cafe coffee day and other coffee houses that serves coffee internationally are its
big competitors.
As per Anthony (2015), the organisation also uses the determination of external factors as
an effective conceptual technique. These factors include the political climate in which it
understands what political factors are impacting the Starbucks. For example, some of them
include sourcing of its raw materials. The company sources it raw materials from other countries
and these countries tend to levy strict policies on Starbucks. Other are economic factors such as
the local exchange rates of the currency, different markets and their local economic environment,
along with the level of taxation as well. Social factors such as changing patterns of family in
Europe and America, preferences of consumers, lifestyle and population changes etc. are the
leading social factors impacting Starbucks are also a part of the analysis. Other factors such as
emerging innovation in technology, developments of biotechnology and agriculture are some
technological factors faced by the organisation. Strict environmental rules and regulations, global
warming etc. are the environmental factors that impact Starbucks. The introduction of strict
customs and trade regulations, along with the industry related licensing regulations are some
legal factors impacting the company.

Above mentioned are the analytical models and conceptual tools and techniques used in
the analysis of Starbucks.
4. Knowledge applied to practical situations
According to Anthony (2015), in the times of overcoming losses, organisation such as
Starbucks tend to set up a meet with its team managers and leaders. In this meeting, everything
that has made the company to face such losses gets taken into consideration. The managers along
with leaders look forward in finding efficient solutions with the use proper strategies and
techniques.
To deal with the employee shortages Starbucks with the help of its Human Resource
Management seeks to find new employees with required skills and talents. These shortages can
might cause the organisation to suffer in providing required services to its consumers, this is why
it is important to deal with the shortages using effective techniques.
The management of Starbucks while dealing with the budget issues uses various
strategies that makes the company to reach the organisational goals and objectives in the
provided budget. Strategies such as reduction in wastage, prioritizing and streaming job duties
are some effective solution used by the company to deal with issues regarding budget. Along
with it, the managers tend to increase the duties and responsibilities of particular employees to
take care of the factors leading towards high expenses and increased costs.
5. Reflection
As being a leader of Starbucks, I have gained enough knowledge to successfully manage
the organisation in difficult times. My skills of better time management makes me a good
management personnel. Although, in the times of crisis, I have seen myself a bit in unease and in
facing difficulties in managing the overall organisational responsibilities. To seek improvement
in facing difficulties during the time of crisis, I have chosen to seek help of my fellow team
members and managers of the organisation. Their help would help me in making the
organisation's function smooth again.
The organisation has seen to be requiring more of the practical knowledge of the leader to
grow better in this age of globalisation. To develop this, I am learning to be more responsible

and efficient in understanding the depth of better leadership. This might help me with gaining
better knowledge of organisational environment and my overall responsibilities.
6. Arguments and Conclusions
As per Deters (2018), it is important for a leadership to have effective strategies and skills
which it can use in the times of crisis. If a leadership lacks these skills this can make the overall
organisation and its growth suffer. During the time of crisis, a leadership needs to maintain itself
in such a way that it eliminates risk and makes use of the given resources to keep the
organisations operations smooth and easy.
As compare to Schwab's theory it is said that leadership in the time of crisis needs the
help of its overall team and management to decide what's right and wrong for the organisational
safety. It cannot be left on the leader in these harsh times to manage the leadership alone without
taking help of the others employees
The theory of Schwab proves that leadership needs to be managed effectively at the time
of crises with the help of fellow team members and managers as well. It is a suitable approach
and would lead the organisation towards growth.
7. Ability to work efficiently
As per Ain (2017), in a given task an individual can carry the given responsibilities as per
his set skills and talents easily. Although, it becomes difficult for an individual when there is a
lot of workloads on him to manage the tasks easily. It is important for an individual to keep up
with the required amount of time management and necessary guidelines provided to finish the
given task in the allotted time. An individual requires a set of skills and abilities when he is
provided with a task that requires more attention and effort from him.
As per Belbin and his theory of team roles, a group member's ability to work effectively
is determined by the abilities such as, a group member needs to be a shaper which can easily get
things done and drives work forward. The group member should be a completer finisher whose
focus is on completing the task. Also, the member needs to be a coordinator, a good team
worker, resource investigator, and the one who can easily generate ideas as per his creativity

skills. The group member should be a specialist as well, as he needs to bring expert knowledge to
the team.
8. Learning resources
As per Schwab (2016), It is important for any business to have a set of learning resources
to deal with the problems. These resources can make the businesses functioning smooth and
efficient. Along with it, they tend to eliminate a lot of problems by creating awareness within the
organisational employee base and its leaders and managers. Learning resources such as a
Creative Intelligence can solve a lot of problems fast and easy. In case of an employee conflict,
a manager with a creative intelligence skill can resolve the issue easily without effecting another
people's business. A creative intelligence can identify a problem and can seek fast solution.
Along with it, it will help the business to identify different approaches to find a particular
solution for a problem. Another learning resource is accumulated knowledge. In times of a
crisis an organisation requires good knowledge to cope up with the problems it is facing. The
right accumulated knowledge can make one understand the scenario easily and can provide
solution for the problem as per the knowledge. Education and Training is another effective
learning tool used by a variety of businesses which help to create awareness of the effective
solutions that one can make use of when the business is facing problems.
9. Solutions and thinking underlying them
As per Agarwala (2018), Creative Intelligence is said to be used to find solutions of
problems easily. The use of creative intelligence depends on the capability of the one who retains
it. In an organisation, when a problem arises in creates a situation that needs to be solved as fast
as possible. Creative intelligence tends to play a major role. It can find the solutions fast and
implement them accordingly as well.
Another solution is the use of accumulated knowledge. Knowledge is always helpful and
it is the only source to solve any occurring or occurred problems. Having the right knowledge
can make the organisation's leaders, managers and the overall team efficient in their job roles.
Along with it, the accumulated knowledge would not let the business arrive at situations where it
might need to suffer.

Education and Training is another solution as with the right education the employees of a
business will be having right knowledge about the business policies, structure, rules and
regulations etc. This can make the business efficient as its employees are aware and will not
create such situations that hinder its growth. Along with it, right training will make the
businesses' performance smooth and better.
10. CONCLUSION
The above essay helps to determine the integrated perspective to organisational
leadership. It can be understood with the range of analytical models and conceptual tools and
techniques used by Starbucks that the organisation is using effective tools to maintain its market
position. The applied knowledge to practical situations of business management helps one to
understand the importance to knowledge and how they are applied within different organisation
scenarios. The ability in working efficiently as a group member or an individual to carry out
tasks explains how an individual or a group member carries out tasks as per his skills and
performance. The range of learning resources to solve business related problems and the arrived
solutions and the thinking underlying them helps in understand how one can improve the
business situations easily.

REFERENCES
Books and Journals
Adair, J. 2015, Strategic Leadership: how to Think and Plan Strategically and Provide
Direction, Kohan Page, New York, NY
Adelakun, S.F. 2015, “Strategic leadership and self-efficacy practices among school leaders of
International Schools in Kuala Lumpur”, Unpublished master thesis, IIUM
Agarwala, R. 2018. The development of labor under contemporary capitalism. Sociology of
Development
Ain, A. 2017. The CEO of Kronos on launching an unlimited vacation policy. Harvard Business
Review.95.37–42.
Ali, A. 2014, “The relationship between strategic leadership practices and self-efficacy among
school leaders in Republic of Maldives”, Unpublished Master Thesis, IIUM
Anthony et al. 2015 Anthony, W. , Daby, S. , Deegan, C. , Gere, M. , Goddard, T. , Gordon, D.
& Yucas, A. 2015. Standards of good practice for education abroad (5th ed.). Carlisle,
PA: The Forum of Education Abroad
Deters 2018, Global leadership talent selection as an integrated acquisition process: What makes
a global leader? In J. S. Osland, M. E. Mendenhall, & M. Li (Eds.), Advances in global
leadership.pp. 73–96
Schwab, 2016, The fourth industrial revolution. London: Penguin UK