Starbucks Organisational Culture

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Strategic change

In case of strategic change the parts of the cultural web that would be difficult to change relate to the stories, symbols and routines/rituals. Since the stories ,symbols and rituals/routines are engrained in the history of the organisation and reflect its core beliefs and purpose (i.e. passion shown for coffee etc…) Therefore these would be hard to change as it would then question the paradigm and values of their organisation which influence their actions and decision making(Heracleous and Langham (1996: 487)

The parts that would be easier to change relates to the control systems, organisational and power structure since these relate to organisational processes which are less embedded in the organisational purpose and history compared to the organisation core values and belief. However since Starbucks core assumptions now rely on employee consideration , which is well supported by the new structure they use, changing these new structure could affect their core belief of providing a great work environment and connecting with transparency, dignity and respect which would then affect their competitive advantage.

RBV and VRIO analysis

RBV suggests that the competitive advantage of an organisation stems from the distinctiveness of its capabilities in terms of resources and competences (Hoffer & Schendel, 1978; Wenerfelt, 1984

Starbucks main tangible resources that contribute to its strategic capabilities: purchase of purchase of the highest coffee bean from ideal producing climate (made possible via the promotion of their values regarding equitable relationship with farmers (ethical sourcing) and communities (community involvement) and regarding the environment protection.

The intangible resources of Starbucks relate to its brand name, reputation and knowledge and experience:

The visual appeal and “cool” factor of their store (character of neighbourhood they serve in, environmentally friendly aspect) as well as a unique Starbucks experience concept(third place, warm atmosphere) makes Starbucks a strong brand and thus increase its brand recognition.

Starbucks reputation for providing knowledgeable and quality service is the result of their efficient human resource management which focus on employees training ,coffee education and their “happiness”(via workshop, training programs and employee knowledge base strategy which provides benefits) in order to increase customer service and sustain a competitive advantage.

Their reputation for being a good socially responsible firm (ecofriendly, recyclable cups use, help farmers reducing carbon emission etc.) Build up its brand image throughout the world and increases customer loyalty around the globe.

Starbucks core competences are first his brand equity (is built on selling the finest quality coffee and related products, and by providing each customer a unique “Starbucks Experience) and is its human resource management's values-based approach for building very strong internal and external relationships with suppliers.

Starbucks strategic capabilities that are valued, inimitable, rare and supported by organisation regards their global brand recognition and equity, the aesthetic appeal and concept of its store, its human resource management and company culture which allow Starbucks a sustainable competitive advantage.

Critical thinking:

Based on these research we can assume that Starbucks coffee is a company that communicate well its values and belief throughout all the different elements of its cultural web and interpret most of them as taken for granted assumptions. These core values and belief constitute the basis of their paradigm as well as the basis of their core competences and resources which provide Starbucks a sustainable competitive advantage.

Bibliography

- Outstanding Paper Award from Group & Organization Management Journal for Heracleous & Klaering (2014) paper "Charismatic leadership and rhetorical competence: An analysis of Steve Jobs' rhetoric"

- Hoffer,C & shendel D 1998 strategy formulation, analytical concepts St paul, MN west

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dx.doi.org/10.1108/00197851111160478

- J. B. Quinn, Strategies for Change: Logical incrementalism, Irwin(1980)

- G. Johnson, Re-thinking incrementalism, Strategic Management

Journal, 9, 75-91 (1988).

- Gerry Johnson, (1988),"PROCESSES OF MANAGING STRATEGIC CHANGE", Management Research News, Vol. 11 Iss

4/5 pp. 43 – 46

- Gerry Johnson, Kevan Scholes & Richard Whittington, Exploring Corporate Strategy, Seventh Edition (Pearson Education Ltd 2005). Exhibit 4.11 ‘The Cultural Web’ p202.

- Jamila Obsiye. (2014). Employee Playbook Guide. Available: http://obsiye.weebly.com/uploads/2/5/8/9/25890567/starbucks_manual_final.pdf. Last accessed 17/12/2015.

- Shuhana Yunos . (2015). Reflective Journal: Starbucks Corporation. Available: http://www.academia.edu/5060226/Reflective_Journal_Starbucks_Corporation. Last accessed 17/12/2015

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