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    Leading Business Organisations

    University: BPP UNIVERSITY SCHOOL OF BUSINESS AND TECHNOLOGY

    • Unit No: 2
    • Level: High school
    • Pages: 15 / Words 3735
    • Paper Type: Assignment
    • Course Code: LD501
    • Downloads: 384
    Question :

     This assessment will cover the following questions:

    • Starbucks is a Coffee house chain works in multiple nations. Discuss Why is a systematic understanding of leadership theories and organisations beneficial for aspiring leaders?
    • Explain an ability to evaluate the contribution that individuals, leaders and stakeholders make in creating and executing the mission and vision of Starbucks important for aspiring leaders?
    • Explain Why is an ability to implement leadership strategies in order to maximise organisational potential in a variety of different business contexts important for aspiring leaders?
    Answer :

    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.

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    (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.

    (c) 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.

    (c) 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.

    (c) 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.

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    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.

    (C) 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 choose alternatives prudently and in better way. Kevin can also follow participative leadership style and under this it can take guidance from the employees working on ground level (Kok, and McDonald, 2017). By doing innovation can be done in the business in better way. Such kind of things will lead to fast success of Kevin and sustainability in the Starbucks business. In order to bring sustainability and competitive advantage in the business Starbucks can offer other wide variety of products like burgers and others so that other needs of customers can be fulfilled. In other words, it can be said that multiple services will be provided under single umbrella. By doing so under single shop all needs of the customers can be fulfilled. Thus, such kind of strategy will lead to Kevin success and maintenance of Starbuck sustainability and competitive advantage.

    (f) Brief conclusion on whether Starbucks CEO is a role model global leaders.

    Kevin Johnson is effective role model for aspiring leaders. There are different leadership styles and every one lead organization in different manner. For example many leaders just instruct their subordinates to do something at the workplace. On other hand, there are many leaders who motivate employees at workplace to do something innovative at the workplace. So every leader has focused on varied areas and due to this reason one failed to lead workforce in efficient and effective manner.  For such kind of leaders Kevin Johnson is one of the effective role model (Ignatius.,  2019). This is because mentioned individual focus on multiple areas like innovation of business, management of human resources at the workplace and creation of hierarchy in the business as well as merging of roles and responsibilities at the workplace. Thus, it can be said that Kevin focus on doing effective use of the human resources in the business and making management efficient at the workplace. Kevin pay attention of innovation and HR which indicate that he do work on multiple fronts which lead to fast business growth of Starbucks. Thus, it can be said that Johnson is an effective role model for aspiring leaders.

    CONCLUSION

    It is deduced that it is concluded that there is significant importance of leadership for the business firm because it determine the path that company will adopt for its business growth.  It is also concluded that it is innovativeness in the company operations that pave a way of success for the firm. Hence, firm must consistently try something new in its business so that business growth can be accelerated.

     

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