What Would You Do If You Were Starbucks Ceo

Starbucks needs to make drastic changes in part of their organization to return growth and profitability. The first step would be to revisit their organizational goals and determine if they are using the correct means to achieve their goals. Depending on the results they may need to conduct a power shift in their middle managers since they are responsible for planning and allocating resources that meet the objectives that are set forth by top management. They are also responsible for monitoring and managing the performance of teams and managers who report to them. Obviously they are not performing at their best if the company has become stagnant in growth and profit.

Starbucks should not lower their prices due to the fact that Starbucks provides a premium product that consumers want and are willing to pay a premium price. Starbucks stores did not follow the vision of the Starbucks CEO as “the third place” that people spend their time between home and work. Most of the newer stores were designed as an Internet Café with limited space and cheap furniture which causes most of the potential customers Starbucks envisioned targeting to avoid the socializing high school and college crowd it attracts.

Starbucks strategy should remain the same to strive to build a “different kind of company” – one with a “social conscience” and a “soul.” I believe if they apply the original strategy the organization was founded on, the growth and profits would be remarkable. Thus, the middle managers need to redesign the stores to represent the organizations environment and culture of the business that the CEO designed.

I feel Mr. Shultz is the right CEO for Starbucks and should remain the CEO because he is capable of striking the delicate balance of being decisive, assertive, and approachably real. He believes in a balance between making a profit and being a benevolent employer and a benevolent part of community.

Mr. Schultz is exceeding his responsibilities as a top manager...