Starbucks can benchmark itself against McDonald's in several areas: (1) McDonald's has more worldwide locations and offers a larger variety of products, (2) McDonald's has successful loyalty programs and focuses on social responsibility, areas Starbucks aims to improve in, (3) Benchmarking McDonald's will help Starbucks grow internationally as McDonald's has already mastered international expansion.
Starbucks can benchmark itself against McDonald's in several areas: (1) McDonald's has more worldwide locations and offers a larger variety of products, (2) McDonald's has successful loyalty programs and focuses on social responsibility, areas Starbucks aims to improve in, (3) Benchmarking McDonald's will help Starbucks grow internationally as McDonald's has already mastered international expansion.
Starbucks can benchmark itself against McDonald's in several areas: (1) McDonald's has more worldwide locations and offers a larger variety of products, (2) McDonald's has successful loyalty programs and focuses on social responsibility, areas Starbucks aims to improve in, (3) Benchmarking McDonald's will help Starbucks grow internationally as McDonald's has already mastered international expansion.
Starbucks can benchmark itself against McDonald's in several areas: (1) McDonald's has more worldwide locations and offers a larger variety of products, (2) McDonald's has successful loyalty programs and focuses on social responsibility, areas Starbucks aims to improve in, (3) Benchmarking McDonald's will help Starbucks grow internationally as McDonald's has already mastered international expansion.
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1. P3-5. What companies might be good benchmarks for Starbucks? Why?
What companies might want to benchmark Starbucks? Why?
Although McDonald's is much different from Starbucks, Starbucks can compare
themselves to McDonald's by assessing their advertising, loyalty programs and social responsibility. McDonald's currently has more worldwide locations, offers a larger variety of products and has several affiliations, including the Olympics. By using McDonald's as a benchmark, Starbucks can mimic some of these behaviors and successfully grow as a larger, more profitable company. Starbucks is working on expanding its international market and becoming more relevant around the world, this is something that McDonald's has already mastered therefore, this is one aspect of McDonald's that applies to Starbucks and can be benchmarked against.
P3-6. Describe how the following Starbucks managers might use forecasting, budgeting, and scheduling (be specific): (a) a retail store manager; (b) a regional marketing manager; (c) the manager for global development; and (d) the CEO.
- A retail store manager can use forecasting to predict future sales based on previous ones, as well as learn more about their customers by interacting with the baristas. This helps to determine what types of products are appealing to customers. Budgeting can be used to determine the revenue budget, calculate the store's approximate revenue, determine whether the store is financially successful, operate the store, and determine the expense budget. All of the steps help to reduce waste and costs. Retail store managers can use Gnatt charts to determine the working schedule (time and place) for baristas, as well as when they need to step up their game - Forecasting can be used by a regional marketing manager by analyzing competitors. Through surveying, they can learn about potential products to expand the market, resources available to expand, and what products need to be improved. Budgeting can assist in determining the budget required to expand the coffee line and in setting sales goals. Load charts can be used to help schedule those who develop new products. - Global managers can use forecasting to predict the market environment by observing changes and trends that are slowly becoming popular. Budgeting can help as a tool to determine which factors are cash cows, stars or question marks and assist in deciding what to invest in. scheduling can possibly help global managers to allocate resources and funds and set plans to start new projects.
Utilizing forecasting, the CEO can observe the environment for possible opportunities and threats to the organization. Budgeting involves helping to decide how many resources are needed to develop the company. Scheduling is used to manage the schedule of all personnel that are responsible for the given tasks of the process.
P3-7. Describe Howard Schultz as a strategic leader.
Howard Schultz is a transformational leader who kicked off the U.S.’s second coffee revolution. His employee-focused leadership style left a template for other business owners to follow as they grow their own enterprises, and Schultz grew a global brand in the process.
Spurred by his brand vision, Schultz reinvigorated the coffee industry while building one of the world’s largest coffee chains with an employee-centric team. He used two classic transformational leadership practices to do this.
+) Intellectual stimulation
Transformational leaders like Schultz are marked by a belief in intellectual
stimulation. They aren’t afraid to rock the boat, prefer a flow of new ideas and challenge status quo.
+) Clear vission
Transformational leaders also have high motivation and a clear vision, which they share openly with their teams.
Schultz had motivation to develop a massive company and, more prominently, a
vision of supporting his employees. He instituted new programs to support workers, including health benefits for part-time workers, tuition assistance, veterans hiring and an employee stock purchase program.
Schultz’s focus on employees came largely from memories of his father, who
worked as a truck driver. When Schultz was seven years old, his father broke his ankle and lost his job. The family suddenly had no income. The experience stuck with Shultz, and later, when building his own brand, employee fulfillment and dignity became a top priority.
P3-8. Is Starbucks “living” its mission? (You can find the company mission on its website at www.starbucks.com.) Discuss. The Seattle coffee giant has a direct, clear mission: “To inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.” But it’s not just words. The company follows its mantra by taking social responsibility seriously. Starbucks is considered one of the world’s most ethical companies. It lives out its mission statement through its commitment to ethical sourcing of coffee and supporting employees with quality healthcare and fair wages. Starbucks has also invested heavily in environmental stewardship. The company has also been known to pay its employees’ tuitions.
P1-1. What Management Skills Do You Think Would Be Most Important For Howard Schultz To Have? Why? What Skills Do You Think Would Be Most Important For A Starbucks Store Manager To Have? Why?
