Problems Brewing at Starbucks

Paper Summary:

This paper attempts to outline how Starbucks is changing its operations by recognizing the trends, issues and problems it must face in order to remain competitive within the industry of coffee purveyors. In addition, Starbuck's leadership team is described as to how they can effectively handle the ever-changing organizational climate.

Outline:
Turbulent Economic Conditions
Trends, Issues & Problems Effecting Starbucks
Leadership Solutions - Changing of the Guards
Union Struggles
Regaining the Trust of its "Best Customer" - The Employees
Remaining Competitive
Conclusion

From the Paper:

"It is certainly difficult for Starbucks to stay on top of its game when just about every gas station is expanding its coffee flavors and creamers, along with the even steeper growing competition being put out by McDonald's through its multi million dollar ad campaigns. As it reported a 77% drop in quarterly profit, the company said it will adjust its pricing in some markets, raising prices of some of the more complicated drinks, while lowering those on basic drinks. For example, Starbucks will offer a "grande" size iced coffee for less than $2, shaving as much as 45 cents off the price, depending on the market (Jargon, 2009). The need to appeal to the ever-growing cost conscious clientele is vastly important to the bottom line of Starbucks. Mr. Schultz said the company has been trying to promote value in other ways, too. "

Sample of Sources Used:

• Ashford University. (2007). Organizational Change. Ashford University: McGraw-Hill.
• Axelrod, R. H. (2002). Terms of engagement: Changing the way we change organizations. San Francisco: Berrett-Koehler. ISBN: 1576752399
• Babej, M., & Pollak, T. (2007). Starbucks: Back to The Future? Retrieved July 11, 2009 from Forbes: http://www.forbes.com/2007/03/02/ unsolicited-advice-starbucks-oped_meb_0302unsolicited.html.
• Enz, C. A. (2009). Hospitality Strategic Management: Concepts and Cases. Hoboken, New Jersey: Wiley.
• Healy, J. (2009, January 30). U.S. economy posts fastest decline in 26 years. New York Times, Retrieved July 10, 2009 from, http://www.nytimes.com/2009/01/30/business/worldbusiness/ 30iht-usecon.4.19818575.html.

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