BUSINESS

LEADING BUSINESS ORGANIZATIONS

Part One: A Reflective Statement

1.1 a. The leaders should ask two fundamental questions: the first one is- If the leader is spending sufficient time with the team. The second one is- if s/he is capable of doing all the necessary activities having suitable reasons.

  1. The crucial aspects are Honesty and Confidence in leadership. These asp[ects are responsible for making the leaders more efficient so that they can communicate and lead their teams more effectively.
  2. The leadership theory consists of the thought that it doesn’t matter about “what the leaders are ”. The matter for leadership theory is the activities which are taken by the leaders to contribute to the organizations and supervise the workers’ works under them.
  3. There are two different types of leadership styles, i.e. “Transformational leadership and Transactional leadership”. The transactional leadership style is mainly directed to the “benefit exchange” subordinates where the rewards and punishments are provided for motivating the workers (Marianna Mäki-Koivisto, 2017). Whereas, in “Transformational leadership style”, the leader mainly focuses on the dynamic changes which need to take place in the organizations taking the opinions from the workers. Here interaction with the workers plays a crucial role in motivating the workers.
  4. The various types of leadership styles consist of different activities and motivating styles. Therefore, the aspiring leader should understand all the leadership styles to judge himself, which is appropriate in terms of his perspective. Hence, following a particular leadership style, aspiring leaders should know all the styles.

1.2 a. The vision of the organization determines what is to be achieved hopefully. It doesn’t consist of any types of specific targets. The wide description of the vision of an organization directs to the organizational value.

The mission of the organizations directs to the speech activities to be done by organizations to achieve the vision of the organization. Hence, I think it is more appropriate that the vision and mission are very dependent on each other.

  1. As all the workers and every person engaged in the organization are responsible for the outcome of organizations, they play a crucial role in terms of delivering the mission and vision of organizations. The mission of the company consists of the activity done by all the workers for achieving the vision of the objectives.
  2. Leaders are responsible for mapping out the way to achieve the mission and vision of the organizations. All the workers and working formula are controlled and managed by the leaders providing the recommendation of how to do the required activities (Pačaiová and Ižaríková, 2019). Therefore, I think a leader contributes to the mission and vision of the company directly.
  3. The stakeholders are responsible for maintaining the entire workflow of the organizations. All the stakeholders are dependent on each other. Therefore, if anyone stakeholders are omitted, the whole workflow will be affected. Therefore, stakeholders also contribute to the organization.
  4. The leaders are the person who controls and keeps track of the entire workflow, where all the responsibility of the stakeholders is managed by the leader. Hence, the aspiring leaders should know the roles for the stakeholders in a particular organization and how they affect the vision and mission of the organizations properly.

1.3 a. Leadership starry contains the strategies for in lining all the developing foals, aspirations and mission in the leader of organizations. The leader is taken into consideration to identify all the factors in strategies and implication in the leadership.

  1. Change leadership is responsible for choosing another individual who has higher capabilities to meet the vision and mission of the organizations assisting the crucial resources in bundling strong leadership strategy.
  2. The organizational potential directs to the “basic determinant structure” which is responsible for offering the specific potential to improve the productivity, enhancement in world flow and the procedures. These crucial elements are to be organized in a way for having the workforce to be empowered and motivated.
  3. The business context consists of the various types of factors to impact organizations with various perspectives, including several decision-making techniques. The strategic initiatives are executed, taking crucial implications (Hyttinenet al. 2017). It helps to make the decision more effectively based on the business context.
  4. Aspiring leaders have to understand all the strategies as the various types of leadership strategies consist of different implications and effects. These strategies are taken crucially for making the decision as well as other significant activities. It will help the aspiring leaders for choosing the suitable strategy to be implemented therefore appropriate place based on the business context.

1.4 a.   The motivation theories are responsible for motivating all the workers in the workplace for doing their work more perfectly to achieve the organizational goal (Pavelin, 2018). It helps to be more productive in terms of doing their work which is responsible for having better economic use of the resources in the organizations.

  1. There are two types of motivation theories, i.e. “Intrinsic motivation and extrinsic motivation”. The “intrinsic motivation” consists of the internal factors which are responsible for performing suitable activities and action by the individuals. The “extrinsic motivation” consists of the performance of the workers, which is enhanced by the external factors, i.e. “punishments or rewards”.
  2. The theories for helping to motivate the employees are “expectancy theory, equity theory and goal-setting theory”. The equity theory refers to the mechanism where all the same level workers are taken into consideration for treating them equally; no partial or any special motivations are provided to anyone. The “expectancy theory” is responsible for constructing the line between “motivation and behavior” (Aceron and Isaac, 2016). The goal-setting theory helps to set specific goals to every worker so that they can meet those goals efficiently and enhance the performance of the organizations.
  3. The appreciative inquiry techniques are responsible for having the approaches to identify the “well working” and “proper analyzing techniques” determining all the reasons for working efficiently. It will be much enhanced to get the attention of the people more focused on the organizations.
  4. The motivation theories are very crucial in motivating the workers so that they can work more effectively. Therefore, the aspiring leaders should understand those theories to always motivate their workers for better performance in the workplace. Motivation is the thing to provide power to mankind and enlarge their capabilities. Hence, it is very important to evaluate motivation theories by having specific organizational contexts.

1.5 a. I mostly prefer the transformational leadership style over the transactional leadership style. I think united rewards and punishments can’t motivate the workers effectively. It is very crucial for having a conversation with the workers so that if there are any innovative ideas or problems they have, I can understand and solve them accurately for providing a better workplace (Olannye, 2016). Interaction with the workers helps to detect the issues more effectively and can get innovative ideas can be applied in the organizations for better outcomes. Hence, I define Transformational leadership as potential leadership style of mine.

  1. My crucial strength is the effective communication skills which help me to interact with more people. I can adapt to various types of workplaces and environments. I am very aware of my capabilities too. I can work with various types of persons having different styles and approaches.
  2. It seems very bad wherever any mistake or wrong decisions are taken by me. It de motivates me a lot which leads to over thinking and wrong decision making. It provides me with an excessive headache, and I can’t handle it perfectly (ala-apa.org, 2020).
  3. Firstly, I need to undertake daily routines and practice discipline, having a personal life separate from my professional life. I want to get more projects so that I can get more experiences which will help me in my future (Puranik, 2017). I will undertake the successful leaders’ theories and strategies and follow them to implement them in my workplace for better outcomes. I need to undertake “situational awareness development” so that I can handle all “the negative and problematic situations” easily.

Part Two: A Management Report

Introduction

The evaluation of the leadership of Mr. Kelvin Johnson is taken into consideration here for conducting the report, which are the CEO and the president of Starbucks company. The leadership style is overviewed here with all the challenges and capabilities of handling all the situations by Mr. Johnson.

Financial performance of Starbucks is elaborated here with all theoretical issues. The interview of the employees in Starbucks is responsible here for getting their experience with the company compared with the statement of companies.

The drawbacks and changes are also provided here where the company is still suffering. The recommendations and suggestions are provided for better implementation of new technologies so that they can enhance the organizational workflow efficiently.

Overview

Servant leadership theory is one of the oldest leadership styles and very popular in terms of implementing the leadership style in the workplaces. The people engaged with the organization are taken into consideration here for supporting the organizations and agile teams.

Servant leadership have the philosophy for scanning the technological method and tactics effectively. It is very different from the conventional leadership theories where “thriving of the organization” are the main focus of the leaders. The servant leadership is irresponsible for dividing the power to all the workers so that the workers’ need is to “perform and develop” as “high as possible”.

Servant leadership provides the utmost fact to the consumers, where it converts all the regulations and norms based on the customers’ needs. Generally, the people are working for the leaders in conventional leaderships. But here in servant leadership, the leaders are working for people (Kozłowski, 2016).

Leaders are taken as a servant for serving the people maximum. The leaders consist of the mindsets having changeable patterns to serve the people where the powers also get the personal growth which enhance the organizational growth also. Enlarge engagement and committing employees can help to gain growth more accurately.

Team members got more focus here in servant leadership, which intervenes the engagement of the workers and increases the trust upon the organization. It also enhances the relationships among the workers and leaders.

The innovations are enhanced by the leadership style where all the innovative ideas are taken by the organizations and implemented in the organizations. Unique ideas help to get competitive advantages. It has similarities with the transformational leadership style, which is also very effective and popular in business situations (reader.elsevier.com, 2020).

Moreover, various are present in servant leadership to make crucial decisions. In the autocratic and hierarchical leadership, the implementation of servant leadership is very hard. The decisions are only taken by the manager and leaders openly in hierarchical cultures where servant leadership is a bit problematic. The workers are not permitted here to make those decisions.

If it is done here, the respect of the leaders is minimized. Moreover, as the confidential decisions are shared by all the workers, those strategies decisions can be stored and accessed by inauthentic people also which affect the competitions severely. It provides various threats to organizations. According to VUCA environments, servant leadership can be taken into consideration in the organizations but have to keep in mind that the confidential data is only to be shared with the limited person only.

Critical evaluation of Kevin Johnson’s leadership style

Starbucks consists of aggressive leadership styles in their workplaces. Kelvin Johnson got the responsibility of the company after the stepping out of Howard Schultz. Mr. Johnson is one of the finest successful leaders having various experiences in top companies. The non-defensive attribute of the leader is very suitable for organizations (Sindhaniet al. 2019).

The reflections and different tones are shown having the capability of emphasizing the pains occurred in several situations.  Defensiveness is always responsible for breeding anger which can worsen the situation. Therefore, the non-defensive activities for Kevin Johnson are very pleasing to the workers and as well as the consumers.

The “listen before speaking” attitude of Mr. Kelvin is accepted widely in the organizations where the listening the workers and their personal experiences help him to conduct the changes required in Starbucks. One of the crucial chronologies is to hear the workers from the CEO.

Acquiring the Servant leaderships, Johnson proves that how much concern he is about his staff and employees so that the important decisions can be taken by the leader effectively while getting the reviews and thoughts from the employees. Apologizing is known to him.

There was an incident in 2018 where mistakenly the employees of a Starbuck store suspected two consumers as they were just sitting, not ordering anything. Future, it was seen that they were suspected mistakenly.

The suspects are taken into custody for eight hours, and they are released after knowing it was a mistake. Starbucks faced a lot of challenges at this time where everywhere “Boycott Starbucks campaign” was going on and got viral in social media.

After that, Mr. Johnson himself took all the responsibility and apologized about the inconveniences and tweets. Thus, the leadership of the CEO of Starbucks enhances the financial performance of the company efficiently. The performance of the organizations can be judged by financial datasheets.

The datasheet of Starbucks provides information about its performance in the US and international markets. It is seen that the profits are acquired in the US markets more than the internal markets (Chaffer, 2017).

Additionally, the revenues earned from the US are much higher i.e. Approx. four times better than the international markets. The “revenue in the US” was $3,959.0 million, whereas the “international revenues” was only $1,164.80 million. The “profitability ratio” also increased gradually in the UK markets only.

It is predicted that there will be various challenges in international business of Starbucks and have to bring the investments back. Moreover, the American business of Starbucks got negative growth too in 2017. Starbucks also faced various changes in entering the Asian markets as the tea cultures are huge, where adaptation of their culture is a bit harder (researchgate.net, 2018).

Now comes to the working environment provided to the employees of Starbucks; it is seen that Starbucks provides more than 13 reasons to work with the company. As most of the employees are students, Starbucks provides various advantages to deal with their career and academic success.

Collaboration with “Arizona state university” helps the students to bear all the fees coverage for the students who are doing their “part-time and full-time work” in Starbucks. It provides more than 70-degree programs to the workers from which they can choose their required course (Mukhlisah, 2018).

Starbuck provides a statement where it is seen that more than 80 per cent of employees are familiar and happy about the leadership of Mr. Johnson. According to Glassdoor, a “third-party vendor reviewing the leaderships”, 77 % of the workers are satisfied by the leadership in Starbucks. Additionally, they also provide the coffees free to their employees every week with one drink and food in every shift. Starbucks calls its employees as partners more than workers which enhance the engagement of the leaders more in the organizations.

Though the statements of the organizations are positive, it is essential for getting the perspectives and views of the employees. The number of former and current workers are taken into consideration here for providing information about their experience in their workplace.

According to current employees, Starbucks treats its consumers as their family, where they see many children growing up with Starbucks. Another former employee stated that Starbucks plays several videos and stuff to make feel of the importance in their company.

But the payments system is lower here (Jooste and Hamani, 2017). The company pays smaller than the expectations. Another employee who has been working with Starbucks for five years provides information that Starbucks always reminds about the importance of workers.

Several employees recommended that the pay scale is lower here. The demand of the workers is increasing whereas sales structure is not improving. Former employees comment that Starbucks uses the workers and throw them out.

However, mixed evaluation got from the outcomes where it is seen that the official statements are directed to the higher satisfaction of the employees (Gillespie, 2017). But based on the review of employees, Starbucks mainly follows the feelings of organizations, but doesn’t provide an improved pay scale to their employees. Only they treat them from feeling special but not provide much salary to them (docsdrive.com, 2017).

Justification of Johnson’s leadership

The leadership of Mr. Johnson is quite effective and follows the aggressive leadership style throughout the companies. Workers are taken into consideration every seriously here where it provides the main focus to the employees and the consumers.

Servant leadership style is acquired by Mr. Kelvin, where the interaction and communication with the workers plays a crucial role in the organization. The leading techniques and activities done by Johnson are outstanding where the workers are taken into consideration by him for providing a more effective work to work and perform to meet the outcomes and objectives more crucially (Ramalepe, 2016).

There are various types of factors responsible for getting success in Starbucks. Leadership techniques are the essential factor in enhancing the workflow of the organization in various ways. The anti-defensive character of the leader is essential where he knows to apologize if any mistakes are made.

Servant leadership helps Mr. Johnson as well as the organization to deal with effective outcomes. Through the leadership strategies of Mr. Johnson is praised by many sectors, the users and workers are not so comfortable or happy based on the interviews done.

The former and present workers said that organizations provide all types of facilities to bring the feel that they are so special to the company as partners, not as workers, but the pay scale or salary structure is much lower which is not expectable or up to the expectations here.

The price distribution of the coffees is also very aggressive where many individuals can’t afford or invest their money in a cup of coffee only. Their products are marginally overpriced, where many consumers don’t want to invest in it. Besides that, the international strategy is not very effective in Asian countries (Fontana, 2017).

The growth of the company is very slow here. Therefore, it can justify that though the leadership style is very prominent for the employees, some of the segments are to be taken for improvements so that employees are satisfied more, and the consumers will take the products widely. The adaptation capabilities to the Asian countries are very hard for them as the people of Asian countries consist of specific tea cultures which are difficult to adopt.

Recommendations

The most suitable recommendations are provided here to maintain the growth rate and improvements in the sustainable business, enhancing the financial performance of the organizations in the future.

  1. International market

The international market is one of the essential portions where Starbucks should focus on enhancing the growth of the company. Starbucks has more than 29 thousand stores over, more than 76 countries worldwide. But in Asian countries, the growth of the company is very low. Different tea cultures exist in Asian countries which are very rich and followed by people from decades (Savarkar, 2017).

The tastes, values, religions and tea culture in different Asian countries are different. Especially Korea, China, Japan, and Vietnam are very enriched with their stable tea cultures. The local tastes are acquired by Starbucks, where alcoholic, and string tea flavors are requested by the people. Kelvin started to accelerate the spread of Starbucks by 2019 for intensifying the competition in the Asian countries.

As a result, Japan has the largest store of Starbucks there now. Based on the adequate analysis, it is recommended to acquire various strategies specified for the Asian countries to gain competitive advantages as well as to spread the business worldwide.

  1. Price strategy

The other recommendation that should be acquired by the company is to focus on the pricing strategy by Kelvin Johnson. The price is quite high for their products where many consumers can purchase those products. Hence, lowering the price could be very beneficial for the company where more number of people can buy the products and expansion of the business will grow higher (Costa, 2018).

It is very important for increasing consumer numbers rather than only the profit percentage. Starbucks should introduce various offers and deals occasionally where the people can spend their festivals with Starbucks. It can attract consumers more who have never tried their products before. It is also to be kept in mind that lowering the price should not affect the quality of the products. It can affect regular customers who are familiar with the taste of their products.

Conclusion

Johnson is playing a crucial role for the workers where they are treated very perfectly. But the leading techniques and activities should be more enhanced so that the expansion of the company will take place widely. Various types of features and facilities are provided by the company so that employees can help to meet the objective and vision of the organization.

Although there are various factors responsible for the success of Starbucks, the leadership techniques enhanced the workflow of the company in various ways. Hence, Kelvin Johnson is one of the effective leaders having suitable leadership techniques and could be fooled by the emerging leaders for better performance outcomes in the organizations.

Reference list

Journals

Aceron, J. and Isaac, F., 2016. 3. Contextualising vertical integration in Philippine civil society. Going vertical: citizen-led reform campaigns in the Philippines, p.33.

Chaffer, J., 2017. Containment–lack & leadership in a Nepal firm (1): what it is, what it means and how it can be supported in leadership.

Costa, M.M.F.D., 2018. Leadership of multicultural teams at a french company: project globe based study (Doctoral dissertation).

Fontana, G., 2017. Higher education, developmental leadership and good governance.

Gillespie, R., 2017. A cross-sectional exploration of leadership styles exhibited when facing workplace challenges: qualitative interviews with “the Company’s” managers (Doctoral dissertation, The IIE)

Hyttinen, K., Ruoslahti, H. and Jokela, J., 2017. Model for Effective Integration between Research, Work Life and Higher Education in International Security Studies.

Jooste, K. and Hamani, M., 2017. The motivational needs of primary health care nurses to acquire power as leaders in a mine clinic setting. Health sa gesondheid22(1), pp.43-51.

Kozłowski, R., 2016. Different faces of passion in the context of leadership. Management20(1), pp.71-80.

Marianna Mäki-Koivisto, J., 2017. Management’s perceptions of social and health care reform in Finland: The challenges management encounters and competencies needed to promote organisations’ ability to reform.

Mukhlisah, M., 2018, December. Women Leaders’ Transformational Leadership Characters: a Case Study at An Islamic University. In 2nd International Conference on Education Innovation (ICEI 2018). Atlantis Press.

Olannye, A.P., 2016. Driving Employee Affective Commitment through internal branding in deposit money banks in Nigeria. American International Journal of Social Science5(3).

Pačaiová, H. and Ižaríková, G., 2019. Base Principles and Practices for Implementation of Total Productive Maintenance in Automotive Industry. Quality Innovation Prosperity23(1), pp.45-59.

Pavelin, G., 2018. THEORETICAL POSSIBILITIES FOR CREATION OF ERASMUS+ PROGRAMME FOR NAVAL STUDIES AT THE UNIVERSITY OF SPLIT. Economic and Social Development: Book of Proceedings, pp.590-600.

Puranik, V., 2017. Journal of Entrepreneurship & Organization Management.

Ramalepe, M.L., 2016. Moral purpose driven leadership: A framework for enacting moral purpose. International Journal of Recent Advances in Multidisciplinary Research3(8), pp.1774-1780.

Savarkar, S.D., 2017. Study of impact of print and television media on political communication and political process of maharashtra (Doctoral dissertation, Tilak Maharashtra Vidyapeeth).

Sindhani, M., Parameswar, N., Dhir, S. and Ongsakul, V., 2019. Twitter analysis of founders of top 25 Indian startups. Journal for Global Business Advancement12(1), pp.117-144.

 

Online articles

docsdrive.com, 2017, Leadership Behavior and Accounting Information System (An Empirical Study at the Hospitals in Riau Province-Indonesia), Available at:

http://docsdrive.com/pdfs/medwelljournals/jeasci/2017/6062-6068.pdf [Accessed on: 13.04.2020]

reader.elsevier.com, 2020, The influence of leadership quality towards community cohesion in Iban community in Malaysia, Available at: https://reader.elsevier.com/reader/sd/pii/S2405844020302152?token=27BA633D9A3F0F178BD70D0E563C578FB32D4CE054A6F912711A5409B1CA10D262C44AB04FD7AC05703560E51D89EC39 [Accessed on: 13.04.2020]

researchgate.net, 2018, Motivation and Leadership Skills, Available at: https://www.researchgate.net/profile/Sneha_Hazra/publication/332564930_Motivation_and_Leadership_Skills/links/5cbdd82592851c8d22fe906c/Motivation-and-Leadership-Skills.pdf [Accessed on: 13.04.2020]

Website

ala-apa.org, 2020, Leadership Style and Organizational Impact, Available at:https://ala-apa.org/newsletter/2010/06/08/spotlight/ [Accessed on: 13.04.2020]

 

 

 

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