Part 3: Management Practice
A Manager’s Dilemma
Pretend you’re part of that management team. Using what you’ve learned in the chapters on
planning and strategic management in Part 3, what five things would you suggest the team
focus on? Think carefully about your suggestions to the team.
Planning involves defining the organization’s goals, establishing an overall strategy for
Global Sense
You see the challenges associated with a global supply chain; what are some of the benefits of
it?
Students should recognize that the global supply chain allows for the maximization of
competitive advantages from around the world. Products can be outsourced to different
companies across the globe, allowing for reduction in costs and higher quality. The drawback
as seen in this case is the potential for disruption. When a supply chain is broken, then other
suppliers and manufacturers down the line will eventually slow and stop.
As Chapter 9 asks, how can managers plan effectively in dynamic environments?
This situation epitomizes the importance of understanding environmental uncertainty. A
company may not be able to plan specifically for a volcano eruption that interrupts air traffic;
however, a company’s plans should remain flexible in the event of sudden, unexpected
obstacles. Students should be able to explain how a firm develops specific plans, but builds in a
Could SWOT analysis be useful in these instances? Explain.
Yes, after completing the SWOT analysis, managers are ready to formulate appropriate
strategies—that is, strategies that (1) exploit an organization’s strengths and external
opportunities, (2) buffer or protect the organization from external threats, or (3) correct critical
weaknesses. Strategies in this case could address the decision to outsource production
overseas or whether the threat of a disruption is not worth the potential harm it could have on
the organization.
Continuing Case
Starbucks—Planning
Discussion Questions with Answers; Teaching Suggestions
P3-1. Make a list of Starbucks’ goals. Describe what type of goal each is. Then, describe how
that stated goal might affect how the following employees do their job: (a) a part-time store
employee—a barista—in Omaha; (b) a quality assurance technician at the company’s roasting
plant in Amsterdam; (c) a regional sales manager; (d) the executive vice president of global
P3-2. Discuss the types of growth strategies that Starbucks has used. Be specific.
After the presentation and discussion of different types of growth strategies as presented in
P3–3. What competitive advantages do you think Starbucks has? What will it have to do to
maintain that (those) advantage(s)?
First, ask your students to answer the following questions:
• What is a competitive advantage?
• What is a sustainable competitive advantage?
• Why is the possession of one or more competitive advantages essential to the success
of every organization?
P3-4. Do you think the Starbucks brand can become too saturated—that is, extended to too
many different products? Why or why not?
At the end of one class period, you might pose the preceding questions to your students, asking
them to give careful thought and time to their answers. In addition, challenge students to think
of companies (local as well as international companies) that may have overextended their
brands. What has been the effect of overextension on the profitability of those companies?
Begin the next class meeting with a discussion of students’ insights concerning these questions.
P3–5. What companies might be good benchmarks for Starbucks? Why? What companies might
want to benchmark Starbucks? Why?
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.
P3-7. Describe Howard Schultz as a strategic leader.
You might begin the class discussion of this question by asking students to define the term
“strategic leader.” They should recognize that effective top leaders make strategic decisions
after requesting input from individuals on every level throughout the organization. Ask your
students why an effective strategic leader must have excellent conceptual skills.
Have your students describe a number of strategic decisions already made by Howard
Schultz as described in the case study. Ask them to identify and discuss qualities that make
Schultz a highly regarded strategic leader.
?
Focus on Leadership
Food for Thought from
Howard Schultz
If your classroom has Internet capabilities, visit the Web site below to
read quotable comments made by Starbucks’ Chairman Howard Schultz:
[http://thinkexist.com/quotes/howard_schultz]
Invite your students to reflect on the following quote from Schultz: “I
believe life is a series of near misses. A lot of what we ascribe to luck is
not ‘luck’ at all. It’s seizing the day and accepting responsibility for your
future. It’s seeing what other people don’t see and pursuing that vision.”
Provide an opportunity during class discussion for students to share their
thoughts about the meaning of Schultz’s quotation. Ask questions such
as the following:
· Do you agree with Howard Schultz’s view of the role of luck in
achieving success? Expound on your response.
· Do you disagree? If so, why?
· How does Schultz’s statement relate to the role of intuition in
decision making as described in the text?
· How have you used intuition as a part of the decision-making
process in important areas of your life?
P3–8. Is Starbucks “living” its mission? (You can find the company mission on its Web site at
P3–9. What ethical and social responsibility issues can you see with Starbucks’ decision to sell
alcohol after 4 p.m.? Think in terms of the various stakeholders and how those stakeholders
might respond to this strategy?