Part 2: Management Practices
A Manager’s Dilemma
Using what you learned in Part 2, especially Chapter 6, what would you do in this situation?
Jim has a difficult decision to make and his actions should be guided by both legal and moral
requirements in this instance. Because of the potential exposure, Jim should immediately
contact the local health department and notify them of any potential exposure danger. As part
of this process, the local health department may have a plan in place to notify the public, in
which case the issue of public notification is not a decision to be made by the manager. If after
testing of the potentially affected employee there is a case of exposure, the health department is
likely to require the company to follow procedures regarding public notification, employee
testing, building decontamination, and a mandatory shut down. At this point, Jim could notify
Global Sense
What global attitude do you think would most encourage, support, and promote cultural
awareness? Explain.
The ethnocentric, polycentric, and geocentric views vary by their degree to which the holder
adheres to the belief that their culture is the best and their willingness to accept best
What advice might you give to a manager who has little experience globally?
There are a variety of training programs put out by organizations that can help managers
increase their cultural awareness. These programs can educate managers on theories such as
Continuing Case
Starbucks—Basics of Managing in Today’s Workplace
Discussion Questions with Answers; Teaching Suggestions
P2-1. Do you think Howard Schultz views his role more from the omnipotent or from the
symbolic perspective? Explain.
By providing leadership for his company, Howard Schultz empowers his employees throughout
the organization to participate as partners in the success of the company. To some extent,
performance.
P2–2. What has made Starbucks’ culture what it is? How is that culture maintained?
Students should revisit the description in the Part I case concerning the business philosophy of
the three original founders. Ask your students to explain how the unwritten business philosophy
P2-3. Does Starbucks encourage a customer responsive culture? An ethical culture? Explain.
P2-4. Describe some of the specific and general environmental components that are likely to
impact Starbucks.
The three ways that the external environments affect managers are its impact on jobs and
employment, amount of environment uncertainty, and nature of stakeholder relationships.
One of the most visible areas where we’ve seen how the external environment affects
P2-5. How would you classify the uncertainty of the environment in which Starbucks operates?
Explain.
As with most global companies, Starbucks faces a significant amount of environmental
P2-6. What stakeholders do you think Starbucks might be most concerned with? Why? What
issue(s) might each of these stakeholders want Starbucks to address?
P2-7. Why do you think Howard Schultz is uncomfortable with the idea of legislative lobbying?
Do you think his discomfort is appropriate? Why or why not?
Ask your students to discuss their perspectives regarding possible reasons for Schultz’s
discomfort with the idea of legislative lobbying. For example, could the appearance of trying to
get things like tax breaks, reduced health care costs, and trade deals, contradict or compromise
the image of the company? Especially in today‘s climate where Washington bailouts and
handouts are often viewed negatively by the public, is legislative lobbying beneficial? However,
P2-8. What types of global economic and legal-political issues might Starbucks face as it does
business globally?
P2–9. You’re responsible for developing a global cultural awareness program for Starbucks’
executives who are leading the company’s international expansion efforts. Describe what you
think will be important for these executives to know.
Divide your class into small groups of four to five students to address this question. Then, have
P2–10. Using information from the case and information you pull from Starbucks’ Web site, what
global attitude do you think Starbucks exhibits? Defend your choice.
P2-11. Pick one of the countries mentioned as an important target for Starbucks. Make a
bulleted list of economic, political-legal, and cultural characteristics of this country.
Divide your class into small groups of four to five students to address this question. Then, have
P2-12. What workforce challenges might Starbucks face in global markets in regard to its
partners?
As education and work practices vary from country to country, staffing an organization that
demands a coordinated work effort becomes more difficult. This is further complicated by
P2-13. How does Starbucks manage diversity? What is Starbucks doing to manage diversity in
each of the four areas: customers, suppliers, partners, and communities?
P2-14. With more than 149,000 partners worldwide, what challenges would Starbucks face in
making sure its diversity values are practiced and adhered to?
P2-15. Starbucks defines diversity on its Web site in the form of an equation:
Diversity = Inclusion + Equity + Accessibility.
Explain what you think this means. What do you think of this definition of diversity?
P2-16. What other workplace diversity initiatives discussed in Chapter 4 (besides employee
resource groups) might be appropriate for an organization like Starbucks?
P2–17. Go to the company’s Web site [www.starbucks.com] and find the latest corporate social
responsibility report. Choose one of the key areas in the report (or your professor may assign
one of these areas). Describe and evaluate what the company has done in this key area.
P2–18. What do you think of Starbucks’ goal to recycle all four billion cups sold annually by
2015? What challenges did it face in meeting that goal?
P2–19. Why is the concept of “empowering” employees important in doing business ethically?
P2-20. Again, go to the company’s Web site. Find the Standards of Business Conduct
document. First, what’s your impression of this document? Then, choose one topic from one of
the main areas covered. Describe what advice is provided to partners.
P2-21. What do you think the company’s use of the term partners instead of employees implies?
What’s your reaction to this? Do you think it matters what companies call their employees? (For
instance, Walmart calls its employees associates.) Why or why not?
P2–22. Howard Schultz is adamant about providing the best “Starbucks experience” to each and
every customer. As a store manager, how would you keep your employees from experiencing
high levels of stress when lines are out the door and customers want their Starbucks now?
P2–23. Would you classify Starbucks’ environment as more calm waters or white-water rapids?
Explain. How does the company manage change in this type of environment?
P2-24. Using Exhibit 7-9, describe Starbucks’ innovation environment.
Exhibit 7-9 describes the structural, human resource, and cultural variables that are important
P2–25. Review the company’s mission and guiding principles (at www.starbucks.com). Explain
how these might affect the following: managing its external environment and its organizational
culture, global efforts, diversity efforts, social responsibility and ethics issues, and change and
innovation issues.
Innovation is the key to continued success for Starbucks. They have to be innovative, forward-
thinking, and nimble in order to succeed in a challenging and competitive industry. The