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Essay / Overcoming Obstacles and Resistance to Change at Starbucks
The transformation program announced by CEO Howard Schultz in March 2008 clearly framed Starbucks' renewal strategy to restore the company to profitable and sustainable growth (Schultz , 2011). However, despite careful and careful planning, subsequent implementation of the changes on the agenda was met with considerable cultural and environmental resistance (Koehn, Besharov, & Miller, 2008). In retrospect, the management team failed to develop effective strategies to deal with resistance to change, leading to unexpected costs in terms of company resources and stakeholder goodwill. This paper highlights the key barriers to cultural and environmental resistance to the implementation of the transformation agenda and formulates integrated strategies that would have helped overcome the barriers to change. Cultural and Environmental Resilience Barriers Supported by an updated mission and compelling new vision, the transformation agenda included seven strategic change objectives that could potentially have a significant impact on the financial and professional well-being of partners, customers and customers. shareholders of the company as well as its managers (Schultz, 2011; Zegler, 2010). The successful implementation of the desired changes therefore depended above all on the acceptance and support of these important groups (Koehn et al., 2008). However, given the company's recent deterioration in performance amid increasingly desperate economic conditions and escalating internal stress from store closings and layoffs ("DATAMONITOR: Starbucks Corporation," 2011), such Acceptance and such support seemed highly unlikely. Thus, the Starbucks management team diligently applied their knowledge and skills as well as those of recognized experts...... middle of article ......s Corporation SWOT Analysis, 1-12 .Koehn, N., Besharov, M., and Miller, K. (2008). Starbucks Coffee Company in the 21st century. Boston, MA: Harvard Business School Publishing. Retrieved from http://custom.hbsp.com/b02/en/implicit/viewFileNavBeanImplicit.jhtml?_requestid=36673 Kotter, J., and Schlesinger, L. (2008). Choose strategies for change. Harvard Business Review. Retrieved from http://hbr.harvardbusiness.org/2008/07/choosing-strategies-for-change/ar/1Palmer, I., Dunford, R., and Akin, G. (2009). Managing organizational change: A multiple perspectives approach (2nd ed.). New York: McGraw-Hill/Irwin. Schultz, H. (2011). Forward: How Starbucks fought for its life without losing its soul. New York: Rodale. Zegler, J. (June 2010). New initiatives expand Starbuck's reach. Beverage Industry 101(18), 62. Retrieved January 25, 2012 from ABI/INFORM Trade & Industry.