Nadler and Tushman's Formula to Restructure the Starbucks Corporation
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Organizational restructuring:
Using Nadler & Tushman's formula to restructure the Starbucks Corporation
Introduction
According to Nadler & Tushman, there are six strategic imperatives for future organizations: the need to focus the company's business portfolio; "abbreviate strategic life cycles; create 'go-to-market' flexibility; enhance competitive innovation; and manage intra-enterprise cannibalism" (Nadler & Tushman 1999). One company that is must restructure itself is the Starbucks Corporation, which has begun to eliminate unprofitable aspects of its empire and is trying to refocus its portfolio to emphasize high-growth markets. Starbucks must take an international focus, and reorganize its core competencies to suit the tastes of consumers living in high-growth markets. While Starbucks has acknowledged this need, over the next several weeks I will suggest additional methods for Starbucks to improve its financial performance and to better reframe the company's image for the international market.
What are the characteristics of the changing environment?
For many years, Starbucks had a rapid-expansion strategy and opened as many stores as possible sometimes only a few doors down from one another. The theory was that each Starbucks had a different 'neighborhood café' feel to it and could still draw foot traffic (Allison 2012). However, the proliferation of stores meant a decline in the quality of the product, and ultimately Starbucks is a product that markets itself