Introduction 2008 was the start of the Great Recession. Up until that point, many were enjoying the finer things in life as the economy grew at a fast pace, and many began to live beyond their means. What began with the burst of the housing bubble, this ubiquitous event affected all facets of the economy to include massive job losses which caused sharp cutbacks in consumer spending (Economic Policy Institute, n.d.). Consumers were forced to change their everyday way of life to include cutting out “luxury” items, such as Starbucks coffee. It is well known that coffee is a generally cheap commodity that is often served complementary. However, Starbucks made its millions on creating a brand, which is defined as an “entity that engenders …show more content…
Schultz’s vision and direction was “reigniting the emotional attachment with customers” (Husain, Khan, & Mirza, 2014). In order to do this, Schultz’s plan was to reconnect with the customer and its partners (Starbucks refers to its employees as its “partners”), allowing them to express their views and ideas through technology using social media. This plan fostered an environment of passion and involvement of the community. In order to embark on this initiative and attempt to return to its brand, Starbucks approached the initiative with a transformational and authentic leadership style, teamwork, and renewed organizational structure.
Leadership Style There are many leadership styles that can be employed to be effective in business. Examples of these include but are not limited to autocratic, democratic, laissez-faire, path-goal theory, bureaucratic, transformational, transactional, charismatic, authentic, servant, etc., all of which have their own attributes and limitations (Mindtool Editorial Team, n.d.). In some cases a combination of leadership styles are combined for a desired outcome. In the case of Howard Schultz, a combination of transformational and authentic leadership was used (Coulson, 2016).
Transformational leaders inspire their team members because they expect the best from everyone, and they hold themselves accountable for their actions. They set clear goals, and they have good conflict-resolution skills. This leads to high productivity and
Transformational leaders encourage group work, as they connect each follower’s identity and self to the project and collective identity of the corporation. They are role models for other staff and this inspires them and makes them
Transformational leaders motivate by utilizing values, care, and inspiration (Marquis & Huston, 2015). These leaders are developing their employees to strive for growth. Transformational leadership enables companies to look towards the
The transformational leader induces employees to perform beyond expectations by empowering and motivating them, and sometimes by leading by example.
Transformational leaders engage with other people and create a connection that raises the level of motivation and morality in both the leader and follower. A transformational leader can protect herself or himself from the temptation to rely on their own thoughts, ideas, and actions by being open minded and consider
A transformational leader is a delegator of tasks and inspires his or her team to share in his or her vision and the objectives. This is a true leader who motivates and care for his or her team. He or she wants to achieve results through his or her team and take time to understand the conditions of all the team members. He or she is visible by the team members and show more interest in the team than in the task ahead. He or she is a good communicator
A transformation leader is one who stimulates and inspires subordinates to achieve extraordinary outcomes (Robbins and Coulter, 2007). This
Transformational leadership is described as a person who has the ability to make followers into leaders and promote change (Roussel & Swansburg, 2009). Transformational leadership encourages staff empowerment (Roussel & Swansburg, 2009). It is thought that if staff feels empowered then they will work harder by collaborating with each other instead
According to Pamela Spahr from St. Thomas University Transformational Leaders “possess a single-minded need to streamline or change things that no longer work. The transformational leader motivates workers and understands how to form them into integral units that work well with others.” (Spahr, 2015)
Transformational leaders express a clear vision, inspire others and work together with their team to identify common values and goals (Marquis and Huston 2009). They also recognise followers’ potential, assist them to develop their strengths and identify individual differences (Bass 2008).
Transformational Leadership, is grounded on building relationships and motivating staff members through a shared vision and mission. Transformational leaders naturally have charisma to communicate vision, confidence to act in a way that inspires others, staff respect and loyalty from letting the team know they are important, and are masters at helping people do things they weren’t sure they could do by giving encouragement and praise.
Transformational leaders poses a variety of skills that “motivates followers to do more than expected, by (a) raising followers’ levels of consciousness about the importance and value of specified and idealized goals, (b) getting followers to transcend their own self-interest for the sake of the team or organization, and (c) moving followers to address higher level needs” (Northouse, 2013, p. 190). Besides having specific skills to motivate followers, transformational leaders possess dominant personalities, have a desire to influence others, are self-confident, have high moral values and exhibit charismatic behavior (Northouse, 2013).
When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. Schultz’s brand aimed at gaining dominance in the coffee industry in addition creating a Italian coffee shop feel in the United States (Buchanan & Simmons, 2009). The strategy of Starbucks was based on new products, listening to customers wants and ensure future expansion (Buchanan & Simmons, 2009). In creating convenience for customers, Starbucks created stores almost on top of eachother. They hinged on the idea that, they did not want to lose out on a sale if a line was too long. This action, of placing stores in heavy populated areas, basing need on projected growth of an area caused some decline in sales during economic trouble with the economy. The 2007 recession, failure of subprime mortgages, increased competition from McDonald 's McCafe brand, and Dunkin Doughnuts all led to a decline in sales for Starbucks in the fourth quarter of 2007 (Buchanan & Simmons, 2009). To attempt to regain market share and recover after the
Transformational Leadership can play a role in creating a successful team. It can also be the process that changes and transforms people dealing with emotions, values, ethics, and standards. Transformational Leadership is the process whereby a person engages others and creates a connection that raises the level of motivation and morality in both the leader and the follower (Northhouse , 186). This applies to a team because you always have to be able to connect and motivate others
Transformational leaders are able to inspire employees to work towards a common goal by changing their expectations, motivation and perception of why they are doing the work. Transformational leaders cultivate a commitment from their employees, which encourages them to put aside self-interest to work
A TRANSFORMATIONAL LEADER is a person who stimulates and inspires followers to achieve extraordinary outcomes (Robbins, 2007)It has been shown to influence organisational members by transforming their values and priorities while motivating them to perform beyond their expectations (Rowold, 2007)Increased levels of job satisfaction & reduced turnover intentions are consequences of transformational leadership. It is all about leadership that creates positive change in the followers whereby they take care of each other’s interests and act in the interestsof the groupas a whole (Warrilow, 2012)