Contemporary Management Issues - Essay Example

Contemporary Management Table of Contents Introduction 3 Discussion 4 Conclusion 5 References 7 Introduction In recent age, introduction of advancedtechnologies offered a significant influence over the lives of the individual and over the business aspects as well. This is mainly due to the introduction of information technology or social media that reduced the interdependence of the business individual over time and place. As a result of which, the social media and its presence over the ways of interaction with the individual might offer a significant impact and act as a central way of communication for organizations. Due to which the level of brand image and reputation of the organizations not among the customers but also among its stakeholders and shareholders enhanced to a certain extent among others. So, the level of preference for social media enhanced to a significant extent thereby amplifying its prospects, in the entire world. The similar technique is used by a reputed organization of United States of America named Starbucks so as to increase the level of awareness of its customers and shareholders regarding its strategies and policies (Beall, 2010, pp. 131-133). Starbucks is one of the popular and leading coffee retailers, operating its functions significantly from Seattle of United States of America. After its introduction, very easily it expanded in almost 55 countries that enhanced its brand value and market share to a certain extent. Along with this, it owned almost 17,000 stores in the entire world so as to present world best coffee to its customers at a competitive cost. The prime desire behind such a strategy is to enhance its range of customers thereby amplifying its profitability and sustainability in future era (Hansen, 2012). Apart from this, Starbucks also desired to enhance its reputation and identity by offering high attention over the concept of corporate social responsibility (CSR). This proved extremely effective for the organization in both current and future aspects. Discussion In order to enhance the competitive advantage of the organization of Starbucks, its management decided to present the best coffee to its customers. However, to do so, it presented varying types of flavours that enhanced the level of preference of the customers. This became possible only due to the promotion of the flavours of Starbucks through the online sites and social media partners such as face-book, Twitter, linkedIn and many others. As a result of which, the level of awareness of the customers enhanced that improved the profitability of the organization by a significant extent. Thus, this strategy acted positively over the organization thereby amplifying its brand image and market value (Christensen, 2003, pp. 223-241). Apart from this, in order to enhance its corporate social responsibilities (CSR), Starbucks also desired to use recycled products so as to reduce the extent of wastes in the environment. By doing so, the impacts of green house gases might be reduced thereby declining its carbon-footprints (Jacobson, 2009, pp. 572-578). The effects of such CSR strategies are entirely described through online sources or social media so as to enhance the level of awareness of its target customers and shareholders. As a result of which, its total range of customers enhanced thereby amplifying its loyalty and reliability among other players. Thus, the mission of Starbucks, to encourage and promote the human spirit, i.e. by ‘one person, one cup, and one neighbourhood at a time’ proved extremely effective for the organization. Thus, it might be clearly revealed that social media acted as a catalyst in sharing the views and ideas of the management of the organization of Starbucks among its shareholders, stakeholders, customers and employees. Therefore, due to the sharing of all policies and techniques of the organization through social media, the level of dependency of the customers enhanced. That might be easily depicted by viewing its revenues and net incomes that increased by US$ 13.29 billion and US$ 1.38 billion. Not only this, after knowing the social corporate responsibility aspects, its range of customers increased by almost 40% as compared to its competitors. Therefore, by communication each and every strategy through social media’s such as face-book and twitter, the perception of the customers towards the brand enhanced that amplified its scope of sustainability and expansion to new market regions (Hansen, 2012). Other than this, the management of Starbucks presented the idea of improving the well-being of various communities by getting gathered in the coffee-cafes of the localities through social media (Sponder, 2011, pp. 897-912). Numerous customers and visitors viewed this strategy and used it for discussing varied types of ideas and information along with a finest cup of coffee. This proved effective for the community as well as the organization in enhancing its portfolio and reputation in the market among others. As a result of which, the level of preference and demand of the products of the organization enhanced thereby enhancing its total assets by US$ 8.21 billion. Moreover, utilisation of social media by Starbucks in spreading its ideas and policies of CSR among its customers and stakeholders enhanced their relationship to a significant extent (Hansen, 2012). Thus, it might be clearly revealed that the success strategy that enhanced the prominence and supremacy of the organization of Starbucks in the market among others is Social Media. This is because, the management of Starbucks used to promote its activities and ideas through online sources in spite of sole efforts. As a result of which, it became successful in attaining a huge number of likes and shares that enhanced its market value and reputation among others (Jue & et. al, 2009, pp. 348-360). Hence, it might be stated that the popularity and competitiveness of Starbucks is mainly due to its policy of utilising social media as a weapon for communication to its customers, employees, shareholders and stakeholders among others (Joosten, 2012, pp. 678-689). Conclusion Conclusively, it might be stated that in recent age, social media acts as the guiding force to amplify the demand and brand image of the organization. This is because it helps in spreading the information and strategies of the organization in just few seconds thereby amplifying the reliability and loyalty of the customers and stakeholders. As a result of which numerous customers and stakeholders get interested or fascinated towards the brand thereby amplifying its prospects in the market among other rival players. References Beall, A, E. 2010. Strategic Market Research: A Guide to Conducting Research to solve problems. Boston: Harvard Business School Press. Christensen, C. 2003. The Innovator’s Solutíon, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press. Hansen, S. B. 2012. Corporate Social Responsibility & Starbucks. [Online]Available at: http://pure.au.dk/portal/files/45282206/BA_Thesis.pdf [Accessed on 25th January, 2014]. Jue, A. L. & et. al., 2009. Social Media at Work: How Networking Tools Propel Organizational Performance. John Wiley & Sons. Jacobson, J. L. 2009. 42 Rules of Social Media for Small Business. Oxford University Press. Joosten, T. 2012. Social Media for Educators: Strategies and Best Practices. New York: Springer. Sponder, M. 2011. Social Media Analytics: Effective Tools for Building, Interpreting, and Using Metrics. McGraw Hill Professional. Read More