How can an organization realize growth? A simple guide to all upcoming CEOs

How can an organization realize growth?

In order for an organization to realize growth, there are a number of things that need to be taken into consideration. The first one is that the organization should consider adopting a change in its corporate structure. Organizational structure may either be simple or a complex one. The structure usually defines the functions arrangement to ensure work is completed. For this reason, there is a need for an organization to change its corporate structure in order for it to realize change in business.  The structure of any organization is critical since it determines the limits of work performance while setting out individual responsibilities for each person. A positive change can be realized once the structure has been simplified from a complex one. The structure may either be in terms of management structure or else the functioning of the work.

The organization might also consider changing its culture. This is because culture reflects the values and beliefs of every worker. Work life is defined by culture that has been set by the employees over time. Culture also covers some other aspects such as morals, arts, belief, customs and the knowledge.  Organizations with the best culture also tend to have improved performance. Over time, Starbucks as a global company has developed a culture of efficient communication between the management and the employees. Every ones contribution is highly regarded and respected as it helps to improve the success of the company. Moreover, the organization has also adopted a culture of treating customers as kings. The customer needs have always been a priority for the company. Through addressing these needs the company has improved its performance.

Motivation is also another aspect of an organization that can be tapped to bring in positive change and development. It is assumed that motivated employees can help an organization to achieve its success in many ways. Success in any organization depends on the motivation of the employees. This leads to improvement of performance hence attainment of the organizations goals and objectives.  Introducing a performance management system can help to set out the contributions of individual employees towards business success. The success of Starbucks as a company is greatly attributed by the human resource department introducing performance management systems. In addition, this helps the employees to set out feedback to the organization hence improving individual performance. The management of every organization should always ensure that workers and employees have their word on performance reviews. This also demonstrates that the business is working as a team to improve on the performance. Moreover, motivation also increases flexibility of the work hence improving positive growth. This also helps to maximize the opportunity for each employee to have maximum growth from the organization (Dalton, Hoyle & Watts, 2011).

The transformation of leadership or management style can also help an organization to achieve change. This is because leadership is essential in motivating employees to achieve their success. Good leadership helps to encourage positive development of the organization. Every member in the organization is expected to achieve their results through mutual trust.  Additionally, good leadership is results oriented.  Stakeholders who do not achieve results are trained in order to improve on their weaknesses. This helps to transform the organization into a way that it achieves its results in a faster manner. Successful leadership is also essential since it creates room for improvement in part of each employee (Kleindl, 2007).

Value, Generic Strategy and Grand Strategy

Although operating in an extremely competitive marketplace, Starbucks has come out to achieve the best value discipline for its products. The company has achieved product leadership through its diverse and popular brands. Most of the consumers have been satisfied by the Starbucks products that have helped the company to achieve leadership in the market place. Moreover, customer intimacy has resulted to improved loyalty. Despite the increase innovative offerings by other stakeholders in the market, Starbucks has continued to lead in its quest for leadership in terms of product offerings. Analysts have pointed out that Starbucks has achieved more than 40% of coffee market due to the sale of its highly innovative products. For this reason, the best value disciple for Starbucks has been built on customer satisfaction, product leadership and customer excellence (Dalton, Hoyle & Watts, 2011).

Starbucks generic strategy has been focused differentiation strategy. The company has used this strategy to offer different types of coffee to different market segments. This acts as a competitive advantage over the competitors since it difficult for other market players to understand the company’s market policy. For instance, the company stresses on production of quality coffee to different localities. Moreover, the pricing chosen for every market segment is also different. This makes the product from the company significantly different. Through offering different types of dinks and different varieties, the company continues to strive market excellence.  Through customer convenience, Starbucks offers its products right on time with cost efficient measure. This helps to earn the company a good reputation for offering quality products in the market. In addition, although there is overexposure of products in the market, the company expands to other locations hence improving its stream of revenues.

The grand strategy that is used by Starbucks is differentiation strategy. The strategy is aimed at increasing profitability for the company. The company offers premium pricing for coffee that is overpriced by other players in the market. In addition, differentiation strategy has a cost advantage for the company. This is because the company uses economies of scale and preferential access for acquiring raw materials hence succeeding in the market while using this strategy. Most of the consumers in the market usually reward the consumers for the products in the market place. The company has sustained cost leadership hence acting as the best company in the world. Segmentation strategy has been selected as a grant strategy for the company for many years (Dalton, Hoyle & Watts, 2011).

Starbucks has chosen segmentation as a strategy because of its advantages over other strategies. Firstly, the strategy helps the company to expand to other territories hence making it possible to address the needs of other markets. This is beneficial to the business since it helps to increase diversity and also revenues earned from the company. In addition, differentiation strategy is essential for the company since it helps to increase the chances of customer retention for the benefit of the business. Moreover, better communication through the use of marketing mix strategy can also be inculcated into the market once there is efficient employment of differentiation strategy. Segmentation also helps to increase brand recall, customer retention and brand equity. The use of this strategy is significantly important for the purpose of profitability of the company (Dalton, Hoyle & Watts, 2011).

Recommended Strategy

Starbucks should implement a combination of different strategies in order to become a market leader. These include; focused differention, innovation and cost leadership. All these strategies seem to address consumer needs. Since consumers come from different market segments, the use of these strategies would help to maintain business success. Most of the business competitors tend to win customers in terms of using innovation and scheming pricing strategies. For Starbucks to lower its costs it will increase its value to the stakeholders hence standing a chance of increased turnover rate. This will force consumers to stick on the companies products and at the same time appreciate products from the company (Hatten & Hatten, Timothy, 2012).


To sum it up, in order for a company to achieve a positive growth and development, it needs to change a number of areas. This includes; changing the culture of the company, structure, motivation of the employees and leadership strategies. Starbucks should embrace a change in the companies functioning in order to achieve its endeavors. Starbucks as a company is greatly attributed by the human resource department introducing performance management systems. This will help to change the way the company operates in the global market. Moreover, the company should also adopt competitive value, Generic Strategy and Grand Strategy.  In particular, the company should invest in innovation and focused differentiation so as to achieve its goals and objectives. Since consumers come from different market segments, the use of these strategies would help to maintain business success




Dalton, M., Hoyle, D. G., & Watts, M. W. (2011). Human relations. Australia: South-Western Cengage Learning.

Hatten, T. S., & Hatten, Timothy S. (2012). Small business management: Entrepreneurship and beyond. Mason, OH: South-Western Cengage Learning

Kleindl, B. (2007). International marketing. Mason, Ohio: Thomson Higher Education.



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