Organizational Change: Starbucks In China

Starbucks in China

Introduction

Every organization changes itself according to situation of business. Change is necessary for the success of business. Sometimes organizations find it difficult to implement their strategies and achieve their goals. In that situation the organization people bring some changes in the planning. Organizational change doesn’t occur when people perform their roles and duties perfectly, it occurs when people or organization fail to perform the duties. Failure is the cause of organizational change (Weick and Quinn 1999). Nobody can control the change in the organization, change is not optional, and it is not planned. Change occurs on the demand of situation. In terms of organization it can be said that “Change defines

Previously Starbucks went with the same success plan as that of American market. But soon they realized those things will not work in Chinese market. Starbucks also changes its marketing and promotions strategy in China. The main aim of any company is to increase revenue and sales. As interviewer told that Starbucks focused on increasing revenue but the company was also looking for developing a relationship with Chinese customers. Starbucks were looking for a long term future in the China. The company was successful in developing a positive relation with the people of China. Now Starbucks is the first choice of Chinese professionals for any business meeting, they don’t want to go in some other coffee

Chinese culture is different from other countries; we need to keep it in mind at the time of selling our product in country. Initially our product sales were low in this market. The company needs to come out of that situation. Our low product sales initiate an organizational change in the company.

Q.2. Why did this situation come about? (Or: what caused this change?)

Ans. The company was very successful in other countries. The company managers were very confident about their success. Initially our prices were low. We observed that sales volume is not as par with other foreign countries i.e. U.S.A. The annual revenue was not up-to the expectation of the company. Company managers sat together and thought about some changes to increase over revenue in Chinese market.

Q.3.What was the change all about?

Ans. I am a local citizen of China. I and some other Chinese staff told the senior management that it is hard to sell coffee here in China because we like tea more than coffee. I was working in lower management that time. Starbucks also studied about the tea culture in China. They introduced green tea flavoured coffee in shops. At the same time company increased the price of their product as well. Company wants to earn profit on small volumes sale. The company managers told us to make Starbucks coffee a status symbol in China. The company also hired more and more Chinese staff as