MASTER’S DEGREE PROGRAMME IN BUSINESS ADMINISTRATION

Student: Katehis Lysandros..............................................................................................................

Module: MBA61

WA: 1

Class: 42............................................................................................................................................

Tutor: Pollalis Ioannis.......................................................................................................................

Academic year: 2023-2024...............................................................................................................

Contents

Question 1.1...................................................................................................................................2
Question 1.2...................................................................................................................................4
Question 2.1...................................................................................................................................5
Question 2.2...................................................................................................................................6
References......................................................................................................................................8

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Question 1.1

According to A.Mihiotis Management of People and Organizations – Management sourcebook, the

typical nine consecutive steps in planning can be summarized as shown below. A direct comparison
between the textbooks notes and the article is then presented.
The goal of these planning processes is to establish precise goals, weigh options, and make well-
informed decisions in order to accomplish the organization's objectives. They also aid in the creation
of a well-coordinated and efficient planning process. However, it is always crucial that the company
maintains its ability to adjust and change with the times.

The nine steps in planning are:

1. Awareness of Opportunity: The initial phase involves identifying potential future

opportunities and aligning a company's capabilities and constraints with these
opportunities. Setting priorities for anticipated gains is part of this.

2. Establishing Objectives and Goals: Every organizational unit should have goals and
objectives that are in line with the overall business aims. These goals must to be precise,
documented, concise, and grounded in reality.

3. Premising: In this step, consistent planning premises—factual forecast data, planning

assumptions, or the anticipated setting in which plans will be implemented—are identified
and agreed upon.

4. Determining Alternative Courses of Action: Come up with as many different strategies as

possible, even for the most unlikely courses of action. For the purpose of making decisions,
the more options, the better.

5. Evaluating Alternative Courses of Action: Based on the company's strengths, constraints,

aims, goals, and premises, each choice is assessed. This phase might be difficult and complex
as it may involve various opposing forces within the company.

6. Selecting Courses of Action: When choosing a plan or course of action, several alternatives
are frequently taken into account.

7. Formulating Derivative Plans: Strategies, policies, procedures, rules, programs, budgets, and
other supporting plans are developed to help the selected major plan be accomplished.

8. Budgeting: Budgets, the most well-known type of derivative plan, are created as a financial
depiction of the plan.

9. Appraisal and Recycling: Every so often, every step that came before is evaluated, and if
needed, the entire planning process is redone to adjust for new information or fix errors.

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The article talks about project planning and offers advice on how to carry out projects successfully.
Below, we can see how the article's approach to project planning aligns with the standard nine steps
in planning that are recognized in management theory and can be found in our book chapter "Nature
and Purpose of Planning." Keep in mind that some stages are indicated rather than stated directly.

1. Awareness of Opportunity: Although this phase isn't mentioned in the article specifically, it
does stress how important it is to have fundamental questions answered before beginning a
project. This is consistent with the notion that one should comprehend the opportunity or
issue before taking action.

2. Establishing Objectives and Goals: The article stresses how important it is for project
objectives to be clear. It states that projects that are effective should strive for certain aims
and targets, which ties in with the second planning phase.

3. Premising: While avoiding going into specific premises, the article emphasizes how important
it is to comprehend the project's background and possible obstacles, which is similar to
thinking about planning premises.

4. Determining Alternative Courses of Action: This stage is indirectly addressed in the text by
emphasizing the importance of experimenting and iterating. It implies that experimenting
and considering a range of choices should be part of project planning.

5. Evaluating Alternative Courses of Action: Although not mentioned directly, the text suggests
that in order to identify the best strategy, several options must be considered, which is
consistent with this planning stage.

6. Selecting Courses of Action: The necessity of making well-informed decisions is discussed in

the article, which is consistent with the process of deciding on the best course of action
after doing an evaluation.

7. Formulating Derivative Plans: The article stresses the significance of planning in a way that
takes the success of the project as a whole into account, which entails developing supportive
plans, even though it doesn't specifically address derivative plans.

8. Budgeting: Although the article doesn't go into great detail about budgeting, it does make a
passing reference to plans' efficiency by highlighting the fact that they should contribute
more than they cost—a factor that is related to budgets.

9. Appraisal and Recycling: The necessity of regular plan reviews and revisions is briefly
discussed in the article; this relates to the planning process's concepts of appraisal and
recycling.

Also, in addition to these nine steps, the "Nature and Purpose of Planning" (chapter 2 in our text
book) also mentions the following principles:
 The Principle of Limiting Factors: Although the article doesn't specifically address restricting
issues, it does subtly emphasize how critical it is to identify and deal with planning
challenges.

 The Commitment Principle: While the article doesn't specifically address commitment, it
does stress the need of having specific goals and objectives, which call for dedication in order
to be met.

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  The Principle of Flexibility: The article promotes constant iteration and modification, which
subtly alludes to the necessity of flexibility in planning.

 The Principle of Navigational Change: In keeping with the notion of navigational change, the
essay makes a passing reference to the significance of evaluating and modifying plans.

In conclusion, the paper provides insightful information on project planning, many of which are
consistent with the standard nine-step planning process as well as the extra guidelines outlined in
the chapter "Nature and Purpose of Planning" of our textbook. Both sources stress the significance of
careful, comprehensive planning as well as the necessity of adaptability and flexibility all along the
way.

Question 1.2

Here, we look at each of the controls that our textbook mentions, case by case. These align with the
steps listed in the paper (which are quoted), and we have verified that all of the textbook controls
are present.

1. Alignment with Project Objectives: To ensure that control measures properly fulfill the
project's purpose, they should be in line with its unique objectives and goals.

 "Start by asking the fundamental question: Why do this project at all? Only when the
answer is clear and agreed by all should planning move on to decisions about what
form the project will take and how to deliver that."

2. Timely Detection of Deviations: Any deviations or problems from the project plans should
be quickly identified by control systems so that quick corrective action may be taken.

 "Challenges unrecognized or ignored in planning don’t disappear. When they

eventually surface, managers rush around in search of solutions. Delays cause more
problems."

3. Proactive and Preventive Control: Proactive project control anticipates possible deviations
and stops them before they have an influence on the project by implementing corrective
measures.

 "Forward looking control anticipates future deviations and prevents them from
occurring by taking corrective actions before they occur."

4. Focus on Critical Project Milestones: To make sure that important project deliverables and
milestones are met on schedule, control efforts should be focused on these areas.

 "Projects don’t go wrong so much as start wrong. Successful ones think slow and act
fast."

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 5. Objective and Relevant Metrics: Control systems ought to be predicated on meaningful and
objective measurements and indicators that precisely capture the state and trajectory of the
project.

 "Try something. See if it works. Change it and try something else. By continuously
simulating and iterating, challenges and problems are surfaced and solved..."

6. Adaptability to Changing Project Dynamics: Flexible and responsive control systems should
be able to adjust to modifications in project schedules and dynamic project settings.

 "See the project as 'one of those.' Instead, see the project as being in a larger
category – it is 'one of those' – and use the real-world results of that category as the
foundation of your forecast."

7. Alignment with Project Team Structure: Control measures should be in line with the project
team's organizational structure, clearly define roles and duties within the project, and aid in
locating the cause of deviations.

 "People working on projects are routinely called 'teams' but when they come from
different organizations that have different interests and objectives, they’re not likely
to truly be a team."

8. Efficient Resource Utilization: Control strategies should effectively oversee project finances
and resources, guaranteeing that remedial measures are economically viable.

 "The more real-world experience that is woven into all the facets of a project, the
likelier it is to succeed."

9. Clear and Understandable Reporting: To facilitate decision-making, control reports should

be simple, straightforward, and easy for project stakeholders to read.

 "Very often departments develop information for managers that is not used by the
managers because they cannot understand it."

10. Actionable Insights: To assist the project team in making decisions, an efficient control
system should not only recognize problems but also offer practical insights and suggestions
for corrective measures.

 "Control is justified only if indicated or experienced deviations from plans are

corrected through appropriate planning, organizing, staffing, and directing."

So, all the control requirements for implementing successful projects required are present in the
article as indicated in the case by case examples above

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Question 2.1

In our textbook, three managerial leadership styles are described:

1. Autocratic or Authoritarian Leadership Style: This leadership style entails a leader who gives
orders, demands complete compliance, and uses power to control followers. The goal of
rewards and penalties is to change behavior. Top-down methodology and an emphasis on
Theory X define this style (developed by Douglas McGregor as part of his Theory X and
Theory Y framework, theory X represents a pessimistic view of human nature and behavior in
the workplace)

2. Democratic, Supportive, or Participative Leadership Style: This approach is predicated on

the idea that employees desire to be actively involved in decisions that affect both the
company and them. Managers encourage their subordinates to take initiative and assist
them in completing tasks. This managerial approach, which is the antithesis of theory X, is in
line with theory Y and works best when employees want autonomy and have faith in their
own skills.

3. Laissez-Faire or Free Reign Leadership Style: By delegating decision-making authority to

subordinates, the manager adopts a consultative approach. Task management is delegated
to subordinates, and management only observes and listens, taking little part in decision-
making.

These leadership styles vary in their level of control and involvement by the manager, and the choice
of style depends on the situation and the characteristics of the subordinates.
Based on the information from the provided texts, including the "Starbucks memo," it becomes even
more evident that the leadership style that better applies to Starbucks' CEO, Howard Schultz, is the
democratic, supportive, or participative leadership style.

Howard Schultz expressed his wish to address concerns about the diluting of the Starbucks
experience and the necessity of returning to the company's basic principles and legacy in the
"Starbucks memo," which was sent in February 2007. In the memo, Schultz suggests a participatory
approach to decision-making by acknowledging that many of the decisions that resulted in these
challenges were made collaboratively. He stresses the value of interacting with partners
(employees), and setting Starbucks apart from rival businesses.

Schultz demonstrates a leadership style that appreciates the opinions and participation of
subordinates in resolving issues and determining the course of the organization by accepting
responsibility for past decisions and by encouraging them to "look into the mirror" and make the
required adjustments. This fits the profile of a democratic and participatory leader who elicits
feedback, offers assistance to staff members, and consults them when making decisions.

Howard Schultz expressed his wish to address concerns about the diluting of the Starbucks
experience and the necessity of returning to the company's basic principles and legacy in the
"Starbucks memo," which was sent in February 2007. In the memo, Schultz suggests a participatory
approach to decision-making by acknowledging that many of the decisions that resulted in these
challenges were made collaboratively. He stresses the value of interacting with partners (as he calls
the employees), and setting Starbucks apart from rival businesses.

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Schultz's willingness to take responsibility for past decisions and make necessary changes reflect a
leadership style that values the input and involvement of subordinates. This aligns with the
characteristics of a democratic and participative leader who seeks input, supports employees, and
seeks their advice in decision-making.

Therefore, both the Starbucks article and the Starbucks memo support the idea that Howard
Schultz's leadership style is best described as democratic, supportive, or participative.

Question 2.2
Through this communication, Howard Schultz is attempting to convey to senior leadership the need
of self-reflection, accountability, and the pressing need to rediscover and uphold Starbucks'
fundamental principles and legacy. According to Schultz's memo:
"Over the past ten years, in order to achieve the growth, development, and scale necessary to go
from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions
that, in retrospect, have led to the watering down of the Starbucks experience, and, what some
might call the commoditization of our brand."

Even though many of these choices were made with the best of intentions, Schultz admits that they
all worked to lessen the distinctive Starbucks experience. He stresses how critical it is to own up to
this reality and accept responsibility for it. The message acts as a rallying cry for top leadership,
imploring them to:
 Recognize the need to "look into the mirror" and confront the current state of Starbucks.

 Reconnect with the company's core values, heritage, and passion for delivering the true
Starbucks experience.

 Address the challenges posed by increasing competition and changing customer

perceptions. He is especially against giving any opportunity for opposition to flourish by
imitating Starbucks now diluted experience (this is his only direct and vicious hit at his
managers as he conveys the reality of failure and bankruptcy that will result by allowing
competitors to imitate the failing branch)

 Reallocate resources wisely, focusing on innovation and differentiation.

 Reiterate that Starbucks' success is not guaranteed, emphasizing the importance of

rediscovering what makes the brand special.

Essentially, the main thrust of Schultz's speech is an open acknowledgement of previous errors
made and an appeal for Starbucks to reclaim its distinct place in the market by rediscovering its
identity, values, and mission.

The seven "Big Moves" listed in Howard Schultz's email to Starbucks are calculated steps meant to
solve the issues brought about by the "poor" choices Schultz identified in his memo. Here's how each
of these actions addresses those problems.:

1. Be the undisputed coffee authority:

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  Starbucks' determination to restore its position as the industry leader in coffee is
highlighted by this action. Starbucks wants to bring back the soul of the brand and
set itself apart from rivals by emphasizing the skill and quality of its coffee products.

2. Engage and inspire our partners:

 Starbucks employees are referred to as partners, and Schultz recognizes their

significance in providing the Starbucks experience. This action promotes increased
partner participation, which is consistent with the participative leadership style that
is discussed in the leadership styles text. Customers can relive the distinctive
Starbucks experience with the assistance of engaged partners.

3. Ignite the emotional attachment with our customers:

 Starbucks is aware of the necessity to rebuild the brand-customer relationship on an

emotional level. By doing so, they aim to counteract the perception of
"commoditization" and create a more meaningful and personal customer
experience.

4. Expand our global presence—while making each store the heart of a local neighborhood:

 This step entails going global while keeping a local flavor. It deals with the matter of
uniform and insanitary store designs, which is brought up in Schultz's memo.
Starbucks aims to make each store feel like a part of the local community, restoring
the warmth of a neighborhood store.

5. Be a leader in ethical sourcing and environmental impact:

 Starbucks pledges to source ethically and to be environmentally conscious. This

action demonstrates a commitment to social responsibility and is in line with
customer values, which can help Starbucks stand out from the competition and
improve its reputation.

6. Creative innovation growth platforms worthy of our coffee:

 Starbucks understands that it needs to innovate to stay ahead of the curve and set
itself apart. Through concentrating on cutting-edge growth platforms, the company
hopes to reintroduce originality and innovation into its products.

7. Deliver a sustainable economic model:

 This action emphasizes how important it is to safeguard Starbucks' long-term

financial stability. It tackles the financial issues raised by Schultz in his memo,
advocating for more prudent resource allocation and spending.

In conclusion, by emphasizing ethical practices, encouraging innovation, inspiring customers,

embracing local identity, refocusing on core values, engaging partners, inspiring financial
sustainability, and embracing local identity, these seven "Big Moves" are strategic initiatives that
seek to address the issues Schultz identified in his memo. Every action is intended to assist Starbucks
in regaining its own character, setting itself apart from rivals, and addressing the concerns brought
up in Schultz's memo.

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References
 A.Mihiotis Management of People and Organizations – Management sourcebook (HOU)
 Best of Pan Macmillan Newsletter: ‘What’s my Lego?’ - Book summarization – “What the
world's most successful big projects have in common”
 Starbucks Reinvented article by Julia Hanna
 Starbucks memo by Howard Shultz (CEO of Starbucks)