Now that we’re nearing the end of this course, I’ve been reflecting on everything that we’ve learned, trying to tie things together in preparation for the final. We started our very first class with the Paper Puppets activity, which demonstrated that, amongst other things, quality control was a huge part of the operations process. It seems like the idea of quality has been mentioned nearly every class period since that day, and it is certainly a concept that has stuck with me. I have thought about the quality aspect of many transactions I have made since then, thinking about what is being done well and what could be improved upon. So when I heard that Starbucks was going to add alcohol to their menu, I was interested in finding out more about their decision.
An article in Bloomberg Businessweek presented a cogent point that is not only true about Starbucks but any organization in almost any industry; continuity and change are forces that simultaneously work with and against an organization and must both be acknowledged. The article goes on to differentiate between traditional organizations, which are built for continuity, and organizations that are designed for adaptability. An organization that is purely focused on continuity may face problems when it is forced to change with the times, and an organization based in adaptability needs to focus on creating some form of stability to appeal to customers. It is obvious that a combination of continuity and change is best for a company rather than thinking of the two as opposites.
Starbucks’ motive behind offering alcohol is to increase sales in the evenings. They also hope to give customers a place to relax after work with a drink and some friends. What’s more important, however, is the fact that they did not compromise the image that they have created for the public. Rather than just being in the business of coffee, their main selling point is the culture and atmosphere that they have created (in which they just so happen to sell coffee). By knowing exactly what their business really is, it’s not as much of a risk to add a product that may be a little less conventional so long as they stay true to that community environment that they have fashioned. When it comes to continuity and change, Starbucks has found the perfect mixture, staying consistent in their values and maintaining quality, while keeping up with the changing world around them.
Have you ever experienced or witnessed a failed attempt at balancing continuity and change, in any way, that may have led to a decrease in quality? And do you think it’s possible to honor a mission statement that may be a bit naïve or antiquated given the ever-changing society we live in?
Yes, I have witnessed a failed attempt at balancing continuity and change. The most recent failed attempt that I’m sure some of us are familiar with was Hewlett Packard’s HP TouchPad and webOS. This Pad, no where near comparable to the iPad, only took two months of its release for the company to cancel it. Companies such as Hewlett Packard are constantly thinking of new innovative ways to continue to provide service and/or products that people want. They want to continue to bring new things to the market not only for consumers now but also for the next generation and so on.
I think companies that are constantly trying to look for change are Coke and Pepsi. In such strong competition, it seems the two are constantly looking to outdo each other with new products, new packaging, new marketing and so on. However, none of their new products seems to hold its consumers for long. Perhaps these to companies are pushing the balance of continuity and change too far instead of accepting that the products they sell are really what people are interested in.
What an interesting concept Starbucks presented. I could see it really taking off or just going south really fast. Perhaps it can’t function in all of there locations? We will have to wait and see.
It seems that the fast food industry is always presenting something new. Some chains like, McDonald’s, pick up the lifestyle habits society forms…like switching from drip coffee to espresso drinks or ditching fries for salads, etc…but other chains like KFC go in a completely opposite way and present items that consumers aren’t really asking for. I believe some of the items they presented were some sort of mashed potato bowl and the Double Down Sandwich, which consists of no buns but two pieces of fried chicken breasts instead. It just seems funny that in a time when “health” is being stressed from all areas, KFC would choose to follow such a different direction.