Case Study on Organizational Behaviour and Analysis Essay

Case Study on Organizational Behaviour and Analysis - Essay Example Case Study on Organizational Behaviour and Analysis This is a testimony of the company’s positive organisational behaviour strategies, designed to retain employees and customers on a long term basis. The founder and present CEO, Howard Schultz has been pivotal in steering the company’s organisational behavioural systems over several years. Having nurtured and guided the company’s fortunes in its formative years, his return as CEO marks a new era in organisational success of the company. Initially, he was keen on opening new stores all over the country for which funds were required. He arranged for floating a $25 Million Initial Public Offering (IPO) during 1992, which provided necessary funds for his expansion plans to make Starbucks coffee drinking a part of a world wide accepted culture. However, over the years, impact of market forces led to downward trends in the business fortunes of Starbucks, and with receding markets and lowered profits, organisational remodelling, especially at the top level, was needed to solve the vexing issues that confronted the company and also provide sound and substantive leadership. It was also to provide organisational and managerial decision making processes, based on experiences to face competitive incursions into its business. Schultz provided organisational restructure when he decided to close down 100 underperforming stores and reduce opening of new stores to just 1,175 during the year, lower by 34% as compared to earlier figures. (Starbucks: Maintaining Principles as We Grow, p.16).