In this blog I will describe the goals traced by Howard Schultz, owner of Starbucks, and some of the different outcomes described through his entrepreneurial network.
Firstly I would like to state that his goal is mainly instrumental but expressive in the manner that he enhances the relationships with his staff and clientele. Schultz closed down stores in 2011 to train his employees to be actual baristas. Of course the social capital that Schultz has is already high but this is a risk that he took to increase this and improve the word of mouth circling around the street (since Starbucks is already a front-runner and a hub in the biz).
He sought to strengthen the human capital (Schultz, Johnson, Becker) of his service by focusing in personal talent, proper education and skill development. At the same time, the social networking and publicists of Starbucks invested time in maintaining the customer’s trust and moving opportunism for those clients that are interested in an elegant, new product that was going to be blended by the new baristas. Investors were concerned as well, whilst several meetings fostered confidence in the decisions being held to reopen a renovated ,invigorated Starbucks. Thus the social capital in maintaining such a big enterprise would seem easier than it is. Any move can cost the entire company’s assets. The outcome was entirely positive and generated vast amounts of revenue in the education implementation strategy. Not to mention a better relationship with the employees and the clients which made for tranquil investors. Thus, the social network was a large reliance to maintain trust, plus the people well-informed that something big was coming in a good way.
Another outcome was that competitors Dunkin Donuts decided to step up and start globalizing their image furthermore. They threw the famous #mydunkin campaign in social media while fostering their care directly with the customers. They made for successfully smart marketing campaigns and a sense of authenticity to represent their initial goal and service. The cultural capital maintained over the years without stepping off the charters is essential and loyal to the customers. In a social network sense, they won. But in a service and capitalist way Starbucks took the lead. You can read more of their competition in (http://www.fastcocreate.com/3034572/coffee-week/dunkin-donuts-and-starbucks-a-tale-of-two-coffee-marketing-giants)
Until next time!