Today began the first day of classes for Managing in Complex Environments as we dived right into a real case study in order to begin to understand just how complex environments can get and the effect it can have on a business. The study focussed on Starbucks from 2007, and it was interesting to compare what I know about the company today to what it was back then. We quickly realized an agency problem within the business as their original mission and vision were becoming hard to accomplish with developments in competition, technology, economy, and other factors. It was interesting to talk with my peers and see their own perspectives on the success of the company at the time, as my original consideration was challenged and made me realize that it is not that easy to justify the success of a business. I can already see a skill of communication developing, by listening to others and sharing my own views, that will soon be important in internships and even a future career.
Then, after learning about Porter’s 5 forces, we were able to apply our knowledge to the same example, evaluating how these forces have affected Starbucks, noticing especially how competition, such as McDonald’s and Dunkin Donuts, causes a need for consideration and potential differentiation strategies.
The next topic we explored centered around the Stakeholder theory, causing us to ask questions like “How legitimate, powerful, or urgent are these stakeholders?” and then “How do we respond and orient around the stakeholders?” It was interesting to see how different stakeholders can have a completely different impact on a company, as typically consumers will have a low effect unless they are united, and the suppliers for a business are a key factor for ensuring success. We used another case study on the Casino industry in order to further uncover the different levels of importance of such stakeholders.
VUCA and PESTLE started out as acronyms I had only vaguely heard of, to very useful and applicable tools that I will surely be using often in my life. We even went through an example of a PESTLE analysis on Ireland (where we will soon be journeying!) and the fact that 54% of the population is under 29 really surprised me, showing just how different business strategies would be for such millennials. Moreover, these tools made me start to think about what it really means to be an employee at a certain organization, with a focus on a holistic approach and workable culture. As an activity, my classmates and I took a StrengthsFinder Assessment. By sharing and combining our unique set of strengths, we addressed how leadership is a key component of a business in order to embrace uncertainty and change by representing and motivating the employees, challenging us in the classroom to think differently about how we live our own lives, too.
Businesses are open. The environment around them does have an impact, and how the business responds is really telling on the authority and responsibility they take for decisions. Knowing this, as seen by the Open Systems Hypothesis, I realized how complex the world really is, which inspires me in my personal life to understand the implications of change and adopt a mindset to embrace it. As we continue class for the next couple of weeks, I am sure I will be further expanding an open mindset as I experience new people, places, and lessons.