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BANGALORE

A REPORT ON ADVANCED GLOBAL

MANAGEMENT PROGRAMME

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE OF MASTER OF BUSNIESS ADMINISTRATION

BY

Manoj venkataramanappa

PGP SS 2010-12

MBA A1

GROUP:US 3N

UNITED STATES OF AMERICA

CORNELL UNIVERSITY

INDUSTRIAL AND LABOR RELATION SCHOOL

ITHACA

NOVEMBER-1st ʹ NOVEMBER-5th 2010

SUBMITTED TO :

PROF :RajarshiChakraborty
Ê
 

I wish to express my sincere gratitude to IIPM for providing me an opportunity to visit and study at
ILR School at the CORNELL UNIVERSITY, ITHACA NEWYORK. I sincerely thank our Prof.
RajarshiChakraborthy for guiding us in the entire trip and always being present to answer our
queries. I also thank the professors at the CORNELL UNIVERSITY for imparting the knowledge on
various subjects to us, which would be of great use to us in the coming years. I also take this
opportunity to thank Mr.Nikunj and prof.Rahulsharma who helped us gain this immense
knowledge by making all the arrangements happen very well for us.
 Ê
Ê

UNITED STATES OF AMERICA

The United States of America also referred to as the United States, the U.S., the USA, or America is
a federal constitutional republic comprising fifty states and a federal district. The country is situated
mostly in central North America, where its forty-eight contiguous states and Washington, D.C.as
the capital.

The United States is the world's oldest surviving federation. It is

a constitutional republic and representative democracy, "in which majority rule is tempered
by minority rights protected by law. The government is regulated by a system of checks and
balances defined by the U.S. Constitution, which serves as the country's supreme legal document.

The United States has a capitalist mixed economy. It has the largest national GDP
in the world. The United States is the largest importer of goods and third largest exporter,
though exports per capita are relatively low.

The U.S. Census Bureau projects the country's population to be 310,772,000,

including an estimated 11.2 million illegal immigrants. The third most populous nation in the world,
after China and India. English is the de facto national language. Although there is no official
language at the federal level. In 2007, about 226 million, or 80% of the population aged five years and
older, spoke only English at home. Spanish, spoken by 12% of the population at home, is the second
most common language and the most widely taught second language.

The United States is a multicultural nation, home to a wide variety of ethnic

groups, traditions, and values. Nearly all Americans or their ancestors immigrated within the past five
centuries. The culture held in common by most AmericansͶmainstream American cultureͶis
a Western culture largely derived from the traditions of European immigrants with influences from
many other sources, such as traditions brought by slaves from Africa.
  


Cornell University is an Ivy League university located in Ithaca, New York. Founded in 1865 by Ezra
Cornell and Andrew Dickson White, the university was intended to teach and make contributions
in all fields of knowledgeͶfrom the classics to the sciences and from the theoretical to the
applied. Cornell offers programs in liberal arts, engineering, agriculture, management, law,
and medicine. The university is broadly organized into seven undergraduate colleges and
seven graduate divisions at its main Ithaca campus. Cornell counts more than 255,000
living alumni, 28 Rhodes Scholars and 41 Nobel laureates affiliated with the university as faculty
or students .Cornell University owns and operates many facilities around the world.

Classes held for us at the Cornell university: services management, diversity topics
for the workplace, leadership, talent management, Strategic human resources management,
training and leadership, conflict management.
KEY LEARNING͛s

From this program I learned American style of educational system and observed how professors
interact with the students to make the session more lively and sharing of knowledge by taking the
opinions of all the class.



ÊÊÊÊ
 


Industrial and Labor Relations Review is a publication of the Cornell University School
of Industrial and Labor Relations. It is an interdisciplinary journal publishing original
research on all aspects of labor relations.

The target audience is composed of academics and practitioners in labor and

employment relations.

"Industrial and Labor Relations Review" covers economics of the workplace, work-life
issues, collective bargaining and contract administration, union governance and reform,
dispute resolution, history of the labor movement, union organizing, law and other
issues. It publishes about 40 book reviews each year.

"Industrial and Labor Relations Review" was founded in 1947 and is published
quarterly.

  
Ê


NOVEMBER 1st SESSION 1

SERVICES MANAGEMNET

Prof: Rose Batt

Topics Discusses In The Session as follows

c What͛s different about service management?

c Dilemmas for managers
c Role of customer
c Alternative models of strategic HR management
c Implications for operations, marketing and HR
From this session I have learnt that how do:

c Firms compete in the service economy?

c How important are customers, customer satisfaction?
c Are there inevitable trade-offs between service and quality productivity?
c What are the implications for human resource management?
c What mixes of strategies are most effective?

The second session of this subject included:

c What strategies can improve performance?

c Alternative models?
c Role of turnover in service industry
c What is the empirical evidence

The main important learning in this session where I have overcome is the
two dilemmas

1.c The productivity trap

2.c The service quality paradox
Session II

Talent management

Prof : John Hausknecht

Learning͛s from the session

The main important thing that I have learnt in this session is about the HR analytic applications.
This session also helped me to overcome some important questions like:

c How do we staff rapidly growing search and advertising business with good candidates??
c What effects do group incentives have on customer satisfaction and repeat business?
c How do we identify high potential employees for special assignments?
This session also helped me to have a deep in look in

c Service profit models

c Data source possibilities
c Data barriers
c Linking HR to business outcomes

Tuesday 2nd November 2010

Session 1 Prof : Lisa Nishii

DIVERSITY TOPICS FOR THE WORKPLACE

Learning͛s from the session

The main important things that we have learnt from this session is that how
different people from various backgrounds adopt the culture to work together in
an organization.

The main important things that we learnt from this session is that what Is
diversity? The most important thing is why should you care for the diversity?
How does diversity impacts business?
Then we had a deep look on diversity management

In this session we also had a look on stereotypes as this is very important for a
company to know the culture and make the place work best to work with.

This discussion also made us to study about the stereotypes effects on group
processes in diverse groups and how we can best adopt the diversity practices.
Then on this day we also had Catherwood library session during the lunch session

The Cornell University Library is the library system of Cornell University. In 2005 it held 7.5 million
printed volumes in open stacks, 8.2 million microfilms and microfiches, and a total of 440,000
maps, motion pictures, DVDs, sound recordings, and computer files in its collections, in addition to
extensive digital resources and the University Archives. It is the eleventh largest academic library
in North America, ranked by number of volumes held.


The Library is administered as an academic division; the University Librarian reports
to the university provost. The holdings are subdivided among twenty individual
libraries, most of them on the main campus in Ithaca, New York. Olin is the primary
research library for the social sciences and humanities. Main Library specializes in
agriculture, the life sciences, and human ecology. Other libraries focus on the arts, the
physical sciences, law, management, labor, and other disciplines, and maintain facilities
at the Ithaca campus, at the medical campuses in New York City and Doha, Qatar, and
at the Agricultural Experiment Station in Geneva, New York.

a

 

The Main Library includes the Home Economics Archive of Research, Technology and
History [HEARTH], containing over 1100 books, journals, and manuscripts on home
economics.


c
Initially, the system was a collection of 18,000 volumes stored in Morrill Hall. Daniel
Willard Fiske, Cornell's first librarian, donated his entire estate to the university upon
his death, as did President Andrew Dickson White. Under Fiske's direction, Cornell's
library introduced a number of innovations, including opening the stacks to
undergraduate students, allowing undergraduates to check out books, and operating 9
hours per day from the earliest days of the library (instead of operating for only a few
hours per week²as other libraries at American universities did at the time²just
enough time for faculty to check out and return books), which allowed the patrons to
use the facilities as a reference library.




c
CUL plays an active role in furthering online archiving of scientific and historical
documents. The arXiv.org e-print archive, created at Los Alamos National
Laboratory by Paul Ginsparg, is operated and primarily funded by Cornell as part of
CUL's services. It has changed the way many physicists and mathematicians
communicate, making the e-print a viable and popular form for announcing new
research.

The Project Euclid initiative creates one resource joining commercial journals with low-
cost independent journals in mathematics and statistics. The project is aimed at
enabling affordable scholarly communication through the Internet. Besides archival
purposes, primary goals of the project is to facilitate journal searches and inter
operatibility between different publishers.

The Cornell Library Digital Collections are online collections of historical documents.
Featured collections include the Database of African-American Poetry, the Historic
Math Book Collection, the Samuel May Anti -Slavery Collection, the Witchcraft
Collection, and the Donovan Nuremberg Trials Collection.

3rd november 2010

On this day we had a US/western business Etiquette Luncheon which were take by
Christine Holmes & Donna Ramil

„
 

$c Bread or salad plates are to the left of the main plate, beverage glasses are to the right. If
small bread knives are present, lay them across the bread plate with the handle pointing to
the right.
$c A table cloth extending 10 to 15 inches past the edge of the table should be used for formal
dinners, while placemats may be used for breakfast, luncheon, and informal suppers.
$c Modern etiquette provides the smallest numbers and types of utensils necessary for dining.
Only utensils which are to be used for the planned meal should be set. Even if needed, hosts
should not have more than three utensils on either side of the plate before a meal. If extra
utensils are needed, they may be brought to the table along with later courses.
$c If a salad course is served early in the meal, the salad fork should be further from the main
course fork, both set on the left. If a soup is served, the spoon is set on the right, further from
the plate than the knife. Dessert utensils, a small (such as salad) fork and tea spoon should be
placed above the main plate horizontally (bowl of spoon facing left, the fork below with tines
facing right), or more formally brought with the dessert. For convenience, restaurants and
banquet halls may not adhere to these rules, instead setting a uniform complement of utensils
at each seat.
$c If a wine glass and a water glass are set, the wine glass is on the right directly above the knife.
The water glass is to the left of the wine glass at a 45 degree angle, closer to the diner.
$c Glasses designed for certain types of wine may be set if available. If only one type of glass is
available, it is considered correct regardless of the type of wine provided.
$c Hosts should always provide cloth napkins to guests. When paper napkins are provided, they
should be treated the same as cloth napkins, and therefore should not be balled up or torn.
Napkin rings are only used for napkins which will be used repeatedly by members of the
household, and therefore should never be used with a guest's napkin as they only receive
freshly laundered ones. Napkins may be set on the plate, or to the left of the forks.
$c Coffee or tea cups are placed to the right of the table setting, or above the setting to the right
if space is limited. The cup's handle should be pointing right.
$c Candlesticks, even if not lit, should not be on the table while dining during daylight hours

Ê
 
 

$c When you have finished your meal, place all utensils at 4 o'clock with any forks or spoons
pointed face up and any knives blade-side-in, to show that you are finished. Do not place used
utensils on the tableͶonce a utensil has been used, it must not touch the table again.
$c Except in a public restaurant, do not ask to take some uneaten food or leftovers home, and
never do so when attending a formal dinner. A host may suggest that extra food be taken by
the guests, but should not insist.
$c Leave the napkin on the seat of your chair only if leaving temporarily. When you leave the
table at the end of the meal, loosely place the used napkin on the table to the left of your
plate.
c

On the same day we had a session with Prof :Brad Bell who gave us a clear idea about the strategic
human resource management .

In this session he gave us a brief description on Recession and Recovery. He also taught us how a
HR manager can be helpful in this recovery

The main important learning͛s form this session were:

c The role of HR managers

c The models of strategic HR
c Value creation
c Customer value propositions and organizational competencies
c Core competence
c Tools for competency analysis
c We had a discussion on the Southwest Airlines and how does its HR strategies help it

The very important thing we had is about the star bucks coffee case study which we had
done. We had a clear idea of how this works and what are the HR activities involved in this
company.
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 In this session we studied about the technologies processes and people of the organization

This session also gave us an idea of some important topics and we had a great learning from this
subject like

c Three part approach to Leadership Development

c Leadership development in practice
c The leadership imperative
c Stages for talent development process
c Defining talent
c How to identify talent and its process
c We had a great discussion about the sample NINE BOX
c How to create a communication strategy
c Corporate vitality which is very important to use.
c Evaluating leadership development programmes.



Ê

Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle
Washington. Starbucks is the largest coffeehouse company in the world, with over
17,800 stores in 49 countries, including over 11,000 in the United States, almost 800 i n
the UK, and nearly 1000 in Canada. Starbucks sells drip brewed coffee, espresso-based
hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and
panini, pastries, snacks, and items such as mugs and tumblers. Starbucks, originally
 based in Seattle, was established in 1971 and today with more than 6,500 retail locations
in North America, Latin America, Europe, the Middle East and the Pacific Rim,
Starbucks Coffee Company established itself as the dominant and most aggressive
retailer in the coffee house segment. The company has transformed a simple beverage
into a lifestyle accessory with as much elegance as the latest fashion (Starbucks.com). It
offers whole bean coffees, espresso beverages, confectionery and bakery items and
equipment in its retail stores. The retail strategy has been to put a coffee shop on every
corner and to make fresh-brewed coffee by selling only the highest-quality products and
charging a premium price. However, the product mix has changed significantly over the
years, with beans accounting for about 15% of the chain's sales. Meanwhile, Starbucks
is expanding its offerings with a line of ice cream for supermarkets and a joint venture
with Pepsi Cola to market, frappuccino. The quality of the product has attracted a loyal
and growing following among consumers.

STARBUCKS VISION AND MISSION

]c VISION: To satisfy customers and to create a ͞third place͟ environment

]c MISSION: to inspire and nurture the human spirit ʹ one person, one cup and one
neighborhood at a time."

To accomplish its mission, Starbucks has principles that guide all of its
employees as they go about their daily business

Kc Their Coffee ʹ It has always been, and will always be, about quality.
Kc Their Partners ʹ We always treat each other with respect and dignity. And we hold each other
to that standard.
Kc Customers ʹ When we are fully engaged, we connect with, laugh with, and uplift the lives of
our customers ʹ even if just for a few moments.
Kc Stores ʹ It͛s about enjoyment at the speed of life ʹ sometimes slow and savored, sometimes
faster. Always full of humanity.
Kc Neighborhood ʹ We can be a force for positive action ʹ bringing together our partners,
customers, and the community to contribute every day.
Kc Shareholders - We are fully accountable to get each of these elements right so that Starbucks ʹ
and everyone it touches ʹ can endure and thrive.

 Ê
 Ê 
Starbucks had enjoyed phenomenal growth and become one of the great retailingstories of recent
history by making exceptional coffee drinks and selling dark-roasted coffee beans and coffee-
making equipment that would allow customers to brew an exceptional cup of coffee at home. The
Starbucks brand was regarded as one of the best known and most potent brand names in America
and the company had firmly established itself as the dominant retailer, roaster, and brand of
specialty coffee in North America. It already had over 1,500 stores in North America and the
Pacific Rim and was opening new ones at a rate of more than one per day.

Starbucks corporate strategy has been to establish itself as the

premier purveyor of the finest coffee in the world, while maintaining their uncompromised
principles as the grow. The firm principles of the company are seen with its maintenance of a great
and proven work environment for every staff member in its retail stores. It upholds diversity and
promises the highest standards for its products. The company satisfies customers and gives back
to the community and the environment. Also, Starbucks persists to be profitable and it is. They
live by a strict, slow growth policy completely dominating a market before setting its sights further
abroad. This strategy has gained them the advantage of being one of the fastest growing
companies in the country. Starbucks believes that their employees are one of their important
assets in that their only sustainable advantage is the quality of their workforce. Employees are
empowered by management to make decisions without management referral and are encouraged
to think of themselves as a part of the business. Management stands behind these decisions.
Starbucks has avoided a hierarchical organizational structure and has no formal organizational
chart. The company has both functional and product based divisions. The Company's object is to
establish Starbucks as the most recognized and respected brand in the world.
 4P͛S OF STARBUCKS

PRODUCT: Starbucks sells brewed coffees,

espresso beverages, cold blended beverages, food items, teas,
branded coffee drinks, a line of ice creams, and a line of compact
discs through its retail stores. Also offers pastries, sodas, juices, games, seasonal novelty
items, and coffee-related accessories and equipment. Starbucks also engages in
purchasing, roasting, and selling whole bean coffees worldwide to grocery stores and large
hotels.

PRICE: Prices range from $1.00-$4.20 for drinks. Surprisingly, this is lower than its rivals,
although not by much. Starbucks regular coffee was 4% less expensive and its iced blended
drinks were as much as 30% less expensive when compared with specialty competition.
When compared to quick-service restaurants, however, Starbucks was more expensive.
Dunkin͛ Donuts͛ 16-ounce latte is an average of 17% cheaper.

PLACE: Operates in all 50 states plus the District of Columbia and Puerto Rico. They also
operates in 34 countries outside the United States such as Australia, Canada, China,
Germany, Singapore, Thailand, and the United Kingdom to name a few.\

PROMOTIONS: Starbucks has been able to use a standardized advertisement theme

around the world in order to incorporate different cultures. Currently they are promoting
their new Tazo green tea Frappuccino Blended crème. (Inspired by Japanese tradition).

SWOT ANALYSIS OF STARBUCKS

STRENGTH: it is a global coffee brand built upon a reputation for fine products and services. It has
almost 17,000 stores in 49 countries. The organization has strong ethical values, commitment to
the environment, and community activists. Starbucks Corporation is a very profitable organization,
earning in excess of $600 million in 2004.The company generated revenue of more than $5000
million in the same year. Starbucks was one of the Fortune Top 100 Companies to Work For in
2005. The company is a respected employer that values its workforce.
The organization has strong ethical values and an ethical mission statement as follows, 'Starbucks
is committed to a role of environmental leadership in all facets of our business.͛

WEAKNESS: Starbucks has a reputation for new product development and creativity. However,
they remain vulnerable to the possibility that their innovation may falter over time. The
organization has a strong presence in the United States of America with more than three quarters
of their cafes located in the home market. It is often argued that they need to look for a portfolio
of countries, in order to spread business risk. The organization is dependent on a main competitive
advantage, the retail of coffee. This could make them slow to diversify into other sectors should
the need arise.

OPPORTUNITIES: New products and services that can be retailed in their cafes, such as Fair Trade
products. The company has the opportunity to expand its global operations. New markets for
coffee such as India and the Pacific Rim nations are beginning to emerge. Co-branding with other
manufacturers of food and drink, and brand franchising to manufacturers of other goods and
services both have potential.

THREAT: Starbucks' success has lead to the market entry of many competitors and
copycat brands that could pose potential threats. How they combat these threats will
determine their future. Starbucks is exposed to rises in the cost of coffee and dairy
products.

STRATEGY OF STARBUCKS
 Business Level-Strategy:

The business strategy of Starbucks' is identical to the corporate level strategy since the
company is a single business company, focusing on only coffee-related products and retail
stores.

Corporate Level-Strategy:

Starbucks corporate strategy has been to establish itself as the premier purveyor of the
finest coffee in the world, while maintaining their uncompromised principles as the grow.
The firm principles of the company are seen with its maintenance of a great and proven
work environment for every staff member in its retail stores. It upholds diversity and
promises the highest standards for its products. The company satisfies customers and
gives back to the community and the environment. Also, Starbucks persists to be
profitable and it is. They live by a strict, slow growth policy completely dominating a
market before setting its sights further abroad. This strategy has gained them the
advantage of being one of the fastest growing companies in the country.

  
 Ê 

Starbucks is a successful premium coffee retailer. There are three components of the brand, live
coffee, service, and atmosphere. However, its brand image is losing while they focus on retail
expansion. Global Marketing Sales Organization builds up for better marketing strategy. Focusing
on customer satisfaction enhancement: Providing light food, drive through service, or designing
different atmosphere in different location to fit certain culture are ways to satisfy
customers. Starbucks should provide new products to the customers. Starbucks can strive to go to
various new countries to increase its foothold and increase its market share. Since it already has a
brand name it can easily survive in other countries as well. Since Starbucks is already into coffee
business it can also try o diversify its portfolio more this could also lead them to gain more market
share and keep them an edge over its competitors.
LEADERSHIP BY PROF : LINDA GASSER

The main important things to learn from this session are:

We came to know the importance of Leadership and Personal Mastery, Leadership and
Culture, Leadership and Personality Preference.

In this session we had topics on

c What is management
c What management involves
c What leadership involves
c Manager versus leader
c What derail executives
c Some factors that affect leader behavior
c What makes successful Global Leader
c Global collaboration
c The trait approach
c Senges five disciplines
c The big five personality development

From this session I came to know about the various personalities like forward
people who can be really good at speaking and people who have introverting
preferences and extroverting preferences.
There are various kinds of people in this world with various thinking͛s and how is
this applied and used in global management.
 We also had a session of conflict management of how to sort out the difference
between the people working together in a organization.
When there is a conflict between two people how should they come over their
conflict management. This session was taken by Pam Strausser. In this session we
had case study which gave us a clear idea of how to sort out the conflict
management.

Apart from this on the last day we had the campus tour which gave us clear idea of
the museums and the campus they have.
The campus of the university was awesome where they had their own stores and
things available for the students to purchase with the universities name.

 !"#
In this entire ͞GOTA͟ programme at Cornell University Ithaca, helped me a lot to improve my
communication skills, analytical skills, and observation level of the market trends in USA.
The sessions arranged at ILR School of business covered various areas which are very useful to
come across the trends in the market, strategic planning, upcoming trends in media promotion,
and negotiation skills during designing the package of an employee and advantages of building up
a successful team and leadership skills.

#$#
This program at Cornell University has made us to know the difficulties that we face in the markets
and organization in the areas of Human Resources, Marketing and Finance.

I understand that all we need to do is to act accordingly to the situation that effects the market
environment in day to day life to survive in the long run.

 $%"&'
Kc http://www.cornell.edu/visiting/ithaca/
Kc wMaterial provided by Cornell university and ILR Business School
Kc www.wikipedia.com
Kc http://www.starbucks.com/aboutus/Company%20Fact%20Sheet%20Apr05.pdf
Kc http://www.starbucks.com/default.asp
Kc http://www.starbuckseverywhere.net
Kc http://www.starbucks.com/retail/wireless.asp
Kc http://www.starbucks.com/retail/brewing.asp
Kc https://www.starbucks.com/card/default.asp
Kc http://www.starbucks.com/hearmusic/product.asp?category%5Fname=Our+Compilations
&product%5Fid=795016
Kc http://biz.yahoo.com/bw/050802/25224.html?.v=1
Kc https://www.starbucks.com/card/exclusives.asp?category%5Fname=Exclusives&product
%5Fid=Ichiro