Context of Business Assignment with Starbucks (GC01969)
Table of Contents
1.0 Introduction.
2.0 SWOT and PESTEL analysis for Starbucks.
2.1 SWOT analysis.
2.2 PESTLE analysis.
3.0 Evaluate how the popularity of CSR has influenced the business and how the company is addressing its CSR goals.
3.1 Evaluate how the popularity of CSR has influenced the business.
3.2 How Starbucks is addressing its CSR goals.
4.0 Compare and contrast the different styles of leadership, and recommend a suitable leadership style that will help Starbuck grow.
4.1 Compare and contrast the different styles of leadership.
4.2 Recommend a suitable leadership style that will help Starbuck grow.
5.0 Importance of organizational culture on the processes at Starbucks.
Cultural web.
Importance of organizational culture on the processes at Starbucks.
6.0 Reflective report
7.0 Conclusion.
References.
1.0 Introduction
Starbucks is the largest American coffeehouse. The headquarters is in Seattle, Washington. It is founded in 1971 and served coffee and other services to customers worldwide. The main products of this coffee shop include coffee beverages, smoothies, tea, baked goods and sandwiches. It has a huge number of employees about 291,000 and its operating income was US$3.88 billion in 2018 (Starbucks, 2020). Firstly, this essay shows the SWOT and PESTEL analysis for Starbucks to evaluate the position of Starbucks. After that, this essay also evaluates the popularity of CSR that affect the business and the way of addressing the CSR goals by Starbucks. Then, this essay makes a comparison between different styles of leadership and recommends a favorable leadership style for ensuring the growth of Starbucks. Additionally, it shows the necessity of organizational culture on the processes at Starbucks. Finally, the reflective report is also presented in this essay.
2.0 SWOT and PESTEL analysis for Starbucks
2.1 SWOT analysis
SWOT analysis helps to identify the internal condition of the business. By analyzing SWOT factors, a business firm can find the weaknesses and threats and then use the strengths and opportunities to overcome the weaknesses as well as threats (Mindtools, 2019). The SWOT analysis of Starbucks is presented below:
Strengths of Starbucks
- Starbucks is considered as the number 1 brand in the coffeehouse segment
- Strong brand image
- Wide market area
- Effective supply chain system
- Higher profitability
- Better quality coffee and foods
- Qualified services man
- Higher level of growth and sustainability (Starbucks, 2020).
Weaknesses of Starbucks
- Competitors price is the major influence on the Starbucks profits
- High price level
- Lack of quality staffs
- High cost of raw materials
- Negative publicity (Starbucks, 2020)
Opportunities of Starbucks
- Expanding coffee shops throughout every remote area in the world
- Using online platforms for advertising and selling the products
- Increase products offering
- Expansion of retail operation
- Offering organic and healthy foods to the consumers (Starbucks, 2020)
Threats of Starbucks
- Rising Competition level
- Rising coffee beans and dairy products
- Increase competition with local coffee shops
- Supply disruption
- Boycott product
- Change in economic, social, cultural and political factors (Starbucks, 2020)
2.2 PESTLE analysis
PESTLE analysis means the evaluation of some external environmental factors including political, economical, social, technological, legal and environmental issues for generating the impacts of these factors on the business firms (Sirmon, 2018). Hafizullah (2018) stated that this analysis helps business firms to find the impacts of macro factors and find the way of mitigating these impacts. In case of the Starbucks, PESTLE factors have a great level of impact because this coffee shop is operating worldwide.
Political factors: It refers to the impacts generated from a government authority, fiscal and monetary policy, taxation policy and business laws and regulations of a country (Sirmon, 2018). In the case of Starbucks, political factors have a great level of impact because this coffee shop is operating business functions worldwide.
Economical factors: The economical factors refer to the impact of the inflation rate, interest rate and income level of a country. The higher level of income of people brings positive impact on the business sectors otherwise not. Therefore, Starbucks has to face the challenges from the economical downturns of the global economy.
Social factors: The social issues refer to the impact of the change in the taste, lifestyle, and religion and purchasing power of the consumers (Sirmon, 2018). The positive social structure brings a positive impact on the business sectors otherwise not. Starbucks has to face the challenges of social changes, especially in the global market.
Technological factors: Technological factors refer to the advanced production technology, supply chain technology, and distribution technology that help businesses to run business with a great level of quality and minimum cost (Sirmon, 2018). The advanced level of technological supports helps the business firm to develop products quality and better customers services systems. Starbucks has used the best technical support in their production and distribution system that made this company a number 1 brand.
Legal factors: The legal factors refer to the impact of business-related regulations, rules, laws and other ethical factors. The legal factors have to manage by the business firms. Starbucks has obeyed the legal issues and ethical issues to ensure customers satisfaction (Sirmon, 2018). Through the maintenance of legal issues, Starbucks has gained the customer’s support and loyalty.
Environmental factors: Environmental factors refer to the impact of the environment protection law, environment pollution and CSR practices (Sirmon, 2018). Starbucks has tried to protect the environment from pollution and performed several CSR roles for the development of society and the environment.
3.0 Evaluate how the popularity of CSR has influenced the business and how the company is addressing their CSR goals
3.1 Evaluate how the popularity of CSR has influenced the business
CSR stands for corporate social responsibility. At the beginning of the global business, the business organization concentrated only on their profits. After passing some decades, the business organizations found that they are also part of society and they have some responsibility to the society and environment (Murphy, 2019). After that, most of the business has concentrated on the CSR roles because it has brought influence on the business growth, profitability, brand image and sustainability. Diclumb (2018) stated that most business firms are taking CSR functions as their regular functions because it affects the business performance and brand image. Firstly, the CSR roles create a good mind of the potential customers on the business that impact the satisfaction of the customers. Financier (2015) stated that The CSR roles towards the employers also help to ensure job satisfaction and reduce the labor turnover of the business. The CSR practices towards suppliers and creditors also create a good relationship between organizations and these parties………………
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