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SUSTAINABILITY
OF
BUSINESS ENVIORNMENT

Table of Contents
INTRODUCTION:..........................................................................................................................1
Task..................................................................................................................................................1
1. Discuss with the explanation of Swot and Pestle analysation in context of Starbucks
company......................................................................................................................................1
2. Evaluate the popularity of CSR that impact to the business and critically analyse how the
company address their CSR goals. ..................................................................4
3. Demonstrate and compare different style of leadership. And suggest a suitable leadership
styles which will grow the Starbucks productivity. ...........................................................5
4.Explain the importance of organisational culture on the process at the Starbucks .................8
5. Reflection of the report:..........................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
Books and Journals........................................................................................................................11
......................................................................................................................................................12

INTRODUCTION:
A business environment is known as another name as market environment, as it is a
marketing term that refers about the factors and forces which influence to affect the firm's
capability to making better and effective business relationship within customer. All the internal
and external factors that represent the impact the business related function involves employees,
customer and management along with supply and demand of product and services as per the
market report (Biloslavo, Bagnoli and Edgar., 2018). A successful business environment only
happens when customer expectation get accomplish. Sustainability of business environment is
defines the specific business growth and shows the long term existence in the competitive
business or market.
In this report, the company which opted from United kingdom perspective Starbucks
Corporation is an American multinational chains of Coffee houses and bakery products reserves
which operated through headquarter in Seattle, Washington. Their coffee branches services
through worldwide as their products are bakers , cake and beverages etc. The presence of
employees is above 2,50,000 approximately in all over countries. For this report, the topics
which are going to undertake as COVID-19 situation faces by Starbucks company perspective by
evaluate Swot and Pestle analysation, critically analysed the CSR activities impact in business
environment. By describing the different leadership styles which help to develop the Starbucks
development and highlight importance of organisational culture on the process of evidence from
research point of view (Bradley, Parry and O’Regan, 2020).
Task
1. Discuss with the explanation of Swot and Pestle analysation in context of Starbucks company.
The internal environment is formed within the elements within the company background
to involves existing employees, management and importantly corporate culture that defines traits
and attributes of employees which impact in specific organisation growth. By considering Swot
analysation for Starbucks venture for mapping their internal assessment as their strength,
weakness, opportunities and threats.
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Swot Analysation: It is a assessment of forming strategic planning to utilise by the person of
organisation that helps identify strengths, weakness, opportunity and threats related with
business competition.
Strength Weakness
 They having strong well known brand
image in food and beverages services
as the size and volume is in wider as
well as having strong customer loyalty
which increase the market growth and
high revenues in international market
ranking (Breuer and et. al., 2018).
 By generating with annual revenue of
$26.6 billion and profit of $3.6 billion
in the year 2019. As Starbucks having
strong position in competitive market.
 The existence of their stores is higly
increased with 1,888 to 30,000 between
1998 to 2020.
 To acquired the some top companies
like Seattle's Best coffee, Ethos Water,
Evolution Fresh etc that increased the
wealth and brand value of Starbucks in
international market.
 By having their higher prices can not
afford to the working consumer and
middle class customer. It can reduces
the profitability of Starbucks and ability
of affordability for the consumers.
 Starbucks are not supposed to own any
form of unique concept products in the
market where it makes quite easy for
other companies, but that occurs the
huge loss for Starbucks.
 Due to criticised by the social and
environment activities to Starbucks
teams as they reforming unethical
product procurement of unimprove
coffee raw material attain from Fair
Coffee Trade principles (Das and
Rangarajan., 2020).
Opportunities Threats
 Starbucks coffee houses are only exists
in United States but they have
probability to expand their business and
services in other developed countries.
 By having high market share in global
business as they can change their
 There is high competition between high
seller and low seller of coffee business
that could create a huge conflicts for
Starbucks as they generally produce
high quality products (Freudenreich,
Lüdeke-Freund and Schaltegger.,
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business activity which will increase
the revenue as well as to introduce new
concept of product within customer
preferences to the specific target
market.
2019).
 Chances of getting product imitate with
old and new ones versions that could be
decrease the growth of company.
 Having the presumes of independent
coffee house movement through Social
culture can generate high threat level to
Starbucks as social culture provide low
price with high quality products.
Pestle Analysation:
it derives the macro environment factor to analyse and monitor external forces which can
impact to the organisation. Starbucks company can influence through external factor that
propound the better performances. Political: The impact of corporate and government rules and regulation in business like
taxation, policies, foreign trade, international trading business should be considered by
the Starbucks company. Some of aspect of political can provide opportunities as if they
establish their venture in UK, the policies are effective and valuable to generates positive
outcomes and threat from Brexit market and corporate guidelines (Lorincová. and et. al.,
2019). Economical: In this factor it comprise about the economic related aspect supply and
demand, interest rates, inflation rates and exchange rates are defines within the country
background which impact to the particular company. As Starbucks can influence from
UK economic background that create impact to their business as pounds value is very
productive it will generate huge profitability but inflation, recession along with causes of
COVID-19 situation can reduces their growth. Social: It is factor that depicts about the market and customer behaviour role while
approaching the product. At the time of entry in UK, Starbucks can target youth people to
assuring their taste and preferences the trends in the region. Some of the factor that
determine people behaviour in age, different religion, education and other demographic
factor that influence to Starbucks for select their customer.
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 Technological: To support the companies to reduce the amount of barriers while enter in
the market. Through R&D Starbucks can assort different advanced level of technology in
UK as it having a better scope of Artificial Intelligence to mange and optimum procure
that will increase the production of Coffee trait products (Luthra and Mangla, 2018). Environmental: According to this factor it comprise about the awareness of environment
degradation that comes to become friendly and leads to sustain the business in positive
aspect. As per UK environment consideration, Starbucks need to assure about their raw
material procurement that should not harm the environment as well as encourage to
contribute for society development (Ma and et. al., 2018). It enhance to differentiate the
product from other existing companies competitors for analyse the lacking where it
requires to improvement.
 Legal: This factor understands about the all legal and other regulation which is high
influenced and composed through particular country government that enhance some laws
which need to implies in the company perspective (Maniora, 2018). In UK, the legal
influence is highly effective towards and it can be impactful for Starbucks as labelling
and product regulation or law can generates outcomes format of modification that could
affect the ir sales and product.
2. Evaluate the popularity of CSR that impact to the business and critically analyse how the
company address their CSR goals.
The description about the Corporate Social Responsibility is managerial concept where
the company integrate the influence of Social and environmental that considered the betterment
for particular business operation, different organisational activities improvised and having
interaction with their stakeholder. It indicates the activities such as societal goals, charitable
nature that engaging to the people that ethically improvise the business practises.
The importance and role of corporate social responsibility is the wider concept that fulfil
the business needs and initiate to concerned with more than profits through protecting the
environment and addressing the contribution for making society infrastructure development in
terms of poverty and hunger (Martínez-Martínez and et. al., 2019). The importance for stability
of business as well as it enhance to improve the brand value of particular by having regular
Corporate Social Responsibility practises, to increase the long term growth for rapid increase in
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profits that served to balance the stability. In the Starbucks company context, they can address
their Corporate Social Responsibility goals or the impact of CSR which support to the Starbucks
for forming their goals. Customer retention factor: Through regular practise of Corporate Social Responsibility
of Starbucks can provide the customer retention, if the quality of product is effective
enough and fulfil all the requirement along with optimum satisfaction can increase the
chances the retention of customer. CSR helps to promote the business positive quality
that defines certain aspect of company. Help to allocate the funds: The source of optimum capitalisation is require to establish
the business and different capital formation requires to evaluate the expenses driven
through funds expansion. Starbucks company get help the funds allocation through long
term growth objectives accomplish. Different financial institution having contact within
Corporate Social Responsibility foundation where they procure the funds if the company
Starbucks can regular practise and applies to social responsibility which can generates
more opportunity of liquidity (Mustapha and Hassan., 2018).
 Better Recruitment: The process of hiring can be flexible and effective through CSR
activities influence. The small business company creates the workforce recruitment. As
per the Starbucks perspective they generally looking for high potential candidate where
they can hire valuable traits and attribution of employees. In this scenario, Corporate
Social Responsibility can brings the better people to the Starbucks venture for their
objective fulfilment to acquire high competency of employees and they can retain them
for further goals or valuable employees can brings the positive productivity through their
performances (Schaltegger and Burritt, 2018).
3. Demonstrate and compare different style of leadership. And suggest a suitable leadership
styles which will grow the Starbucks productivity.
A Leadership is involve in both research and practical area skill which emphasis the
specific ability of an individual or group of organisation that leads them to guide positive
direction as well as develop the self confidence (Schaltegger, Hörisch and Freeman, 2019). As
the role of leadership in business is reflects the represent about set of achievement and
challenging goals, improve the effective decision making outperform in valuable level.
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Leadership helps to transform the potential into reality as it having different styles which
shows the particular company's manger point of view to access in their organisation premises.
Similarly, by taking Starbucks company and elaborates the leadership styles into their
preferences such as follows: Autocratic Leadership Style: According to this leadership style, the leaders of managers
are undertaking all decisions by themselves and they not involved their among peers or
other subordinates for discussion purpose.
Advantages: It develop the strong and effective motivation and reward for the leader and the
subordinate are only to carry out the orders from the leader.
Own decision making can allows the proper planning and organising needs effective initiatives
(Sivarajah, and et. al., 2020).
Disadvantages: There is chances of without having any support decision can be formulated and
implemented individually will generates unfavourable outcomes. It leads to the frustration and
influence to having low morale and conflicts among subordinate if the decision could not
generates expected productivity. Democratic Leadership style: In this leadership style, where the leader influence or
encourage to the workforce to participate in decision making.
Advantages: From this leadership style, the positive behaviour of leader and manager can
generates the job satisfaction and morale of subordinates. Apart from it develops the positive
attitude and minimize the depression and stress level of an individual.
Disadvantages: This nature of leadership makes the leader or manager dependent on other where
some of decision can not be accessed through employees or others (Slager and et. al., 2020). It is
require the effective communication skills and persuasive nature traits in a leader. Laissez-Faire Leadership style: According to this leadership is allows to encourage the
employees point of view where leader allows to employees for making their own
decision.
Advantages: It enhance more freedom to employees as they can implement their own decisions,
where it provides the impact on job satisfaction in a positive way and increase the morale of
subordinates.
It also generates the more probability of development of subordinates as well as to assorting
through potential employees leader provides recognition.
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Disadvantages: Employees did not get support or any form of guidance from leaders where it
having the chances of poor decision making driven through employees or peers that could create
conflict in any work objectives.
There would be not having any motivation influence along with less incentives will generates.
Comparison Between Leadership styles:
Basic Autocratic
Leadership Style
Democratic
Leadership Style
Laissez-Faire
Leadership Style
Distribution of Power
The power factor is
shared in Autocratic
leadership style only
having to Managers
Their power can be
expressed shared with
among Manger and
employees
To only facilitates the
employees and there is
not involvement of
manager for their
guidance.
Decision Making
All the decision
formation and
implementation
through only
company's manager
who individually hold
the authority.
Having responsibility
and enhance to
undertaking the
decisions driven by
employees and
managers in a specific
company (Mustapha
and Hassan., 2018).
To evaluating and
implementing the
decision is reliable to
handle by employees.
Flow of
Communication
The hierarchy of
communication
process is flow from
top level of
management in
Autocratic Leadership
style.
In democratic
Leadership style is
provides the two way
of communication
between managers and
employees.
In Laissez-Faire
leadership style the
only employees can
communicate and it
flows through among
them.
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According to above discussion of different Leadership styles, the suitable leadership style
for Starbucks Company which leads to their growth that would be Democratic Leadership Style,
It will support to the employees to join with their leaders and express their thoughts or
suggestion with them might be it will provide many different sort of alternatives which can help
to the Starbucks managers or leader to evaluate the optimum solution of an particular issue
(Martínez and et. al., 2019). This will enhance the better relationship, coordination and
communication among between employees and managers.
4.Explain the importance of organisational culture on the process at the Starbucks .
The organisational Culture comprises about the values, behaviour, assumption and beliefs that
governs about how people approach or behave in the organisation . The shared values having
strong influence on the people perception in the organisation how they groom and analyse to
abiding the rules and regulation in organisation premises.
Importance of organisation culture in context of Starbucks.
In following there is importance of organisational culture for Starbucks to help their business in
proper compliance manner as well as it will promote their business in better direction. It increase the Employee Engagement: In Starbucks company , the presence of
organisation makes understands to the employees and manager to set of discipline and
principles which need to follows and maintain it where it will enhance the mobility of
workforce. Through Employee Engagement the employees of Starbucks can motivate and
always get encourage to pursuing task in effective manner. On the successful accomplish
the organisational culture it will leads to the high level of workforce engagement that
would enhance the profitability (Hassan, 2018). Improve the Recruitment Efforts: Having better principles oriented company get support
to hiring the employees effectively. As per the Starbucks company, their process of
recruitment get affected negatively when there is no proper method to conduct the
recruitment which will enhance unproductive and will not be able to hire the candidates if
the compliances are not strong enough, for that Starbucks needs to implement the
enforcement of organisation culture which will form the actual criteria of recruitment
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mobility which provide flexible in decision making that will support to hire the potential
candidates (Sivarajah and et. al., 2020). Enhance to Increase the productivity: In this situation, it is must that employees are
having satisfaction with their jobs or not, for that Starbucks need to identify their
employees requirements which must to fulfil by company and to make them retain or
satisfied the manager of Starbucks have to enhance employee engagement activities or
fulfil the needs, provide them friendly and positive working environment along with
better training and development program which helps to increase their performance
which will increase their productivity (Slager et. al., 2020).
5. Reflection of the report:
At the time of making the report of Sustainability of Business environment , there some
key important point which I gained and analyse in detailed form of structure. I gained the proper
understanding about the Sustainability existence as well as the importance of CSR activities how
they effectively influence the Starbucks company about how they can increase their business
brand value in international market. Apart from it CSR practises involve the social welfare
development that requires every company to contribute from their revenue that develop the
infrastructure and it will generates a better goodwill and long term sustainability. While, the time
of study about different style I have analyse that how leadership style can enhance the company
like Starbucks into better business mode and will optimise the job satisfaction and other benefits
on that I scrutinize the Democratic Leadership Style for Starbucks company it will suitable and
helps to generates better relationship with employees and managers (Freeman., 2019). The
importance of organisation culture makes me understands about how to culture can impact to the
overall organisation aspects in different situation aspect where it maintain the internal
environment of Starbucks company.
CONCLUSION
In above report of Sustainability of Business environment has come to conclude that
about internal and external environment of particular company perspective that highlight about
the Swot assessment that derives about the internal as well as external aspect of company point
of view and Pestle analysation is for external environment to analyse the better influence of
country's political to legal factor describes. About the CSR activities impact to the business as
9

well as to making addressing of company's CSR goals where they get benefit to grow their
business globally. Elaborates different types of leadership styles that play an important role in a
particular company and one suitable leadership styles highlight which development the
Starbucks company productivity.
10

REFERENCES
Books and Journals
Biloslavo, R., Bagnoli, C. and Edgar, D., 2018. An eco-critical perspective on business models:
The value triangle as an approach to closing the sustainability gap. Journal of Cleaner
Production. 174. pp.746-762.
Bradley, P., Parry, G. and O’Regan, N., 2020. A framework to explore the functioning and
sustainability of business models. Sustainable Production and Consumption. 21. pp.57-
77.
Breuer and et. al., 2018. Sustainability-oriented business model development: principles, criteria
and tools. International Journal of Entrepreneurial Venturing. 10(2). pp.256-286.
Das, M. and Rangarajan, K., 2020. Impact of policy initiatives and collaborative synergy on
sustainability and business growth of Indian SMEs. Indian Growth and Development
Review.
Freudenreich, B., Lüdeke-Freund, F. and Schaltegger, S., 2019. A stakeholder theory perspective
on business models: Value creation for sustainability. Journal of Business Ethics, pp.1-
16.
Lorincová. and et. al., 2019. Employee motivation as a tool to achieve sustainability of business
processes. Sustainability. 11(13). p.3509.
Luthra, S. and Mangla, S.K., 2018. Evaluating challenges to Industry 4.0 initiatives for supply
chain sustainability in emerging economies. Process Safety and Environmental
Protection. 117. pp.168-179.
Ma and et. al., 2018. Co-evolution between urban sustainability and business ecosystem
innovation: Evidence from the sharing mobility sector in Shanghai. Journal of Cleaner
Production. 188. pp.942-953.
Maniora, J., 2018. Mismanagement of sustainability: What business strategy makes the
difference? Empirical evidence from the USA. Journal of Business Ethics. 152(4).
pp.931-947.
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Martínez-Martínez and et. al., 2019. Knowledge agents as drivers of environmental sustainability
and business performance in the hospitality sector. Tourism Management. 70. pp.381-
389.
Mustapha, N.A. and Hassan, R., 2018. Organizational Efficacy and Corporate Sustainability in
Business Performance: A Literature Review. Advanced Science Letters. 24(5). pp.3493-
3497.
Schaltegger, S. and Burritt, R., 2018. Business cases and corporate engagement with
sustainability: Differentiating ethical motivations. Journal of Business Ethics. 147(2).
pp.241-259.
Schaltegger, S., Hörisch, J. and Freeman, R.E., 2019. Business cases for sustainability: A
stakeholder theory perspective. Organization & Environment. 32(3). pp.191-212.
Sivarajah, and et. al., 2020. Role of big data and social media analytics for business to business
sustainability: A participatory web context. Industrial Marketing Management. 86.
pp.163-179.
Slager, and et. al., 2020. Sustainability centres and fit: How centres work to integrate
sustainability within business schools. Journal of Business Ethics. 161(2). pp.375-391.
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