Contemporary Management Issues: Impact on Starbucks

Contemporary
Management Issues

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Background of Starbucks............................................................................................................4
Concept of Change......................................................................................................................5
PESTLE Analysis........................................................................................................................6
Porter's Five Forces Model..........................................................................................................8
Current Response to the Impact on Starbucks Due to Drivers of Change................................10
Recommendations Related to Improvement in Performance Over Next Decade.....................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Management Issues refers to the process of identifying the issues or problems which have
been faced by internal and external factors related to any organisation and impacting upon the
performance of the organisation as well (Alon and et. al., 2016). This makes it is necessary for
every company to focus on the working of their organisations so that continuous evaluation of
performance could be done as well as improvements could be made. The company selected for
completing this assignment is Starbucks. It was founded in year 1971 and it has its headquarters
located in Seattle, Washington, U.S. The company believes in providing their customers with
varieties of products & services such as Coffee Beverages, Smoothies, Tea, Baked Goods,
Sandwiches and many more for satisfaction of various needs and demands of their customers.
This assignment is based on two drivers of change along with their critical evaluation on the
impact created by it on both the operational as well as commercial activities of the company. In
addition to this, the discussion of the nature of the pressures for change about the selected two
drivers. Further, the critical evaluation will be made about the current response of organisation
towards these changes. Lastly, the discussion will be made about how the organisation could
make improvement in their response, performance and situation over the next decade in order to
make sure about its proper growth and survival.
The Aim of this report is to understand and know about the impact of drivers of change
on Starbucks and the impact of these on its performance. Objectives of this report is to know
about the ways to deal with these changes, evaluating organisation's responses to key dynamic
forces and to recommendation related to improvement in response to these changes. The issues
which have been faced by Starbucks is related to dealing with pressure which have been made by
public to make development of “fully recyclable and compostable cups” which is an effort made
by company to contribute to environment and pledge made by it in 2008 and is not fulfilled yet.
The two drivers of change which are impacting upon the performances of this organisation is
Public and Government.
MAIN BODY
Background of Starbucks
Starbucks is a company founded by Jerry Baldwin, Gordon Bowker and Zev Siegel by
opening of their first store in the year 1971. Their first store was opened across the street from