Business Environment of Starbucks : Assignment
Added on 2020-10-05
12 Pages3526 Words276 Views
BusinessEnvironment
ContentsINTRODUCTION...........................................................................................................................1Background Information on Starbucks............................................................................................1Background Information on the Business Environment in Belgium...............................................2Analysis of the Business Scenario...................................................................................................5CONCLUSION................................................................................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONBusiness environment refers to the collection of internal and external factors of enterprisethat impact its overall functioning. In modern times, it is imperative for organisations whilemoving into a new country to consider these factors so as to facilitate easy growth and expansionof business. In globalised economy, there are various macro environmental factors like political,legal, social, environmental, technological etc. that affect business during expansion (Henry,Foss and Ahl, 2016). The present report is based upon Starbucks which is a coffee companyheadquartered in Washington, United States. The company is looking for opportunities ofForeign Direct Investment (FDI) and planning to move into Belgium. This report will take intoaccount the background information in relation to various macro environment factors in Belgiumwhich will be considered while facilitating expansion. Also, it will include the analysis ofbusiness scenario in global context. Furthermore, it will assess main issues that were encounteredby company along with some recommendations in relation to scenario.Background Information on StarbucksStarbucks is an American corporation which was found in Seattle, Washington, U.S. In1971. It is one of the most renowned retailer roaster and deals in specialty coffee across theglobe. Starbucks operates in 28,218 locations of the world. As per data of 2016, companyemploys 2,38,000 people in all its outlets across the globe. Globally, the stores of company offera range of beverages such as hot and cold drinks, Frappuccino beverages, caffe latte, instantcoffee called VIA, Evolution Fresh Juices, espresso, Teavana tea products. Also, the outlets haveLa Boulange pastries along with snacks inclusive of chips and crackers to serve customers well.Besides this, enterprise also offers certain items including beverages, pastries and snacks that areeither seasonal or exclusively available in selective locations (Shahriar, Schwarz and Newman,2016). Also, many stores also offer pre-packaged articles, sandwiches (hot and cold) and alsodrinkware like coffee tumblers or mugs. Exclusive locations of company also provide alcoholicbeverages inclusive of beer, appetizers as well as wine. Company's bottled drinks, ice creamalong with coffee are also available at grocery stores globally. Starbucks is the primerepresentative for 'second wave coffee' which helps the entity in differentiating itself from otherbig coffee brands in terms of quality, experience gained by customer, taste in order to make thedark roasted coffee famous in marketplace.1
Starbucks follows a corporate structure which helps the company in facilitating theoperations of business across globe. Enterprise makes use of its organisational structure so as toensure growth and development of company along with overall coffee industry. Company'scorporate has an effective impact upon various areas of function like incorporating change,execution of growth and expansion along with daily management of activities. Company ensuresthat its structure is specific to needs of entity. For instance- in past, company modified itscorporate structure so as to carry out expansion of business by acquiring companies like EthosWater and Seattle’s Best Coffee. These adjustments give a strategic edge to company and assistsin easier expansion of entity across different parts of world (Tukker and Tischner, 2017).Being a well renowned brand across different parts of world, company keeps inconsideration satisfaction derived from customers. The brand focusses upon creating such anexperience for consumers that they place trust in company and remain loyal towards brand. Theybelieve in recognising the importance of human resources within (staff) and outside theorganisation (customers). As a result of this, the corporate image and position of Starbucks, overyears, has been quite high in market and can be seen to the extent that company earned revenueof US$22.387 billion in 2017. Background Information on the Business Environment in BelgiumStarbucks is a famous coffee brand with various outlets across the globe. Company isconsidering to explore the option of Foreign Direct Investment (FDI) in Belgium so as to expandits operations there. The company offers a wide variety of high quality snacks, appetizers andbeverages. Starbuck's major aim is to sell coffee and associated products of finest quality so as toderive a positive customer experience and ensure widespread acceptability from publicworldwide. Top management of company recognises the need for reaching the customers spreadacross different parts of world so that it can become the leading brand in coffee and relativeproducts industry (Storey, 2016).Company's core competency values are based upon effective management of humanresources along with building healthy and strong relationship with suppliers such that companycan easily enter a new market and enjoy the benefit of its large scale networking. Also, thedestination chosen by company for expansion is Belgium wherein company by way of foreigndirect investment will carry out expansion of its operations. For this, manager of Starbucks hasconducted PESTEL analysis. This is a strategical tool which helps an entity in assessing the2
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