Assignment on Business Health Check

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Objectives of business......................................................................................................3
1.2 Factors that affect process of business ............................................................................4
1.3 Improvement and changes to the business operations and processes...............................7
M1 SMART objectives...........................................................................................................8
D1 Analyse how Ansoff Growth Matrix helps in business improvements............................8
TASK 2 ...........................................................................................................................................9
2.1 Effectiveness of the business............................................................................................9
2.2 Develop plans to improve business and define their values ..........................................10
M2 Evaluate the impact of business areas of the organisation ............................................11
D2 Critically analyse development of plan in improving the business ...............................11
TASK 3 .........................................................................................................................................11
3.1 Current skills of management staff.................................................................................11
3.2 Plans for the development of skills for management and staff ....................................13
M3 Analyse the current experience, abilities and skills of management and staff .............14
D3 Methods that can used for developing skills of management and staff .........................14
CONCLUSION .............................................................................................................................15
RECOMMENDATION ................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Business health check is a method used by various organisations in order to evaluate
factors which affect business organisation and develop strategies according to the changes for
running business in a smooth manner. It is also known as an evaluation process in which
managers need to examine all the factors which directly affects the profitability, sustainability
and growth of the company (Akter and Et. AL, 2016). In this report, Starbucks is chosen as the
base company. It is an American based coffee company incorporated in the year 1971 and its
headquarters is located in Washington. It is one of the biggest leading company as it operates in
more than 30,000 countries across the world. This report includes all the external as well as
internal factors which have direct impact on business operations by doing PESTLE and SWOT
analysis. Along with this, the report includes Ansoff matrix in order to improve the growth of
business at the competitive marketplace. At the end, this report includes an evaluation of current
skills in order to enhance the skills of management team of the company.
TASK 1
1.1 Objectives of business
Starbucks is one of the biggest leading company and deals in all over the world. In
addition to this, it is the company having strong brand image at the marketplace in international
as well at global level.
History of the company
In case of Starbucks, objective of the company is that they want to increase their
profitability and market share by satisfying the requirements of customers. In addition to this,
other objective of the company is to provide high quality of services to their customers and retain
them for a long period of time. Mission statement of the chosen company is that they nourish and
inspire human being by providing one of the best coffee. It has been identified that Starbucks is
having almost 33% market share. Company mainly focuses on targeting high class people by
offering fact food as well as best quality coffee across the world (Campbell and Helleloid, 2016).

Short term goal: In case of Starbucks short term goals of the company is to satisfy
requirements of customers by offering them high quality of services.
Long term goal: On the other hand, long term goal of the company is to maintain their
sustainability at the competitive marketplace by retaining loyal customers.
1.2 Factors that affect process of business
PESTEL Analysis of Starbucks Corporation
Starbucks is one of the biggest coffee company across the world. PESTLE analysis is a
model used by companies to enhance their knowledge about various macro factors which affect
the business operations of the company. With the help of PESTLE analysis management team of
the company will be able to develop strategies and plans according to the market situation. In
order to conduct the business health check-up effectively, PESTLE analysis is discussed in
detail:
Political factors – Political factor includes various government policies, laws and
legislations which directly affects the functioning of business enterprise. Different political
factors which affects the operations of business includes bureaucratic red tape in developing
countries, regional integration of markets and many more (Clinton and Whisnant, 2019).
Regional integration refers to an external factor which identifies various opportunities in order to
expand business functions. Along with this, government of different countries develop the
infrastructure which aid Starbucks for performing its functions effectively.
Economical factors – Some of the economic conditions affect the business operations in
both positive as well as negative manner. For instance, if a country having high economic growth
rate, they develop employment opportunities with the help of which individuals can improve
their standard of living. Also, economic condition of UK is very strong which helps in
maximising profitability of the company. Another element which highly influence the business
functions of Starbucks is high labour cost.
Social factors – This is the factor which includes buying behaviour of customers. In
today's world, demand of coffee is increasing day by day which creates opportunity for
Starbucks. In addition to this, company can also provide healthy drinks to their health conscious
customers by identifying their requirements. It is also very important for company to examine
current market situations and trends before offering products and services to their customers
(Dälken, 2014).