Starbucks: Contemporary Developments in Business and Management
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Added on 2019-09-22
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This report discusses the primary external influences and demographic factors that influence the working of Starbucks. It also critically evaluates the company's responses to these influences and suggests areas of improvement.
Starbucks: Contemporary Developments in Business and Management
Added on 2019-09-22
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[Year]Starbucks: Contemporary Developments in Business and Management[DOCUMENT SUBTITLE]STEPHEN OMOROGHOMWAN
Running Head: Business ReportContentsExecutive summary.....................................................................................................................................3Introduction.................................................................................................................................................5Task 1..........................................................................................................................................................6Primary external influences.....................................................................................................................6Importance of External influences to the Organization..........................................................................10Task 2: Demographic Factors....................................................................................................................12Influence of Demographic factors on Policies and Decision-making within Starbucks.........................13Critical evaluation of the effectiveness of the company’s response.......................................................15Areas of improvement in the responses.................................................................................................17Conclusion.................................................................................................................................................18References.................................................................................................................................................19Appendices................................................................................................................................................23Appendix 1: Company Profile...............................................................................................................232
Running Head: Business ReportExecutive summaryProblemsThe company is striving to become a global brand and for this it has tripled its revenues over the past 5 years. To increase the pace of the growth the country has not only targeted all sorts of markets in its homeland, but has also amended its taste to meet the needs of the customers outside the US. Different nations have a different Environmental laws and policies to which a foreign company adheres in order to deliver its services without any hindrance.The company’s success highly depends upon the type of Coffee beans it is supplied with and if an Environmental disaster hits a country in the coming future hen it may have a drastic impact onthe quality of the coffee beans being supplied to the outlets. The quality and production of Coffee may also be hampered by the Global warming issues prevailing in the world.Starbucks is currently leading the Coffee retail market by selling its products at the premium prices to increase their profitability. But the emerging competition in the Coffee industry is posing a great threat to the existence of the Starbucks in the current and potential markets. The economic recessions in a country are also accompanied by the low-priced coffee offerings at the fast-food stores. In order to remain in the top position, Starbucks has to ensure that it does not violate any laws and regulations of a country. This applies both for the home market as well as the foreign markets. Key findings3
Running Head: Business ReportThe demographic factors present in the markets that influences the working of a companyincludes sex, age, education, marital status, income level, religion, family size, geographic region, etc.Coffee plays a pivotal part of everyday life in the US and other foreign countries. According to a recent report, more than 60% of the US households use either whole or ground coffee beans at home. The customers are the major asset for a business and their perceptions keep on changing with time. The company needs to align its operations and strategies with these changing behaviors.Starbuck is known to serve its customers with premium-priced coffee products which could not be afforded by the people falling under medium to low-levels of income.The Lifestyle of people in European and Asian countries is changing with time. At present these changes include long working hours in offices and homes. This change has made coffee, the most desirable drink of such people.High caffeine content often increase pulse rates and may lead to myriads of heart-related issues, hence it is recommended by doctors to patients with high blood pressure and heartailments to avoid caffeine in daily uses.RecommendationsThe company could respond to the income levels factor by introducing some low-priced food products and beverages Starbucks could also work on its pricing strategy so that it could target all sorts of customers in myriads of markets. 4
Running Head: Business ReportTargeting different types of consumers with a single product will definitely give a great experience to the company’s employees to evaluate The company could seek alliance with the local marketers and experts who already have a great knowledge of their domestic markets. IntroductionManagement plays a pivotal role in the every organization or business as it clearly determinesthe short and the long-term goals for the business along with the variety of strategies that couldbe employed to achieve them in the given time frame. In the recent times, the researchers in thisfield are constantly reporting the presence of a number of interlinked variables that interacts tohighly influence the ways in which a firm delivers its services. The following report has been written undertaking the discussion over a leading AmericanCoffee Company and a Coffee house chain, Starbucks. In the first part, the report will closelyevaluate the Primary external factors that influence the working of the company. In the secondsegment, the report will unveil the myriads of demographic factors that are constantlyinfluencing the working methodologies, Policies and Decision-making process of this leadinggiant. In this part the responses from the company towards these influences are also criticallyevaluated along with the suggestion of areas of improvement [ CITATION NGe13 \l 1033 ]. 5
Running Head: Business ReportTask 1There are a number of factors that could not be voluntarily controlled by the company and at thesame time have the potential to highly influence the internal workings and strategic operations ofthe firm. The executives of the firm are required to analyze these factors and evaluate thestrategies that could be readily incorporated to manage these factors in the best possible manner.This is needed because the nature and impact of these factors are unpredictable and with timethese factors can either be beneficial or harmful. So, if evaluated in a proper way then thecompany could use these factors for yielding lucrative results.Primary external influencesThe Primary external influences often remain similar for most of the industries in the market;however, their level of influence may vary. The leading companies always keep a number ofcontingency plans to tackle the ill influence of these factors, but the way in which these plans areimprovised creates a difference. The crucially identified primary external factors for Starbucks are:1.Globalization: At present, Starbucks has over 15,012 stores in around 44countries across the world and this has allowed it to be a Globalization Icon. The company isstriving to become a global brand and for this it has tripled its revenues over the past 5 years.To increase the pace of the growth the country has not only targeted all sorts of markets in itshomeland, but has also amended its taste to meet the needs of the customers outside the US.Starbucks has tried to bring American- style coffee sales to international marketplacesregardless of the volatile political and economic situations of different countries [ CITATIONKBe08 \l 1033 ]. 6
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