CX770401 Contemporary Issues in Organisations

Running head: CONTEMPORARY ISSUES IN ORGANIZATIONS
Contemporary Issues in Organizations
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1CONTEMPORARY ISSUES IN ORGANIZATIONS
Table of Contents
Introduction......................................................................................................................................3
History of Organization..............................................................................................................3
Structure and People of Starbucks..............................................................................................3
Products and Services of Starbucks............................................................................................3
Main Consumer Segments and Competitors...............................................................................3
Vision and Goals of Starbucks....................................................................................................3
Chosen Disruptive Technologies or Business Processes.................................................................4
Justification the Ways in which Chosen Technology or Processes are Disruptive.........................5
The Disruptive Problem and Question........................................................................................5
Research on Disruptive Process and Technology.......................................................................6
SWOT Model.........................................................................................................................6
PEEST Analysis.....................................................................................................................6
Porter’s Five Forces...............................................................................................................7
Disruptive Process..................................................................................................................8
Disruptive Technology...........................................................................................................8
Application to an Element of Organization................................................................................9
Implications.................................................................................................................................9
Perspective Exploration..............................................................................................................9
Starbucks Response to Disruptive Technologies or Processes........................................................9
Response to Disruptive Technologies.........................................................................................9
Examples of Organizational Response to Disruption...............................................................10
Lessons Learned from Other Organizations Response to Starbucks........................................11
Implications and Perspectives...................................................................................................11

2CONTEMPORARY ISSUES IN ORGANIZATIONS
Disruptive Strategies and Innovative Recommendations..............................................................12
Disruptive Strategies.................................................................................................................12
Innovative Recommendations...................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

3CONTEMPORARY ISSUES IN ORGANIZATIONS
Introduction
History of Organization
Starbucks Company initiated its business operation in the year 1971 as a retailer and
roaster of whole bean and ground coffee, tea and spices in a single store within Seattle’s Pike
Place market.
Structure and People of Starbucks
Starbucks Company follows the matrix organizational structure that includes the
functional hierarchy, geographic divisions, product-based divisions and the teams. The company
has diverse group of employees that was recorded to be 277000 in the year 2017 that deliver
exceptional consumer experience (Saguy & Sirotinskaya, 2017).
Products and Services of Starbucks
The company offers exceptional range of products for its consumers to enjoy in store or
at home (Popkin & Hawkes, 2016). Such products include coffee, merchandise of coffee and tea
brewing equipments, freshly baked foods, tea and ready-to-drink coffee beverages.
Main Consumer Segments and Competitors
The target consumer segment for this company includes consumers belonging to 25 to 40
years of age belonging to high income group and another target consumer segment includes
consumers belonging to 18-24 years age of richer families (Schopfel, Roche & Hubert, 2015).
The major competitors of Starbucks are observed to include well-established companies like
Café Coffee Day, Dunkin Donuts, Barista and Mc Donald’s Mc Café those offer frequently
innovated products based on changing consumer preference trend (Walker, Decker &
McClements, 2015).
Vision and Goals of Starbucks
The vision of Starbucks Company is to nurture and inspire the human spirit focusing on
“one person, one cup and one neighborhood” at a time. The business goals set by this
organization includes positioning itself as a responsible company through maintaining a balance
between profitability and social conscience and to maintain a sustainable position through
offering exceptional and sustainably sourced coffee beans.