Context of Business: Starbucks SWOT and PESTLE Analysis, Popularity of CSR, Different Styles of Leadership

This report discusses the context of business with a focus on Starbucks. It includes a SWOT and PESTLE analysis, the popularity of CSR, and different styles of leadership. The report also explores the significance of organizational culture and reflects on experiences.

Context of Business

Contents
INTRODUCTION....................................................................................................................1
MAIN BODY...........................................................................................................................1
1. SWOT and PESTLE................................................................................................................1
2. Popularity of CSR has influenced Starbucks...........................................................................4
3. Different Styles of leadership..................................................................................................5
4. Importance of organisational culture.......................................................................................7
5. Reflection.................................................................................................................................9
CONCLUSION........................................................................................................................9
REFERENCES.......................................................................................................................11

INTRODUCTION
Context of business encompasses knowledge of various factors which impact the enterprises
from several viewpoints. This includes for whom decisions are developed as well as what the
business is eventually wants to gain. Moreover, the business strategy is considered as the longer
term systematized approach to implement tactics for entity to attain their objectives. This also
represents their proficiencies, difference as well as better-quality principles (Belas, Kmecova and
Cepel, 2020). For effective understanding of about the topic context of business, Starbucks is
undertaken in this report. It is the American international coffee shops chain having headquarters
is in Seattle, Washington, U.S. The topics which are going to be discussed in this report are
PESTEL, SWOT analysis, CSR popularity, comparison and contrast various leadership style are
described. Apart from this, significance of firm’s culture as well as reflection upon experiences
are also discussed in this report.
MAIN BODY
1. SWOT and PESTLE
Overview of organisation
Starbucks is considered as an American global chain of coffee shops as well as roaster
stocks. Also, it is established in year 1971 and is approaching 50 year of their presence
Moreover, this is known as the largest second generation manifestation of coffee culture as the
world’s largest chain of coffee shops. At the beginning of Year, 2020, it is operating in above 70
countries and having 30,000 shops internationally. Respective entity provides food and
beverages, whole beans coffee, micro- floor clack coffee known as Caffeine, espresso latte, and
others. Also, some weak leaf green tea such as tea goods from Teavana, macchiato etc and
products such as potato chips; various sales (like salted caramel Latte’s annual fall release) are
innovative to each venue of stores.
SWOT analysis of Starbuck
STRENGTHS WEAKNESSES
Essential organisational planning: The
formulation of strategy is effective aspects of
Lack of USP: Starbuck do not haves any
particular USP which fails enterprise for
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business as well as Starbucks perform
effectiveness upon that section. As there are
changes into business environment so
respective entity has to perform number of
changes into their strategies and planning. So,
one of the vital strategies for them is to recycle
earnings back within production along with
fundamental focus upon development
(Braslauskas, 2020). Moreover, well-structured
performance is crucial for effective operation
of firm practices.
Effectual branding: Starbucks is one of
those brands that is easily recognisable on the
high streets in many parts of the world. Due to
Brexit and current Covid-19 pandemic
respective entity has to perform some changes
into their business. So, the brand recognition of
Starbuck in both cold as well as hot coffee
enables them to retain stronger client’s
recognition as well as even to constantly
develop this. Their value of brand is just
around $11.7 trillion. So, this particular
authority would assists entity into longer term
survival as well as also within business
introduction of new bakery items in this
particular situation also.
gaining product differentiation. Moreover,
respective firm products are faster
impersonated as well as it often turned out to
has vital limitations for sector at affordable
prices, while it will drives in minimisation of
profitability.
Penetrative pricing strategy: Starbucks
generally set higher prices for its products as
well as this bound targeted reach. In Brexit and
current Covid-19 pandemic situation also
respective entity has not perform any changes
into their pricing. As It states that specific
items may only be reasonable through some
persons. Without any kind of doubts, this
tactics enhance profit bit also, bound the
potential clients. Respective pricing strategy
provides the competitors of firm such as CCD
and other coffee shops are very much
profitable.
OPPORTUNITIES THREATS
Innovation of various items: Due to
Brexit and current Covid-19 pandemic
respective entity has to perform some changes
into their business as well as having effective
Competition: Within sector, Starbucks
come across intense rivalry from producers
who provide similar products at lower prices to
brand. Also, the Brexit and current Covid-19
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customer image, this is an effective chance for
Starbuck to introduce as well as formed new
items quickly under their brand name.
pandemic respective entity has to perform
some changes into their business. Therefore, it
shows a risk to sector as well as their
competent prosperity.
Socio-cultural intimidation: Firm
represents vital threats towards social protest
against restaurant chain as well as also
promoting independent coffee bars. The
uncertain changes due to Brexit and current
Covid-19 pandemic so, for dealing with this
and also overcome from it, they have to
identify effective solutions.
PESTEL Analysis:
The entity utilises PESTEL analysis for understanding the factors that impact the particular
business externally (Brinker and Satchwell, 2020). The markets for goods are dynamic as well as
there is requirement for administration to know about the factors that impacts enterprises as well
as assists them to determine the particular marketplace.
Political factors: This factors link to whole aspects that shows the government involvement
level within business. Global exchange policy, market policy and other for it, in respect of
Starbucks geographical considerations and the Brexit and current Covid-19 pandemic respective
entity has to perform some changes into their business which impact firms imports of raw
material, monitoring standards and norms, regulations regulating sector within U.S.
Economic factors: The factors like exchange and interest rates, inflation rates and many
more are vital aspects which shows that economical factors influences enterprises. The
international downfall into case of Starbuck is within the key economical aspects and Brexit and
current Covid-19 pandemic have affected the group in greater manner.
Social factors: This factor includes climate, trends, lifestyle and others associated to client
expectations. Also, Due to Brexit and current Covid-19 pandemic respective entity has to
perform some changes into their business practices. They key problem which affect Starbucks
enterprises is that they are not able to accommodate consumers along with mid or lower wages.
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Technological factor: It includes ranges of advance technology as well as the manner
particular sector gets influenced. Its alliances with Mobile growing firm to add on application
based discounted tactics in relation with Starbucks is great steps to meet the technological
enhance trends. This impact positively into Brexit and current Covid-19 pandemic situation.
Legal factors: It involves the firm’s norms, regulations (Dinh, Karmakar and Kamruzzaman,
2020). Legal considerations allow Starbucks to comply trade legislation within their policy
regarding hospital entity licensing and others. Also, Due to Brexit and current Covid-19
pandemic respective entity has to perform some changes into their business as they have to
comply new regulation like taxation policies etc. which imposed at present by respective country
government.
Environmental factors: There are various factors that imposed basically upon environment
through firm like greenhouse dioxide, raw material manufacturing and many more. Respective
factors impacting enterprises are ecological regulation in respect of particular industry that is
destroying trees for the consumptions of coffee drives towards global warming, deforestation and
soil erosion.
2. Popularity of CSR has influenced Starbucks
The CSR basically associates with mechanism of facilitating organisation, their owners and
society accountability. Employers generally, think about various type of impact which has upon
society and their ownership greatly with assistance of firm’s societal accountability (Gerke,
Woratschek and Dickson, 2020). The key statements which states value of the CSR are discussed
below:
Developed goodwill: An entity will develop a affirmative image into the customer minds
basically with assistance of corporate social responsibility’s enforcement but it may allows them
to influence business firm.
Profitability for society: Firms do not gain profitability by their own performance but also
any charity services and be supportive to societal structure.
Economical benefits: Performing smaller changes within branding, owing to environmental
development concepts will consider to be very much cost effectual strategy in order to coordinate
with similar period as CSR is valued.
Some of the objective of Starbuck are:
 They have to train 200.000 coffee farmers by the year 2020.
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 Doubled their recycle material into their coffee cups by 2020 and other
But due to Brexit and current Covid-19 pandemic respective entity has to perform some changes
into their business and CSR. So, it perform activities such as
Corporate social innovation: as it encompasses various ways that business may have an
affirmative affects. Also, it integrates four pillars such as philanthropy, economic, legal and
ethical into coherent strategy which facilitates optimisrtic affects upon society and business as
well because due to this they render direct donation, can bale to several resources towards
societal benefits and many more.
Some other CSR activities are also there which is effective for firm such as:
CSR activities of Starbucks
Ethical considerations: For establishing an impactful partnership with manufacturer, the
enterprises maintain sustainable raw material buying so that they can manufacture standard
quality produces (Kahiya, 2020). Moreover, not only this particular activity enable Starbucks to
contributes towards sustainable development but instead of market its products.
Contribution to emission control: The Starbucks chain of coffee glasses are hugely
renewable as well as also biodegradable which assists firm to minimise its affects upon
atmosphere through green consumption as well as water reutilisation.
Volunteer task: The respective entity have scheduled a scheme of supports in which it may
has few time of voluntary into desires which means that any effective developments within
culture and average citizens experiences will be brought by.
Waste management: Starbucks is contributing towards society through facilitating them
products into reusable items. They utilise appropriate waste management in which it do not
consider goods that are not efficient for surroundings. It utilised recycled items as well as the
products utilised through them are of standard quality. Furthermore, Starbucks have a
management into various countries as well as this is its business strategy in which it utilised
products. Also, the society is advantageous for them as well as they has assisted them in
enhancing profitability.
3. Different Styles of leadership
Leadership is considered as an art through which it can able to encourage group of
individuals to perform towards attaining a common objectives within entity. Furthermore, the
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style of leadership are utilised in firm to facilitate guidance to staff, for executing tactics as well
as plans for encouraging the organisational staff members (Krajewski, 2020). So, these styles are
categorised in various types some of them are being discussed below:
• Participative leadership: The key essence of respective kind of accountability is
egalitarian. This is primarily a form of participatory leadership where employees are provided
the rights to involve into decision making process. Only for particular sections which have a
friendly type of relations with whole employees and among administrative & staff would this
will be acceptable form. Moreover, the contact is attained through two manners, though at
similar time providing consideration to perception as well as opinions of followers.
• Transactional leadership: It is basically applied to management, cantered upon penalty as
well as bonus aspects. These dealing incurs here among their supporters and chief. This
particular plan would perform into a position in which involved staff have just monetary
rewards. Moreover, information is spread based upon needs so works are performed as well as
practices is pressured all over respective leadership style. Interaction within this kind is of
smaller advantages.
• Delegative leadership: This is actually considered as management style which focused
upon obtaining potential for the members of group. These were attained through giving full
authority to staff or members upon group (Leminen and et. al., 2020). Within event, the people in
team are effectively trained as well as willing to manage overall practices by its own, this would
be efficient technique. Also, contact is performed in two ways so this is allowed to level of
forces as well as responsibility related to administrative along with such limits also as
organisational extent.
• Authoritarian leadership: Respective style of leadership applied to management in which
the management control is facilitated exclusively into the position of leadership as well as
thereafter it may enforce objectives and decide the performance of team. This is effective for
sections in which particular guidance are required through sub direct as well as also into event of
time restraints. There is only down touch and not any feedback is undertaken for operational
directors.
• Transformational leadership: A leaders encourage staff based upon this particular aspect
through being its style icon as well as encouraging them along with the authority of decision
making. Respective style of leadership is effective suited into a position while there is stronger
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corporate intent but in which staff are motivated through motivations that is gained from
leadership. Respective style is providing some of tension upon partnerships. Moreover, the
contact moves into various directions since this leadership style is depends upon direct
interactions as well as practices is performed in appropriate way.
So, the Transformational leadership is effective for Starbucks as encourage staff based upon
this particular aspect through being its style icon as well as encouraging them along with the
authority of decision making into Brexit and current Covid-19 pandemic situation also.
Therefore, after analysing various kind of leadership style, Starbucks leadership is suggested
to execute disruptive management style for aforementioned intent:
The turnover of employees is correspondeds to the staff proportion who continuously
leaving the firm. as entity is a kind of business where whole employees are in direct interaction
with potential customers, this is also essential for them to maintain that seasoned workers who
area interested to build stronger consumer relations, so this style of management suits the
business effectively. Along with this, Transformational leadership is effective for Starbucks as
encourage staff based upon this particular aspect through being its style icon as well as
encouraging them along with the authority of decision making into Brexit and current Covid-19
pandemic situation also. It shows the mission of corporate which is considered as an integral part
of each firm. Moreover, it may only accomplish something into market area for longer durations
as well as in case significance of partnership maintain stronger partnership within their targeted
clients and the key source of leadership style.
4. Importance of organisational culture
Organisational culture is stated as the desires, activities, values and expectation which
facilitates data regarding action of whole group as well as department based upon that facilitates
solution to issues and direct them (Mahmood and et. al., 2020). An effective cultural norms and
execution drives towards development into each member of team performance therefore, it
assists entity to accomplish their objectives and targets. Moreover, culture is also considered as
those aspects of firm which represent consistent as well as relevant attitudes that are to be
followed within work premises. The organisational culture is applied to whole variables like
desires, exchange of knowledge, attitudes, principles and how its associates to maintaining the
atmosphere of organisations. The key importance of organisational is it facilitates guidance to
whole staff through laying out the official reporting relations which govern firm’s workflow.
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Moreover, it also shows the driving principles of firm which guide staff. Firm may be common
practices, traditions, beliefs as well as written norms which may be developed and transmitted
from one step to another for particular time period. Also, while implementing changes and run
business smoothly after intense environmental changes in business due to Brexit and Covid-19
impact firm have to continue with this:
Guidance concept: An entity’s management set coded guidelines for whole members of
firm so that who are performing within it get a balance sense and a course according to which
they has work as well as perform in effective way (Padhan and Prabheesh, 2020). It is considered
as the method which enables Starbucks to maintain regularity as well as attain firm’s
productivity.
Shared framework: the environment of organisation provides a common framework for
particular employees of firm, by this means rendering all with common care as well as not any
consumer feel ignored. It strengthens among them a feeling of attainment. Moreover, it
eventually outcomes into the improved interest as well as productivity of staff.
Partnership establishes: The system of contact is ascertain based upon the present
community of firm. A protected as well as friendly environment contributes towards a productive
kind of contact and so to appropriate team work. Moreover, the well developed work of team
would contribute towards developed efficiency of team that is vital aspects of entity’s
performance.
Organisational structure at Starbuck coffee house:
The organisational culture of a well known as well as reputed coffee shop includes three
aspects which are identification, involvement and diversity. The cultural aspects are effective as
well as specific to essence of coffee house chain firm (Rissanen and et. al., 2020). Also, culture
boost frameworks of entity and core concepts of Starbucks coffee house whole firm style are
described below:
Friendship oriented: The Starbucks ethos stresses the protection of satisfying firm tactics.
For developing a way to welcome environment at shop, it enthusiastically bond with each other
customers are drawn.
Staff initially: It is applied to servant strategic plan, it would be to consider, this is stated
through the perception that staff viewpoint are utilised into decision making procedures. It is also
attained for promoting development among all subordinates. Moreover, it envisions staff services
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as an order to maximise productivity of employees as well a customer’s loyalty. The entity
agrees the staff be worthy of to be observed after and they are the individuals who are vital for
consumers.
Effective communication: The organisational culture is enhanced the communication.
Moreover, partnership is monitored as a vital aspect within society, as they feel this is needed to
be successfully implements orders.
Concentrate upon learning and development: The effective work circumstances with
assistance o coordination as well as support of team leaders and staff has provide learning and
development atmosphere into employees. With aids of effective training and orientation , the top
authorities delegates roles as well as accountabilities to staff.
5. Reflection
Through the above analysis, I learned various aspects of entity in respect to strategic
planning, few norms, history and style of leadership. Furthermore, while performing evaluation
for respective report, I also get to know that this is essential to determine several strengths,
weakness, opportunities and threats in order to prepare for possible activities. During planning,
an overview of external environmental factors is vital for devising a relevant as well as effective
tactics. I had also recognised that following CSR activities is crucial for developing stronger
business credibility. Moreover, I also get to know that as a manger or owner how important to
obey the appropriate leadership style, while this is determined that how staff will develop within
work area. Every style of management has benefits as well as limitations so this is essential to
perform an effective analysis and thereafter opt an appropriate style based on firm (Teixeira and
et. al., 2020). Furthermore, the style of transformative leadership is effective in line with
Starbuck design. At least, I have also leaders that organisational culture is significant either it is
inappropriate culture which may drives towards staff failure.
CONCLUSION
As per the above report, it has been concluded that various aspects utilised through business
assists in expanding their operations as well as develop it successful. While PESTEL analysis
allows them to determine the causes which affect the firms externally. Also, business required to
undertake some aspects which impact them for expanding practices. The culture of organisation
develops staff to know firm’s tactics as well as target for performing this. Moreover, the
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effective way for business to create it distinguish from their competitors is to opt the appropriate
leadership types. There have s been various models of leadership as well as the firms may adapt
those model which will be helpful in its success. In addition to this, the action of corporate social
responsibility support individuals who are forming its workplace successful. Apart from this,
entity should aids employees as well as obtain amount with them though it gain profitability with
entities. Also, they have to identify the ways to help its public.
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