Importance of Organizational Culture in Starbucks

This report discusses the importance of organizational culture in Starbucks, highlighting its role in promoting ethical values, attracting customers, and enhancing employee performance. It also explores the impact of external factors on the company's strategy and growth, such as the SWOT and PESTLE analysis. Additionally, the report examines the influence of CSR on Starbucks' business and the different leadership styles that can be implemented. Overall, the report emphasizes the significance of organizational culture in Starbucks' success.

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Context of business

Table of Content
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
SWOT and PESTLE ANALYSIS....................................................................................................3
TASK 2.................................................................................................................................................4
Influnce of CSR on business at Starbucks.......................................................................................4
TASK 3.................................................................................................................................................5
Leadership styles..............................................................................................................................5
TASK 4.................................................................................................................................................6
Importance of organizational culture in Starbucks..........................................................................6
TASK 5.................................................................................................................................................7
Reflection writing............................................................................................................................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
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·INTRODUCTION
Recently, there are numerous changes in external environment of business such as Brexit and
Covid -19 and many business are under prepared to accept this changes. Leaders and management
plays important role in accepting trends or changes that are occurring in external environment so
that company can grow and sustain in industry for more years. Nowadays most of the young
generation are attracted to companies that incorporate ethical values or social responsibilities while
performing its task. This report is about Starbucks which was established in 1971 having the largest
coffee house across worldwide. It has included SWOT, Pestle, influence of CSR, leadership and
organizational culture on operation of business.
·TASK 1
·SWOT and PESTLE ANALYSIS
SWOT analysis
SWOT analysis is model that helps in identifying key areas in which company excel and
lacks so that better strategies can be formulated by manager to cope up with external threats and
make the best utilization of opportunities. Such as:
Strength: Company is one of the most popular and strongest brand in coffee-house business as it
deliver extreme qualitative, tasty and delicious coffee to customers (Starbucks Coffee Company
SWOT Analysis & Recommendations, 2019). Starbucks also have strong supply chain or global
networks that helps in delivering of products and services to people within limited time and cost.
Weakness: Products of Starbucks can be easily imitable by other companies as it does not include
any unique feature or elements. At the same time it has set high prices for its coffee that have
impacted on choice of customers to select coffee of Starbucks as compared to other competitors.
Opportunities: Starbucks have opportunities to diversified or expand its business operation in
developing market so that it can attract new customers to be part of firm. Use of innovate products
or method of deliver is another opportunities that can be used by Starbucks to cope up with
uncertain market condition.
Threats: Small medium and large scale enterprise are rising at rapid stage thus Starbucks is
suffering threat of increasing competition level and uncertain changes in global market (Golovach,
2016).

Pestle analysis
Political factor: Brexit is one of the policies of government of United Kingdom that have
negatively impacted on growth and operation of business in various sectors. It has resulted in
decrease in overall sales volume and profitability of firm due to increase in cost of import of raw
material (Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, 2017).
Economical factor: United kingdom is facing situation of recession, decrease in availability of
employment opportunities and low disposable income of people. Thus, customers instead of cutting
down their consumption of coffee are switching to company that offer coffee at lower price so it
has lead to reduction in sales volume of firm.
Social factor: Most of the younger generation due to increase in spread of diseases such as
coronavirus, obesity wants to have healthy, organic and tasty food or drink that can help in
maintaining better health (Akpoviroro and Owotutu, 2018).
Technology factor: There is huge advancement in technologies that have forced company to make
use of digital media or more use of internet to deliver best services to end customers. Therefore, it
has increase overall cost of company to invest in new technologies to market its products through
digital media.
Environment factor: Both government and customers are becoming more and more concerned
about preservation of natural resources so that no harm can be caused to environment. Thus, it has
been found that while procurement of raw material Starbucks have not taken proper steps to make
optimum utilization of resources (Pestle Analysis of Starbucks, 2019).
Legal factor: There are several rules and regulation made by government to regulates business
operation so Starbucks ensure that it abide to all legal laws while operating its functions.
·TASK 2
·Influnce of CSR on business at Starbucks
The popularity of CSR has influenced business within Starbucks highly as it has not only opened
up various fundamental working scope segments within new working scenarios, but also
significantly developed varied yielding parameters for bringing on diversity operations for society
benefits (Chan, Wei and Leung, 2020). CSR within Starbucks has come upon as one of the most
innovative working horizon to yearn focus on changing business demands within global industry
and how business performance can be further evolved forb demonstrating social responsibility
factors which is seen as one of the most important legal growth factor within companies. Starbucks

is one of the best brand further investing on CSR functions and business objectives for expansion in
its horizons and to yield focus onto consumer goodwill enhancement paradigms. CSR also operates
bringing on new environmental practices such as reducing carbon footprint emissions and to
recycle various products for generating goodwill goals within global competitive industry (Carlini,
Grace and Lo Iacono, 2019). Second pillar within CSR where Starbucks is evolving its pace is
ethical sourcing which dictates the way tea, cocoa are produced at farms and further proceeded
among consumers market share. The brand has focus on people and communities they are working
with where various incentives and benefits are given to people which enables to form positive
image of company. Company is addressing CSR goals by operating focus onto working functional
scenarios which benefits new opened up horizons to bring on services which create special place
among industry competitive domains. Starbucks holds high responsibility for all new services and
products among consumers served within stores and also potentially focuses onto bringing on
diverse expand place within new pertaining synergy for leveraging wider space among new
consumer goodwill targets (Sousa and Rocha, 2019).
·TASK 3
·Leadership styles
There are various leadership styles which can be analysed based on their working structures,
focus and implications among operational efficacy and to enhance new functional scope segments
for training employees at company standards. Following are various types of leadership styles
which can be compared as follows (Chan, Wei and Leung, 2020).
Autocratic leadership: This leadership theory focuses on goals to be achieved direct and control
of all activities with various subordinates which enhances working performance goals by analysing
aspects of new developed functional scenarios. This leadership style is rigid and do not posses any
changes for leaders to bring on where it may impact negatively on working scenarios within
subordinates and also lacks flexibility (McLeod, Vaughan and Winn, 2020).
Transformational leadership: This style of leadership focuses on identification of needed change
and creating work strengths among employees by forming vision for motivating employees, where
dynamic growth is progressed further. This theory is one of the most evolving leadership theory
onto which framework focuses onto developing space within new parameters of training
employees, to deliver growth objectives.
Transactional leadership: This theory is part of one of the style of leadership that focuses on
supervision, organization and performance metrics which further enables to deliver growth

fundamentally among keen parameters. The theory however is complex for business to work with
as compared to transformational leadership, as it enables to bring on new diverse changes as per
demand in situation (Huertas-Valdivia, Gallego-Burín and Lloréns-Montes, 2019).
Recommendation:
Starbucks being one of the best growing global brand shall use transformational theory for
bringing on new working segments of leadership among training of all employees as it enables
working on dynamic pace where networking demands are huge within competitive industry
domains. It could ben understood that there also comes in high innovation and creativity within
businesses through transformational theory which enables to yield focus onto new operations for
brand development and enlarged business space. Transformational leadership builds up space to
enable best working parameters such as stronger working synergy to gain its new demand growth
and brand to form new competitive place within industry. Starbucks employees will be able to gain
new developed space within new paradigms when leaders work with transformational leadership,
as it has evolved as one of the most objective demand for business to grow and also to bring wide
scale competency along with innovation (Lonati, 2020)
·TASK 4
·Importance of organizational culture in Starbucks
Organizational culture can be termed as shared values, belief, norms and system or
procedure that is followed by number of individual that are working in organization. Culture of
firm directly impact on nature and behaviour of individuals thus manager of Starbucks need to offer
healthy working environment to employees (Reddy, 2017). As safe, secure and friendly
organizational culture contribute in effective coordination and cooperation of employees to work
together as a team for achievement of common goals. Manager of Starbucks by working on
organizational culture can promote ethic, values and beliefs in firm thus helps in meeting
expectancy of both customers and employees. It also helps in retaining high skilled and talented
employees within enterprise thus qualitative services can be delivered to end users (The Importance
of Organizational Culture, 2019). Employees are also motivated enough to put their best so that
company can gained competitive advantages and attained its goals. Organization culture that clearly
define roles, responsibilities or activities that need to be performed by specific individuals helps in
reducing chance of conflict thus contribute in better coordination for achievements of company
goals. Another reason which state importance of culture is that it helps in attracting existing as well
as new customers as they preferred to be with firm that incorporate social values and belief.

Starbucks management by working on firm culture can help in building strong brand image of
enterprise in competitive market thus more number of customers want to be part of specific
organization (Venkataramani and Kothandaraman, 2020). Team member become more accountable
and responsible for their respective task thus it removes various challenges and helped team to
work together for common goals. Thus, culture helps in better communication, increase in overall
performance and productivity of employees for benefits of firm (Volkova and Chiker, 2020).
Friendly organizational culture motivates employees to easily adapt to changes or learn more new
things or find creative and innovative ideas that can be used by firm to gain competitive
advantages. Therefore, it can be stated that organization culture is most important as it helps in
delivering best services to customers, optimum utilization of resources and adaptation of external
changes within limited time frame for growth of firm (Chmura, 2016).
·TASK 5
·Reflection writing
The report writing experience within assignment enabled me to gain various fundamental
knowledge of working functional business scenarios within wide dynamic competitive global
industry. Theories appliance to practical framework of Starbucks within report enabled me to yearn
focus onto wider business scenarios where i gained knowledge on importance of CSR for leaders to
adopt in company performance networks, for developing innovation working structure and to
ideally bring diversity among working operations. While writing this report i gained practical
understanding of business theories' appliance, far-reaching on importance of CSR functional
parameters and to open up networking for new expansion services for growing within industry
goals. I experienced working functional ethics to be strengthened as while working on report
research broadened my thinking horizons practically, searching relative informations and data for
gaining new functional synergy within which Starbucks aims to work forward (McLeod,
Vaughan,and Wenn, 2020). I gained understanding of various leadership theories and how
management can evolve new working scenarios under new competitive goals, to keenly bring on
creative working standards and also on efficacy operations for strengthening stronger performance
parameters. The report writing also enabled me develop focus on changing focal points within
competitive industry goals onto where i learned new functional scenarios of varied leadership,
management skills which personify companies to grow fundamentally onto wider business
frameworks and explore new scope among competitive industry space (McLeod, Vaughan and
Winn, 2020). I also learned new metrics on stronger working performance goals within academic

performance by using relevant latest data for researching on various models and factors, and also
to yield focus onto working with significant working efficiency which has broadened my diverse
knowledge. This can be understood more in detail by analysing new scope operation goals by
examining various paradigms of business environment and to develop synergy of new viable
functioning within companies. Report also enabled me to broaden my interpersonal skills while
working on project where i potentially learned various new quests enhancing skills, which helped
me to strengthen my understanding on varied operational networking scope segments among
competitive industry (Slade, Burnham and Waters, 2019).
·CONCLUSION
It can be concluded from above report that Pestle and SWOT are powerful tool that helps
manager of Starbucks to easily identifying external factors that impact on strategy and growth of
business. Increased popularity of CSR activities have forced company to incorporate social
responsibilities and ethical values while operating its function in particular industry. Therefore,
Leaders of Starbucks by making use of different styles to manage diverse employees to work
effectively can helped in growth and expansion of business operation.

·REFERENCES
Book and journals
Akpoviroro, K. S. and Owotutu, S. O., 2018. Impact of external business environment on
organizational Performance. IJARIIE, 4(3). pp.498-506.
Carlini, J., Grace, D., France, C. and Lo Iacono, J., 2019. The corporate social responsibility (CSR)
employer brand process: integrative review and comprehensive model. Journal of
Marketing Management, 35(1-2), pp.182-205.
Carlini, J., Grace, D.,. and Lo Iacono, J., 2019. The corporate social responsibility (CSR) employer
brand process: integrative review and comprehensive model. Journal of Marketing
Management. 35(1-2), pp.182-205.
Chan, H. L., Wei, X. and Leung, W. H., 2020. Corporate social responsibility (CSR) in fashion
supply chains: A multi-methodological study. Transportation Research Part E: Logistics
and Transportation Review. 142. p.102063.
Chan, H.L., Wei, X., and Leung, W.H., 2020. Corporate social responsibility (CSR) in fashion
supply chains: A multi-methodological study. Transportation Research Part E:
Logistics and Transportation Review. 142. .102063.
Chmura, J., 2016. The impact of positive organisational culture values on information security
management in the company.
Golovach, K., 2016. ANALYSIS OF THE EXTERNAL AND INTERNAL ENVIRONMENT AS A
TOOL OF CRISIS MANAGEMENT. Modern Science-Moderni Veda, 3(2). pp.9-15.
Huertas-Valdivia, I., Gallego-Burín, A. R. and Lloréns-Montes, F. J., 2019. Effects of different
leadership styles on hospitality workers. Tourism management. 71. pp.402-420.
Lonati, S., 2020. What explains cultural differences in leadership styles? On the agricultural
origins of participative and directive leadership. The Leadership Quarterly. 31(2).
p.101305.
McLeod, G. A., Vaughan, B.,and Winn, E., 2020. Pre-professional reflective practice: Strategies,
perspectives and experiences. International Journal of Osteopathic Medicine. 35.
pp.50-56.
McLeod, G.A., Vaughan, B., and Winn, E., 2020. Pre-professional reflective practice: Strategies,
perspectives and experiences. International Journal of Osteopathic Medicine, 35,
pp.50-56.
Reddy, M., 2017. The effect of organisational culture on strategy execution (Doctoral dissertation,
University of Pretoria).
Slade, M.L., Burnham, T.J., and Waters, T., 2019. The Impact of Reflective Practice on Teacher
Candidates' Learning. International Journal for the Scholarship of Teaching and
Learning. 13(2). p.15.
Sousa, M. J. and Rocha, Á., 2019. Leadership styles and skills developed through game-based
learning. Journal of Business Research. 94. pp.360-366.
Venkataramani, S. and Kothandaraman, K., 2020. Driving Transformational Change through
Organisational Culture. NHRD Network Journal, p.2631454120918103.
Volkova, N. and Chiker, V., 2020. What demographics matter for organisational culture,
commitment and identification?. International Journal of Organizational Analysis.

Online
The Importance of Organizational Culture, 2019, [Online]. Available
through:<https://blogs.ntu.edu.sg/nbsgradstudies/2015/10/23/the-importance-of-
organizational-culture/>
Starbucks Coffee Company SWOT Analysis & Recommendations, 2019, [Online]. Available
through:<http://panmore.com/starbucks-coffee-swot-analysis>.
Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, 2017, [Online] Available
through:<http://panmore.com/starbucks-coffee-pestel-pestle-analysis-
recommendations>.
Pestle Analysis of Starbuck, 2019, [Online] Available
through:<https://www.thestrategywatch.com/pestle-analysis-starbucks/>.