Importance of Organizational Culture in Business

CONTEXT OF BUSINESS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. SWOT and PESTLE analysis..................................................................................................3
2. CSR influenced the business...................................................................................................5
3. Leadership styles.....................................................................................................................6
4. Importance of organizational culture.......................................................................................8
5. Reflection.................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In business there has to be analyses of internal and external factors of the organization
does make a lot of difference in the working of the business which needs to be maintained in the
organization so that the company can have higher reputation. Starbucks was established in 1971
and is having its headquarters in Washington, United States. The company is having 28,218
locations being from public coffee industry and is serving worldwide so that the company can
have higher profit margins. The net income of the company US$4.51 billion as of 2018 and
products which Starbucks is offering are baked goods, tea, smoothes, sandwiches and coffee
beverages. In the report there is a discussion on how organizations must analyse the functioning
and styles which the organization must use so that there is going to be better operations and
performance. Report would also discuss the culture and CSR of the business will have to be
analysed and the company must have good functioning so that they can compete in the market
effectively.
MAIN BODY
1. SWOT and PESTLE analysis
Starbucks will have to analyse their external and internal factors so that they can gain
competitive advantage for a better functioning. To make the company have better decisions and
planning for the future there has to be good understanding and functioning which is going to be
present for the best. The further report consists of the internal and external analyses of Starbucks
in detail.
SWOT
 Strength
The company has gained a brand image for themselves by providing the customers with
premium quality of services and products in the organization (Hutchins and et.al., 2019). The

company is having global presence and the brand image of the company is very strong which is
why the company is being able to expand themselves further.
 Weaknesses
The company is not spending much on marketing of the organization and is dependent on
word of mouth method which is getting in limited customers. The pricing of the products and
services are also priced premium which is focused on the high class society and the company
will not be able to grow further in the market with this method.
 Opportunities
The organization can use digital marketing so that the organization will be able to engage
with the customers and make the company have higher connections globally. The Asian market
is huge which the company can take advantage of so that Starbucks will be able to get
competitive advantage and sales.
 Threat
There is a growth in the competition, of beverage industry which can take away the
shares of the company in the market. There is a lot of pressure which the company is going under
and making the efficiency also reduce and so are the customers trending changes are not being
able to be followed in the organization (Tuan and et.al., 2019).
PESTLE
 Political Factors
The company is having more than 30,000 outlets globally by following all the laws and
regulations of different countries so that the portfolio of the company is going to remain strong.
The company is trying to expand themselves in developing countries like India which are having
free trade policies and that can be a great advantage for the organization.
 Economic Factors
The wages of the labour working in the company makes a lot of difference in the economic
factor of the organization. Starbucks is focusing on the premium customers which are adding