Context of Business

CONTEXT OF BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
SWOT and PESTEL Analysis.....................................................................................................3
CSR Goals...................................................................................................................................6
Comparison of different styles of Leadership.............................................................................6
Importance of Culture for Starbucks’ Processes.......................................................................10
Reflection on the research.........................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is comprising with various internal and external factors influence
the business operations of company. This report is based on the case study of Starbucks. The
organisation was founded in the year 1971 by the founders Jerry Baldwin, Zev Siegl and Gordon
Bowker. Headquarter of the company is located in Washington. Company is currently operating
its business operations in approximately 28218 business locations across the globe. This report
will emphasis over different aspects of business related to Starbucks Company. Henceforth,
report would emphasis on internal and external factor that put an impact over the business
operations of company. Impact of CSR would also assess in this report and how it influences the
business functions of company. Furthermore, this report would also talk about the leadership
styles followed in Starbucks Company. Recommendations will also be given in regards to the
suitable development in the leadership of company. How influence the organisation culture is
would also assess in this report. Reflection will also provide about the entire experience of
writing this report.
TASKS
SWOT and PESTEL Analysis
Business environment comprises with various internal and external factors that put an
impact over the business operations of Starbucks Company. To assess the external business
environment factors PESTEL Analysis is a tool used to assess all such factors. Internal analysis
of company is done with the support of SWOT Analysis.
PESTEL Analysis
PESTEL Analysis is a diversified tool involves different external factors like political,
economic, social, technological, environment and legal factors. All these factors involve all
different aspects related to external business environment.
Political factor: Political factor comprises with all the policies government in United Kingdom
has formed to grow and support the corporate sector. Policies like licensing policies, taxation
rules and various other policies of government. Corporate sector play a crucial role in supporting
the economic growth of the country (Lašáková, Remišová and Kirchmayer, 2017). The
involvement of corporate sector in the economic growth has allowed government to make lenient
policies and structure so that proper growth opportunities for the corporate sector can be created
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in UK. Government also give emphasis over foreign direct investment so that more companies
can come across to channelize the business functions. Starbucks has initiated its business almost
50 years back and today company become one of the leading organisations in its own sector.
Effective government policies are probably one of the prime reasons behind the massive success
of company. In recent time many issues like COVID 19 Pandemic, BREXIT and various other
political issues have aroused which restricted the growth potential of company.
Economic Factor: Economic factor involve all the policies of government in United Kingdom
related to the economic growth of country. Policies like taxation policy of government, tactics
related to the foreign direct investment in country, currency exchange rate, per capita income of
people in United Kingdom and various other factors are a part of economic factor of business
environment. All the economic factor directly influences the purchase decision making of
customers. Inflation part of economy is also involved in economic factor which directly restricts
the buying power of customers of Starbucks Company. Recent issues like COVID 19, BREXIT
and many other has reduced the economic growth of country at some level (Barac and et.al.,
2016). COVID 19 Pandemic has put a huge threat over growth of business houses in United
Kingdom.
Social Factor: Social factor involve aspects like culture, traditional values, religious values of
target customers of Starbucks in United Kingdom. Fashion ad trend is also a part of the social
factor involve in external business environment (Amponsah, 2018). All social factors involve in
the purchase decision making of customers of Starbucks Company. Company channelizes
various promotional campaign involve different social aspects so that buying decision of
customers can be attracted in favour of the company.
Technological Factor: Technological factor involve all kinds of technological development and
advancement in United Kingdom. Government in UK has been very supportive and active
towards the technological advancement which has resulted today that companies get all kinds of
technological solutions like software like customer relationship management, analytical
software’s, accounting software’s like Tally and many other types of software that involve in
various business operations of Starbucks Company (Prajogo and Oke, 2016). Technological
development allows company to expand the business growth and achieve better operational
proficiencies.
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