Importance of Organisational Culture in Starbucks

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT and PESTLE Analysis.....................................................................................................3
Popularity of CSR and How Starbucks is Addressing the Goals of their CSR initiative............6
Different Leadership Styles.........................................................................................................7
Importance of Organisational Culture.........................................................................................8
Reflection.....................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There are present numerous forces in the micro and macro environment of a business
organisation that can come to affect its business operations and productivity within the
operational industries. For a business organisation to operate successfully in the consumer
market, it needs to thoroughly analyse and evaluate all such factors and forces in its macro and
micro environment so that the business organisation can be prepared (Gürel and Tat, 2017). This
report assesses the operational environment of Starbucks, which is the world’s largest chain of
coffeehouses. Starbucks was founded in 1971, and has currently made the base headquarters of
its operations in Washington USA. Starbucks has been able to grow and expand their business
operations to various different markets and countries around the world, with the chain of
coffeehouses currently servicing customers in over 30,000 distinct locations that span 70
different countries. Starbucks specialises in selling to its customers coffee and tea beverages,
smoothies, sandwiches, baked goods etc.
MAIN BODY
SWOT and PESTLE Analysis
SWOT analysis is a strategical framework that can be used to analyse the micro
environment of Starbucks in order to identify the business organisation’s internal weaknesses
and strengths in addition to identifying the external threats and opportunities that are available to
the business organisation. The SWOT analysis for Starbucks is as follows:
Strengths:
 Brand: One of the biggest strengths of Starbucks relates to their immensely high brand
awareness, reputation and value metrics in the coffee shop industry of UK. This allows
for Starbucks to possess a competitive advantage against their competitors and makes it
easier for the business to acquire new customers. Supplier Relations: As Starbucks has been operating within the coffee shop industry for
such a prolonged period of time, it has created and maintained healthy and productive

relationships with numerous suppliers, guaranteeing that the business is able to procure
required raw materials through their productive supply chain operations.
Weaknesses:
 Imitability: The goods and products that are provided by Starbucks within the coffee
shop industry to their customers are highly imitable, substitutable by the goods and
products offered by the business’s competitors. High Prices: The pricing strategy adopted by Starbucks results in the end costs and
prices of their manufactured products to be quite high when compared to the average
prices of similar products in the coffee shop industry (Group and et.al., 2018). This
reduces the overall customer base that Starbucks as service as many customers simply
cannot afford to engage with Starbucks.
Opportunities:
 Expansion: Though Starbucks has already expanded its operations to various countries, it
can still grow and expand its business operations to developing countries in order to
service an even greater customer base that this new market segment would provide to the
business organisation. Partnership or Acquisition: Being such a large sized business organisation, Starbucks
can choose to enter into a partnership with another major business or choose to acquire
the operations of one of their competitors, providing Starbucks with the opportunity to
effectively increase its financial and operational productivity.
Threats:
 Pandemic: The current global pandemic due to the spread of Coronavirus (COVID-19),
has been a major threat to the operations and functions of Starbucks, as many of its
establishments have been forced to close down in an attempt to curb the spread of the
deadly virus. Increased Prices of Raw Materials: Though Starbucks has good relations with their
suppliers, an increase in the prices charged by the suppliers of coffee industry for the raw