Starbucks Assessment

This report provides an assessment of Starbucks, including SWOT and PESTEL analysis, the influence of CSR on the business, different leadership styles, and the importance of organizational culture.

Starbucks Assessment

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................3
Task.............................................................................................................................................................3
SWOT and PESTEL Analysis.................................................................................................................3
CSR influenced the business....................................................................................................................6
Style of leadership...................................................................................................................................6
Importance of organisation culture..........................................................................................................8
Reflection................................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Business environment is defined as a sum of different external and internal factors
influences the business operations of company. This report is based on the case study of
Starbucks Company. The organisat6ion initiated its business operations in the year 1971. Today
the Starbuck has become one of the largest coffee houses at a global level. The company has
been engaged in conducting business operations at a global level. This report will emphasis over
different aspects related to the Starbucks Company. Henceforth, report will emphasis on SWOT
and PESTEL Analysis in respect to the company. How effectively the organisation in
entertaining its CSR operations would also address in this report. Different style of leadership
would also discuss in this report and mark recommendations for the company in respect to use of
a certain leadership style in organisation.
Task
SWOT and PESTEL Analysis
PESTEL Analysis and SWOT Analysis is a suitable analytical tools used to assess all
such factors influences the business operations.
PESTEL Analysis
In order to understand the impacts different external factors, involve in business
environment create this analytical tool is used. This involves factors like political, economic,
social, technological, environment and legal factors part of the external business environment.
Political Factor: Political Factor involves all the policies and strategies government has formed
to support the corporate sector. Starbuck Company has been engaged in business operations at a
global level so decision making of governments at all such business locations directly affects the
business operations of company. In recent time global crisis like COVID 19 has been faced by
the world (Gaspar and et.al., 2016). Due to COVID 19 pandamic and BREXIT government

needs to change its policies to sustain companies. Government has provided benefits like easy
licensing and other advantages like tax benefits due to these issues just to sustain the companies.
Economic Factor: Economic factor is another external business environment factor that
influences the business operations of company. This involves per capita income of people,
growth rate of gross domestic product, currency exchange value and many other factors. Prices
of company’s products are directly affected with the economic condition of country. In recent
time due to COVID 19 pandemic many people across the globe became jobless and also suffered
from lesser salary payments even in big companies. All the pandemic has aggressively affected
the buying capacity of customers of Starbucks Company across the globe. Inflation in economy
is another major economical factor that also increases the prices of company.
Social Factor: Social factor involve all different social aspects like culture, tradition, religious
values, trends, fashion and many other social factors that directly create an impact over the
buying decision of customers (Kumar and Pradhan, 2016 COVID 19 and BREXIT issues have
affected over social factors. Due to these challenges people have changed the decision making of
buying ony the needed items like food that is essantials. These have impacted over social factors
like people started stoped shooping luxury products like clothing line that has reduced the sales
of company.
Technological Factor: Technological factor comprises with all the technological advancement
company has been associated with in its business operations. Technological developments play a
huge role in company’s growth potentials. Starbucks Company also utilises technology in
conducting all its business activities like sales, marketing, logistics and all other functional
activities of company. COVID 19 and BREXIT have impacted over technological factor in such
manner that companies stopped investing in its technological advancement as they business
growth was totally stopped in these pandemics.
Environment Factor: Environmental factor is a recent development of business environment.
This involves social mind set like consuming eco-friendly products and many other factors.
Environment protection awareness has been spreader all across the globe (Camillus, 2016).
Company also involve in various social responsibilities as a part of corporate social

responsibility operation to take competitive advantages under environment factor. This has
allowed Starbucks Company to spread its brand value all across the globe.
Legal Factor: Legal factor involve all different laws and legal regulations company requires
meeting in its business operations. This involves various laws like data protection, equality and
many other legal regulations applicable over company. Post COVID and BREXIT government
has made the legal structure more easy like easy licensing to sustain companies in UK.
The above mentioned external business environment factor put a direct impact over the
business operations of Starbucks Company.
SWOT Analysis
SWOT Analysis is an internal analysis factor that project about all different strengths,
weaknesses, opportunities and threats of company.
Strength of Starbuck Company
 High brand value is a big strength for company.
 Mainstream presence of company provide huge strength to company’s growth
posibilities.
 Availability of resources allow company to channelizes all its operations efficienctly.
 Skilled human resources is a big strength of company.
 Product diversity allows company to attract more customers in market.
Weakness of Starbuck Company
 Spread of COVID 19 virus becomes weaknesss as it reduced the buying poqwer of
customers.
 Threat of people in aspect to hygiene.
 Less innovation is also a weakness of company.
Opportunity of Starbuck Company
 Product development opportunity.
 Business expansion opportunity.

 Low cost product deliver.
 Digital marketing.
 Free shipping facility of all its products.
Threat of Starbuck Company
 Competition in market is a big threat for company.
 COVID 19 Pandemic is a huge threat for company.
CSR influenced the business
Corporate social responsibility is also denoted as CSR. This is the responsibility of
company to conduct social responsibility operations as a part of corporate social responsibility.
The concept of CSR is based on the fact that in order to conduct business operations organization
takes all different resources it requires from the nature and society. Company has involved in
various CSR activities like plantation, water cleaning, smart raod projects, free education to
chidrens and many other (Ruël and Wolters, 2016). Starbucks Company has also engaged in
operations social responsibility operations like plantation, clean water and many other corporate
social responsibility operations. Company has also included the general people in its CSR
activities which have allowed company to improve the brand value of company in market. The
company has undertaken under corporate social responsibility has guided company towards
achieving high growth potentials in market. It directly improves the brand value and customer
loyalty. Customers trust is an important factor that enhances the growth of company in market.
All the CSR operations have guided company towards achieving high profit making
opportunities across the globe. The CSR operations of company have allowed the organisation to
create strong brand image across the globe. Today company is becoming one of the big brad in
its associated sector. In recent time in COVID 19 pandemic also company has contributed in the
society by feeding all the needy people across the globe. All the activities of company part of
corporate social responsibility have allowed company to enhances its profit making opportunity
and also achieve all different objectives of business of company.

Style of leadership
Leadership is defined as guiding employees in company towards achieving the overall
objectives of organisation in order to conduct business operations. Leadership styles are
projected in the following manners.
Situational leadership style Situational leadership style is one of the key
leadership styles. This leadership theory guides
to take the best decision on the basis of the
situational analysis in respect to the
organisation. It becomes essential to take the
best decision based on the situational analysis
model (Hansen and Pihl-Thingvad, 2019).
Situational analysis plays a huge role in this
leadership approach. This leadership style
guides company in taking the best decision in
short run. Maximum advantages of this
leadership style is only restricted towards the
short term goals of company.
System leadership style System leadership is all about establishing a
proper system in organisation. In case of big
companies who contain business operations at
multiple locations across the globe this
leadership style is a prominent approach of
leadership for company (Adnan and
Valliappan, 2019). System leadershuiip
suggest company in establishing a proper
system based on the needs and requirements of
company.

Contingency leadership style Contingency leadership style is another crucial
leadership style available for leaders and
management in company. Contingency is a
serious situations company face. Many times
company needed to face contingency situations
like economic crisis, controversy, COVID 19
pandemics and many other contingency
situations. In all the contingent situations and
crisis this leadershiop style support copany in
taking the bets possible decisions in favour of
the organisation (Yasir and et.al., 2016).
Starbuck Company must follow the system leadership and
contingency leadership styles in running its business operations. Contingency leadership style
would guide company in the right direction in the current COVID 19 crisis.
Importance of organisation culture
Organisation culture is an important factor part of the company. Following are the point’s
project about the importance associated to organisation culture in respect to the Starbuck
Company. Culture model support different factors like values, beliefs, assumptions in such a
manner that both employees and management can satisfy over such culture of company. The
culture model support the proper atmosphere where employees can showcase the best potential
they have as a part of the operational duties in company. Culture model also support giving
freedom to employees in respecting to performing individual roles in company.
Employee growth and development: Positive culture of company directly influences the
growth and development of employees in positive manner. Positive culture of Starbuck
Company has allowed all its employees in company towards expanding the growth potentials of
organisation (Gençer and Samur, 2016). It has allowed the organisation to serve the best level of
employee development and growth opportunities in the best of the capacity of company. Various

training sessions also conducted in company so that such growth opportunities can be created in
company.
The above mentioned points are among the key impacts organisation culture crate over
company’s presence in market. How effective and profitably company perform is totally depends
upon the organisation culture of company.
Reflection
Well, I am really happy to share my views and learning about project which I have
experienced. Initially I studied case study that was based on Starbucks then I read it carefully and
found out issues through which I could apply specific theoretical models and theories. I used
pestle analysis priorly for the Starbucks because it was strategic planning tool which used to
analyse external environment of the business (Gürel and Tat, 2017). However, I used this
framework in order to analyse UK’s retail sector because it majorly operates in this sector. With
the pestle analysis factors I analysed that Brexit has impacted all retail companies in UK by
leading change in political and trade policies. Starbucks also has impacted negatively such as it
has to reduce retail price of its products like coffee. But there were various factors i.e.
demographical changes, legal factors etc. which have benefited company to run its business
promptly. Swot analysis model also has been implemented in Starbucks. The reason behind was
that it supports to analyse internal environment of business by determining strengths,
weaknesses, threats and opportunities of business. This model also benefitted Starbucks to
identify its resource and external opportunity which could influence business capabilities, growth
and performance in the retail sector. On the other hand, this model helped to identify different
weaknesses and threats of the Starbuck which could directly impact on its decision-making
process and operation but these risks and weaknesses could be overcame by practising effective
actions. Thus, both Pestle and Swot analysis models helped me to understand that to gain highly
competitive advantage in the business market requires to have knowledge about strength and
threats factors then any company could get high profitability in the business market (Vallati and
Grassi, 2019). Then I read about Corporate Social Responsibility (CSR) which is known as
busines social responsibility. It is a business ethic approach that leads understanding in
individuals about business laws, principles and morals which supports a business to stay long run
in business as well avoids unethical practices through which company could get brutal results in

the business such as negative publicity, company exit etc. Priorly I did not have proper
knowledge about CSR but now I could say that I have vast knowledge about CSR that could use
to resolve issues of business. I generated goals of CSR as per the company’s needs so that it
could follow right tract for achieving profitability in business. Later on, I read about different
leadership styles that have practised by management of Starbucks to coordinate its whole staff at
common goals so that productivity can be received by company within timeframe. I am really
glad to share that now I have extensive knowledge about different leadership styles and
characteristics due to Starbucks. However, in assignment asked for suitable leadership as
recommendation so that company can grow in prompt manner. Overall, I learned many things
from this project like to implement theoretical model, leadership etc. and this knowledge and
experience would support me in future if I get similar project to perform again.
CONCLUSION
This report has summarised about the PESTEL and SWOT Analysis tool. PESTEL
Analysis sum with all different external factors like political, economiceconomicaleconomic,
social, technological, environment and legal factors that put a direct impact over business
operations of company. SWOT Analysis project about various strengths like high brand value of
company, diversified product portfolio of company and many others. Weaknesses denote lacking
in innovation. Opportunity section has projected that company has a massive opportunity in
developing products and expanding business scale and many other. CSR operations undertaken
by company has given huge opportunity to company in form of earning trust of potentials
customers, enhancing brand value of company and many other. Company must focus on system
leadership and contingency leadership in order to enhance the growth of company in market.
Culture of company put the following impacts like expanding growth of company, customer
satisfaction, employee sustainability and growth and many other impacts over the performance
of company in market.

REFERENCES
Books and Journals
Gaspar, J. and et.al., 2016. Introduction to global business: Understanding the international
environment & global business functions. Nelson Education.
Kumar, V. and Pradhan, P., 2016. Reputation management through online feedbacks in e-
business environment. International Journal of Enterprise Information Systems
(IJEIS). 12(1). pp.21-37.

Camillus, J. C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment. 8(1). pp.19-31.
Ruël, H. J. and Wolters, T., 2016. Business diplomacy. The SAGE handbook of diplomacy,
pp.564-76.
Hansen, J. A. and Pihl-Thingvad, S., 2019. Managing employee innovative behaviour through
transformational and transactional leadership styles. Public Management Review. 21(6).
pp.918-944.
Adnan, S. N. S. M. and Valliappan, R., 2019. Communicating shared vision and leadership styles
towards enhancing performance. International Journal of Productivity and Performance
Management.
Yasir, M. and et.al., 2016. Leadership styles in relation to employees’ trust and organizational
change capacity: Evidence from non-profit organizations. Sage Open, 6(4),
p.2158244016675396.
Rana, S. S., Malik, N. I. and Hussain, R. Y., 2016. Leadership styles as predictors of job
involvement in teachers. Pakistan Journal of Psychological Research. pp.161-182.
Gençer, M. S. and Samur, Y., 2016. Leadership styles and technology: Leadership competency
level of educational leaders. Procedia-Social and Behavioral Sciences. 229. pp.226-233.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Vallati, M. and Grassi, A., 2019, July. AI to Facilitate Legal Analysis in the PESTLE Context.
In The EMerging Technology conference (EMiT) 2019 (pp. 66-68). IET.