Starbucks Assessment

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