Starbucks Case Study: PESTEL and SWOT Analysis, CSR Evaluation, Leadership Styles

Starbucks case study

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
PESTEL and SWOT analysis of Starbucks................................................................................3
Evaluation of CSR on the business.............................................................................................6
Compare and contrast between different leadership style...........................................................7
Importance of organisation culture on the process of Starbucks................................................8
Reflection report........................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Starbucks is one of the well-known American multinational coffee house chain and
roaster reserve that manage and operate their business at a global level. Coffee culture of
Starbucks is too wide as company operate it's outlets and retail store from than 30,000 locations.
Hot and cold coffee are the major and most demanded products which is served by organisation
at worldwide level. Starbucks was established in the year 1971 and in present scenario
management manage all its operations from the headquarter which is established in Seattle,
Washington (Azriuddin and et. al., 2020). There are several section are focused in this report
which will include micro and macro understanding of business organisation and the influence of
CSR on organisation. Recommendation for suitable leadership style and comparison between
different leadership style will also included in this report. In the last, importance of organisation
culture and their role within Starbucks process is also included focused in the upcoming report.
TASK
PESTEL and SWOT analysis of Starbucks
PESTEL is defined as a strategic analysis tool and it used by the organisation for
analysing the impact of external issue on business environment. The reason to select PESTLE
model for this report is to understand external or macro aspects of business. There are six
different factors exists in strategic tool and it is utilised by Starbucks to understand and analyse
the existing environment. Further, existing market conditions of environment are too dynamic so
Starbucks adopt or implement PESTLE model to gain knowledge about consumer demand and
purchasing power. This results management formulate strategy which helps to overcome from
changes in an organised manner. Some aspects of external business environment for Starbucks is
mention as follow:

Illustration 1: Source(https://www.business-to-you.com/scanning-the-environment-pestel-
analysis/)
 Political factor- The major political factor for Starbucks relates with the source of raw-
material. One of the main aspect of political aspect is to follow all laws and regulations
related with country as Starbucks buy their resource or beans. With the increase in
activeness of individuals among political parties it is essential for organisation to work
according to the multinational laws of US (Basak and et. al., 2020). This refers now
individuals not prefer brand but they also monitor the impact of company operations on
environment as it helps to analysis fair trade practices among business. The present
market conditions including Brexit and Covid-19 relates with political environment as
government steps helps to overcome from current situations.
 Economical factor- With the ongoing global economic challenges monetary value is
the prime external factor that impacts on Starbucks. This is also identified that economic
aspects directly reduce profits for business. It also convinced buyers for shift towards
the cheaper alternatives if Starbucks charge high price from customers. So it is essential
for Starbucks to identify opportunity for managing profits of business. With the analysis
of current market condition it is identified that Starbucks face challenges because it is