Sustainability in Starbucks: SWOT and PESTLE Analysis, CSR Goals, Leadership Styles, and Organizational Culture

This report discusses the sustainability practices in Starbucks, including SWOT and PESTLE analysis, CSR goals, different leadership styles, and the importance of organizational culture. It analyzes the strengths, weaknesses, opportunities, and threats of Starbucks, as well as the political, economic, social, technological, legal, and environmental factors affecting the company. The report also highlights the influence of CSR goals on Starbucks' activities and the different leadership styles adopted by the company. Additionally, it emphasizes the importance of organizational culture in shaping the processes at Starbucks.

SUSTAINABILITY

Table of Contents
INTRODUCTION ..........................................................................................................................2
SWOT analysis for Starbucks...............................................................................................3
PESTLE analysis for Starbucks .............................................................................................4
Influence on CSR goals..........................................................................................................5
Different styles of leadership..................................................................................................6
Importance of organisational culture on the processes at Starbucks .....................................7
Reflection report ....................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Business environment is known as surrounding in which a company functions and
processes. It is essential that all external as well as internal factors are analysed while running a
successful business. Various strategies are adopted by companies in order to sustain within
market for long period (Al Halbusi, and Tehseen, 2017). In the following report, there is
discussion about SWOT and PESTLE analysis of Starbucks. Importance of CSR within business
is analysed by considering Starbucks. Different leadership styles are discussed and importance of
organisational culture within company is discussed. Starbucks is an American corporation which
provides food and beverage to customers across the world. It has several outlets in different
countries. Headquarters of this company are present in Seattle, Washington. This company was
launched in the year 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. Main motive of this
company is to provide quality products and services to customers.
SWOT analysis for Starbucks
SWOT analysis is strategic planning technique that mainly used to assist an individual or
company to determine strengths, weaknesses, opportunities, and threats concerned to the
business competition. SWOT Analysis of Starbucks mention below:
Strengths
 The strength of Starbucks is strong financial performance that resulted in firm occupying
better spot between beverage and coffee retailers.
 Starbucks consists its top of mind call between customers and through virtue of brand
that symbolize the excellence and also quality at affordable cost.
Weaknesses
 Starbucks is based on its key input that is coffee bean and actually based on cost of the
coffee beans as determinant of profitability.
 Cost of goods to company in premium to middle tiers of market segment that places its
goods outside budgets of several working customers that prefer frequently McDonald and
some other outlets for coffee instead of the Starbucks.
Opportunities
 Starbucks has the opportunity to expand the network suppliers.

 It can expand offering to take on spectrum food and beverages retailers such as Burger
King and McDonald as consumer segment which these all the retailers target is mainly
expansing leading to better business opportunities for Starbucks.
Threats
 It has threat from increasing the cost of the coffee beans and subject to the risk in supply
chain to the fluctuations in cost of key input.
 Starbucks firm faced challenges due to global supply chain and subjected to the
disruption in supply chain.
PESTLE analysis for Starbucks
PESTLE analysis is tool that mainly used to examine and monitor macro environmental
factors which may have profound influence on performance of company. Macro environment
environment that the Starbucks is mainly operates characterized through global economic
recession that dented buying power of customers. PESTLE analysis of Starbucks mention below:
Political factor
In this, political imperative that the Starbucks faces is concern over the sourcing of raw
materials that attracted politicians attention in West and in countries from where this sources its
raw materials (Bonaparte, 2020). Other than this, Starbucks mainly requires to adhere to
legislations and regulations in countries from where this sources the raw materials.
Economical factor
Economic factors impact Starbucks could be the import laws, inflation rate, interest rates
and the exchange rates. The main external economic Starbucks driver is ongoing economic
recession that dented profitability of several firms. Customers instead of reducing consumption
of coffee are shifting to lesser cost alternatives that is opportunity to the Starbucks.
Social factor
Through Starbucks firm can provide the cheaper alternatives and this has to do so without
the sacrificing quality and this is main socio cultural challenge that firm faces as this expand
consumer base to consists customers from less and middle tiers of income pyramid.
Technological factor
As the technological factor shape the better organisational forms. Use of the innovative
technology leads to make improvement at Cafe. It is poised to be reap advantages of emerging

mobile wave and thus has tied up with the Apple company in order to introduce application
related discount coupons.
Legal factor
Starbucks company has to assure that this does not run tangled of legislations in those
countries which sources its raw materials and home markets. Government assure that firm is
using the ethical and right goods for production of products. Starbucks is mainly using the
Coffee and Farmers Equity Practices for development of Coffee Beans that is effective for
people and environment both.
Environmental factor
Efforts dome through Starbucks for environment best are use of the fuel efficient
equipment, use of the bio- degradable materials, gas emission, partnership with the
conversational international etc. Starbucks mainly using the biodegradable materials than the plat
sic that can be recycled easily.
Influence on CSR goals
CSR is known as the activity which is performed by companies in order to provide
welfare to society (Boone, 2017). This is helpful in managing the business effectively and also
enhances brand image and reputation of company. There are basically three pillars of CSR –
community, ethical sourcing and environment. There are following ways in which Starbucks is
affecting the CSR activities.
There are several community stores of Starbucks which have associated with local non
profit organisations. These are working with stores that partner with Starbucks. These provide
services and main objective is to meet the needs and demands of communities. This company
donates approximately 15% transaction of each transaction to non profit partner. This company
provides training opportunities to youths within communities. This company has started
Starbucks Foundation and main objective is to enhance strength of community centric initiatives.
The second pillar is ethical sourcing and this describes way in which Starbucks buys the
products. This company provides quality products to customers. There are authentic ingredients
used for making tea, coffee, cocoa, etc. This shows that Starbucks is ethically responsible and it
provides quality products to the customers. This company thinks that success if associated with
farmers and thus, it has to be shared with them. Suppliers are ones who grow and produce

products. This company only buys products from farms and manufacturers which are adhering
the standard of ethical treatment.
In context of Starbucks, there are several corporate social responsibility activities adopted
by Starbucks. These are managed effectively for developing good brand image. Planet is
considered as the most important business partner and this company ensures that the business
operations are not harming environment. For operating in a socially responsible business, it is
seen that LEED certified stores are build. This company uses recyclable products to offer food
and beverages (Chaimankong, and et.al 2019). Starbucks has adopted strategies for addressing
climate change at a global level. This company put efforts for managing and handling
environment friendly activities.
Starbucks focuses upon people for making positive changes within community.
According to statistics, 93% of the consumers develop positive image for the company if the
organisation is involved in managing the societal welfare (Starbucks’ CSR initiatives, s2017).
Starbucks adopts effective strategies for managing the business operations and activities. There
is a report published by Starbucks naming Global Responsibility Report. This provides data and
information which highlights impact on company's operations due to CSR activities.
Different styles of leadership
Leadership is defined as the way of managing and handling different individuals working
in the company and providing them proper guidance for achieving goals. In Starbucks, there are
different leaders who manage to control the activities of individuals. Business strategies add
plans are developed by managers and it helps in achieving organisational goals in less time. It is
essential for organisations to manage the achievement of business functions by performing good
job role and responsibility (Kang, and Namkung, 2018). It is concluded that leadership is an
important aspect known for controlling and managing business operations. There are different
types of leadership styles used within Starbucks and these are mentioned below -
 Servant leadership – The servant leadership is one which leaders adopt when the
company provides services to people. Main priority of such companies is to provide good
care and service to customers and clients. This leadership was given by Robert K
Greenleaf in the year 1970. Starbucks is a beverage and food company whose leaders are
following servant leadership. This company is involved in making difference in life of
other people. Main objective of servant leadership is to meet the needs and demands of

customers. Starbucks is involved in adopting servant leadership because it helps to
provide effective care to customers. The servant leadership provides advantage to people
in spending resources and time in effective manner.
 Autocratic leadership – This is defined as the leadership in which leaders provide orders
to the subordinates for effectively working within business. The concept of autocratic
leadership helps employees to work in diversified workplace. The main disadvantage of
autocratic leadership is that leaders develop decision on their own without consulting
other subordinates and workers.
 Howard Schultz leadership – This is defined as a leadership style in which there is
mixture of both transformational and democratic leadership. These leaders provide
freedom to employees and they can effectively let the employees decide best strategy for
functioning. There are several business decisions developed for choosing the right course
of action which can be taken (Koch, 2019). This leadership style is associated with
inspiration and motivation. This suggests that when employees are encouraged then staff
has to provide feedback.
 Democratic leadership – This is known as the way in which leaders involve workers and
subordinates in the decision making process. It is important for the company to manage
the working of company by involving other employees in the decision making process. It
helps in managing the business operations and activities in effective manner.
Importance of organisational culture on the processes at Starbucks
Organisational culture is collection of the expectations, practices and values which guide
actions of all the team members. This encompasses behaviours and values which contribute to
social and psychological environment of business. The organisational culture is important as
employees are aligned with aim of company. This goals compatibility and thinking way that
derived members to be perform in well manner, self directed and loyal to company they mainly
belong. It is connected to the high morale of staff members and also better employee retention
rate. Starbucks is mainly known for its better customer experience. Culture of this organisation
needs its staff members to be well knowledgable and trained. Starbucks has been gone by the
changes in organisational culture (Pratama, 2019). These all the changes depend on problems
determined. Organisational culture of company is distinct character that develop the competitive
benefit and also create consumer population of the loyal Starbucks fan from which business

mainly derives the stable financial performance. In regards to this, major corporate strategic
management issue lies in better execution of culture in licensees and franchisees human resource
as the business partners have own approached related to the human resource development and
concerned with organisational culture development. At Starbucks, organisational culture values
requirements of consumers that needs their staff members to be behave in certain manner. Shared
values are core of the culture of Starbucks. This is focused on developing warmth culture and
also belonging where the staff members to consumers can be feel more welcomed. This
developed inclusion environment and also non- discrimination. Other importance of the
organisational culture is is creativity where staff members challenge status quo for bring the new
things and also search effective ways to develop company (Rodeia, 2017). In regards to this,
working in the collaboration assists staff members to attain the complex targets. Starbucks is
committed to upholding culture where an inclusion, equity and diversity are respected and
valued. Other than this, organisational culture is the Starbucks is better known for role in the
recycling. It is committed to minimizing waste and also shrinking environment footprint. In
regards to this, images are related with the recycling represent Starbucks culture. On the other
hand, employees are Starbucks treated like the partners and find staff members more satisfied.
This firm value diversity and inclusion are able to develop the strong connection with staff
members.
Reflection report
I have analyzed that Starbucks is a company which has adopted strong and effective
leadership style that provides help in managing the business operations effectively. There is need
to manage the leadership styles adopted by leaders because it helps to manage different
operations. After this research, I have concluded that within Starbucks Howard Schutz admire all
employees and provide them effective care. I have understood that providing only perks and
benefits will not help to increase employee satisfaction. But now I have analyzed that it is
essential to provide non financial benefits to employees . Starbucks provides healthcare benefits,
insurance, par time employee benefits, etc. These help in managing the employee engagement
and involvement effectively. There is need to develop and manage effective interview so that
employees working on the firm must know the functioning of Starbucks before starting job.
There is Schultz leadership style followed in Starbucks and he is involved in managing the

designs effectively (Stankevicius, Hosseini, and Ahmed, 2019). There is own practice and
preference of each and every place. Some of the factors are present within this company that are
related to designing of store. There is mission and vision of Starbucks which is related to
managing the employees effectively and meeting the organizational demands. This company is
involved in partnering with different organizations for meeting the needs and demands of market.
The management thinks that when right team members are fond out for working in team then
organizational goals can be attained. Innovation is the key factor used by Starbucks for managing
and handling the customer satisfaction level. Within Starbucks, there are two important business
pillars – employees and customers. This is essential for the company that they are managing
attaining of goals and objectives effectively. There is need to develop and grow strategies in such
a way that all employees are satisfied and happy. It is concluded that business activities and tasks
are performed well within organizations for managing the work of companies in effective
manner. When I was conducting research on this topic, I analyzed that Starbucks is following
differentiation strategy for enhancing customer satisfaction. This provides help in managing and
developing effective ways for growth and management. Maintaining competitive advantage
within market is the most essential way for a company to grow. This is important that developing
an effective strategy for CSR helps the company to build brand image and reputation.
CONCLUSION
It is analysed from the above discussion that leadership is the most important factor that
helps companies in developing strategies. All employees must be involved in managing and
taking care of all employees so that they can influence other leaders to operate in effective
manner. There is need to have proper policies and strategies that can be used for managing the
business activities. SWOT and PESTLE analysis of a company helps in knowing what are
strengths that a company has and how they can be used for grabbing market opportunities. There
are different scenarios within the company in which work is done in effective manner and
leadership styles are properly managed.

REFERENCES
Books and Journals
Al Halbusi, H. and Tehseen, S., 2017. Corporate social responsibility (CSR): a literature
review. Malaysian Journal of Business and Economics (MJBE).
Bonaparte, Y.L., 2020. A Starbucks Blend: Race, Social Marketing and Corporate Social
Responsibility.
Boone, C., 2017. In the News: An Exploration of Starbucks and the Media.
Chaimankong, B., and et.al 2019. THE MEDIATING ROLE OF TRUST IN THE
RELATIONSHIPS BETWEEN CSR AND CUSTOMER BEHAVIOR: AN
EMPIRICAL STUDY OF STARBUCKS IN THAILAND. Journal of Humanities and
Social Sciences Thonburi University, 13(1), pp.21-33.
Kang, J.W. and Namkung, Y., 2018. The effect of corporate social responsibility on brand equity
and the moderating role of ethical consumerism: The case of Starbucks. Journal of
Hospitality & Tourism Research, 42(7), pp.1130-1151.
Koch, L., 2019. Starbucks Espresso Drinks: More Than the Average Cup of Joe. Journal of
Renal Nutrition, 29(1), pp.e1-e4.
Pratama, Z.Y., 2019. Implementasi Program Corporate Social Responsibility (CSR)" Water of
Change" oleh Starbucks Indonesia di Bantar Gebang pada tahun 2013.
Rodeia, M.N.R.G., 2017. The power of CSR and its implications on employees’ satisfaction,
motivation and happiness at work: the case of Starbucks (Doctoral dissertation).
Stankevicius, T., Hosseini, S. and Ahmed, A., 2019. CORPORATE SOCIAL
RESPONSIBILITY (CSR) AND STARBUCKS CONSUMERS IN SWEDENIMPACT
OF CSR ON CONSUMERS’PURCHASE ATTITUDE AND INTENTION.
Online
Starbucks’ CSR initiatives.2017.[online].Available through:<https://www.whywhisper.co/the-
blog/2015/9/24/corporate-social-responsibility-how-starbucks-is-making-an-impact>