Business and Business Environment Report: Starbucks and NHS Analysis

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This report provides a detailed analysis of the business environment, focusing on the organizational structures, objectives, and operations of three distinct organizations: Starbucks, NHS, and Oxfam. The report begins by defining the business environment and its impact on business operations. It then explores different types of organizations, including private, public, and voluntary, along with their legal structures and purposes. The analysis of Starbucks examines its private organizational structure, objectives, and scope, while NHS is presented as an example of a public organization, detailing its mission, size, and structure. Oxfam is used to represent a voluntary organization, with a focus on its purpose, size, and scope. The report also explores the relationships between organizational objectives and structures, and identifies the positive and negative impacts of the macro environment on business operations. Finally, it evaluates the strengths and weaknesses of the organizations through internal and external analysis, explaining how these interrelate with external macro factors. The conclusion summarizes the key findings and offers insights into the dynamic interplay of these factors in shaping business success.
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Business and business
environment
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Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Different type and purpose of organization with their legal structure..........................................3
P2: Explain the size and scope of a range of different type of organisation.......................................5
TASK 2.................................................................................................................................................7
P3: Relationship between various organisation objective and structure............................................7
TASK 3.................................................................................................................................................8
P4. Identify the positive and negative impacts the macro environment ahs upon business operations
...........................................................................................................................................................8
TASK 4...............................................................................................................................................10
P 5 evaluation of strength and weakness of organization through internal and external analysis.....10
P6 Explain how strengths and weaknesses interrelate with external macro factors.........................11
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................13
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INTRODUCTION
Business environment refers to the collection of shareholders like employee, supplier,
government, customer and technology that can affect the internal as well as external aspects
of the business. These factors influence the performance of business and provide desirable
insight in order to improve the operation and build successful strategy (Adeoye and
Elegunde, 2012). For the better understanding of report Starbucks company has been selected
that has leading multinational chain of coffee house. The company incorporate their business
in the year 1971 and has successfully delivered the services worldwide. This report cover
topics like explanation of diverse type and scope of an organisation and represent the
interrelationships between different functional areas. Further, analyse external factor which
either positively or negatively affect its operations. The strength and weakness needs to be
effectively studied in order to gain a sustainable performance.
TASK 1
P1: Different type and purpose of organization with their legal structure
Group of people work together to achieve the individual as well as organisational goal
happened in an organisation. There are 3 type of organisation which is discussed below:
Private organisation: These are the organisation which is started by the individual
and the motive is to earn profit. They contribute huge share to the economy and helps in
generating employment in an economy. Private companies have to follow rules and
regulations set by the government along with that they have their own policies and plan to
conduct the business with efficiency with addition to it they have their own ways to achieve
profits. The profit made by the private company is beneficial to its stake holders like
shareholder, owners, investors etc. Other than that business can also collaborate with public
bodies and the government to form a public-private company (Wetherly, 2014). Example of
Starbucks a private company in UK is taken here.
Purpose: The purpose of Starbucks is to achieve profit, sustain and grow. To follow a
culture and run business ethically helps entity to gain desirable reputation.
Legal structure:
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Sole proprietorship: Under this a single individual run business and aim to achieve
profit for single person. Capital requirements are less in such type of business and profit and
loss is borne by the sole individual. No legal permission is required for such type of business.
Partnership: Limit of member is between 2-20 member. Partnership deed is prepared
under this which talks about profit share ratio, capital bought and various rules of the
partnership. Paperwork is required under this and it is time consuming in nature.
Corporation: It is started by the group of individual. The motive is to achieve profits
but it requires lot of paper works an agreement which ultimately turns into contract.
Stakeholder is the interested parties under this.
Public organisation: These organisation is owned and run by the govt and public
bodies. The aim is to render services to the citizen of the country. State, central and local
government runs this business in welfare of the country and its people. Even the funding is
raised by the government. National healthcare services (NHS)I is a public company in UK
which aims to work for social welfare by offering specialised services at reasonable prices
and earn revenue at the same time.
Purpose: Improving the economy of the country and spreading all the required
awareness to the public and helping the country to grow more. For instance, the purpose of
NHS is to diversify healthcare facility for the wellbeing of people belonging to diverse
category or income group without any discrimination between rich and poor.
Legal structure:
Central government: Its motive is to control and manage the resources of the
economy by helping the organisation to perform work properly. They have the power to
make rules and regulations in the benefit of the economy. Organisation who come under
central government need to take permission about all major things and need to disclose all the
important stuff.
State government: Some product and services are provided by state government only
so they share their power with national govt. also.
Local government: Requirements at individual level are identified by them. They
collect funds also by way of council tax.
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Voluntary organisation: The main and only objective of the organisation is to do
social services which can benefit the society (Apăvăloaie, 2014). Anybody who wants to
work for a social cause can provide their services to support this good cause. The people who
have started this business are not looking for the profit. They want to contribute by their own
way to improve society living standards. This enterprise helps the helpful ones by providing
those funds and resources and contributing by their own way. Oxfam is the company here
which aim to eliminate property worldwide. The association operate worldwide and has
effectively developed independent section that has cover the unprivileged section of society
effectively.
Purpose: Objective is to help society by providing their services and improve the
standards of the society. In case of Oxfam company its purpose is to eradicate the issue og
global poverty by transmitting equal rights for poor people.
Legal structure:
Trust: Trustees start this type of charitable business for the welfare of the society.
Trust deed is the document which mentions each and every detail about the trust. It follows
legal norms and is characterised as legal charitable trust.
Un-incorporated association: The rules and regulations under this type of charity is
not mentioned in any constitution. There is lot of restriction in distribution of funds and
capital. It is not a legal entity as it does not follow any law and regulations.
P2: Explain the size and scope of a range of different type of organisation
Private, public and voluntary are different types of the organisation that operate in
dynamic business environment with the objective to attend their predetermined goals. Each
entity has its own purpose of existence due to which they take all the necessary actions in
order to maintain the interest of internal and external stakeholders. External opportunities in
form of profit maximization or social welfare are overviewed and significant efforts are made
to maximize the potential of employees in order to attain the purpose successfully.
Private organisation: Private organisation is an essential part of economy that is
carried out by the group of individuals that formulate the registered company. The purpose of
these corporations is to gain desirable amount of profit and gain dominant position into the
market. Herein, Starbucks company always try to understand the perspective of customer and
provide desirable amount of varieties to cover the requirements of potential target market.
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Background: It is the well-known multinational company that has the leading chain
of Coffee houses all over the globe. Advanced tool and techniques are used to understand the
customer behaviour that helps to flourish the operation of entity (Blanchard, Tolbert and
Mencken, 2012).
Vision: The vision of company is to deliver finest coffee and focus on personalized
services in order to build long term relationship with the customer.
Mission: Mission of company is to enrich the existing abilities and potential of their
staff as well as nurtured them to create a desirable and warm culture. Focus is given to
maintain the uniqueness in their outlet as well as product all over the world.
Objective: Objective of Starbucks is to maintain the explicit position of reputed brand
all over the nation in order to gain competitive advantage over other rivalries.
Size: Starbucks has huge size due to which team manager are able to diversify the
business all over the globe. The company serve in approximately 28000 geographical areas
for which around 2 lack employees are hired depicting the large size of entity.
Scope: The scope of Starbucks is to gain the advantage of economies of scale by
successfully operating its business in distinct market. Expansion is the primary scope of
company due to which it can effectively covered both developed and developing countries.
Structure: The managers of Starbucks company have effectively adopts Matrix
organisation structure in order to effectively flow the communication amongst the employees
and better delivery services to the customer.
Public organisation: This organisation are controlled, run and operated by
government bodies to offer desirable services for the significance of citizen.
Background: National Health Services (NHS) is a part of healthcare system that
operates in UK. Comprehensive range of services like dental treatment as well as optical
services is delivered at nominal prices. The company started their operations in the year 1948
and has maintained significant position (Koišová and et. al., 2017).
Vision: Vision of company is to improve the health of each and every individual by
making the health care facilities affordable for everyone.
Mission: Mission of company is to come up with latest technology and techniques for
the betterment of health services in order to receive better result.
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Objective: The aim of NHS is to provide innovative healthcare services and
maintained the trust of patients.
Size: The leading size of the NHS Company has made it possible to operate within
four countries of United Kingdom that include Scotland, Wales, North Island and England.
The Healthcare sector has employed over 1.5 million staff that on the continuous basis look
for the better health of patients.
Scope: The scope of NHS company is to improve the health system and protect the
lives of people from paying heavy financial expenditure.
Structure: Hierarchical structure is followed by NHS company where all the
instructions are delivered from higher level of authority to lower level.
Voluntary organisation: voluntary organisation basically include non profit
organisation that works for the specific objective which is social welfare. Their main
objective is to develop the society and minimise the bridge between rich and poor people.
Background: OXFAM is well known part of the voluntary organisation that works to
remove global poverty. It started its operation in the year 1942 and has built 19 charitable
organisations which independently work to mitigate the poverty.
Vision: vision of the organisation is to see the interest of people and spread awareness
in order to make the movement resultant in eradicating the global poverty.
Mission: Mission of Oxfam company is to provide solution for the overall
development of nation.
Objective: Objective of the organisation is making the Independence charitable
organisation which involves the support of society. Efforts are made to allocate the funds to
cover up basic requirement of the underprivileged part of society (Starbucks Organizational
Structure, 2017).
Size: The organisational continuously expanding its size and fight against the
undesirable causes of poverty. Oxfam now has more than 10,000 individuals working hard to
fight poverty in over 90 nations. This firm spent $1.14 billion and reached more than 22.2
million people in its long term development and humanitarian assistance programs.
Scope: The scope of OXFAM company is to rebuild the lives of people who are poor.
Campaigns are prepared to prepare sustainable and long lasting changes. This firm has large
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scope because they work in more than 90 nations, with thousands of partners, allies and
communities to save and protect lives in emergencies, assist individual rebuild their
livelihood and campaign for sustainable, lasting change. Together, they stand up to challenge
the inequalities that keep people poor.
Structure: Functional structure is effectively followed by company to work against
global cause.
Size of the firm
•Micro/little company – The size of the separate kinds of association is nearly little then the
medium just as huge firm. In this particular organization will have under 100 workers. In this
spending plan of an organization is lower than the other medium just as huge organization so
they direct business in like manner. What's more, when an organization working at the
particular level then they lead their business tasks and capacities at the neighbourhood
market.
•Medium company – According to the medium kinds organizations, their size is similarly
more than full scale level just as not exactly the huge organizations. The quantities of
representatives working at the particular size organization are more than 100 and under 900.
The individual organization for the most part work at the public level as their business will be
settled at the distinctive area of the particular country or zone.
•Large company – The last sort of the association size is huge in which in excess of 1000
representatives are filling in just as their business activities and capacities is settled at the
neighbourhood, country and universal level. The particular kinds of firm hold high pieces of
the pie just as incentive at the possible commercial centre. The separate sort of firm gets
speculators just as investors at the global level which help in powerful business development.
TASK 2
P3: Relationship between various organisation objective and structure
An organisation comprises of different department operations that are interrelated
with one another in order to actively work in the favour of entity. The interrelationship is
listed down below:
Marketing and finance: Marketing department of Starbucks company is responsible
to understand the customer behaviour in order to enhance the football of the store. Effective
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understanding of the customer behaviour through interaction and market research helps in
carrying out the planning and promotional strategy. The finance department of Starbucks
company is responsible to keep the accounting of all the monetary transaction due to which
budgets are prepared for specific tenure. These budgets are used by marketing department in
order to prepare campaigns and promote traffic of customers.
Marketing and HR: HR department is responsible to carry the whole recruitment
cycle, evaluation process, conduct orientation session and provide training to the employees
in order to maintain smooth functioning of business. The HR manager of Starbucks
comprises of employee portal based on which the entire essential records in relation to the
salary and personal details are listed down for better management of staff. Generally,
marketing manager of respective company transmit essential information to human resource
department about the change in trend or policies based on which training is offered to
candidate in order to enrich their capability.
Organisation structure: Starbucks company has adopted Matrix organisation
structure which involve intersection with different functional areas of the business (Oxfam,
2017). Different departments like finance marketing operational and HR are interrelated and
together helps to carry out the better monitoring and controlling process.
Matrix organisational structure- It is a company structure in which the reporting
relationship are establish as a grid or matrix rather than in the traditional hierarchy. In other
word, within these kind of structure, employees have dual reporting relationships, basically to
both functional administration and product manager. Phillips and Caterpillar are some
effective example of this structure.
Divisional organisational structure- It is kind of structure that teams each organisational
function into division. Each division contains all the required assets and functions within it to
support that product line or geography. In this structure type, the business firm is categorised
in to factors that are offered accountabilities supported on operational needs, Each section
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handles a particular area of set of strategic objectives. McDonald’s is an effective example of
this kind of structure.
Functional organisational structure- It is a structure that utilised to organise and manage
employees. They are grouped based on their particular skills and knowledge. It vertically
structures each division with roles from president to finance and sales departments, to
consumer service, to employees allotted to one commodity and service. Starbucks is a good
example of this kind of organisational structure.
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TASK 3
P4. Identify the positive and negative impacts the macro environment ahs upon business
operations
To determine the positive and negative impact of macro environment factor, the
management of Starbucks can use PESTEL analysis model. The explanation of it is as under:
Political factor- It consider different factor like government interference, taxation policy,
trade restriction, labour laws, foreign exchange and many more (Akhtar, 2018). When
changes are generated in laws and policies then business of Starbucks influence in diverse
form. For example by adopting Starbucks, management able to conduct their work in
effective manner at the international market as well as their also ensure that business
operations and functions are conducted in legal manner.
Positive- Political stability of UK positively impacts the firm in term of support
investment that makes development in its business. Free trade is another aspect of political
factor which also favourably impact Starbucks in term of operating its business globally.
Negative- Global war affects political condition of the company that negatively impacted
Satrbucks’s business. Instable political situation of some nations affect the business of
respective firm in negative form.
Economical factor- It include different components like economic growth, inflation or
deflation, employment or unemployment rate, interest rate, exchange rate currency rate and
many more. In context of Starbucks, It is a UK brand where country has enormous economic
condition. For example by adopt economic factor respective company able to develop
strategies and plans leaded to business, products or services in effective manner which ensure
that products can affordable by potential customer properly.
Positive- Strong economic system of UK assists Starbucks in generate high revenue as
well creating employment. The company provide employment to candidates of all over globe
that positively affect the firm term of increasing employment rate.
Negative- Maximisation in taxation rates and labour cost is the major components that
affect economic growth of Starbucks. Due to Brexit, inflation arise and cause of which
supplier make changes in their commodities and raw material in term of increase cost of them
which directly affect economic condition of business venture.
Social factor- This factor involve several aspects like values, culture, beliefs, taste &
preferences, demographic factors etc. When any kind of fluctuation occurred in these factors
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then business of Starbucks impacted. For example by considering social factors Starbucks
able to offer products or drinks according to preference of customer of a specific nation.
Positive- The administration of respective offer quality products as per customers taste &
preferences which positively influence business firm. The firm also make focus on the health
of customer so also offer sugar free and healthily organic coffee to its consumers which
favourably impact the firm.
Negative- Sometime the venture forced to organise CSR activities so that they can make
engagement in development of growth which n negatively affect the company in term of
provide better satisfaction.
Technological factor- It include diverse factors such as advance technology, technical
innovation, artificial intelligence, research and development etc. (El-Zayaty, 2018). There is
several kind of technology introduced day by day which influences the business of Starbucks.
For example by adopting technology in business operation Starbucks able to conduct their
operations in effective manner with minimum wastage as well as it also help in conducting
work in less time.
Positive-The administration of respective company use effective technology in its
promotion of goods and services which positively influence its business. Along with the form
also offer its goods and services through online technology like mobile order and also offer
online payment services which positively affect it.
Negative- Regular acceptance of technologies increases the all over cost of company that
affect economic system of Starbucks. The rising availability of home use specialty coffee
machines is a main threat to Starbucks as it maximize the accessibility of substitutes
regarding its products.
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Legal Factor- It refers to those laws and legislations that are framed and formulated by
government (Briggs, Kalra and Agnihotri, 2018). They are employment law, health and
safety law, consumer protection act and many more that help in proper running of the
business. For example, by adopting legal factors respective company able to conduct their
business operations and functions in effective manner as well as they also able to avoid
situation in which illegal obligation take place.
Positive- The Company effectively follow equality and consumer protection that
favorably impacted the business of firm. The administration of this firm also effectively
considers consumer protection act and health safety law which help in protecting customer
information and offering an effective or safe workplace to employees respectively. Along
with this, the firm also follow equality law in term of treating it’s all workers in similar
manner regarding pay, offering equal growth options and many more.
Negative- When any kind of changes occurred in these laws then this fluctuation
negatively affect the firm. Due to COVID19, there are several kind of change occurred in
government law regarding hygiene and many more which unfavorably affect this firm.
Environmental factor- This factor considers different components like weather, climate,
environmental act, pollution act, carbon footprint and emission etc. Recycling and waste
reduction is also considered under this external environmental analysis factor. For example in
respect of Starbucks by adopting environment factor in business operations they able to
increase their market value. In respect of this they may adopt for recycle cups, eco friendly
resource, and solar energy and so on.
Positive- The company effectively follow all the environmental laws and devises safe
and secure environment to the people and attract large customer base towards the firm in
order to purchasing products and take advantages of services (Todorov and Akbar, 2018).
Negative- If the administration of company adopts eco friendly and waste reduction
technology then it will increase the budget and cost of business expenditure. Environmental
disasters in nations which produce coffee beans can affect the business of this business
establishment in negative manner.
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TASK 4
P5. evaluation of strength and weakness of organization through internal and external
analysis
Any organization before forming their strategies performs the internal analyses also.
Internal analyses refer to the evaluation of internal resources or performance which is
engaged into an organization. The internal environmental factor in an organization includes
employees, financial sources, structure, system, values, mission and vision and etc. The
company uses the SWOT analyses to evaluate the internal environment of the organization.
SWOT analyses are the abbreviation of Strengths, Weakness, Opportunities and threats to the
company.
Here
Strengths refer to the qualities which a company have that makes it different from the other
competitors or companies (Alotaibi, 2016). They are also works as the competitive advantage
for the company.
Weakness refers to the loose point of the company, these are the areas where the company
needs to improve itself.
Opportunities are the areas where the company can exploit more for their growth and
expansion. For example company can go for mergers, expansions, diversifications and so on.
Threats refers to the risks which is been faced by the company. There are some risks which
can he eliminated by the company and there are some risks which cannot get eliminated by
the company but they can reduce their effect through the application of sound strategies.
The SWOT analyses of Starbucks are as follows:
Strengths:
The quality of the coffee offered by
the company is very unique.
The company has the strong financial
market.
Also the company has strong network
in market which benefits company the
most (Munksgaard and Medlin,
2014).
Weakness:
The company is not very much
frequent comes up with the
innovative and new product.
The technology which is used by the
company is also very much out dated.
The prices which is offered by
company is very high which can be
only be afford by the people who
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The services which are offered by the
Starbucks are very much unique
which differentiate it from other
competitors.
The company also has the strong
brand image.
Very significant supply chain.
have the income of average or above
average.
The company also has the weakness
for product limitability.
Opportunities:
The company has the merit of
expanding the market at the
developing countries
The company can also go for the
mergers with other food and
beverages companies which can help
the company to establish themselves
into the new markets.
Starbucks also has the opportunity to
diversify its business by exploiting
the various areas of field.
Threats:
The company has the threat of the
growing into the numbers of
competition into the market.
The company also has the major
threat from any unfavorable change
into the political factor of the county.
The rise into the prices for the raw
materials can create a threat for the
company (Woodside and Baxter,
2013).
From the SWOT analyses done above, the company Starbucks needs to work upon their
weaknesses as they need to adopt the updates technologies into their operating systems so
that they can perform their work with complete ease and speed. Along with it the company
needs to work more upon their R&D department so that they can come up with new and
innovative products to serve the customers. For growth and prosperity, the company can go
for expansions into the new markets like in developing countries, it can also opt for mergers
with some other famous food and beverage company or they can also diversify their products
or services into the new fields or areas of work (Hair, 2015). The company does face many
threats from the external environment which it can eliminate it by studying the external
market and the factors which put impact upon the business performance. For instance, due to
having effective financial position in market, the company is able to operate its business
globally. Along with this, the unique coffee product of this respective firm, the enterprise has
range of target audiences and a good brand image in coffee cafe industry. The supply chain of
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the company is also appropriate and immense which help in making effective supply and
sales of the enterprise. Along with this, by expanding business in different nations, the firm
can make merger with food and beverage so that it can make maximisation in its profits and
sales. Apart form this, there are several kind of risk like competition, unfavourable
modifications in laws and regulations and maximisation in the cost of raw material like coffee
beans, affect the business of respective company in negative manner.
Tim Horden is a multinational company which is specialises in coffee, fast foods, doughnuts
and other fast food items. The company has a very huge chain for restaurants and cafe. It was
founded in the year 1964. The SWOT analyses of Tim Horden are as follows:
Strengths:
Exceptionally effective at Go To
marketplace methods for its products.
Great Returns on Capital Expenditure
– Tim Hortons is reasonably effectual
at implementation of new ventures
and formed immense earnings for
assets use by construction new profits
streams.
Solid circulation arrange – above the
years Tim Hortons has contrived a
reliable dispersal systematize that can
disembark at leading fraction of its
probable marketplace.
Weakness:
The publicity of the products gone a
ton to be required. in spite of the fact
that the item is an attainment as far as
deal yet its situating and novel selling
suggestion isn't obviously
distinguished which can prompt the
assaults in this portion from the
contenders.
Restricted achievement exterior
center business – Even however Tim
Hortons is one of the major relations
in its business it has confronted issues
in affecting to other item remains
with its current culture.
Opportunities:
Lower swelling rate – The low down
growth rate obtains greater reliability
the marketplace, authorize
recognition at lower loan fee to the
customers of Tim Hortons.
The marketplace development will
Threats:
Increasing pattern toward neutrality in
the American economy can punctual
proportional reaction from other
administration consequently
adversely moving the worldwide
deals.
Risk laws in a variety of countries are
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punctual weakening of competitors
bit of leeway and empowers Tim
Hortons to construct its significance
difference with diverse contenders.
exclusive and Tim Hortons might be
obtainable to diverse compulsion
maintains known modify in methods
in those business industries.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
The SWOT analyses which is used by the company to evaluate the internal factors or
the resources of the company has the 4 major parts, which are strengths and weakness which
are an internal source of evaluation and opportunities and threats which are external source of
evaluation. Through the evaluation of opportunities which the company has with itself and
considering the threats which the company can face into the market, the evaluation of
external market is very much necessary. Through the analyses of external environment like
political environment, economic environment, social , technological, environmental and legal
environment the company can analyses the current situation into the market place which
would help the business in ascertaining the opportunities which they have and can cash
through the market opportunities and also they can ascertain the threats which the company,
Starbucks, can face into the market (Wagner, 2012). If the company can has the capacity to
eliminate these external macro factors which can put impact into the performance of
company’s operational activities. For example in this pandemic time of CORONA the
company operations has come to zero as all the nations has shut down their operations. This
factor is an external factor which has put impact upon the operations and profitability of
business. Due to this the internal resource of the company is also impacting.
PEST analyse with strength and weakness
Political: this factor includes the rules and regulations form by the government. Such as
trading laws, corruption, taxes and so on.
Strength: The Starbucks has the strength that it operates into the regions where the
government is very much stable. It helps the company in bringing some stability in context to
their operations. Free trade aspects are also beneficial to company that help in making
expansion in business.
Weakness: The Company did face much issue in regard with any change into the rules
and regulations by a country’s government. Due to Brexit changes are arise in taxation
policies that negatively affect the business of organizations.
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Economic: The economic factor tells about the economic situation or condition of that
region. Such as employment rates, disposable income, GDP percentage and so on.
Strength: The Company has opened its stores at various places where there the people
can afford such prices which have been set by the company.
Weakness: The Company faces some financial loss by establishing themselves at the
underdeveloped places. Due to Brexit inflation arise and cause of which suppliers make
changes in their cost and offering raw material at high cost which influence the economic
condition of firm in negative form.
Social: It includes the taste, preferences, lifestyle, behaviour and etc of the targeted people.
Strength: The Company has the strength that they first analyse the taste and behaviour
of its target market and then finals the product. The company also consider the needs as well
health of customers so offer sugar free and organic coffee drinks that help in impacting
business positively.
Weakness: The innovative or new product which is been introduced by the company
may not get liked by the customers.
Technology: Any technical advancement or awareness comes under this head.
Strength: The Company has adopted the management information system which
proves to be a big help for the company. The organisation use technology in term of online
payment and online order for coffee products that help in increasing sales of firm.
Weakness: The Company has the weakness that it does not cop up with the advance
technological advancements. In existing time, coffee machines are also available in market
that can generate a threat for business of respective venture.
Legal- It refers to laws and legislation that are developing and formulate by the national
authority of the country.
Strengths- The respective venture appropriately follows employment law and health
and safety law which help in operating the business of venture in appropriate manner.
Weakness- Due to COVID 19, there are several kind of changes are occurred in laws
and legislations which affect the business of Starbucks in unfavourable manner.
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Environment: It refers to ecological components like climate, weather and environment act
such as air pollution, carbon foot prints and others.
Strengths- The management of respective firm follow hygiene and safety law to
provide a safe and secure environment to consumers so that they feel comfortable.
Weakness- Environment disasters in countries that manufacture coffee beans can
influence unfavourably the business of this business organisation.
CONCLUSION
From the report presented above, the interrelatedness of different functional
department of the organization has been mentioned. The report also includes the impact of
macro environment upon the company, for this the company performs the PESTEL analyses
in which the external environment like political, economical, social, technological,
economical and legal environment has been evaluated. Apart from this the report has also
mentioned the SWOT analyses in which the strengths, weakness, opportunities and threats
which the company has in its system or whole organization has been evaluated. The strength
includes the quality, brand name, significant supply chain and etc, where as the weaknesses
includes the lack of updated technologies, prices used by the company and etc. Apart from
this the opportunities includes the expansion, mergers and diversifications and threats
consists of increase into the level of competition, change into the political factor, increase
into the prices of raw materials and etc.
REFERENCES
Books and Journal
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