Business Report: Starbucks Company Overview and Analysis

This report offers a comprehensive analysis of Starbucks, a large multinational company, examining its business operations and structure. The report begins with an introduction defining business reports and their significance in understanding a company's position within a changing environment. Section 1 details the distinctions between micro, small, medium, and large businesses, including their characteristics and examples. Section 2 explores various business types, such as sole trader, partnership, limited liability, and public limited liability, highlighting their features and real-world examples. Section 3 delves into how organizational structures influence business productivity, contrasting hierarchical and flat structures. Furthermore, the report analyzes how external factors, such as political, economic, social, technological, legal, and environmental factors (PESTLE analysis), affect business performance. The report concludes by summarizing key findings and providing references.

Individual report

Table of Contents
INTRODUCTION...........................................................................................................................1
Section 1...........................................................................................................................................1
Description regarding micro, small, medium and large businesses along with definition and
characteristics ..............................................................................................................................1
Section 2...........................................................................................................................................3
Characteristics and examples of sole trader, partnership, limited liability and public limited
liability.........................................................................................................................................3
Section 3...........................................................................................................................................4
Different organizational structure how it affects business productivity......................................4
How external factors affects the performance of business .........................................................5
CONCLUSION................................................................................................................................6
REFERENCE...................................................................................................................................7

INTRODUCTION
Business report is defined as activity and document which is prepared by management by
understanding the position of company and managing the task in changing environment. This is
important for management to understand the position of company and formulate plans
accordingly which can help to operate different types of businesses (Zahari and Romli, 2019). In
business environment different types of businesses are exists that need to consider while running
a business. This report is based on Starbucks that is large size multinational company, providing
different taste of coffee to customers as per their taste which helps to attracts the number of
customers. This report covers difference between different types of companies and their legal
entities, difference between internal and external factors that impacts on businesses.
Section 1
Description regarding micro, small, medium and large businesses along with definition and
characteristics
Micro business:
This means a business which can be employed by single person and less then six people
which can help to operate a business and attain the higher productivity in changing environment.
This business operated for filling the customer's requirement and managing the task effectively.
For example, a barber shop, Boutique etc.
Characteristics: Micro businesses is having less than 6 people and can be operated by
single person in the changing environment. This can help to manage the task and make all
decisions by its self in regulating the business effectively. The turn over required in establishing
micro businesses is less than £10 m (Tulcanaza Prieto and Lee, 2019).
Small business:
This can be defined as privately owned organisation which is operated by less number of
people in order to operate a business and increase the organisational productivity. This can be in
the form of private owned corporation, partnership, and sole proprietorship which understand the
demand of customers and provide products and services accordingly. This is important for
organisation to evaluate the needs and make efforts to complete the work in certain time. For
example, Arts and entertainment, Local Auto Repairs, Pet Sitting, Personal Trainers.
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Characteristics : In small business there is require of small amount to establish a small
business, smaller team of employees, sole and partnership ownership and established at limited
area of location that can help to sales the products at small scale and attracts the number of
people in case of running the the business effectively. The turn over for small businesses is more
than £ 10 million but less than £ 25 m (Pereira Marques de Carvalho and Grassi, 2019).
Medium size business:
This means a business which is operated at medium scale and range of area which can
help to fill the needs and wants of their customers who are playing important role in their
business. This means businesses which are operating at wider area and managing by number of
people for the purpose of running business and increasing the organisational productivity. There
is required of more than 50 but less than 250 employees where they are operating the business in
changing environment and retain the large number of customers.
Characteristics: This kind of businesses is operated at medium scale and having more
than 250 employees. Herein, roles and responsibilities of employees are distributed between
employees and managing the all activities effectively. This can be help to attracts the large
number of customers and attain the higher range of place for selling the products and services.
The amount and spending required to establish a business is more than £25 million which can be
divided in different activities.
Large size business:
This means businesses that aims to earn higher profits by increasing the selling activities.
This is a larger size organisation which are operated at many location by involving more than
500 employees that can help to grow a business continuously and attain the higher productivity
in changing environment. For example: Starbucks, Bentley Motors, Toyota Motors etc.
Characteristics: The number of employees are more than 500. The turn over required in
large business are 1.5 billion. This is operated at many location by understanding needs and
wants of their customers which attracts number of customers and attain the profits accordingly
(Broccardo and Zicari, 2020).
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Section 2
Characteristics and examples of sole trader, partnership, limited liability and
public limited liability
In business environment different types of businesses are running where it is important to
understand to understand needs and provide the kind of products and services.
Sole trader business:
This is defined as individual entrepreneurship where business is operated by single
person in order to operate their business and increase the organisational productivity. For
example, Tea shop, Beauty parlour and Bakery etc.
Characteristics: This is single form of ownership, required less amount of capital. In
sole trader, decision right is having in the hand of single person. Unlimited liability, No Separate
entity, and enjoys entire profits which supports to run a business (Kahiya, 2020).
Partnership:
This can be defined as formal agreement between two and more than two person who
manages and operate their business collectively by sharing the profits and losses. This can be
defined as partnership deed based business where partner of a businesses share their liabilities
and profits equally in order to operate the business and increase the organizational productivity
and profitability.
Characteristics: It is outcome of agreement between two and more persons for the
purpose of carrying business. Sharing of profits, agency relationship, nature of liability,
membership and existence of business are considered as characteristics of business which can
help to operate a business and increase the productivity.
Limited liability business:
This is defined as form of legal businesses which is handled by more than two people by
taking the limited liability in their business. In other words, LLC formulated for the purpose of
protecting rights of shareholders and owners so that they cannot bear high losses and develop
their business effectively (Ye, Xiao and Zhou, 2019).
Characteristics: An LLC has separate Legal existence, Limited liability, Flexibility in
Taxation, owners as members, Forming an LLC and simplicity in formation and operation which
can help to operate and regulate a business continuously.
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Public limited liability business:
This can be defined as voluntary institution of members that are incorporated for the
purpose of attaining the higher sales and profitability. In this organisation minimum number of
shareholders must be two and accounts should be filed within 6 month of the year end.
Characteristics: Minimum number of members are 2 and maximum number are 50. This
organisation is having separate legal existence who are apart from existence. The company
collect the capital by selling of shares publicly. All the control and decision making rights is
having with the hand of government members (Vanderstraeten, Loots, Hamelin and van
Witteloostuijn, 2020).
Cooperative:
This means another type of business that is formulated for the purpose of meeting with
member needs and providing the products and services accordingly. This is united voluntary
organisation which is managed by its members The management understand the needs and wants
of their customers and manage the business accordingly.
Characteristics: Cooperative is voluntary organisation, Open membership, Finances is
contributed by purchase of shares, liability of members, distribution of surplus and limited
interest on capital which can help to manage the all activities and performance.
Section 3
Different organizational structure how it affects business productivity
Organisational structure is defined as system which outlines how certain activities are
operated and directed for the purpose of achieving goals. This depends on organisational size
that what structure they should be followed and how the all activities need to be perform that can
affects the business productivity and profitability.
Types of organisational structure and they affects Starbucks Productivity
Hierarchical structure: This can be defined as line organisation and structure where
chain of command is in hierarchical form that helps to operate a business and increase the
activities. This structure helps to specialise each employee's work. This entails reporting
relationship, project organization and division of authority. This can affects productivity as
employees are working effectively by dividing their roles and responsibilities. By using this,
management and employees work collectively.
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Flat structure: This can be stated as decentralised organisational structure in which most
of the employees have equal power. In this, executives has little more authority than employees
which can motivates the workers to share their ideas and run their business effectively. This can
help to maintain the good relation between employer and employees so that they can manage
their business and attain the higher productivity. This affects the productivity as if Starbucks
follows this then all employees and management feel comfortable and they have rights to make
right business decision which supports to improvement in higher performance (Back, Lowry and
Higgins, 2020).
From the above, Flat structure is followed by Starbucks which is decentralised
organisational structure can help to start the business and manage the activities effectively. This
affects the productivity of selected organisation as employees who are working have more
responsibility and independence that supports to work accordingly. This helps to improve the
interaction and communication between employees and employees so they can understand the
the needs, set goals and allocate the roles and responsibilities of employees accordingly which
helps to maintain higher productivity.
How external factors affects the performance of business
PESTLE Analysis: This is a framework which uses by organisation for the purpose of
analysing external environment and know which factor might be affect the business. The
description of external factors are defined below: Pestle Analysis of Starbucks are defined
below:
Political factor: Political factors consists of government policy, stability of government,
tax policy etc. Starbucks has to consider laws and regulation of the company it is operating in or
outsourcing raw material. Even the regulatory pressures of US has huge impact on the working
of firm as negative in case of changing government that reduced productivity. Regional
integration between countries provides opportunity to Starbucks for further expansion. Brexit has
also affected business operations of Starbucks in United Kingdom.
Economic factors: Economic factors include interest rates, employment or
unemployment, exchange rates, trade rates etc. This factors has huge impact on business
operations directly or indirectly. Declining unemployment rates leads to increment in income
level of people. It enhances profitability of Starbucks as its customer base increases (Howell and
et.al., 2020).
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Social factors : This is a kind of factor which involves lifestyle, changes in people's
needs, income group etc. that need to consider while operating a business. As Pandemic has
occurred suddenly in whole world which affected the business negatively as people are
demanding now organic food which has decreased the demand of Coffee so that sales and
productivity has been impacted negatively (Ballantine, Strassheim and Newton, 2019).
Technological factor: This factor involves innovation and new technology that need to
consider while running a business. By adopting new technology and innovation in their business
Starbucks has increased their activities and functions effectively. This has developed the
business and maintaining the higher productivity.
Legal factor: According to this many laws and regulation should be followed by
management which can help to operate and regulate a business effectively. In the changing
environment it is important for Starbucks to follow all regulation in relation to food and
beverage, employment and others which can help to maintain a higher performance and
productivity in the changing environment by attracting number of customers (Maran, and et.al.,
2020).
Environmental factor: This factor is related to environmental regulation and aspect that
should be consider while operation. This factor might be affected Starbucks negatively in case of
not following the environmental regulation which increases carbon effect, wastages and others
that reduces organisational productivity and profitability.
Therefore, from the above analysis it can be defined as in business environment some
factors are exists that might be affected the business negatively and reduced the organizational
productivity in the changing environment .
CONCLUSION
From the report it can be concluded that different types of businesses are exists such as
micro, small, medium and large that are operated by number of people and collection of group
which can help to operate a business and increased the organisational productivity. In external
environment many factors are considered as political, social, economical, technological, legal
and environmental which affected the business positively or negatively.
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