Starbucks Case Study: Business Development & Leadership

This case study analyzes Starbucks' business operations, examining both internal and external factors impacting its success. It begins with a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, followed by a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. The study then explores the impact of Corporate Social Responsibility (CSR) on Starbucks' business, highlighting its influence on consumer behavior and brand perception. Various leadership styles are compared and contrasted, with recommendations for the most effective approaches. The significance of organizational culture on processes at Starbucks is also discussed, emphasizing its role in employee engagement and brand identity. Finally, the case study includes a reflection based on personal experience, connecting the theoretical concepts to real-world applications. The conclusion summarizes the key findings, and a list of references is provided.

Assessment- Starbucks Case Study
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
SWOT Analysis......................................................................................................................3
Pestle Analysis........................................................................................................................4
TASK 2............................................................................................................................................5
Popularity of CSR influenced business..................................................................................5
TASK 3............................................................................................................................................6
Compare and contrast between different styles of leadership................................................6
TASK 4............................................................................................................................................7
Significance of organizational culture on processes at Starbucks..........................................7
TASK 5............................................................................................................................................8
Reflection based on personal experience in context of current study....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Starbucks is one of the biggest American brand with multinational coffeehousess serving
premium quality products and services with main focus to serve consumers with best working
goals and high grade paradigms of innovation. The report explains internal and external business
factors imapcting business avenues, CSR influence and various types of leadership theories
which have played an important role for developing brand onto its premium qulaity goods.
Further there is analysis of importance of business culture and reflection analysisng how
practical framework has enabled business of company to grow manifold within competitive
industry.
TASK 1
SWOT Analysis
It is an powerful tool that helps in identifying strength and weakness of business and
associated threat, opportunities so that possible action can be taken by manager for growth and
success of enterprise. Starbucks is world largest coffee house that operates its business across
worldwide in order to earn maximum profitability and market share. SWOT analysis of
Starbucks can be illustrated as follows:
Strength: As per 2019, inter brand ranking Star-buck brand value was approximately
$11.7 Billion and it has range of loyal customers which states that it has strong brand image in
mind and heart of customers. Starbucks sell premium blend and delicious coffees across global in
order to satisfied needs of customers in better manner so that they can be motivated to select it as
compared to other competitors (SWOT analysis of Starbucks, 2019). Thus, excellent quality and
standard products have contributed in expansion of business operation in different part of world.
Weakness: The biggest weakness of Starbucks is that it sells products or services at high
prices which make its difficult for middle income group people to make purchase for satisfaction
of their needs.
Opportunities: Company have opportunity to expand its business in new emerging
market such as India and few regions of Africa that can helps in enhancing overall profitability
and market share of firm. Partnerships and alliance is the another best suitable option that can be
used by Starbucks to enter into new markets for earning more profitability.
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Threat: Competition and uncertain changes in environment such as impact of Covid-19
and Corona virus have lead to shut down of 2000 stores thus it is proves to be threat on business
operation of Starbuck.
Pestle Analysis
The pestle analysis is one of the most innovative business analysis model enabling
businesses to evaluate external factors within working parameters, and for identifying various
potential arenas where new scenarios can be fundamentally reached. Starbucks company
external factors impacting busness goals can be analysed as follows where there are various
scenarios analysed, keenly programming how brand aims to etsablish future goals and position
in competitive industry (Nandonde, 2019).
Political factors: Brexit has impacted political scenario vastly within business where
brand for entering into European untapped business markets and for gaining new position among
various competitive paramters have to focus on improving its price structure also. Interest rates
and price structures are impacted whcih further brings focus on improving goals, structure of
prices among consumers for developing strong position.
Economical factors: UK economy factors have been flucauating with wide changes
imapcting economic parameters among consumers where there are also various new brands
coming within industry competitively impacting Starbucks. It can be understood that brand has
to strategically decide price structure, strategies for products and services to improve its further
position within industry.
Social factors: Starbucks has to also focus on changing social paradigms within industry
by bringing consumer perfrenced services and socially innovative business standards, for
producing wider competitive goodwil.
Technology factors: New technology factors shall be adopted by Starbucks to bring on
various new innovative services, larger product standards to enhance consumers experiences and
also factorise new production tragets for competitive growth goals.
Legal fcators: UK has also changing legal structure where there are various paradigms
such as new functional executive goals where Starbucks shoud aim to adhere all legal factors.
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Environment factors: The brand shall also bring on strong innovative CSR factors for
bringing on environment friendly servoces, bring on creative products and services to develop
new market scenario (Christodoulou and Cullinane, 2019).
TASK 2
Popularity of CSR influenced business
Corporate social responsibility can be understood as business self- regulation paramters
which aims to contribute various factors towards societial benefits, with philanthrophy and
engaging in ethical oriented practices, The socially responsible companies tends to attract
investors and consumers within industry who wish to develop innovative changes for serving
society,and to yield focus on new working parameters where ideally new ideas develop space.
Poupularity of CSR has influenced business at Starbucks highly which can be analysed on the
way there are avrious new additional services coming within, to enhance objectives of workplace
functionings and boosts productivity. CSR has opened up various getaways and pathways for
adopting new activities which bring consumers close to objectives for serving change
with premium quality standards and also for developing long term substansive place
within industry. It can be undeerstood that CSR popularity has opened up vast
communitive place for consumers where individuals will galdly pay premium pays for
goods, where profits are channeled towards social causes. Philanthropic diversity builds
up social value for business to increasingly enhance competitive CSR objectives for
developing difference place within industry market place. Starbucks has developed various
new fucntional parameters where new business objectives are higher to yearn focus on CSR
objectives.
Starbucks adressing CSR goals
Strabucks focuses on commitment of hleping communities thrive better living parameters
within business avenues for supporting stronger place within enduring wide chnages coming in
dynamic world. The brand uses scale for good, local and relevant working with others on higher
innovation grounds and networtk on new working goals where competitive image is developed
further. Starbucks offers high quality ethical purcahsing services of various productrs, with
commitment for investing in paths of education , training and employment of stakeholders.
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Company is committed to minimizing environment footprints and inspiring employees to
contribute towards changes by redcuing production wastages within economy and to yield larger
new work enahncment through keen CSR activities. Connecting with high transparency, dignity
business frameworks and creative services enable brand to develop diverse communicative
image and also to adreess wide challenges coming within business avenues (Randle, Kemperman
and Dolnicar, 2019).
TASK 3
Compare and contrast between different styles of leadership
Leaders are responsible for providing guidance, support and direction to individual that
are working in enterprise so that they can perform assigned task in the best possible way for
achievement of company goals. Recently, there are different types of leadership styles used by
leaders to motivate and coordinate different individuals to work as a team for common goals.
Such as:
Autocratic leadership styles: It is leadership styles in which leader define what is
expected from employees thus it illustrated about specific procedure and system that need to be
followed by them in order to complete particular task (Gençer and Samur, 2016). Thus, leader
have more command and control over business operation but it is not suitable for every situation.
Democratic leadership style: It is most common and useful leadership as in it leaders
encourage employees to share their respective view, ideas so that company can attained its
objectives. Leaders by involving employees in crucial decision-making of business motivates
them to work hard for growth and success of enterprise.
Transformation leadership styles: There are several changes in external environment
such as technology, customers taste and preferences so in this leadership styles leaders push
employees to come out of their comfort zones or adapt changes(Orabi, 2016). Therefore, it
motivates employees to think innovative, creative and out of box or accept changes so that
company can gain competitive advantages.
Transnational leadership: Now a day most of the leaders make use of transnational
leadership styles as leaders by rewarding employees for their hard work and efforts motivate
them to enhance their performance so that company can attained differentiate positioning in
competitive market.
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RECOMMENDATION
From the above comparison and contrast of different leadership styles it can be stated
that transformation and democratic are the best suitable styles that can used to motivate and
inspired individual to put its best efforts for growth of firm. Such as Leaders of star-buck by
providing safe and friendly environment to employees to share their respective views can create
feeling of belongingness. Thus, motivating and inspiring employees to make optimum utilization
of resources so that maximum value products can be delivered to customers (Asghar and Oino,
2017). At the same time transformation leadership styles is also best as leaders of star-buck can
easily and quickly motivate employees to accept external changes or find the best suitable
options that can be used to cope up with situation such as Covid-19 and Brexit. Employees also
became interested in learning new skills and knowledge that can be used to complete particular
task. Thus, both leader and employees of Starbucks by adopting changes helped firm in gaining
and retaining competitive positioning for longer time frame (The 7 Most Common Leadership
Styles (and How to Find Your Own). 2019). Therefore, these are two best leadership styles which
is most useful in situation of rapid change in external environment of business.
TASK 4
Significance of organizational culture on processes at Starbucks
Organizational culture includes a firm’s experiences, environment, expectations and
values that hold it together and is expressed in their inner workings, self image, further
expectations and interactions with outside world (König, 2020). It impact businesses productivity
and performance level, cater appropriate guidelines on product quality, consumer care and
safety. Companies with an organizational culture tend to be more successful than less structured
businesses because they have programme in place that can promote workers productivity,
abilities and engagement.
Starbucks as one of the best coffee house chains in the whole world managing its
business and operation in effective manner. An effective organizational culture plays vital role
for the process of this brand (Firestone, 2020). It helps to increase employee engagement,
decrease turnover and develop strong brand identity. For example, a work atmosphere that
possesses organizational form is driven by clear expectations and purpose, it will inspire and
encourage workers to be more engaged in his or her work roles and communicate with others. It
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can also lead to high degree of staff engagement, which drives productivity even better than
other companies. Having a power full connection and strong relations to company and its
workers creates an environment of positivity that is tough to ignore.
Positive culture at workplace can decrease high employee turnover in organization. For
example, when manager use their power in regard to decision making related to performance
appraisal without any differences can effectively increase workers productivity, which is quite
essential and beneficial for Starbucks in term of increasing their performance level and delivery
process (Kim and et.al., 2017). Due to this kind of environment, employees in firm feel valued
and respected which turn into less likely to leave company. That is why it is very important for
chosen brand to foster a winning organizational environment that help and supports core values
and mission statement of business. When management use this authority in positive manner, he
or she can make all applicants happy that mean less turnover happen, it can save money and time
of organization in hiring procedure.
It has been identified that Starbucks organizational culture is a atmosphere of inclusion,
belonging and diversity. The combination of firm’s key culture traits is specific and unique to
nature of their coffee house chain venture. It can be said that, positive organizational culture is
significant in firm as it help to elevated productivity and increase operational efficiency. When
manager in company, allocate work according to the skills and abilities of staff, it can help to
increase productivity of each candidate and business as well even better. This culture supports
provide right resource and work to applicants that they need to succeed, it can helps increasing
performance and sales level overall. The culture of firm affect structure of a work area in ways
that bring employees of similar skill set together. Those who share same abilities and knowledge
may work more quickly together when tacking firm process.
With all these actions Starbucks can represent their brand image and market reputation,
which turn into increasing their sales and profit margin.
TASK 5
Reflection based on personal experience in context of current study
While conducting research or writing a report, a person would learn several things and
gain knowledge which is quite beneficial for them in the future. I can say that when I wrote
current study based on Starbuck, I have learned many things and gets appropriate knowledge
from my investigation. It benefitted in applying concepts to practical framework of chosen
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brand. I have gained knowledge about how to conduct internal and external environmental
analysis from my research based on Starbucks, which benefitted me in applying SWOT and
PESTLE concepts in context of firm. With the help of this knowledge, I am able to determine
strengths, weakness, threats and opportunities in regard to organization. Furthermore, it can also
help to identify factors that may be impact on business growth and success of firm in negative or
positive manner.
From my investigation I have gained more knowledge about importance of corporate
social responsibility for business growth and long term success. I learned how CSR practice play
vital role in progress of company and how firm is addressing aims related to this term. By
understanding this concept I can apply models and concepts related to it in regards to practical
framework of brand. I think CSR is one of the external factors that would impact venture
activities and practices in positive manner.
Gaining knowledge about new topic or subject is really very important and beneficial. It
will make person capable to conduct further investigation and obtain desire outcomes. While
writing this study, I have gained key knowledge about leadership and its styles that helping firm
to grow even better than its competitors. I have gained information about who a leadership style
can contribute to make environment happier for all workers who are working for organization to
achieve their set objectives and aims in systematic manner. It makes me able to apply right
leadership style to practical structure of firm appropriately.
Furthermore, there are varied theories accessible in the world of business that I can use
and apply in context of chosen brand. But for which I need to enhance level of my knowledge or
gain new one, which is quite beneficial and helpful for me. I have gained more knowledge from
my current research that is related to organizational culture. I have learned how an effective
culture at workplace affects processes and productivity of firm. It is very important for greater
success of company and workers as well.
CONCLUSION
It can be concluded that various external changes or uncertain situation have both
negative and positive impact on growth and operation of business. Therefore, Starbucks manager
by always emphasis on providing better services or products to end customers have contributed
in achievements of goals. At last, it can be stated that CSR activities, leadership styles and
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organizational culture implemented by Starbucks have contributed in effective management of
external changes and employees.
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REFERENCES
Book and Journals
Asghar, S. and Oino, D., 2017. Leadership styles and job satisfaction. Asghar, S., & Oino, I.
(2018). Leadership Styles and Job Satisfaction, Market Forces. 13(1). pp.1-13.
Christodoulou, A. and Cullinane, K., 2019. Identifying the Main Opportunities and Challenges
from the Implementation of a Port Energy Management System: A SWOT/PESTLE
Analysis. Sustainability. 11(21), p.6046.
Firestone, S., 2020. Importance of Organizational Culture to Crisis Leadership. In Biblical
Principles of Crisis Leadership (pp. 23-34). Palgrave Macmillan, Cham.
Gençer, M. S. and Samur, Y., 2016. Leadership styles and technology: Leadership competency
level of educational leaders. Procedia-Social and Behavioral Sciences, 229. pp.226-233.
Kim, S and et.al., 2017. Determinants of employee turnover intention. Corporate
Communications: An International Journal.
König, W., 2020. Energy efficiency in industrial organizations––A cultural-institutional
framework of decision making. Energy Research & Social Science. 60. p.101314.
Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Orabi, T. G. A., 2016. The impact of transformational leadership style on organizational
performance: Evidence from Jordan. International Journal of Human Resource Studies.
6(2). pp.89-102.
Randle, M., Kemperman, A. and Dolnicar, S., 2019. Making cause-related corporate social
responsibility (CSR) count in holiday accommodation choice. Tourism Management. 75.
pp.66-77.
Online
SWOT analysis of Starbucks. 2019. [Online] Available Through:<https://bstrategyhub.com/swot-
analysis-of-starbucks-starbucks-swot/>.
The 7 Most Common Leadership Styles (and How to Find Your Own). 2019. [Online] Available
Through:<https://www.americanexpress.com/en-us/business/trends-and-insights/articles/
the-7-most-common-leadership-styles-and-how-to-find-your-own/>.
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