QHO537 Solent University: Starbucks Growth Challenges Report

This report provides a comprehensive analysis of Starbucks' sustainability and growth challenges, focusing on five key dimensions: leadership, communication, financing, autonomy, and merger/acquisition potential. The report examines the current state of the organization, highlighting issues related to leadership development, effective communication strategies, financial planning, and the impact of autonomy on decision-making. It also explores challenges related to positioning, mergers, and acquisitions. The report then delves into the concept of sustainable business models, recommending practices such as sustainable supply chains, employee engagement, and intentional sustainability integration. The analysis emphasizes the importance of sustainable business practices in enhancing Starbucks' reputation, driving innovation, reducing costs, and attracting customers, while also addressing broader societal issues like income inequality and environmental concerns. The conclusion summarizes the findings, emphasizing the need for Starbucks to address these challenges and implement effective sustainability strategies to ensure long-term growth and success.

Starbucks
Sustainability A
Analysis of 5
foundations of growth

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Current State of the Organisation...........................................................................................1
Recommendations .................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

Executive Summary
In reference to companies, the contemporary growth challenges plays a significant role when in
comes to impacting the business operations and it further results in affecting the company and
also carrying out the various measures for the purpose to deal with the various challenges.
INTRODUCTION
The Contemporary issues basically comprises of the problems and the opportunities
which are basically faced by the companies. In this report, the organisation chosen is Starbucks.
It is an American multinational chain of the coffee houses founded in the year 1971 and
headquartered in Seattle, Washington, United States. In context to the company, the organisation
is facing a lot of contemporary issues which basically involves profit and not for profit
organisations, growing and mature and advanced and developed economies. In reference to the
report, it basically involves the critical assessment of the current state of the company with the
application of the various sustainable business models good practices.
MAIN BODY
Current State of the Organisation
In reference to the current state of the company, the five dimensions chosen are
Leadership, communications, financing, autonomy and positioning and acquisition or the merger
potential. In context to the organisation, the company is growing steadily and are not trying to
expand its operations and also the company is facing challenges at the global economic
environment (Vlachos, Bitzenis and Sergi, 2021).
Leadership: In reference to the Leadership, it is considered to be the process of impacting the
behaviour of individuals by making them strive voluntary towards attainment of the
organisational goals and objectives. In reference to Starbucks, the process of leadership plays a
very important role and for the company it is very important for them to build their leadership
potential and acquiring talents for the purpose to fight back with these issues in a effective
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manner. In reference to the organisation, the culture has major influence on the individual for the
purpose to provide more flexibility in the organisation(Verbekea and et.al, 2019).
Autonomy: In reference to autonomy, it is basically considered to be the ability of a person to
act in their own values and interests. In reference to the organisation, the organisation is set to
bring Trigo Powered Store system in their various locations. In context to company, the
organisation is very much engaged in the decision making process and execution of the delegated
frameworks and the established processes (Haupt, 2021).
Financing: In context to Financing, it basically refers to the process of offering funds for the
purpose to carry out various business activities, investing and also making purchases. It basically
comprises of the various financial institutions which comprises of the Banks and also helps in
offering capital to the businesses, investors and the consumers for the aim to achieve objectives.
In reference to the company, the first stage is known as the Ramp up phase which basically
comprises of the increase sales which is a indication for the success of the business (Agwu,
2020).
Communication and Positioning
In context to organisation, the company has to face various issues and challenges while
establishing communication with the employees in context to the starbucks.
In context to the positioning and communication, the organisation need to deal with a lot of issue
s which comprises of the following:
Lack of feedback: In context to organisation, when the employees do not interact or
communicate, it basically results in not being productive and lack of effective performance. In
addition to that the feedback helps the employees in having deep understanding about the aims
and objectives and also encouraging them to collaborate with the managers and other employees
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of the organisation. In context to organisation, when there is lack of feedback in the company it
could result in lack of interest and demotivation as the employees are unable to have deep
understanding of the aims and objectives of the company(Fung and Sergi, 2021).
Barriers related to Language: In context to organisation, when the employees are their in the
diverse workforce, the organisation might issue the problem and challenges in relation to the
employees who basically belongs to the different locations. In context to Starbucks, the language
barrier is considered to be a very important challenge and is considered to be a major business
concern for the organisation which need to be addressed. In reference to the organisation, it is
very important to have a translator for the purpose to remove the language barrier and
establishing a effective communication process. Through proper communication process, it will
help in encouraging the intercultural training and avoiding any kind of misunderstanding(Костик
and Курок, 2019).
Lack of Motivation: In context to organisation, when the employees are not rewarded for their
hard work or efforts it could result in decreasing their morale. In addition to that, the employees
are less productive and results in less productivity. In context to organisation, the company
should engage and talk with their team members for the purpose to take care of the employees
and providing them best solutions of their problems. In context to organisation, the company
should adapt the sustainable communication for the purpose to approach the investors and the
customers for the objective to grow the organisation in a effective manner. In reference to the
organisation, the company can build the sustainable communication in the company with the
help of compelling messages, clear ambitions, accessible information and the use of transparent
communication. With the help of sustainable communication, it is basically the sincerity of the
company for the purpose to share the data or information in a authentic manner in relation to the
efforts, sustainable strategies and objectives. With the help of the sustainable policies, the
company can build their reputation and can assist in overcoming the competition (Castellani and
et.al, 2018).
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In context to organisation, there are various challenges and it is very important to confront while
positioning the products which are basically discussed in relation to the starbucks.
Loss of sales: In context to organisation, another concern for the company is when the new
product is basically launched in the market it might result in meeting the customer's needs.
Development cost: In context to organisation, the major challenge is to establish unique image
and reputation of the company and for that it needs a lot of investment in the production and
advertising of the company. The cost involved in over attractive packaging and the
communication means (Crabtree and Zhang, 2022).
In context to sustainable and positioning, it basically refers to the positioning of the services or
the products of the organisation which basically offers the biological and the public presentation
during the course of the product life cycle in order to make the customers satisfied. In addition to
that, the organisation should offer the organic products for the purpose to reduce the use of
plastic bags and the reuse paper. In context to organisation, the company should adopt the
sustainability as it helps in maintaining the work life balance and creation of the better work
culture (Tseng, and Lu, 2018).
Merger and Acquisition potential in an organisation
In context to Merger, it basically refers to the process which involves two organisations
who are basically combined and form a new organisation. In reference to the acquisition, it is
basically the process when an entity takeover the other entity. In reference to Starbucks , the
organisation had faced various issues mentioned below:
Over paying: In context to organisation, the common issue which arises in the merger and
acquisition of the company. In context to the company, the organisation have to pay more for the
value and destroyed due to the challenges of the acquisition and merger.
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Recommendations
Sustainable Business Model: In context to sustainable business model, it is basically defined as
the business model which delivers, captures and creates value for all the stakeholders without
depleting the social capital and the natural economic. In reference to the company, main
objective is to deal with the various contemporary issues which plays a very important role in
implementation of the sustainable business model practices. In reference to sustainability, it is
basically the concept that helps in meeting up the need of the present without compromising the
needs of the future generations for the purpose to meet the needs. In context to sustainability, it
basically involves various practices which helps in solving the challenges and issues of the
contemporary business.
In context to organisation, there are various good practices in the sustainability which comprises
of the following:
Supply Chains: In context to organisation, the statistics basically depicts that the customer prefer
working with the companies which are environment friendly and are highly sustainable. In
context to organisation, it is very important for the company to maintain a list of the sustainable
friendly vendors and making them priority for the objective to embrace the various sustainable
business practices.
Partner with the employees: In context to the company, it is very essential to invest in the
training of the employees in context to the sustaining of the environment for the purpose to
conserve the resources.
Being intentional about sustainability: In reference to the company, the concept of the
sustainability need to be implemented into the various strategies and need to be reflected in the
goals of the organisation and its future aims. It basically depicts making the priority of the each
aspect of the operations of the organisation.
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In context to Starbucks, it is very important to resolve the issues and it is very important for the
organisation to develop the right type of sustainability work polices and also focusing on
developing policies and the procedures for the objective to reinforce the efforts of the
organisation. In context to the company, the sustainable business practices plays very important
role and helps a lot in boosting up the bottom line and also helps the company in earning more
profits and money. In context to starbucks, with the help of the sustainable business practices,it
helps in improving the reputation of the company, using more innovative strategies, reducing the
costs of business and focusing on attracting more and more customers. In addition to that, with
the support of the sustainability, it helps in resolving the issues which basically comprises of the
income inequality, gender inequality, human right issues, racial injustice and pollution.
In order to drive the social and environmental change, the sustainability initiatives basically
helps in contributing towards the company's success and thus the organisation focuses on
spending more money on the sustainability business practices in order to boost the company's
profitability. In addition to that, with the help of sustainability, it basically helps in providing
various advantages and benefits to the company which comprises of reducing the risks, getting a
competitive advantage and protecting the brand. In reference to the organisation, the concept of
sustainability is not always about sacrificing profits but it is also very important while
developing various strategies for the organisations. With the support of the right sustainable
practices, it basically involves dealing with the organisation's challenges and overcoming the
different issues.
CONCLUSION
From the above report, it had been concluded that the organisation have to face various
growth challenges for the purpose to achieve growth in the organisation and also entailing the
various ways of sustainability of the environment with the various challenges. In addition to that,
the report helps in deep understanding of the various issues which arise in the company while
adopting or going through the various growth stages. The report also focuses on the issues in
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relation to the communication and the sustainability and the positioning of the company. In
addition to that, it involves the various issues which takes place.
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REFERENCES
Books and Journals
Vlachos, V., Bitzenis, A. and Sergi, B.S. eds., 2021. Modeling Economic Growth in
Contemporary Greece. Emerald Group Publishing.
Verbeke, A., Roberts, R.E., Delaney, D., Zámborský, P., Nagar, S. and Enderwick, P.,
2019. Contemporary international business in the Asia-Pacific Region. Cambridge
University Press.
Haupt, M., 2021. The Contemporary CFO: How Finance Leaders Can Drive Business
Transformation, Performance and Growth in a Connected World. Kogan Page Publishers.
Agwu, E., 2020. Contemporary Management Approaches to the Global Hospitality and Tourism
Industry: Technology as a Panacea for Sector Growth. In Contemporary Management
Approaches to the Global Hospitality and Tourism Industry (pp. 45-57). IGI Global.
Fung, M.K. and Sergi, B.S. eds., 2021. Modeling Economic Growth in Contemporary Hong
Kong. Emerald Group Publishing.
Костик, Є.П. and Курок, О.О., 2019. HUMAN CAPITAL AND CONTEMPORARY
CHALLENGES OF GLOBAL ECONOMY. Экономический вестник университета.
Сборник научных трудов ученых и аспирантов, (40/2), pp.107-116.
Castellani, D., Narula, R., Nguyen, Q.T., Surdu, I. and Walker, J.T. eds., 2018. Contemporary
issues in international business: Institutions, Strategy and Performance. Springer.
Crabtree, R.M. and Zhang, J.J., 2022. Challenges and opportunities of contemporary sport
marketing: Strategic perspectives. In Sport Marketing in a Global Environment (pp. 1-
13). Routledge.
Tseng, P.H. and Lu, C.S., 2018. Contemporary issues and challenges for the Taiwanese maritime
industry. Maritime Business and Economics: Asian Perspectives.
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