STARBUCKS

Starbucks UK

Starbucks UK

1.1

In an organisation, there are several external factors which impact the organisation and these factors are controlled by the management but there are some factors which are beyond the control of the management. The factors which are beyond the control of the management are the external factors such as; political, economical, social and technical factors. If we take the example of Starbucks UK, factors that affected the business are the impact to several banks with penalties and fines and these fines are due to not obligation of these regulations which are prescribed by the financial institution. In this sense, these factors are important for any organisation like Starbucks UK. These factors may affect the organisation in a positive or negative way. These factors comprises for volatile and non volatile environment.

Cultural considerations also impact on business because these considerations are related to social structures. Buying patterns is also influencing the structure and understanding of business strategies. Consumer behavior and religion with different languages and lifestyle patterns are all important for successful business management.

1.2

Primary stakeholders are U.K customers and employees, Shareholders/investors, suppliers (coffee farmers)

Secondary stakeholders are U.K media, activists, NGOs, corporate relationships

Public stakeholders are the U.K Government and local communities

Stakeholder engagement is considered when the groups are affected by the organisation's purpose and also development of decision also affects them. The partners of Starbucks respond on the research of 2003 that they like to work with Starbucks because of the following reasons:

They think working with Starbucks is like working with an enthusiastic team

They can add value

Medical Benefits

There are opportunities to grow and more profit expectations

82% of the partners of Starbucks are satisfied and, partners and stakeholder involvement were found to be 73% in 2003.

1.3

According to the research and other expectations of scholars, external environment may affect the strategies of Starbucks because of laws and regulations. For a business to grow, it should consider the legal issues involved in a particular situation and have capability to cope with changes. Laws are meant to change each time and, business need to aware of these changes and also areas of consumer protection legislation and environmental legislation. There are other laws such as health and safety and environmental laws which are necessary to acknowledge while doing a business at a specific location.

2.1

Considering the five step model of George (1997), we analyse the current business plans of Starbucks.

Assess the external context

This is in terms of external factors which comprises of opportunities and threats from environment and stakeholder analysis.

Cluster opportunities and threats

In order to consider opportunities and threats, it is necessary to scale these opportunities within a scale of 1 to 15. It is also recommended to brainstorm each opportunities and threats that are related to each other.

Development of Strategic Options

It is necessary to answer one or more than opportunities and threats. It is also recommended to choose creative response and, new solutions should be considered to new opportunities and threats.

Rate the options

All the options should be rated in terms of ...