PESTLE Analysis of Starbucks Introduction The macroeconomic environment that Starbucks operates in is characterized by the ongoing global economic recession, which has dented the purchasing power of the consumers.
Public Domain Starbucks Corporation Starbucks Coffee Company uses its organizational structure to facilitate business development in the global coffee industry. As the largest coffeehouse chain in the world, the company maintains its industry leadership partly through the appropriateness of its corporate structure.
Starbucks evolves to ensure that its organizational structure matches current business needs. This structure fits within conventional typologies of Pestel analysis for starbucks china structures. Similar to the case of other multinational organizations, the company employs its structural characteristics to ensure that its operations are streamlined and properly managed.
Starbucks Coffee Company supports its competitive advantages through the characteristics of its corporate structure. Through the effective design and development of its organizational structure, Starbucks Corporation keeps growing despite competitive pressure from these firms in the international market.
In this case, the structural design involves intersections among various components of the business. Functional hierarchy Product-based divisions Teams Functional Hierarchy. For example, the company has an HR department, a finance department and a marketing department.
This characteristic is hierarchical. The functional hierarchy of the corporate structure facilitates top-down monitoring and control, with the CEO at the top. The company has three regional divisions for the global market: Also, in the U.
Each geographic division has a senior executive. In this way, each local manager reports to at least two superiors: Each division head is given flexibility in adjusting strategies and policies to suit specific market conditions.
Starbucks has product-based divisions in its organizational structure. These divisions address product lines. For example, the company has a division for coffee and related products, another division for baked goods, and another division for merchandise like mugs.
This feature of the corporate structure enables Starbucks to focus on product development. In this way, the company develops and innovates its products with support through its organizational structure.
Such development provides competitiveness that the business needs, especially in considering the threats identified in the SWOT analysis of Starbucks Corporation. However, teams are most visible at the lowest organizational levels, particularly at the coffeehouses.
Team effectiveness is a major determinant of the financial performance of franchised locations and company-owned coffeehouses.
However, the ones enumerated above are the most significant in shaping strategic management decisions in the business. Also, different levels of the organization are responsible for maintaining the integrity of the corporate structure.
Bythe company was expanding rapidly, such that it shifted focus away from customers and toward strategic global expansion. However, the business experienced significant decline in sales in that year. This decline was worsened because of the lack of focus on customer experience. The current corporate structure of Starbucks is a result of reform to improve customer experience and business financial performance.
The company recognizes the importance of strategic alignment involving various facets of the business.Starbucks PESTEL Analysis: Technological Factors as Source of Competitive Advantage Posted on April 4, by John Dudovskiy PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors.
Considering the fact that Starbucks is planning to enter the market in India, the PESTLE analysis is going to evaluate favorable and unfavorable conditions in the country’s political, economic, social, technological, legal and environmental setting.
Starbucks Corporation Report contains a full analysis of Starbucks McKinsey 7S Model.
The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces and Value Chain analysis on Starbucks. Find essays and research papers on Economics at timberdesignmag.com We've helped millions of students since Join the world's largest study community.
PESTLE Analysis of Starbucks Introduction The macroeconomic environment that Starbucks operates in is characterized by the ongoing global economic recession, . PESTEL analysis of China. The aim of this article is to explore some of the political, economic, social, technological, environmental, and legal factors affecting China.
Political factors affecting China. China is one of the most powerful countries in the world.
It is a permanent member of .