...Internal and External Factors MGT/230 Internal and External Factors Introduction To be successful organizations rely on the four functions of management: plan, organize, lead, and control. However, implementing these functions is not easy when other factors come into play. External and internal factors such as, globalization, technology, innovation, diversity and ethics all affect the four functions of management. If an organization wants to be successful they must adapt to these different factors. One company that has been able to do so is Starbucks Corporation. The adaptation and utilization of these many different internal and external factors has helped to make the company very successful. Globalization Globalization is the integration and exchange of worldwide cultures and resources. “Corporations operate worldwide, transcending national borders” (Bateman, & Snell, (2011), pp. 4). Advancement technology has led to advances of transportation and telecommunication, and these advances have led to connections and interactions between people that may not have encountered each other. Globalization has also led to an increase of available resources to companies around the world. When it come to the four functions of management and how globalization affects them, an organization must plan a companies goals and mission according to whether or not they want to globalize, export or import, then they must organize their company and departments to help implement...
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...Starbucks: Control Mechanisms Starbucks: Control Mechanisms Starbucks is the leading coffee company in the world. They have locations around the world, many of which are independently owned. In order for the corporation to keep accurate records on the stores, they have implemented many types of controls. Four types of controls used in the Corporation are Bureaucratic Control, Budgetary Control, Financial Control, and Concurrent Control. Bureaucratic Control Bureaucratic controls are control higher up the chart of an organization, have authority to dictate policies and procedures. This control starts with the board of directors, followed by the Chief Executive Officer, vice presidents, and continues as necessary. Starbucks’ bureaucratic manages through policy rules and number of operating procedures, which helps to determine the behavior of divisions, functions, and individuals. The essential of Bureaucratic Controls, the profit motive on a larger-scale enterprise tend to help the business grow and achieve a higher level of profit. The stock market valuation of the firm is the influence by expectation of future sales and profit, produce negative growth. The cost motive the economics of scale could have an effect of increasing the productive capacity of the business, and help increase the profit margins. The market power object can increase job market dominance and increase pricing power. The risk concept provide the business expansion by...
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...Organizational Design and Change at Starbucks Courtney Owens, Alyssa Shirley, Jen Smith, Jessica Wagner B U S 4 1 8 , N i g e l D a v e y Fall 12 Table of Contents Introduction.................................................................................................................................................3 Internal and External Environment...................................................................................................3 Goals and Strategies .................................................................................................................................6 Organizational Design..............................................................................................................................9 Effectiveness..............................................................................................................................................11 Conclusion/Recommendations.........................................................................................................13 References...................................................................................................................................................14 Appendices...................................................................
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...A company must get to know about the targeted market environment before it decided to operate internationally. There are the macro-environment that affects Starbucks marketing decision, economic factors, socio-cultural factors, demographic factors, political factors, natural factors and also technology factors. Economics Factor Being a producer of first-rate and specialty coffees, Starbucks requires a market that able to withstand the demand for the coffee. Starbucks marketing decisions for an economy with high disposable income that leads to high quality of life country like US. It is an example of a developed country that has the high purchasing power and spending patterns which most of the citizen in US are willing to spend more in return for a quality product such as Starbucks coffee. It shown that economic factors affect the business function and largely alarm consumer purchasing power. This requires an important market research about economic and financial stability of a city before they move it in. http://www.ukessays.com/essays/marketing/internal-and-external-factors-affecting-starbucks-marketing-essay.php There are two economics factors that help a company to determine if the country would be a good market, which are the country’s industrial structure and income distribution. Country’s industrial structure is referring to industrial economy, raw material exporting economy or subsistence economy of a country. These show the employment, product and service needs and...
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...Introduction Corporate governance could be defined as the system of regulating and overseeing corporate conduct and of balancing the interests of all internal stakeholders and other parties which are external stakeholders, governments and local communities who can be affected by the corporation's conduct, in order to ensure responsible behavior by corporation and to achieve the maximum level of efficiency and profitability for a corporation. (Jean, Anil and Mirko 2011, pp.10). Therefore, the corporate governance framework consists of explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards; the procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles; and procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances. (businessdictionary.com 2012) Starbucks Company and British Petroleum Plc are chosen to explain and discuss on good corporate governance; meanwhile Enron is chosen to explain and discuss on bad corporate governance. Since Starbucks and Enron are incorporated in the United States of America (USA), therefore these two companies will be used to compare how they governance their company under principle of corporate governance of America. Corporate Governance in United States (US) In United States, after have various corporate scandals, corporate governance has rising...
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...only operates in the UK and only provides its services to those living in the UK. It only operates in the tertiary sector as they provide a service for the public but do not manufacture, sell or harvest raw materials. Because it is a public business it doesn’t make a profit instead it uses it’s funding to help with the financial burden of medical procedures. There are down sides to this for example the NHS don’t always have the most up to date equipment. Because the service is maintained and paid for by the government they are the ones that will be held liable for any problems with the way the NHS runs or if it overspends. The NHS is limited by their annual budget for the year 2015 their budget was £115 Billion. Organisation 2 - Starbucks Starbucks Coffee is a privately owned American global coffee company and coffeehouse chain. Public limited companies become a legal entity whose assets and liability are separate from their owners. Advantages of this ownership type include limited liability meaning the owner can only lose as much as they have invested so if the company fails they don’t end up losing everything as they aren’t connected to corporation. Public limited companies can also easily raise their capital by selling shares, often on a stock market, alternatively they can get access to money via a bank loan...
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...How to build a strong employer brand? In the competitive business world, companies strive to protect their most precious asset, talent. Talent shortage is a major challenge across industries where employees with suitable technical competencies and qualities are difficult to obtain and retain in the competitive employment market. In addition, as Baby Boomers who possess substantial valuable experience for the companies retire, Generation Y became increasingly vital in the company’s workforce; study has shown that 1 in 5 worker will be above 55 years of age by 2021 compared with 1 in 7 in the year 2005. Companies not only struggle to replace the positions of the retired workforce with younger candidates with similar capabilities, they also realize that the two generations have different workplace expectations and values. Candidates are looking beyond the basic wage and benefits; factors such as career prospect, reputation, international mobility and company values also play a significant role in candidate decisions. Therefore companies need to adjust their conventional hiring method to position themselves strategically in order to capture the awareness and commitment of the top candidates. In order to attract and retain young talents, companies need to differentiate themselves from their competitors with their employer brand. Unlike product brand names that can be managed with marketing to manipulate consumer perception, employer brand needs to be cultivated through time...
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...Running Head: STARBUCKS REWARDS AND PERFORMANCE The purpose of my research is to evaluate the effectiveness of rewards on performance of Starbucks Corporation; it contains the evaluation of two main sides of motivation strategy: Extrinsic rewards and intrinsic satisfaction. Motivation is one of the main causes for industry in the process of making their production. In order to find the ways that Starbucks used to motivate their staff, research has to be done during investigation. I have collected several types of data, which are Primary data and secondary data. Normally, I will get the articles from the hunt library and Internet. In the process of analyzing the information, some essential methods will be used, such as Motivation Strategy analysis, Equity Strategy analysis and Goal-setting Strategy analysis. The issue is to investigate and to analyze the rewards and performance structure of Starbucks Corporation. Starbucks Corporation, one of the most famous retail coffee shops chain in the world, specialize in grinding, roasting, and selling special coffee beans and a variety of coffee or tea drinks. Starbuck publicize they are the “third place” between home and company, where you can get together with families and friends, or just take pleasure in a quiet moment alone with fresh coffee, book and music. Starbucks always meet its customer’s requirements; they achieve a good motivation staff which will be beneficial on its internal and external customers. Its internal customers...
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...work together for the growth of the organization, by managing and serving their employees. It was found that, nowadays, HRM has a broader scope than personnel management. Personnel management involves planning for a short time period while human resource management is concerned with long term planning. 1. Personnel management deals with employees, their payroll and employment laws. On the other hand, Human Resources Management deals with the management of the work force, and contributes to an organization’s success. 2. HRM basically deals with developing personnel management skills. It is Human Resources Management that develops a team of employees for an organization. 3. While Personnel management is external for the locus of control, Human Resources Management is internal. Personnel management is reactive and human resource management is considered as being proactive in nature. 4. Personnel management focuses on administrating people or employees. On the other hand, the prime focus of Human Resources Development is to build a dynamic culture. 5. Personnel management is independent from an organization. On the...
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...Starbucks is considers the one of the most famous coffee store brand in the world, based on the case we can find that it is on the leading position of coffee market, it has a significant sales growth compare other brand in the market. But in recent year it seems start to facing more challenges from different aspect and these challenges had became a resistance of its business expansion. 1. Financial Analysis Income statement: Based on the case we can find that there is a huge net income increase from 1994 to 1999. It is more than 10 times different within 6 years. On the other hand, the retail and specialty sales has sharply growth in these years. Net Earning |Year |1994 |1995 |1996 |1997E |1998E |1999E | |Net Earnings (US$ Thousands) |10206 |26102 |42128 |57700 |84900 |113000 | [pic] Total Sales | |1997E |1998E |1999E |2000E | |Year | | | | | |Total Sales (US$ Millions) |9 |30 |73 |150 | [pic] Balance Sheet: a. Working Capital = Total Current Assets – Total Current Liabilities | | | | | | ...
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...managers and strategic planners the employee behavior will be in with the Starbucks goals. Another issue is using available technologies to find and hire competent, committed employees that embody the Starbucks image. These potential employees need to be trained and developed from the beginning in the Starbucks manner of doing things. From these employees, a small diverse amount needs to be chosen for the “Coffee Master” program. These graduates of the black apron need to keep on top of the ever changing world of coffee flavors so ongoing training needs to be monitored. All of these employees need be a diverse, dynamic group of individuals that LOVE coffee and are working towards the common goal of making your experience at Starbucks the best it can be while still working quickly and making the company money. 2. How would an effective strategic HRM function contribute to keeping Starbucks on track? The Strategic Human Resources Management team would first have to understand the company’s mission and goals. Without this understanding they would just be putting any person into a position that would not care about the company, only a paycheck. Next they need to have an understanding of the external opportunities and threats to Starbucks. These opportunities and threats are changing all the time, so this is an evolving chart. Last the SHRM team needs a deep understanding of the company’s internal strengths and weaknesses. With this understanding they can help to minimize...
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...The Internal and External Factors Affecting Starbucks Decision-Making By Deryl McKnight June 29, 2014 MGT 230 / Prof. Ronald Sprague Globalization’s Effect on Starbucks’ Management Functions In 1987, Starbucks started as a single coffee shop on the corner of Sixth Avenue and Pine Street in Seattle, WA (Business Week, 2002). In the following fifteen years, the company grew to nearly 5,700 outlets in 28 countries. In order for this to happen, many changes needed to take place in both thinking and management strategies. Globalization affects the four functions of management in many ways. When reaching out to a global market, Starbucks needed to make changes to how they planned and organized their strategies; they also needed to take the many different business cultures into account when leading and implementing these new management strategies. When analysts gave Starbucks two years at most before it saturated the U.S. market, they needed to formulate a plan to branch out to international markets. Using the first function of management, planning, Starbucks’ managers came up with plans to expand into other countries by working with local partners in those areas. By hiring managers and workers from the local workforce, Starbucks gave foreign stores a local face for their respective areas and also allowed for each location to be managed by someone who would know that culture and be able to adapt the Starbucks ideology into it. Letting local managers handle the everyday workings...
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...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
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...Table of Contents 1.0 Introduction 1 2.0 Introduction of Starbucks 1 3.0 Current situation and Performance 2 4.0 Strategic position 3 5.0 External Analysis 4 6.0 Internal Analysis and Core Competency 11 7.0 Current Strategic Choices 17 8.0 Appendices 18 1.0 INTRODUCTION Johnson, Scholes and Whittington (2006, p.9) defines strategy as, “strategy is the direction and scope of an organization over the long term; which achieves advantages for the organization through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholders expectations. Strategic Planning is a management tool that guides an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Non-profit Organizations). The Harvard Business School contended that strategy could be a potentially powerful tool for linking business functions and assessing a company's weaknesses and strengths in relationship to its competitors' strengths and weaknesses. This can be evaluated using various management analysis as such PESTLE, Porter’s Five Forces, SWOT, TOWS, CPM...
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...While the purpose of marketing to create long-term and mutually beneficial exchange relationships between the buyers/consumers and the organisation remains unchanged, the function of marketing management has evolved to include strategic decision-making. Review and write a summary of the strategic marketing management process discussed in chapter one of the Kerin and Peterson text. The fundamental function of marketing is to create new customers and this can be accomplished by customizing the marketing mix to provide value to the customer, better than the competitor can. Marketing has evolved over the years and firms now strive to create long term relationships with its customers instead of just a one-time purchaser. The main difficulty that firms face is uncertainty arising due to constant changes in the external environment in which the firm operates in. “There is but one certainty regarding the times ahead, the times in which managers must work and perform. This certainty is that they will be turbulent times. In turbulent times, the first task of management is to make sure of the firm's capacity for survival; to make sure of its structural strength and soundness; and to make sure of its capacity to survive a blow, to adapt itself to sudden change, and to avail itself to sudden change and new opportunities.” [Drucker, 1974] Most established firms would have a Chief Marketing Officer (CMO) to head the marketing department, making day-to-day operations decisions as well as...
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