CUEGIS on Starbucks 2(Unit 1.5).docx

WITH REFERENCE TO A BUSINESS ORGANIZATION THAT YOU HAVE STUDIED EXAMINE HOW CHANGES IN ANY OF THE STEEPLE FACTORS CAN AFFECT THE OBJECTIVES AND STRATEGY OF A BUSINESS ORGANIZATION. (THE STUDENTS SHOULD TRY TO LOOK AT STEEPLE FACTORS WHICH THEY HAVE NOT COVERED IN THEIR PREVIOUS CUEGIS)

CUEGIS on Starbucks Thar Lun Naing

This is my CUEGIS report on a global company named “Starbucks” which is famous for their great taste of coffee.

CUEGIS

Thar Lun Naing

13 November 2015

Starbucks Starbucks Corporation, doing business as Starbucks Coffee, is an American coffee company and coffeehouse chain based in Seattle, Washington. Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker in Seattle: and, since then it has been expanding rapidly to the global scale. Starbucks is now the largest coffeehouse company in the world with 22,766 stores in 65 countries and territories. Starbucks offers the varieties of coffee and beverages in every coffeehouse: moreover, through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film.

Change Due to the continuous changing external and internal factors, change should be managed within businesses if they are to move forward and remain competitive. These factors come from various backgrounds. Those include the population change, culture change, objectives change and etc...The importance of these factors determines whether the change should take place or not. Sometimes, changes are made. However, not all changes favor the businesses, but also give negative impacts on the business as the changes made do not always guarantee for the business profit. Hence, the businesses should be aware of the surrounding changes in the external environment and need to adapt to the new situation quickly not to be left behind in the business world.

Changes in external environment of the business External environment of the business refers to the issues and factors which are out of the business control. Occasionally, numerous changes are made in the area where the business operates which sometimes brings opportunities and threats to the business. Of course, managers and CEO will always try to adapt the new business environment using the STEEPLE analysis even though it is very hard to balance the factors. One of them is the change in the societies (social).

1. The change in social Social refers to the external business environment where the business is dealing with the societies. Social and cultural factors can directly affect the activities of a business. When there are changes in social demographics, it can affect the business largely by bring the opportunities as well as threats. Some of them include religion, population, culture and etc…

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CUEGIS

Thar Lun Naing

13 November 2015

2. The change in Technologies Technologies refer to the techniques that a business uses to get its own maximum performance. It is constantly changing everyday and presenting the businesses with the benefits and threats for different types of business. Today, it is very important that the businesses need to cope with the changes in technologies environment as it becomes the core to all business functions.

3. The changes in legal process and laws Legal process and those laws are imposed by the government to ensure that the general public is protected from the negative aspects of business activities. It is very unpredictable as it usually depends on the country economy. The changes in these legislations can bring us business opportunities; however, it can also challenge the business with the regulations.

Business objectives The business objectives simply refer to the short to medium term specific goals of the organization, based on its aim. Usually, objectives are measurable. There are various objectives such as ethical objective, tactical objective, and strategic objective.

Analysis Starbucks has been operating in more than 65 countries which have got different background culture and societies. So, Starbucks is fully aware of the local culture and their perspectives on coffee. Hence, their objectives are clear and they were based on that time and needed to be adjusting in order to survive in the coffee market. However, there are still some threats to the Starbucks from the changes in social. The price of one cup of coffee is becoming expensive compared to the old days. The coffee price of Starbucks in America may be reasonable as their customer income is adaptable whereas in the poorer world, it is extremely high for the majorities of the coffee lovers. Their price is often criticized and the customers’ views toward Starbucks are changing as they get other choices which are reasonable for them. This is a threat to the Starbucks and this has suggested that they need to adjust their business objectives in order to maintain their customers from the rivals. The changes in technologies of purchasing products are really fast these days. The online payments are improving and Starbucks is on it. It has made a good news for those who just want to sit and surf internet while sipping coffee. They just need to order and pay it online so that the customer saves time and enjoys with the Starbucks services. In fact, Starbucks is trying to introduce a new idea through technologies to promote their objectives.

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CUEGIS

Thar Lun Naing

13 November 2015

Increasing health concern amongst population in relation to caffeine and sugar consumption is potential threat to the Starbucks. Today, more than 1.4 billion cups of coffee are consumed daily and scientific researches on the negative aspects of excessive coffee consumptions are published to public for the awareness. So, some governments have set new legislations and laws to protect from the business negative outputs. Some customer protection laws are set that Starbucks has to follow these unfavorable standards to continue their business. Starbucks has to cope with a solution for that matter as it is becoming a concern for some communities, mainly in America where more than half population daily drink coffee. So, Starbucks has to let their customers know about their coffee contents and suggest that they keep a healthy limit on every of their services and products. It is not a very good choice for Starbucks that they have to adjust their objectives a bit because of the changes in the social.

Summary From interpreting the analysis and the written information, the changes in factors in the external environment of the business are constant and it has affected Starbucks objectives. Some of the changes in factors present the opportunities while some poses threats to the objectives of Starbucks. Hence, Starbucks has to use STEEPLE analysis to analyze the impacts of the factors to make a best choice for the maximum profit, achieving objectives and better survivals.

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