Management and Business Context for Starbuck- myassignmenthelp

Question: Discuss about the Management and Business Context for Starbuck. Answer: Organizational Structure Starbuck is one of the giants in the world in coffee business. Starbucks deals with his business with a smooth, transparent and well-communicated organizational system. Despite all these Starbuck have struggled to compete with the strong coffee culture of Australia and had to close their major outlets in the country (Noe et al., 2006). External Forces PESTLE analysis: PESTLE is a tool, which is specifically used to analyze and understand all the six aspects of a business. In Australia, there is a scope of expanding their regional market and develop their infrastructure whereas Bureaucratic Red tape. The rising labour costs in Australia is a major concern for Starbucks and that is one of the reasons of their downfall. The constant innovations of home appliances and the easy availability of the coffee machines is a matter of concern for Starbuck whereas Starbucks has many opportunities to recycle the packaged products and to better their environmental norms. Despite the new wave of mobile applications, Starbuck could not capitalize on it, as they could not provide their consumers with an organic experience (Meyer 2017). Porters five forces theory model: According to the Porters model, every company has five forces of strength and weaknesses in the market, namely competitive conflict, price of products to allure the customers, right form of replacement products, threat of new entrants in the business and dealing with the suppliers. As a large and well-known brand and high production quantity Starbuck has low cost of production and diverse variety of products. Despite all this Starbuck did not work on their products and wanted to repeat their success story of US in Australia (Meyer 2017). The products were not suitable for the market Down under and that resulted into their downfall. Internal Analysis Starbucks invested a large sum of money as a new entrant in the Australian market. They opened stores in every major city of Australia but unfortunately they chose wrong locations. Their caf in Lygon Street is one such example. The system of presentation of these stores were very much American which is not familiar with the Australian coffee lovers. Starbucks opened 84 cafes around Australia in 200 and according to the recent reports they are forced to close down 60 out of them. Starbuck is running with a loss of $143 million (Noe et al., 2006). Risks Confronting the Firm The new entrants are offering better offers, especially the local competitors of Starbucks in Australia understands the requirements and likings of the Australians in a much better way. Australian cafes are mostly like community hubs unlike in America. The cafes are not inferior to restaurants, which should be understood by the administrators of Starbucks. Starbucks is pushed down to the third place in Australia (Gregory, 2015). Starbuck should enhance their products according to the taste of Australians and the cafe structure of Starbucks also should be renovated according to the market (Munchies 2017). Organisation and Business Practices Analysis of Starbucks High Performance work practice: One of the special features of this coffee giant is its ability to transform itself with time; with effective leadership, able administration and a compact organizational structure. The structure of Starbuck is classified into four parts; functional structure, geographical structure, product-based divisions and small teams (Gregory, 2015). Effectiveness of HPWP programs: These structures work separately in their own methods and maintain a internal connectivity to enhance the quality of goods and services of the company. Organisational Functions of Diverse Firms There are various types of divisions in the structure, the functional structure like the HR department, finance department and the marketing department act on their respective subjects. The structure is also divide geographically, every geographical team acts according to the requirement (Meyer, 2017). There are specific teams for each product and other smaller teams for special tasks. References Gregory, L., 2015. Starbucks Coffees Vision Statement Mission Statement.Retviered from https://panmore. com/starbucks-coffee-vision-statement-missionstatement. Meyer, P. (2017).Starbucks Coffee Companys Organizational Structure - Panmore Institute. [online] Panmore Institute. Available at: https://panmore.com/starbucks-coffee-company-organizational-structure [Accessed 20 May 2017]. Munchies. (2017).This Is Why Australians Hate Starbucks. [online] Available at: https://munchies.vice.com/en_us/article/this-is-why-australians-hate-starbucks-58acd87313f4b0c58c4f1b65 [Accessed 20 May 2017]. Noe, R. A., Hollenbeck, J. R., Gerhart, B., Wright, P. M. (2006). Human resource management: Gaining a competitive advantage.