Organizational Domain of Starbucks

Topics: Starbucks, Coffee, Dunkin' Donuts Pages: 3 (822 words) Published: October 29, 2012
Starbucks operates more than 15,800 stores internationally and employs roughly 140,000 employees. It increase expansion makes it complex to handle the operations. The effect of the forces on the complexity of the Starbucks’s environment is the Starbucks imports its coffee beans from around the world, therefore emphasizes the importance of political stability of other countries to Starbucks. Political stability of coffee-supplying countries, as well as the relationship between coffee producing countries and the United States is very important to the company. Labor dispute, war or terrorism can greatly affect the relationship between Starbucks and its coffee suppliers, and this will adversely complicate Starbucks operation. Supply and price can be affected by political conditions of the producing countries. Legal forces such as changes in import laws would greatly influence numerous areas of production for Starbucks. The cost to import increases or the process is made more complex, the result to those could ultimately be a change in price, and this would affect the consumption level of Starbucks coffee. Another forces cause complexity in Starbucks environment is competitor. Starbucks expanding into the global empire, so, the competition is not just in the one area but in a global. This is not easy to control and fight with competitors. Next, the effect of the forces on the dynamism of the Starbucks’s environment is technological. This include introduction of new technology in coffee making which is quick and in expensive while providing the same excellence in quality level. Innovation has brought the Starbucks to have different product lines. Starbucks sells a lot of items and the Starbucks brand has grown beyond coffees, offering rich blends of Tazo teas, Ethos water, and cool blended beverages as well as delicious bakery, treats, and Starbucks merchandise that includes espresso machines, brewers, and other coffee or tea related items. Expanding even beyond the...
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