External and Internal Factors

Topics: Coffee, Starbucks, Coffeehouse Pages: 5 (1809 words) Published: May 26, 2009
External and Internal Factors
The purpose of this paper is to compare the internal and external factors that influence a company, considering the aspects of the business process including globalization, technology, innovation, diversity, and ethics. We have examined how these internal and external factors impact the four functions of management. As a final point we will describe how managers can use delegation to manage the impact that these factors have on the four functions of management. When someone thinks of coffee shops the first that comes to mind is Starbucks Coffee. Starbucks offers a variety of different coffee blends, tea, hot chocolate and a variety of pastried to go along with your coffee. Starbucks has conveniently placed drive-through to make it easier for the customer to get a coffee early in the morning or even late at night. Now you can even pick up your white chocolate mocha at the grocery store making it convenient to the customer. Globalization

Starbucks has imprinted its name in coffee history by developing into intercontinental coffee corporation that has taken the coffee industry by storm with over 11,000 stores spread throughout the world (Starbucks, 2008). Through proper planning procedures Starbucks has grown from a modest Seattle based coffee and tea business, into a colossal coffee empire. Extraordinary organization structures are an obvious prerequisite for any business that wishes to flourish in a global environment. Starbucks has an evidently successful global organization structure that has provided them with the ability to support over four-thousand international Starbucks coffee shops (Starbucks, 2008). Through exceptional practice of the leading function Starbucks has created an unyielding reputation throughout the world as a reputed leader in coffee related consumer products as well as in sophisticated global business management. Proper use of control procedures are of paramount importance when a company has gone international with its business venture. Starbucks’ mission statement states: “To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” (Starbucks, 2008). With the substantial reputation of Starbucks throughout the world and its unrelenting aspiration to expand and conquer it is of no question that they have, and will, continue to apply the function of control with superior skill in order to achieve this mission globally.

One of the main guiding principles of Starbucks Coffee is: “To embrace diversity as an essential component in the way we do business” (Starbucks, 2008). Starbucks has done just that by significantly diversifying themselves from the competition in a multitude of ways, achieving great success by applying the four functions of management to the principle of diversity in business. The planning process had been applied to foresee future changes that were required in order to diversify Starbucks in accordance with the future environmental variations. Through planning Starbucks created its own line of coffee flavored chocolates based off of their current coffee selection in order to diversify itself to an even greater extent from the competition (“Starbucks & Hershey Tie a Chocolate Knot,” 2007). With the organization function Starbucks has created attractive job opportunities and business structures of a highly diverse nature. For example, Starbucks offers a comprehensive healthcare package to all employees including employees that are working only part time. Starbucks has used the function of leading in order to create diversity in its business and become a leading provider of several Starbucks consumer products. The company is not only associated with in house coffee as they also sell CD’s, books, movies and even introduced its own bottled water product line called Ethos (Dahm, 2006).

When it comes to practicing ethical and...

References: Starbucks. (2008). Company Fact Sheet. Retrieved March 13, 2008, from http://www.starbucks.com
Starbucks & Hershey Tie a Chocolate Knot. (2007, September). Confectioner, Retrieved March 15, 2008, from Business Source Complete database.
Dahm, L. (2006, May). Ethos Water: Drinking for a cause. Beverage Industry, 97(5), 28-28. Retrieved March 15, 2008, from MasterFILE Premier database.
Starbucks. (2008). Starbucks Stanards of Business Conduct. Retrieved March 15, 2008, from http://www.starbucks.com
Coffee stimulates debate. (2006, February). Challenge Newsline, Retrieved March 16, 2008, from Academic Search Premier database.
Dalal, Sanjay (2006). Innovations Brewing At Starbucks. Retrieved March 12, 2008, from: http://creativityandinnovation.blogspot.com/2006/12/innovations-brewing-at-starbucks.html
Starbucks Corporation News-New York Times; Retrieved March 12, 2008;
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