Introduction to management 

INTRODUCTION

Starbucks was established in the 1970s, opened their first shop in 1971 in Seattle's Pike place. In 1982, Seattle's Best started to offer to restaurants and espresso bars. In 1987, the organization's name got to be Starbucks. That year, stores in Chicago and Canada where opened. In 1988 Starbucks started mail-request offers of their items.

In 1991, Starbucks built an association with CARE; a worldwide philanthropic association, appropriating espresso samplers which was the start of the organization's universal development exertion. In 1996, first stores in the Pacific were opened and their product offering ventured into nourishment. In 1998-1999, extension proceeded abroad and dispersion deliberations were made to incorporate market deals locally. Further advancement of stores and item dispersal was proceeded through 2008.

Today, Starbucks offers hot and cool drinks, correlative nourishment things, espresso related embellishments and supplies, teas and other non-sustenance items through retail stores in 37 nations. The organization works fundamentally in the US where it is headquartered in Seattle; Washington and utilizes about 204,000 individuals. The organization recorded incomes of $ 7,800 billion throughout the 2008 monetary year.

MEGA ENVIRONMENT

External environment refers to the major factors and forces outside of the organization that are considered harmful for business performance to grow up.  There are both internal and external environment is included in business area. However, the elemental factors of mega environment are economic, socio-cultural, political, technological and international element.  Starbucks like any other business has had to face these factors in order to gain success. The following is a brief description on how Starbucks has faced and dealt with the international and economic elements of the mega environment.

1)      INTERNATIONAL ELEMENT

International Elements are those factors and conditions that happen outside the domestic region of the organization but still greatly affect the functioning and development growth of the business. Although Starbucks have been started in 1971 but at present, it has rapidly grow all over the world. It has shown a lot of opportunity in the international market which is one of the major reasons of Starbucks for increasing growth and success by opening stores worldwide. Hence, it is not only operating domestically but also operating and expanding in the international market. But Starbucks has come up some issue with the international growth and success of that may be affected the marketing decisions of Starbucks of outside the country.

Before planning a market strategy, business must have to understand the ways of customer thinking and use it certain products. Social critics contend that Starbucks and other American businesses are not just globalizing their brands but they are “Americanizing” the world’s cultures. In fact before Starbucks came to China, most people in China rarely drank coffee (Perreault, Cannon, & McCarthy, Jr., 2009). Starbucks has taken off its name of the branding that internationally, the name of products is not confused to the customers should have focus only as tea products.

2)      ECONOMICS ELEMENT

Difference kind of impact of economic can be in an organization which really harm the company to continue prospering.  Starbucks is known as coffee house company. When the economy is good and country is facing problem the price of products may be slightly high. However, this organization needs milk, sugar, beans to do continue Starbucks and it is a major element for Starbucks coffee house. Most of the time collecting these things they fall in trouble because there is some reasons behind it. Those are exchange currency and income distribution. Exchange currency is the major obstacles to grow up the organization. For instance, the currency always becomes upturns and downturns. The government of foreign countries may changes their fiscal and financial policies and it may be affected on Starbucks coffee company. Prior to Starbucks, may enhance the price of coffee and for this causes customer would have stoop to come to Starbucks.

Income distribution is also yet another obstacle. If a country would be a bad market, the country’s industrial structure and its income distribution will be affected. The country’s industrial structure refers to a country’s subsistence economy. For example, United States have a higher level of disposable income but other countries have narrower market disposable income. This, Starbucks may be affected by distribution of income to give salary of Starbucks employers.

TASK ENVIRONMENT

External environment of an organization which are affected on the business. Business or consumer may be part to the task environment. Competitors, customers, suppliers and labor supply, clients are included of the task environment.

a)      COMPETITORS

According to MBA-lecturers website (2011) they said that task environment is “Competitors refer to those organizations that either offer or have a potential to offer rival products or services. It means that not only the existing rivals are threat to the success of organization but potential newcomers could be disastrous too”.

There is a big competition in hot and cold beverages industry.  Companies compete for quality rather than quantity while consumers look for quality with lower prices. Coffee companies compete standard coffee excellence among the highest in the world which is no easy feat. Producing coffee takes more steps than producing wine, and coffee companies’ experts travel around the globe to ensure quality at each step.

Coffee companies try to convince coffee consumers by promising a high quality coffee. They compete well position for the future. Every company considers culture and the strength of its brands and menu offerings promise a strong future of successful growth, it also wants dominate its components.

When Starbucks realized that they were facing competition, they started to open many stores in the countries that their competitors were not in. They have more than 20,000 stores in 64 countries. And their revenue is more than $15 billion. CEO Howard Schultz sees many of store grow forward. On the company's revenue call, he said that “Our research clearly demonstrates that Starbucks still accounts for very small share of total global coffee occasions and that we are significantly under-stored in many markets, including North America, China, Brazil, and India, today our fastest growing international markets”.

b)    CUSTOMERS AND CLIENTS

According to Mba lecturers (2010) says that “customers and clients of an organization refer to those individual and organizations that purchase its products and services”.

We live in an economy where customers and clients can be fickle and easily transfer their loyalty by migrating to other service providers.  Perhaps this has been your companies experience in recent years. In order to avoid to lose customers and clients, companies have a program is called customer satisfaction and client care.  Customers and clients do not want only good service, but also how quick it is. So companies have developed processes to extract an accurate and detailed review of the services they offer to their clients and customers. They have successfully already applied the process. The use of this process provides valuable data to them so that their service delivery will be more compelling for their customers and client.  This will further strengthen customer loyalty and profitability and, at the same time, will minimize any loss or activities that could put the continuation of business services at risk. Companies think about how they can keep their customers and clients. And the process can help them how can they stop customer and client migration and able to take action to prevent minor issues becoming major headaches.

  At the point when Starbucks began their rush for achievement in the 1990s, numerous understood that it was not basically about espresso. However, the organization was centered around the accompanying elements; Atmosphere, Quality Coffee, Customer Service, and Partner (representative) Satisfaction. Starbucks looked to be a spot where individuals could relax with a decent drink and companions or possibly simply a book. This atmosphere was made to create a neighborly and nature's domain.

MANAGEMENT CONCEPT AND THEORIES

In our class, we have learnt about management concept and theories. We have learnt four kind of management concept such as organization, effectiveness, efficiency and synergy.  Starbucks follows the organization concept. Organization means to design the operation and achieve specific goals.   Herzberg; management theory concept states that managers need to follow motivator and hygiene factor then they can improve their staff performance. Starbucks managers are able to understand about their condition of work place that how they work their staff. Motivational is the function of ability to understand how their staff feel at work and how the staff will be able to achieve their work very easily and efficiently. The company always accepts feedback from its staff and customer on their product market. This shows that staff are participating responsibly on their work. The staff also can contribute at work how they feel and how they communicate with district managers.

CONCLUSION

To sum up, Starbucks is a successful company that is continuously growing up all over the world and most of the customers are chosen because of their product and nice environment in Starbucks. However, yes, Starbucks will be successful under the current leader (Howard Schultz) in the future. This is because what it did in the past 13 years is of an incredible achievement. Since, 2000 he led a transformation of the company, leading the company in to the sustainable, profitable growth with a renewed focus on Starbucks coffee legacy, advancement and the client experience. He has also inspired leaders both inside and outside the company to take action to give a hand Americans, including the effort he spearheaded in 2011 called Create Jobs for USA, a campaign designed to encourage and protect small business job creation.

REFERENCES

  

Business Dictionary. (2014). Task environment. Available: http://www.businessdictionary.com/definition/task-environment.html. (accessed 26^th of June).     

 Business solution. (2012). Environmental factors of starbucks' globalization. Available: http://bryantaodombookkeeping.blogspot.com/2012/01/environmental-factors-of-starbucks.html. (accessed 29^th of June).

Harvey, Wallbanger. (2010). Starbucks' customer retention strategies. Available:      http://harveywallbanger.hubpages.com/hub/Starbucks-Customer-Retention-Strategies. (accessed 29^th June 2014).

Judy, Ganes. (2012). Competitive landscape for coffee consumption. Available: http://magazine.coffeetalk.com/articles/april10-landscape/. (accessed 20^th June 2014).

MBA lecturers. (2010). external environment. Available: http://mbalectures.com/management/principles-of-management/632/external-environment specific-or-task-environment.html. (accessed 23rd June 2014).

Nate, Matherson. (213). Starbucks beats competition in building customer loyalty. Available: http://www.thestreet.com/story/12104711/1/starbucks-beats-competition-in-building-customer-loyalty.html. (accessed 21st June 2014).

Rodrigo. (2012). Supply chain management in starbucks and its impact on company performance. Available from: http://writepass.com/journal/2012/11/supply-chain-     management-in-starbucks-and-its-impact-on-company-performance-2/. (accessed 30^th  of June).