External/Internal Factors

External/Internal Factors

The purpose of this paper is to explain rapid change, globalization, technology, E-business, innovation, diversity, ethics and how these external and internal factors that can affect a company's management performance under these conditions.

Starbucks now has locations in Australia, Austria, Bahamas, Bahrain, Brazil, Canada, Chile, China, Cyprus, Egypt, France, Germany, Greece, Indonesia, Ireland, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Oman, Peru, Philippines, Puerto Rico, Qatar, Saudi Arabia, Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, and the United Kingdom. With locations in this many counties, Starbucks owners had to learn how businesses were operating in these countries to be accepted and allowed to do business around the world. Starbucks had other issues to deal with while trying to expand into the market. Labor unions were formed to help deal with disputes between Starbucks and the employees. The two unions are called Industrial Worker of the World and Starbucks Workers Union. In the world market Starbucks had to able to compete with other coffee sellers. In order to do that Starbucks had to keep the prices comparable to the other coffee makers that have been the world market already. Starbucks is currently fighting a battle over Fair Trade Beverages. The Fair Trade Certification was put into place to ensure farmers were being a fair market price for the products being sold around the world. (Equity in a Bottle. Beverage World; 12/15/2006, Vol. 125 Issue 12, p33-33, 1/6p). Globalization has opponents also that like to attack the company on the internet. The website URL is www.ihatestarbucks.com. The site has many entries from non-Starbucks customers and former customers too. (Staying pure. Economist; 2/25/2006, Vol. 378 Issue 8466, p72-72, 1p, 1c)

Starbucks covers Ethics on many different levels and through the following paragraphs the levels will be explained. Starbucks wants to be known as a charitable company so they donated all sale proceeds of lattes sold in Canada to a charity group that help with literacy across Canada. This shows the world how Starbucks cares for the less fortunate and helps the company to get customers and gives those customers who buy the lattes a good feeling about helping a charitable organization he or she may not have donated to otherwise. (Starbucks: Lattes for Literacy, Chris MacDonald at 2:54 PM)

From a business ethics side Starbucks chairman and chief global strategist, Howard Shultz wrote the Standards of Business Conduct. Mr. Shultz explains why the company uses the standards and why setting standards on how the company runs is important not only the company, but why the standards are important to running a successful business. He continues to say how Starbucks values feedback about how the company is performing and concerns if anyone has any. Starbucks also supports having a happy, safe and fun workplace for the employees, to ensure everyone's happiness. (Howard Schultz)

Starbucks has introduced a bottled water product named Ethos, sales of which will contribute to helping alleviate the world water crisis. The product fits in well with Starbucks' attempts to play the corporate social responsibility card and is also 'on-trend' as it capitalizes on the ethical consumerism movement and the growing popularity of bottled water in line with healthy eating trends. (Starbucks: diversity through ethics 5th August 2005) Starbucks donated five percent of the water sales to help create cleaner water sources for poor countries around the world. Starbucks wanted to show social responsibility by helping make sure children in other countries get clean water for drinking and cooking.

Diversity impacts company planning and corporate responsibility. Management has to plan the schedule accordingly, because minors are not permitted to work past 10pm, some partners need off religious holidays and/or other holidays, and many partners often request off Sundays. Starbucks and store managers plan for the hectic Christmas season. The stores are very busy and need more partners on the floor during high volume periods.

Managers can use delegation to manage the impact diversity has on planning. The store manager can delegate the scheduling responsibility to the assistant managers so that they can learn and be

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