Organization Environment: Starbucks vs. The Competition

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ORGANIZATIONAL ENVIRONMENT

Starbucks vs. Competition

Organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization (Daft, 2009). One organization that has faced environmental factors which required them to change their current organizational strategy, is the Starbucks Corporation.

Starbucks Corporation is considered the top provider of premier coffee products in the world (St. Johns, 2007). Their coffee buyers travel to coffee farms in Latin America, Africa and Asia to select the highest quality Arabica beans (Starbucks Coffee Company, 2011).

Circumstances that brought changes in Starbucks

Starbucks have been struggling amidst a faltering economy, its own rapid growth (international expansion and growing presence in other countries) and increased competition from rivals, both inside and outside, of the coffee market sector.

For many years, Starbucks’ most challenging competition came from other coffee house companies such as Caribou Coffee, Tim Hortons, Panera Bread and smaller single proprietary establishments. However, recently fast food chains have latched on to the consumer trend in premium coffee products, and are aiming to gain market share in the market for coffee and coffee-products such as espresso and cappuccino, and with substantial financial, marketing and management resources, they could be very successful (Dockett, 2007).

The two main rivals to Starbucks right now are undoubtedly McDonalds and Dunkin Donuts. McDonalds currently announced that it would be implementing cappuccino and espresso machines in its stores. McDonald’s also offers a new Premium Roast coffee, which it claims, i...

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Sebastian Alvarado Starbucks Corporation (SBUX) Recommendation: BUY

Michael Docket

http://www.stjohns.edu/media/3/1777fbd1bc794c54adc4265a33eea786.pdf

Daft. Richard. Organization Theory and Design, 10th Edition. South Western Educational Publishing, 5/24/09.

Confronting Reality: Doing What Matters to Get Things Right, by Lawrence A. Bossidy and Ram Charan, is published by Crown Business Publishing Daft, Richard. Organization Theory and Design, 10th Edition. South Western Educational Publishing, 5/24/09.

25. Joseph E. McCann and John Selsky, “Hyper-turbulence and the Emergence of Type 5 Environments,” Academy of Management Review 9 (1984), 460–470. (Daft, Richard. Organization Theory and Design, 10th Edition. South Western Educational Publishing, 5/24/09.

Starbucks By: Christine Smithhttp://www.article-buzz.com/Article/Starbucks/533473.

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