International business Essay Example | Topics and Well Written Essays - 2750 words

International business - Essay Example In order to solve any kind of issues related to customer queries or quality of services and products offered, the company has hired well trained and skilled staff. This study proposes to evaluate Starbucks from an international strategic viewpoint. It will also shed light on the coffee industry of USA. The primary rationale behind the industry analysis is to present strategies followed by the company and the advantages and disadvantages. The organisational structure is explained in detail. Apart from the external business environment, the report will also analyse using PESTEL analysis. The next part will be about identifying the strengths and weaknesses of the company. The main findings include business strategies for future. Methodology Organisational Structure In order to combine functional and divisional structures, Starbucks have used a matrix configuration. As a result of complex matrix structure, the company is known as a mechanistic firm. There is high level of horizontal and vertical complexity, high centralisation, high formalisation, high standardization and narrow control spans. The senior management has planned to create a more streamlined and efficient structure where free flow of information will be present. This will help in exchange of important information and feedback from consumers and front level executives to the organisational level (Anthony, Gales and Hodge, 2003). In a complex structure, this is often difficult to achieve. The matrix structure is used by Starbucks in order to avoid breakdowns in communications especially in case of vertical integration. As we go down in the organisation, authority level increases. Starbucks have divided its workforce into cross-functional teams, allowing workers to report to different supervisors. This organisational structure has helped the employees to have efficient and successful communication downward, upward and lateral with the workers. Matrix structures have also helped Starbucks in creating succ essful external and internal communication. To increase internal collaboration, the management encourages discussions and exchange of ideas in a timely manner. External communication is achieved by promoting ownership and loyalty with customers and stakeholders. Regular feedback is solicited in order to generate updated customer preferences. Strategic Management of the Company In the year 1971, Starbucks was launched (Starbucks, 2013a). The firm started as a small retailer of whole beans and ground coffee, tea and spices in a single store in Seattle. Today, the company has millions of customers. The products of Starbucks include more than 30 blends of premium coffee, merchandises, handcrafted beverages, consumer products and fresh food products. Starbucks coffee and Seattle’s Best Coffee are the best selling brands of Starbucks. The corporate value of the company lies in building an organisation with a soul. The company owns more than 20,000 stores located in 50 different cou ntries (Starbucks, 2013b). These stores are categorised into company owned and licensed stores catering people all over the world. Starbucks is not in favour of franchising because of culture and quality control issues. The business of Starbucks runs on ethics and doing the right