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

International parentage - Essay ExampleIn bless to solve any kind of issues related to customer queries or quality of services and products offered, the high society has leased well trained and skilled staff. This study proposes to evaluate Starbucks from an international strategic viewpoint. It will overly swing light on the coffee industry of USA. The primary rationale behind the industry analysis is to consecrate 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 book 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 normalisation and narrow control spans. The senior management has planned to create a more streamlined and effective structure where free flow of information will be present. This will help in give-and-take 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 intemperate to achieve. The matrix structure is used by Starbucks in order to avoid breakdowns in communications peculiarly 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 polar supervisors. This organisational structure has helped the employees to have efficient and successful communication downward, upwardly and lateral with the wo rkers. Matrix structures have also helped Starbucks in creating successful external and inside 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 consignment with customers and stakeholders. Regular feedback is solicited in order to generate updated customer preferences. Strategic Management of the Company In the course 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 nourishment products. Starbucks coffee and Seattles 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 countries (Starbucks, 2013b). These stores are categorised into company owned and licensed stores catering people all over the world. Starbucks is non in favour of franchising because of culture and quality control issues. The business of Starbucks runs on ethics and doing the right