Internal and External Factors Essay

1279 Words Jul 20th, 2014 6 Pages
The Internal and External Factors Affecting Starbucks Decision-Making
By Deryl McKnight
June 29, 2014
MGT 230 / Prof. Ronald Sprague

Globalization’s Effect on Starbucks’ Management Functions In 1987, Starbucks started as a single coffee shop on the corner of Sixth Avenue and Pine Street in Seattle, WA (Business Week, 2002). In the following fifteen years, the company grew to nearly 5,700 outlets in 28 countries. In order for this to happen, many changes needed to take place in both thinking and management strategies. Globalization affects the four functions of management in many ways. When reaching out to a global market, Starbucks needed to make changes to how they planned and organized their strategies; they also needed to take
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To put it succinctly, globalization had a broadening effect on the four functions of management, where Starbucks is concerned. Branching out to a global market caused Starbucks managers to broaden their thinking, planning, and overall business plan. Through these methods, Starbucks today has 20,891 stores in 62 countries and is still growing (Loxcel, 2013).
How Technology and Innovation Play a Part in Starbucks’ Plan
When it comes to technology and innovation, Starbucks decision-making in this area has put it on top of the specialty coffee market. There are many ways that Starbucks has used technology to spread its fan base, but they have also introduced new technology into their stores, from free Wi-Fi hotspots to new, cloud-based coffee brewing machines. Here are three ways that Starbucks has used technology and innovation in the recent years.
Starbucks now has Clover cloud-based coffee brewing machines in over 1,000 of its stores world-wide. These machines are web-based and can, ”Control brew time and temperature digitally, using cloud technology to update recipes, track customer preferences and monitor coffee makers’ performance” (Taylor, 2013). Technology of this kind can definitely save time and make decision making much easier, especially with the amount of demographical information at the manager’s fingertips.
The second innovation in technology is the Starbucks Mobile App. From the description in the App Store, this app will let you pay for your drink

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