Internal and External Factors: Pike Market Place
In 1971, it opened its first store in Seattle’s Pike Market Place. “The company purchases and roast high-quality whole bean coffees and sells them along with rich-brewed, Italian style espresso beverages, a variety of pastries and coffee related accessories and equipment – primary through the retails stores.†(http://www.starbucks.com/aboutus/overview.asp). This store was originally named Starbucks Coffee, Tea, and Spices, which later became famous for starting a corporation of small coffeehouse around the world; the company as we know it is the Starbucks Company. The company’s objective is to establish a recognizable reputation as a respected brand in the world for their management, globalization, technology, innovations, diversity, and ethics. Throughout the four functions of management, Starbucks must always consider the internal and external factors when deciding to open coffeehouses abroad. Starbucks is an organization that has succeeded in globalization with “over 4500 coffeehouses in 47 countries†(About, 2008, International section). Starbucks is holding up to their mission statement to “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow†(About, 2008, International section). However, there were many internal and external factors the organization did not consider in the planning process. External factors out weigh the internal factors; the major internal factor that is hard to plan for is internal culture. Employees have different work ethics and attitudes from country to country. The external factors take place in the planning, organizing, leading, and controlling processes. Some external factors to be considered are: competition, different tastes, different habits, and government issues. In Management: Leading and Collaborating in a Competitive World. 7th ed., by Bateman and Snell, at the end of chapter