Strategic Issues and Problems Affecting Starbucks Company Essay

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Diversity

In the company, there are interactions among the people from different backgrounds, sexes, religions, and social status. Indeed, diversity that the company experiences, poses a great challenge to management, that has to assure the stakeholders and potential customers of unilateralism. In fact, it was only through impartiality that the company could achieve sustained growth. Therefore, the management had to find a way of dealing with the dilemmas before it worsens the company operations.

Conflict of Interest

In this company, conflict of interest occurs when one’s interests affect his/her duties and the level of performance. Additionally, it lowers a person’s integrity, and might cause anxiety in the company. Notably, organizational ethics calls for the fact that the workers, stakeholders and customers should not be overwhelmed with personal interests at the expense of their duties. This might compromise the quality of their produces and integrity, because self-interest and nature of the duty may not have any relationship.

Analysis and Evaluation (SWOT)

Company Strengths

The company is operated in a chain of coffee shops in various locations across the United States, the United Kingdom and Canada, thus it commands the market and beverage industry (McWilliams and Matten 42). Therefore, consumers have the freedom to select from a range of coffee drinks and products served at Starbucks restaurants. The other strength of the company is the development of a website, designed to give relevant information about the drinks and other products that it sells.

Company Weakness

The company experience is the slow in the supply of the coffee that it uses in making the drinks. It means that the quantity they receive from the suppliers is short of the market demands even within America. This emphasizes the need for increasing the production of coffee to cater for the increasing demands. In addition, the pricing of similar products that the small scale restaurants fix on similar products is also seen as a weakness to the giant company, since some of its customers are lost (McWilliams and Matten 44).

Opportunities for the Company

The quality products that the company sells and health concerns of the people in the developed nations have created an unending opportunity for the company. This shapes the buyer behavior and promotes its growth in the industry. Certainly, the involvement of the company in corporate social responsibility is also seen as an opportunity for growth (McWilliams and Matten 45). Finally, the company has built a brand in the coffee sector of the economy, hence enjoys the monopoly of the market.

Threats to the Company

The company has witnessed stiff competition from other local restaurants offering similar products. Notably, the competition is in terms of product quality, good pricing, the kind of service given to the potential clients and the varieties available for the customers (McWilliams and Matten 47).

Recommendations

In order to improve its public image, eliminate conflict of interest and increase sales volume, the company should rely on innovation to accommodate diversity and improve the services to its clients. Secondly, it has to insist on the quality of its products, which must remain at its highest. It should also carryout vigorous sales promotions thereby attract more people to buy from their stores. The measures would make most of the buyers reconsider their preference for the company products.

Works Cited

McWilliams, Crane, and D. Matten. Business Ethics: Starbucks Corporation, Oxford: Oxford University Press, 2010. Print.

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