Within and across North America, the Starbucks Coffee Company is the most successful retailer of the premium sphere coffee products. Initially established in 1971, the organization has developed into a leading business entity in international retail stores in different parts of the world. The firm’s primary purpose is to continue its development as the most valued coffee franchise although offering the premium coffee in the global market. Currently, Starbucks is regarded as a worldwide organization, since it has managed to establish over five thousand coffee stores in forty-seven countries and had investments that enabled it to have over five thousand coffee stores by the end of 2009.
Their global chronicle started in 1996 along with the initial entry in foreign market happening in Tokyo, Japan. The company confidently consider that the welfare of their community, environment, and its people who are either directly or indirectly influenced by the activities of the Company. These ideologies offer a prestigious and verified work environment for employees within every retail store owned and managed by Starbucks both in local and international markets such as the United Kingdom. Furthermore, as based on the study findings, Starbucks undoubtedly contributes to the success and sustainability of the U.K economy, the well-being of the U.K community, as well as the natural environment, where the company has operations.
Globalization has transformed the aspect of this industry since 1980. Thus, three critical changes have happened in this business environment as from1980. The initial one is strengthening the commercial segment from local to global — secondly, the access of foreign markets by expanding a company’s operations and activities across financial positions. Lastly, growing and intensifying business competition in the international demand for food products.
Millions of individuals in different parts of the world walk into Starbucks on a daily basis for their cup of tea. However, it is more than the extortionate coffee, which gets people in Starbucks stores on a regular basis around the world. The corporation provides a positive working environment and approachable, co-operative staff to aid consumers in any query or challenge they could have with the coffer or services (Starbucks Coffee Company, 2019). Though different business models are in existence, the structure and values of Starbucks is an exceptional approach to emulate, because of its local and international progress. The researcher scrutinizes the influences of the mutual aid the Starbucks Coffee Company on the U.K commercial environment as a successful transnational business entity.
The thesis aims at clarifying the effects of the Starbucks Coffee Company and its assistance on the growth and development of the U.K business environment. Also, the dissertation is organized in this manner: Study and Research Questions, Project Management Strategy, The Importance of Work Breakdown Arrangement, Literature Review, Methodology, Preliminary Results, Results and Discussion, in addition to the Evaluation, Limitation of the Research, Recommendations, and Areas for Future Research. Moreover, the supposition of the assignment depends on the research discoveries, which were logically gathered and evaluated.
The project focuses on to evaluate the effects of the Starbucks Coffee Company in the commercial structure of the U.K plus its inputs to the growth and improvement of the global economy.
Study Aims and Objectives
The Main Study Question
How to assess the effects of the business activities of the Starbucks Coffee Company in foreign markets such as the United Kingdom.
The project begins February 20th to 20th March
The Researcher plans the project management strategy with the guidance of the inputs of the major participants, as well as the team directed associated with the project. An effective project management strategy is considered as formal, putative documentation that clearly explains how the research is executed, administered, and systematized. It is regarded as a summary of the whole project or a comprehensive document describing each stage in detail. Also, it could comprise preliminary facts, secondary administration approaches, as well as supplementary planning techniques. Here, the researcher uses the project management plan to define the method utilized to convey the projected project supervision scope of the research. It is a collection of secondary techniques and principles that consists of the following.
At the beginning of a project, the quantity of work and preparation needed might appear overpowering. There can be loads of tasks, which ought to be accomplished at just the appropriate time and within the appropriate structure. Experienced project directors discern how it is usually easier to manage the details of a given project and undertake the essential steps in the proper arrangement when breaking down the project into stages. Apportioning the project management inputs into these five stages might assist to provide these inputs with a logical structure and simplify them into a series of coherent and convenient phases.
|Stages of Project Management||Duration|
|Project Initiation||February 20th|
|Project Scheduling||February 21st -February 25th|
|Project Implementation||February 26th –March 5th|
|Project Observation and Supervision||March 6th -March 14th|
|Project Closure||March 20th|
Project Initiation (February 20th)
It is the initial phase of a project lifecycle. It is where the venture’s value and viability are quantified. Project directors frequently make use of two appraisal apparatuses to agree whether or not to accomplish a given undertaking. Business case report, it is a script that validates the necessity for completing a particular project, and it entails an approximation of prospective monetary advantages. The additional approach is the achievability analysis that is a review of the venture’s aims, costs, and timetable to decide if the project should be completed. It stabilizes the essential needs of the task along with all the accessible capitals to verify whether it is sensible to conduct the project. Project teams leave recommended projects, which are branded unbeneficial or unattainable. But, projects which surpass these two facets might be assigned to a selected project office or an effective project team.
Project Scheduling (February 21St-Feberaury 25th)
As soon as the project gets the endorsement, it requires a concrete strategy to direct the project team and make sure they work within the limits of time and cost. A well-drafted project strategy offers critical direction for generating valuable yields, managing risks, fashioning approval, communicating benefits to investors and interested parties, and handling contractors. Also, the project approach prepares teams for the barriers they might experience over the progression of the project and assists them to comprehend the scope, timeline, and cost of the project.
Project Implementation (February 26th –March 5th)
It is the point, which is frequently related to the project management. An operation is only interested in fashioning deliverables that realize the needs of the consumer. Project directors or team leaders attain this by distributing resources as well as ensuring that team participants are focused on their assigned preps. Project operation relies significantly on the preparation phase. The work and capacities of the crew during the implementation stage originate from the project strategy.
Project Observation and Supervision (March 6th-March 14th)
Observation and supervision are at times conjoined with implementation since they commonly take place simultaneously. As the project team accomplishes their project strategy, they ought to frequently observe their advancement. To pledge conveyance of what was guaranteed, project teams are required to consistently monitor assignments to prevent scope sneak, measure strategic performance pointers and monitor disparities from prearranged time and cost. As a result, this constant attentiveness assists in making sure that the project is moving forward efficiently.
Project Closure (March 20th)
Projects teams summarize and close a given project when they provide the completed project to the client, communicating finishing points to the investors and interested parties, in addition to discharging resources to other ventures. As a consequence, it is an essential stage within the project lifespan since it enables the project team to assess and record project, making use of previous project inaccuracies and attainments to create resilient procedures and more prosperous project teams. At times, project management might appear irresistible, breaking it down into these five distinctive phases might assist the project team to handle even the most multifaceted and challenging projects, as well as manage time and resources effectively.
The sources used to gather essential data and information for the project consist of online sources like Starbucks’ online platform, previous studies regarding the theme under scrutiny, scholarly articles and journals, in addition to certified books. Moreover, a few hazards were encountered during the project that comprises mental distress that I experienced while taking part in the study as time pressure and evaluating the collected data. Luckily, there was no bodily injury.
A multinational or transnational company is a commercial enterprise, which possesses production units, distribution chain entities, and supplementary divisions beyond the boundaries of their country of origin and manoeuvres the usage of its essential resources on a global level (Forsgren, 2017). Such companies invest in the international market within the realization of raw materials and branches that offer a company’s products or services both in local and foreign markets. The significant attribute of a transnational organization is being assimilated in more than one country and conducting its business activities in multiple states. Hence, such organizations have offices or production units in various countries and consist typically of a centralized form of governance where they harmonize worldwide administration. Enormous transnational companies have financial plans that go beyond those of small or developing nations (tutor2u, 2019).
Closely all central and successful transnationals are either Western European, Japanese, or North American like Wal-Mart, BMW, AOL, Coca-Cola, Adidas, Honda, and Toyota. Campaigners of international companies claim that they generate prestigious employment opportunities with high paying wages and benefits. Also, they offer technologically advanced products or services in host countries, which might be not accessible. Alternatively, opponents argue that international companies have an unjustified political impact over host governments, take advantage of unindustrialized countries, and are a significant contributor job loss within their home countries. Exploitative practices, human rights manipulations, and interference of more-conventional ways of life and economic development are among the risks that are experienced by host nations.
The account of transactional companies is closely correlated with the history of colonization and imperialism (Tamzini et al., 2017). Majority of the first cosmopolitan companies were made to order at the directive of European sovereigns to carry out missions. The first multinational company was established by the British in 1660, known as The East India Company, and had its headquarters in London. The company was interested in exploration and exploration, along with exchange posts within and across India. Extra examples comprise the Hudson’s Bay Company that was amalgamated in Canada during the 17th century and the Swedish Africa Company, which was instituted in 1649.
There are four essential groupings of international organizations that exist and conduct their business activities both in the local and international market, which consist of:
There are understated dissimilarities between the different forms of international companies. A good illustration of this is a multinational company that has its origins in more than one nations and diversifies its operations in more than two countries for an increased capacity for national response (Tamzini et al., 2017). Nestle is a tremendous instance of a multinational establishment that executes its financial and decision-making verdicts within and separate from its centre of set-ups. In the interim, a transcontinental organization regulates and accomplishes its services in multiple countries. As a result, this form of multinational will invest in foreign markets to stake an ownership right, in this manner eluding operation costs. For instance, Apple is an excellent illustration of multinational business entity, since it attempts to take full advantage of cost benefits via investing in foreign markets for the production of their products.
There are numerous advantages related to the establishment of multinational corporations. Having operations in foreign markets such as Asia and Africa enables a company to meet the needs of consumers in both continents devoid of the operation costs correlated with overseas distribution. Companies have a habit of instituting business activities in economies where their resources are most competent, or production costs are the lowest. By manufacturing the high-quality products or services at affordable rates, international companies decrease prices and upsurge the buying power of customers in the global market. Inaugurating business activities in multiple countries a foreign company is capable of benefiting from tax variations by putting in its commercial operations formally in a state where there are comfortable tax rates (Forsgren, 2017). Additional advantages consist of creation of job opportunities in host nations such as the United Kingdom, as well as proving revenues for the host nations.
The cost of affordable prices or a balance of globalization is that local job opportunities are vulnerable to shifts in foreign economies. It is computed that between 2001 and 2010, USA lost over thirty percent of its industrial works, which is over five million jobs as pointed out by the Bureau of Labour Statistics (BLS). As a result, this data highlights how essential it is for a market to have peripatetic or elastic personnel, to prevent job losses as a result of market fluctuations. In this regard, the development of new abilities and modernized education that is compatible with evolving technologies are essential to upholding an adaptable and flexible labour force.
Critics on multinational companies point out that they are an approach for organizations to create a monopolistic condition for various products, thus increasing rates for users. Also, multinational companies are believed to have damaging effects on the natural environment since their business activities can promote land development, in addition to the exhaustion of natural resources (Editor, 2019). Moreover, the institution of international companies in a host state’s market structure can lead to the collapse of SMEs and domestic businesses. Moreover, civil activists have ascertained that transnational corporations break moral values, convicting them of circumventing just regulations and anchoring their commercial schedule with investment.
Thus, as per the description above concerning the conception of transnational corporations, I have discerned the importance in addition to the contributions of multinational establishments in the growth and development of overseas economies like the market and commercial environment of the United Kingdom.
Qualitative Research is mainly an empirical study, which is employed to gain a critical comprehension of fundamental reasons, views, and incentives. It offers understandings into the problem under study or assists to generate hypothesis or ideas for possible quantitative analysis (Bryman, 2017). Also, it is employed to discover trends in opinions and thought, in addition to getting deeper into the problem under scrutiny. At this point, techniques of data collection differ using semi-structured and unstructured methods. The sample size is usually small and is chosen to satisfy a particular proportion.
In contrast, according to Brannen, (2017) quantitative Research is employed to compute the problem by the approach of producing analytical data and data, which can be converted into valuable figures. It makes use of quantifiable data to communicate evidence and reveal essential patterns in the study. The methods of data collection are more structured, and it is employed to compute opinions, conducts, attitudes, and other described variables, and generalise findings from a larger sample populace.
The method and presentation of my research conclusions in the primary study are based on the personal and confidential data of a questionnaire answered and accomplished. Fifty contributors participated in the project, who correspondingly characterized different parts of the state. At this point, there are eight essential but straightforward questions, the Gantt Chart will be evaluated at a separate page, and the appraisal frequencies and proportion will aid at illustrate and authenticate the stages and management of the project.
Sample Scope= 10 contributors
Yes= 80%, No=20%, and Other=0%
According to the above chart, it is evident that individuals in the United Kingdom comprehend the notion of Multinational companies. Thus, this shows that the population is aware of the existence and influence of multinational companies in the country.
Sample Scope= 10 contributors
Caffe Nero =40%, Greggs=30%, Costa=20%, and Pret A Manager=10%
According to a survey conducted by English, (2019) it was concluded that Cafée Nero coffees had the best blend and Greggs’ latte has a fantastic value for money and has a guaranteed Fairtrade and the company advocates for environmental sustainability. Both coffeehouses are serious business competitors for the Starbuck Coffee Company with exclusive deals for consumers.
Sample Scope= 10 contributors
Strongly Agree=10%, Agree=20%, Neutral=0%, Disagree 30%, and Strongly Disagree 40%
It is apparent that people have faith in the kind of business activities conducted by the Starbucks Coffee Company in the United Kingdom since the firm has insignificant detrimental impacts affecting the market structure of the United Kingdom. It is as a result of the practical measures implemented by the company in valuing and protecting human rights within every locality where the company conducts its business activities .
Sample Scope: 10 Contributors
Yes= 60%, No=30%, Don’t Know=10% and Others=0%
As pointed out by the doughnut chart, it is proven that the impacts of the Starbucks Coffee Company reinforced foodstuffs and facilities awareness to the users and safeguarding of their way of life. Therefore, it is a consequence of assimilating traditional and ethnic understandings where the firm carries out its commercial operations. Considerable alterations in consumers’ way of life are already taking place, but the company is using modernized technologies such as the usage of social media to market its products and services. Instead of serving in an unstable condition, the enterprise emphasizes cultural variations, which determine the progress and future of a community. By applying such a method, the organisation sites its foodstuffs, facilities, in addition to its brand for consistent commercial success.
Sample Scope= 10 Contributors
Yes= 80%, No=20%, Don’t know=0%, and Others=0%
Majority of the participants agree that the Starbucks Coffee Company influences the social construction of host nations. The impact of multinational enterprises on job opportunities, wages, salaries, and working conditions affects the stability of economies. Also, the firm has to adhere to the laws of the land and improve the lives of the people living in the countries where they operate.
Sample Scope= 10 Contributors
Yes= 70%, No=30%, Don’t know=0%, and Others=0%
It is apparent that the Starbucks Coffee Company has affirmative effects on the market system of the United Kingdom since the company promotes the creation of job opportunities. Therefore, as an outcome, it takes part in the growth and development of the economy, generating incomes for the government via licensing and collection of taxes.
Sample Scope= 10 Contributors
Yes=80%, No=20%, Don’t know=0%, and Others=0%
Here, it is evident that the majority of the people who took part in this study are in support of government regulation concerning the operations of multinational companies in foreign markets. As a result, as per the guidelines of Section 13 of the United Kingdom Industry Act 1975, the Secretary of State for Business, Energy, and Industrial Strategy is authorized to ban authorisation by any foreign enterprise to invest in the U.K, which might be as an outcome of lack of compliance with the required standards set aside by the government.
A. Strongly Agree
E. Strongly Disagree
Sample Scope= 10 Contributors
Strongly Agree= 60%, Agree=30%, Neutral =0%, Disagree=10=%, and Strongly Disagree=0%
As shown by the frequency chart majority of the people who took part in the study concur that the changing and dynamic nature of multinational corporations promote the growth and development of the economies of host nations, such as the United Kingdom. When such a company ventures in overseas markets, the scale of the venture is anticipated to be significant. Usually, governments offer inducements to attract foreign investors; such incentives comprise grants and subsidies.
Based on the literature review, the effects of multinational enterprises consist of both negative and positive impacts. Thus, the Starbucks Coffee Company is the legendary and biggest coffeehouse in the international marketplace, and it has its command centre in Seattle, Washington in the United States of America. The company markets drip prepared coffee, coffee beans, hot and cold sandwiches, snacks, espresso-based hot drinks, panini, and additional hot and cold drinks. The Starbucks Coffee Company has continuously been the place to discover the world’s greatest coffees. Also, the firm inspires and nurtures the social spirit, that is, “one person, one cup, and locality at a time.”
During May 1998, the company has productively accessed European market structure via the procurement of sixty-five Seattle Coffee Company outlets in the United Kingdom. The two business entities shared a collective philosophy, aiming at a prodigious obligation to custom-made coffee products, comparable organizations principles and universal reverence for the well-being of individuals and the entire society, in addition to the natural environment. The plan and the working conditions of the company’s stores are precisely intended to be tranquil and friendly while offering consumers personal space to exploit as according to their preferences.
Multinational companies create endless opportunities that promote entrepreneurship, maintains a culture of inventiveness and market competition, thus ensuring that there are affordable products and services in the global market and production of high-quality products. Moreover, the enterprise offers job opportunities to the youths, thus promoting the early careers of young people. The kind of coffee the company uses is morally obtained and endorsed by Conservation International as directed CAFE Practices programme and Fairtrade in some of the large European markets like the United Kingdom. However, critics claim that Starbucks anti-bias teaching and campaign might serve up more damage than good.
Yes, the reflection of study is specific and reliable because of its logical flow and methodology. The method applied has helped the process of assessment of data in terms of figures, research process. There is consistency in the proceedings of the original study with objective and balanced procedures, findings, as well as the conclusion, which adhere to the standards of other entities or individuals. Additionally, the research project has been essential on a personal level, since I have been able to avoid vague and generalised reasoning and concentrate on personal development, as well as the research journey is an imperative and unbiased approach.
The research project experienced a few risks that were alleviated by the making sure there is transparency, reliability, and accountability during the process of data collection. Focused methods of partiality within the project, answer sheets were filled lacking fear, anxiety, or act of kindness.
No changes were executed in regard to strategies and methods used in the study and the process of data collection. Every doing is confidential, the operations of management and evaluation help in handling risks and preventing mistakes that might arise while conducting the project. Reliability was as directed by ethical principles, which were enumerated and extended to accomplish study goals and objective. Also, the general findings were in accord with the preferences of the participants and interest parties, who demonstrated an incorporated concurrence that multinational corporations had impacted the economies and cultures of host nations like the UK.
The study findings are reliable and consistent as a result of the tools, methodology, and processes used to act guidance for the existing presentation in data collection, techniques, authenticating study outcomes, as well as the conclusion. Moreover, the project accomplished its projected intention and its general potentials. Reflecting on the study, primary research is reliable for future studies because the study findings have validated the methods used. The secondary analysis is dependable due to the utility of certified and credible secondary sources.
A proposal to protect the Company’s operations, services, and products against imitation to antagonistically revolutionise, particularly within the segments of product development. Modernisation might make the organisation’s services and products more challenging to imitate. Additionally, the company ought to implement innovative branding and marketing policies, that enhance Starbucks organisational image as a supporter of community growth and development. Thus, these essential recommendations concentrate on reducing the adverse effects of both the external and internal facets of the company.
The Starbucks Coffee Company contributes to the growth and development of foreign markets. However, just like any other multinational company, it has both negative and positive impacts on the cultures and economies of host nations. The initiatives, which the company establishes has sanctioned people in host nations, thus enabling them to meet daily needs and living a happy life. Notwithstanding the benefits that are correlated with multinational companies, the influence of financial misconducts, violations of human rights, destruction of the natural environment, and political interference are much felt by host states. The services and products offered by these companies might cause health problems. Therefore, there a necessity to regulate the activities of multinational corporations by host governments.
Appendix:( Gantt Chart and Questionnaire)
Appendix 1: Gantt Chart
|Activities||1st week||2nd week||3rd week||4th week||5th week||6th week|
|Searching for the topic and Choosing the company. Starbucks Company|
|Creating a case study: Research principal information|
|Production the literature review, Creation of Questions and the Questionnaire Printing the questionnaire|
|Selecting appropriate methodologies for the project|
|Selecting appropriate participants to take part in the project|
|Accomplishing collection of primary data Distribute printed questionnaire to the contributors|
|Effecting data scrutiny|
|Creating substantial study findings and conclusion|
|Submitting the accomplished study|
Appendix 2: Questionnaire
The questionnaire was designed according to the direction of the literature review.
Atadja, F. (2016). The Effects of Bribery and Corruption on Multinational Corporations: Multicultural Seminar on Corruption.
Butler, K. (2016). Multinational finance: Evaluating the Opportunities, Costs, and Risks of Multinational Operations. 6th ed. John Wiley & Sons.
Brannen, J., 2017. Mixing methods: Qualitative and quantitative research. Routledge.
Bryman, A., 2017. Quantitative and qualitative research: further reflections on their integration. In Mixing methods: Qualitative and quantitative research (pp. 57-78). Routledge.
Starbucks Coffee Company. (2019). Company Information.
Dunning, J. (2014). International production and the multinational enterprise (rle international business). Routledge.
Editor, C. (2019). 17 Main Pros and Cons of Multinational Corporations | Green Garage. [online] Greengarageblog.org.
English, K. (2019). A Guide to UK High Street Coffee Shops. [online] Little Miss Katy | UK Lifestyle, Food & Travel Blog.
Forsgren, M. (2017). Theories of the multinational firm: A Multidimensional Creature in the Global Economy. Cheltenham: Edward Elgar.
tutor2u. (2019). Impact of Multinational Companies (MNCs) on their Host Countries | tutor2u Business.
Investopedia. (2019). Multinational Corporation – MNC.
Schimanski, C. (2017). Do Multinational Companies Shift Profits Out of Developing Countries? New Evidence. SSRN Electronic Journal.
SCHOJA, V. (2016). Determining consumer behaviour in the catering industry: A Case Study Of Starbucks UK. ANCHOR ACADEMIC PUBLISHIN, pp.8-45.
Tamzini, K., Ayed, T., Boulanouar, A. and Boulanouar, Z. (2017). Driving multinational enterprises through effective global talent management. Hershey, PA: Business Science Reference.
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