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ASSESSMENT ONE

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ASSESSMENT ONE

The Effects of Climate Change on Starbucks Business

Introduction

There are a lot of moving parts in the world of business management that need to be kept

in check in order to get the best possible results from day-to-day operations, and it is crucial to

recognize the difficulties posed by these moving parts in order to find the answers and respond

appropriately to address them. Selecting a specific business issue and justifying the choice to

tackle that issue is the primary emphasis of this project. For the problem at hand, it would also

offer suggestions for how to proceed. Therefore, the issue would be described in detail, and the

countermeasures would be shown in action, to provide management with a solid basis for

making a decision about how to proceed.

Background of the Company

Starbucks is the assigned company for this project. One of the most well-known

international fast food franchises is Starbucks (Tsai et al. 2020). The company was founded in

the United States in 1971 and has thrived ever since. The company's leadership has dealt with a

variety of challenges over the years, and they have done so in a way that has helped the company

grow while remaining compliant with international standards for commerce (Chowdhury, 2019).

Defining the Business Problem

The focus of this case study is the sustainability issues and their effects on Starbucks' top

management. Businesses cannot function without the natural world, so it is crucial to address
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environmental factors in order to comprehend the effects and regulations placed on these

elements during the business regulation process (Azmi and Maksum, 2022).

Disaggregate

For a company to run smoothly, it is crucial to keep an eye on environmental factors

because, the environment is the foundation of human civilization (Azriuddin et al. 2020). Recent

environmental worries and tragedies on Earth are primarily responsible for its selection as an

issue to be investigated. Starbucks is a global food service provider, the occurrence and duration

of the covid19 epidemic and its repercussions were troubling, making it vital that the company's

management consider environmental considerations (Shim et al. 2021). Some of the biggest

problems that environmental issues are causing for the company are as follows:

Climate Change: One of the most pressing environmental issues facing individuals and

organizations today is climate change, which has been brought on by human activities such as

pollution and the destruction of natural habitats. Human activities are having a negative effect on

the planet's sustainability, and this has led to dramatic climate change (Tjokrosaputro and Cokki,

2020).

Causes and Impacts of Natural Disasters: Numerous environmental issues and

catastrophes limit the ability of governments to regulate and expand businesses (Latan et al.

2018). If, for instance, consumers start avoiding specific products at Starbucks because they have

heard it was tainted by the avian flu virus (KARADEMR, 2019), that would have a significant

impact on both production and sales. For instance, if avian flu were to break out in a given area,

consumers there might avoid purchasing chicken products altogether.

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COVID 19- The effects of the COVID19 epidemic and lockdown are the most serious

threats facing the organization today. During that time, there were disruptions in supply

management, production, market regulation, and sales velocity (Li et al. 2020). People

management was a big issue, as everyone was confined to their homes and shelters, making it

impossible for the organization to maintain control of the business for a while (Gilal et al. 2019).

Global market instability continued even after the company's initial launch period, causing

financial losses and managerial problems (Nguyen, 2020).

Prioritize the Issue

Organizational management should be on the lookout for opportunities despite the

complexity and difficulty of implementing adjustments and alterations to the business process

and management system in response to changes in the environment and concerns highlighted in

the environment (Pranata and Ekasasi, 2022). Alignment with the surrounding environment is

crucial for any business, as it ensures the longevity and efficiency of the management system and

helps the company to remain competitive in the market. To effectively manage the many facets

of business, the authorities must first establish suitable environmental conditions for each

(Sharma et al. 2020).

Work Plan

Goals Key Action Timeline Expected Who is

Steps Outcome Responsible

Corporate Giving back to 1-2 months to The The managers

Social the society ensure that the consequences of

Responsibility Starbucks will CSR is CSR is that the

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be held incorporated society will

accountable embrace a clean

environment

Ecological Eliminating Within the 3-4 By doing this the The managers

Balance harmful months company will

activities to the have

environment environment

such as waste alignment which

management will boost its

systems global market

Critical Analysis

Consumer happiness, and how well services are delivered to customers, is one factor that

has been important up to this point and will continue to be so in the future for any form of

organization (Li et al., 2020). This section is extremely important in building the organization's

reputation. The same is true for Starbucks, whose goodwill is suffering greatly because of

environmental developments.

Communicate and Synthesize

Building such a channel of communication is always vital since it gives every employee

in the company the chance to voice their concerns and receive prompt attention along with the

appropriate actions (Latan et al., 2018). It is obvious in the instance that there is no clear

coordination between the departments. The technical department, which oversees Starbucks'
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sustainability, and the human resources department have obviously not been in good

communication, and if they had been, very few problems would have been able to persist for

very long. Therefore, the company is struggling with problems of internal communication, and

the one and only solution to solve these problems is to offer training and development

opportunities to the many departments and employees of the organization.

Conclusion

Because of this, environmental concerns, most notably climate change and global

warming, as well as natural disasters, are having an effect on business management. As a result,

the organizational management authority needs to investigate the root of the problems and the

major grounds that have been negatively impacted because of these problems.
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