"PORTFOLIO OF QUESTIONS1 Contents1.Introduction ............................................................................................................................. 32. Section 1 ................................................................................................................................ 32.1 Question 1 ........................................................................................................................ 32.2 Question 2 ........................................................................................................................ 62.3 Question 3............................................................................................................................ 73. Section 2External Analysis ................................................................................................... 83.1 A brief about Porter’s 5 Force Analysis ............................................................................. 83.2 Porter’s 5 Force Analysis of Starbucks ............................................................................. 83.3 Analysis of Porter’s five forces .........................................................................................104. Section 3 Internal Analysis ....................................................................................................104.1 Question 6 .......................................................................................................................104.2 Question 7 .......................................................................................................................124.3 Question 9 Porter’s value chain .......................................................................................124.4 Questions 10 ...................................................................................................................165.Section 4 Exploring Strategy ..................................................................................................185.1 Question 12 .....................................................................................................................186.Section 5: Exploring Quality and Organizational Change .......................................................186.1 Question 13 .....................................................................................................................186.2 Question 14 .....................................................................................................................207. Section 6 Exploring Performance and Organizational Change ..............................................227.1 Question 15 .....................................................................................................................228. Conclusion ............................................................................................................................239.References- ...........................................................................................................................2310. Appendices .........................................................................................................................272 1. IntroductionOrganization is an entity where people work together to achieve common goals(Daft, 2016).People in any organization strive to bind with each other through chain of command andassigned responsibility. Their interactions with each other define organizational structure.Organization structure differ in various ways and dependent on external and internal factors. Toachieve organizational goal, it is important to give a single direction to all efforts. It is done bystrategy formulation and implementation. Strategy formulation is based on external and internalanalysis of organization. These analysis is done by SWOT, porter five forces, value chain,McKinsley Framework and Pestle analysis. These are renowned managerial tools to identifyexternal and internal environment. Stakeholders and quality are another important aspect whichtake organizations to another higher level in terms of efficiency and effectiveness.2. Section 12.1 Question 1What are organisations?The organization is a body that has several individuals, like a foundation or union which hasshared goal and is correlated with the exterior environment(Shukla, 1996). Organization is aGreek word originated from the word “organon” meaning „organ?. It is a societal body ofindividuals which is prepared to fulfill specific needs or the combined goals.Every firm has itsown formation of management, which tells about the relations amongst distinct performancesand assign the duties, authority and responsibilities to perform distinct work. The firms arereferred to as the open systems as they influence and are also influenced by the environment. Forinstance- Starbucks is an American coffee business. 3 What do organisations do?The organizations survive, because the team of individuals doing the work altogether, have thepotential to accomplish more than what the people in the firm would do while working all aloneand differently. It can be further explained with an example. An individual might find it difficultto take the piano upstairs. He may get stuck at one place all day long and somehow finish thework. However, it would cause delay. On the contrary, if few more people add in to help himout. The work could be carried out faster and quicker. Even though such teamwork isadvantageous, if the people drag in distinct directions, it would go ahead and givecounterproductive results. Consequently synchronization is necessary for every corporation andit is the essential role of management.What are they composed of?The organizations have been clearly defined in different manners by distinct philosophers,practically all the organizations are composed by the people and a team or collection of people.Organizations are composed to achieve collective goals. They consist of distinct functions, andthose functions have to be synchronized. They survive autonomously of the employees, whomight come and go. How are organisations organised?All the organizations who come into existence and have more than one person in the firm rerequired to have some kind of organisational structure, some rules and ethics that the people needto follow, in this way the organization is organized(Aquinas, 2008).Every firm has their ownchart that shows the way how the sequence of command works surrounded by the organization. 4 Are they all the same or are there differences?All the organizations have different organizational structures(Salas, 2000). For example, manyorganizations may have a marketing department accountable for the market research and marketplanning. The customer service department is bound to look after the desires of the customers.The human resource department is accountable for the recruitment and selection of the newemployees in the organization, employee motivation and many other actions that are concernedwith the people. These departments are required to give backup for support and training. If they are different in what way do they differ? Functional Structure-This structure is made in the organization so that each segment of theorganization is assembled according to its purpose. The functional structure works best for thesmaller business in which each segment of the organization can be dependent on the knowledgeand talent of their workers and the support(Csaszar, 2000).Divisional Structure- It is mostly used for the major and big organizations that function in thebroad geographic area or having strategic business units under one umbrella group(Kortmann,2012).Matrix- The third and the most important type of structure is known as the matrix structure, it?sa mixture of functional and the divisional structure(Griffin & Moorhead, 2014). This type ofstructure is chiefly used in the major multinational companies. The matrix structure permits forthe advantages of functional and divisional structure to survive in one organization.5 What are the reasons for these differences?Size- Small or the businesses run from home don?t have a vast structure mostly because theowner of the business is accountable for all the tasks. The more the people working in theorganization the more managers are required for controlling these individuals(Phillips & Gully,2013). The extreme specialized business process may also need more formal organizationalstructure. Life Cycle- The life cycle of the organization has an important role to play in the expansion ofthe organizational structure. The business that are attaining their peak performance usually tendto become more motorized in their organizational structure to improve the competence and theprofitability. Strategy- Highly growing companies have small organizational structure to act quickly to thechange in business environment faster than the other companies. The small business owners arestill refining and defining their business strategy often setback making an organizationalstructure. The owners of the business are usually more concerned in setting business strategiesrather than developing and executing an internal business structure.2.2 Question 2Why is understanding the context within which an organization operates important?The managerial context mentions to the extent of a unit, just as the whole company, a subcompany, surrounded largely by the association, a parent association or the job role. There aremainly three perspectives, in which the company functions; they are mainly planned, calculatedand functioning(Capon, 2004). The strategies of the companies pays more attention to the longterm needs and objectives of the association, the tactical lays down more attention on long term6 needs inside the organizational context, and the operational outlook is based on how the peopledo their work in the company.2.3 Question 3What benefit would strategic decision-makers gain from utilizing a definitive frameworkand following a specified strategy development and deployment process?Strategic management appraises the major inventiveness taken by an organizationalmanagement, which include resources and performance of the external environments(Ganswein,2011). It identifies with the organizational vision, goals and the mission. It helps the organizationin framing its policies and plans, often in terms of some goals that are to be met or programs andprojects, which are framed to accomplish these targets. Strategic management gives thesupervision and an on the whole direction to the firm.As per the modern studies done by theforemost management theorists strategy needs to start with the stakeholders prospects whiledealing with any big issue(Thompson & Martin, 2005).Example of strategic leadershipFor instance- It is strategic aspect that structure follow the strategy. Structure is not only theorganisation chart. Structure is about all the individuals, procedures, positions, cultures,processes, technology and the related elements that encompass the organisation. It tells how allthe piece, parts and processes do the job together. This structure should be fully support with thestrategy for the firm to accomplish its mission and goals. The structure supports the strategies.Strategy planning and development describe the organisations intention and goals and appraisesthe exterior and interior environment to recognize opportunities and the restriction regarding the7 strategy(Michelli, 2007). In August 1987, Howard Schultz had invested money to get Starbucks.In Italy, he became spellbound and motivated by the Italian coffee bars. He thought that therewas some sort of romance that exceptional shops gave. As a result His vision had been born. Theambition of Starbucks had been to present the customer a premium coffee and to make a soleknowledge for the patrons. The mission of the Starbucks is very simple “to encourage andcultivate the spirit of the human beings- one person, one cup, and one region at a time”. HowardShultz chose four basic functions to implement his strategy(Schultz & Yang, 1997). These basicstrictures were functional, divisional, network, and matrix organizations. Structure is credited forthe success of Starbucks. It is classical example of strategic decision making and framework.3. Section 2 External Analysis3.1 A brief about Porter’s 5 Force AnalysisThe five forces model of Porter is an outside in business element strategy tool which is used tomake an examination of the attractiveness of an industry structure. It captures the key elementsof industry competition. It analyze economics to draw five forces to determine the attractivenessand competitiveness of an industry(Hooley, Piercy, &Nicoulaud, 2012).3.2 Porter’s 5 Force Analysis of StarbucksPotential Entrants- Threat of new Entrants: Believing that the Starbucks has a place in theindustries not only as a coffee provider. However, it has made a brand for itself in the dedicatedcoffee business, the threat to the new entries is measured to be small to the medium, as not all the8 business entities can build an image or name of their own that would offer product suggestionwhich Starbucks was able to make(Mohapatra, 2013). Substitutes- Threat of Substitute products: This is based on what the alternative products are:The anticipated image and the product intention made by the Starbucks is lot more than onlycoffee. Starbucks is known for luxurious experience, making available the desires for the thirdplace in terms of spare time needs(Loura& Dickinson, 2016). If Starbucks was seen as only acoffee house, then all other beverages would have been well thought-out to be a threat.Nevertheless taking in notice the experience which it makes, the risk of the alternative productsis seen to be low.Bargaining power of suppliers-Low to medium: Switching the costs from one purchaser toother might be high for the Starbucks, seeing as the Starbucks is mainly seen for providingquality and consistency, which could be effected, if the Starbucks had to change its suppliers.The bargaining powers that the provider has are seen to be medium. Bargaining power of buyers- Low: Buyer?s demand for a luxurious experience with third spaceis the input to the survival of the Starbucks. The type of market that the Starbucks has, is not costreceptive.Also,Target market of Starbucks are not the people who look for bargainingtransactions. The purchasers have realistic high switching cost, because there might not be lotother coffee houses that provide comparable atmosphere and services that can match with theStarbucks. The bargaining power of the purchasers is thought to be least here. Industry Rivalry-High: In context to the firm?s rivalry, the present rivalry and conflicts werehigh. The time Starbucks came into the market as the coffee retailer and a coffee chain,marketing strategies of third place had been effective. Since then, it had been continuouslyimplementing new idea. They had ferocious competition from the companies like Dunkin donuts9 andMcDonald?s from their own field of ready to eat foods and the donuts giving coffee aim tospecialist of the beverage.3.3 Analysis of Porter’s five forcesThe original problem that the Starbucks had been facing was that it was expanding too quicker topreserve its focus (Vaz, 2011). There came many times for the Starbucks, when their profitsbecame low, the income diminished, and the prices were increased. Consequently, the firm hadto cut the costs drive amidst a lethargic wealth, which had made the customers to think beforethey went to the coffeehouse (Fleisher &Bensoussan, 2007). The Starbucks then closed many ofthe shops because of low income. Meanwhile, there was also consequence of the boostingcompetition from the opponent who had been keeping an eye on the extension as Dunkin donutsand mc Donald.4. Section 3 Internal Analysis4.1 Question 6McKinsey 7S AnalysisThe 7S?es of the structure are separated into the hard and soft elements. Policies, formation andsystems are measured and known to be hard elements of the framework, on the other hand, softelements contain of collective values, abilities, way and staff. Starbucks administration has directmotivation and power over the hard elements of the framework, on the other hand the softelements are frequently motivated by commercial culture, and so they are more complicated andhard to manage.The strategy that was taken up by the Starbucks can be evaluated using theMcKinney?s framework.HARD ELEMENT10 "