Business Organisations and Environments in a Global Context
Assignment Brief
In this paper, you are supposed to write a report that revolves around the demonstration of an understanding of the global context in the business environment and the demonstration of an understanding of the nature of the organisation. Moreover, it should focus primarily on the analysis of a specific organisation that may be seeking to expand its business activities in accordance with the native country. Also, the situation should relate to the FDI decision or with the given choices.
Instructions
Business Organisations and Environments in a Global Context
Demonstration of an understanding of the global context in the business environment;
Demonstration of an understanding of the nature of organisations.
The report should essentially provide an analysis of a specific organisation, of the student’s choice, that may be looking to expand its business activities in relation to the particular country that they have been allocated. The scenario to be considered should relate to a foreign direct investment (FDI) decision and could either be concerned with:
- the establishment of a company in the allocated country
- an expansion of its current operations within the allocated country
Sample Answer
Starbucks Expansion into South Africa
Introduction
The modern business environment is increasingly shaped by globalisation, rapid technological change, and shifting consumer preferences. Organisations that wish to grow must therefore adapt to international contexts and make strategic decisions about where and how to invest abroad. This report focuses on Starbucks, one of the world’s most recognised coffee brands, and its potential expansion into South Africa through foreign direct investment (FDI).
The purpose of this report is to demonstrate an understanding of the global context of business, the nature of organisations such as Starbucks, and the opportunities and challenges associated with international expansion. The report will first examine the global business environment and its impact on multinational corporations. It will then outline the structure and culture of Starbucks as an organisation, followed by an analysis of the South African market. Finally, it will evaluate the FDI decision, consider both opportunities and risks, and provide recommendations for Starbucks to succeed in South Africa.
The Global Context of Business
Globalisation has created an interconnected marketplace where companies can expand beyond their national borders to access new customers, resources, and talent. This context is defined by several key forces:
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Economic interdependence: Trade agreements and international investment flows have created new growth opportunities. Emerging markets, such as those in Africa, are becoming attractive for global companies.
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Technological change: Digital platforms, mobile payments, and online delivery systems allow companies like Starbucks to reach new customer bases and improve efficiency.
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Cultural diversity: Operating globally requires understanding local cultures and adapting business models to respect traditions and consumer behaviour.
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Competitive pressures: The coffee industry is highly competitive, with global chains, local cafés, and retail brands all competing for market share.
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Political and social considerations: International expansion is shaped by government regulations, trade policies, and wider social issues such as sustainability and ethical sourcing.
In this global environment, organisations need strategies that balance standardisation of their global brand with local adaptation to suit host markets. Starbucks, with its strong brand identity and flexible market entry models, is well-positioned to navigate this context.
The Nature of Starbucks as an Organisation
Starbucks is a multinational corporation founded in Seattle in 1971. It operates over 30,000 stores worldwide, built on a model that combines premium coffee, customer experience, and community engagement. Understanding the nature of Starbucks helps explain why it can succeed in new international markets.
Structure and Culture
Starbucks uses a matrix organisational structure, which balances functional departments (such as supply chain, marketing, and HR) with geographic divisions. This allows it to standardise global operations while giving local managers flexibility. Its corporate culture is based on values such as ethical sourcing, employee empowerment, and creating a “third place” experience between home and work for customers.
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