Organisational Design and Change - Essay Example

Secondly, the framework makes clear of the choices and the plans an organisation makes and evaluation is easier. For instance, if a company pursued a strategy earlier, the executive can look at the result against the set framework to see whether the plan worked or not. This is beneficial because it provides vital information on sales (Hamel, n.d.). Thirdly, through the SWOT tool, the decision made becomes visible throughout all level of management. An SWOT analysis which establishes organisation’s strengths and weaknesses together with peripheral threats and prospects it faces.

These modalities help executives generate strategies to utilise strengths or curtail weaknesses to rip the opportunity and shun risks (Eisenhardt, n.d). On the other hand, adherence to a specified strategy enables managers, first to build a shared collective intuition that augments the capacity of the top administration team to spot risks and opportunity more rapidly and more precisely. It also stimulates rapid conflict to advance the quality of strategic judgement without sacrificing considerable time and maintaining disciplined swiftness to oblige the decision course to a well-timed termination.

Politically, the tax imposed on farmers in the countries producing the coffee essentially means that as by 2013, the Starbucks pays a huge price for all the coffee they procure. Therefore, any imposition or changes in taxation levels in the company are all passed to the consumers. For instance, if other countries revenue authorities impose a tariff it not only outcomes in loss of efficiency for Starbucks, but also enormous income transfers can turn incoherent with equity. Economic: An increase in interest rates derails Starbucks expansion strategies thus resulting in declining sales for Starbucks and sales of their suppliers.

Consequently, if the nation where Starbucks of located is experiencing slows growth,