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Internal and External Factors Affecting Starbucks

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Internal and external factors affecting Starbucks
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality whole coffee beans along with fresh, rich-brewed coffees, cold blended beverages, a variety of complimentary foods, coffee related accessories and a selection of premium teas primarily through Company-operated retail stores (Starbucks Annual Report, 2009, p. 1). In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee Company stores in the UK (Starbucks, 2009). In 1998, since opening its first UK store in London, Starbucks has been growing rapidly at a steady rate with over 660 stores opened by the end of 2009 (Starbucks Annual Report, 2009, p. 3).
This report aims to evaluate major internal and external factors affecting Starbucks using different environmental analysis methods such as SWOT analysis, Porters Five Forces and PESTLE Analysis. It will be based on the Starbucks brand in UK, and will identify suitable marketing strategies for Starbucks to expand their business within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix will be discussed.
ENVIRONMENTAL ANALYSIS
Environmental analysis or situation analysis is a systematic

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