...External environment analysis (Indian Coffee Market) Opportunities: 1. Market development In 2006, India was ranked as the fourth-largest economy in the world in terms of purchasing power parity and the tenth-most-industrialized country in the world. Since 1996, coffee consumption witnessed a steady rise reaching 85,000 tons in 2005. According to the statistics show that, although tea is famous in India, but also the world's fifth largest coffee exporter. All these facts prove the Indian coffee market has the potential for Starbucks to explore. 2. Political effects The Indian economy has been experiencing more stability as far as the Government and political scene is concerned. There had been reduced internal turmoil resulting from political influences and this has created a better working environment for industries and business in India. 3. Lifestyle trend Similar to China, India is also a mainly tea drinking country. However, Indians regard drinking coffee and experimented with various flavors as a fashion statement. It’s more like a lifestyle attitude, which is just accord with Starbuck’s concept of ‘selling a experience’. Threats: 1. Competitor intentions There are many competitors in the Indian coffee market as case stated. All these competitors entered Indian market before Starbucks, thus they have established a certain degree of basis already. Besides the coffee market, Starbucks also has to compete with other traditional...
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............................5 2. External Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors ......................................................................................................... 14 4. Starbucks‟ Current „Issue & Challenges‟ Diagnosis...
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...INTERNATIONAL UNIVERSITY COLLEGE Sofia PESTEL ANALYSIS FOR STARBUCKS COFFEE COMPANY Coursework in Business Environment Statement of originality We, the undersigned, declare that this coursework is our own original work. Student registration No: 101033 Signature: …………. 101047 Signature: …………. Program: Business Administration, Level 1 Lecturer: Prof. M. Malinowska The subject that we are going to focus on in the course work is a PESTEL Analysis on Starbucks Coffee Company. This analysis is aimed to familiarize the readers with the six types of factors that influence the activity of such a large and prosperous company as Starbucks. As we all know every business has its ups and downs but by taking into consideration what the influences are, better service and production could be achieved. The emphasis of this project is to discuss the major characteristics of a whole business and providing information about the way it functions. We will also talk about the reflection of Starbucks on the society all over the world. POLITICAL FACTORS Starbucks was established in Seattle, Washington, USA on March, 30, 1971. This is the largest coffeehouse in the world. Since the opening of the first Starbucks store, 30 years ago it becomes more and more popular. Till today Starbucks Co. owns 17,009 stores in 55 countries, which makes it one of the most popular places for a coffee drink. The following...
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...Page » Business and Management ‘Pestle’ Analysis for Starbucks Coffee Company In: Business and Management ‘Pestle’ Analysis for Starbucks Coffee Company ‘PESTLE’ Analysis for Starbucks Coffee Company Political: •High taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer. •Trade issues will affect Starbucks predominantly when exporting and importing goods. When another country’s government imposes a tariff it not only results in an efficiency loss for Starbucks but large income transfers can become inconsistent with equity. This extra charge can turn a bargain into a rip-off. Also, since 9/11, trade relations have been adversely affected between the USA and some other countries. •Starbucks should thoroughly investigate the political stability of any country they plan to expand to. Changes in government can lead to changes in taxation and legislation. The American elections may have an effect on Starbucks as new legislation or new or existing government may bring in taxes. Also, those countries in political turmoil or civil war (e.g. Zimbabwe at present) should be approached with great caution when considering new ventures. •The international economy must be brought into consideration as it can affect Starbucks’ sales and markets. The aftermath of 9/11 was an...
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...‘PESTLE’ Analysis for Starbucks Coffee Company Political: •High taxation imposed on farmers in those countries producing the coffee bean will usually mean Starbucks pay a higher price for the coffee they purchase. Any fluctuations in taxation levels in the industry are almost certainly ultimately passed on to the consumer. •Trade issues will affect Starbucks predominantly when exporting and importing goods. When another country’s government imposes a tariff it not only results in an efficiency loss for Starbucks but large income transfers can become inconsistent with equity. This extra charge can turn a bargain into a rip-off. Also, since 9/11, trade relations have been adversely affected between the USA and some other countries. •Starbucks should thoroughly investigate the political stability of any country they plan to expand to. Changes in government can lead to changes in taxation and legislation. The American elections may have an effect on Starbucks as new legislation or new or existing government may bring in taxes. Also, those countries in political turmoil or civil war (e.g. Zimbabwe at present) should be approached with great caution when considering new ventures. •The international economy must be brought into consideration as it can affect Starbucks’ sales and markets. The aftermath of 9/11 was an example of an economic downturn that affected the world market. •A reduction in licensing and permit costs in those countries producing the coffee bean for Starbucks...
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...Strategic Marketing Plan for the Starbucks Coffee Company Table of Contents Introduction and background 3 Company mission, company objectives 3 Market definition and product or brand background 4 Evaluation of results and conclusion about problem 5 Situational Analysis 5 Internal analysis 5 Customer analysis 7 Industry analysis 8 Competitor analysis 11 Distribution and supplier analysis 11 SWOT analysis – Confrontation Matrix 12 Choice of option 13 Marketing objectives/ expected results 13 Marketing strategy 13 Target audiences 14 Brand and product position 14 Decisions regarding marketing mix elements 15 Objectives for marketing mix elements 15 Strategies and tactics for marketing mix elements 15 Financial indicators and budges 16 Evaluation criteria 16 Sources 16 Introduction and background Company mission, company objectives The first Starbucks café was opened in 1971 in Seattle’s historic Pike Place Market. It was only a small café, but it offered some of the world’s finest fresh-roasted whole bean coffees. The company’s name derives from Moby Dick, the novel was written by the American author Herman Melville in 1851. Starbuck is the first mate on a whaling ship named ‘Pequod’, he is an intelligent Quaker (religious group) and he is from Nantucket. The name evoked the romance of the high seas and the seafaring tradition of the early coffee traders. Starbucks chairman, president and chief...
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...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...
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...Week Four Starbuck’s SWOT Analysis Karen Mueller Upper Iowa University Chris Worley 11/12/2014 A SWOT Analysis of Starbuck’s Organizational Introduction Starbucks got its start in 1971 by three academic teaching professionals. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, all three love coffee and decided to open Starbucks Coffee, Tea, and Spice in Pikes Place Market, Seattle Washington. The three partners shared a common love for fine coffees and exotic teas. They believed they could build a customer base in Seattle that would appreciate the best coffees. With this being the case, they borrowed the money and Starbucks’ was born. Since the first stores grand opening, Starbucks has made the fortune 500 list, they had a goal of opening 30,000 stores by 2013 and half of those are going to be outside the U.S. (Starbucks, 2014) Starbucks is the largest coffeehouse chain in the world with presence in 50 countries and about 15000 stores (Starbucks, 2014). The Seattle based company sells espresso based hot drinks; drip brewed coffee, coffee beans, snacks, Panini and pastry (Starbucks, 2014). The company also sells items such as tumblers and has an entertainment division which markets music, books and films. The company has diversified on its product range in order to gain a competitive advantage over other similar companies. According to Starbucks, (2014). Starbucks Corporation is a dealer in coffee retailing, its product is known as specialty...
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...Tomasz A. Fediuk Corporate Social Responsibility & Starbucks BAMMC – BA Thesis May, 2012 Corporate Social Responsibility – A case study of Starbucks’ CSR communication through its corporate website Bachelor Thesis in Marketing and Management Communication Sanne Sanne Bruhn-Hansen CPR: XXXXXX-XXXX Supervisor: Tomasz A. Fediuk No. of characters: Thesis: 54,329 Abstract: 3,492 Page 1 of 42 Sanne Bruhn-Hansen Supervisor: Tomasz A. Fediuk Corporate Social Responsibility & Starbucks BAMMC – BA Thesis May, 2012 Abstract Organizations today are experiencing increased pressure from their surrounding environments to act as good social citizens while still being profitable. Acting social and ethical responsible has become an expectation rather than a differentiation strategy to obtain organizational legitimacy. Therefore, this thesis examines how the very successful global coffee company, Starbucks, communicates its CSR initiatives through its corporate website. The aim is to investigate what is communicated, what different online communication channels are utilized, as well as how the communication is framed to target different stakeholder groups. In the first part of the report, after stressing the relevance of engaging in CSR activities and the importance of effective CSR communication, Schwartz & Carroll’s (2003) Three Domain Approach for CSR motives is briefly introduced. This gives an overview of why companies engage in CSR initiatives and what outcomes are expected...
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...Assignment 1: Strategy Analysis- Starbucks Introduction One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the...
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...Final Strategic Plan: Starbucks Debbie Pryer, MGT578 Strategy Formulation and Implementation University of Phoenix Table of Contents Executive Summary 3 Company Background 4 Vision Statement 4 Recommended Vision Statement 5 Mission Statement 5 Values Statement 7 Environmental Analysis 7 Long Term Objectives 14 Strategic Analysis and Choice 15 Plan Goals and Implementation 18 Financial Projections and Analysis 20 Critical Success Factors 24 Controls and Evaluation 25 Conclusion 26 References 28 Executive Summary Starbucks Coffee Company, Seattle, Washington, is in an enviable position – high growth, few competitors, strong financials, loyal customers, talented management and employees, and brand recognition – so why create a strategic plan? The company faces many threats and opportunities, and if Starbucks wants to continue its success story, a strategic plan will help them continue to achieve stellar results. Starbucks’ vision is to have coffeehouses in every neighborhood around the world, and will continue to grow by finding and delivering the world’s best coffee to the world’s best customers without compromising our world-class principles. An internal analysis shows Starbucks has more strengths than weaknesses, while an external analysis points to several threats and many obvious opportunities. The key is in choosing the right strategies to minimize threats and maximize opportunities. Starbucks should focus on the following three strategies:...
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...conjunction with the company that I have chosen which is the Starbucks company. We will study the environmental analysis of Starbucks Company as well as the customer and competitor analysis. On top of that, we will also analyze the company’s industry analysis which includes the Porter Five Forces, PESTLE analysis and SWOT analysis to study the company’s position in the industry. Furthermore, this report will discuss the marketing objectives and marketing strategies of Starbucks Company and how the company uses the marketing plan to promote the company’s new product in order to grow their business. In the last part of this report, the company’s budgeting will be shown and the evaluation of control and mechanism will be clearly explained. Objectives The company’s objective is to establish Starbucks as the most recognized and respected brand in the world by providing and offering the best quality of coffee to a wide range of customers (Fellner, 2008). Mission The company’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks also wants to establish their brand as the premier and the finest coffee in the world while maintaining their uncompromising principles as they expand. On top of that, the company is passionate about ethically sourcing the finest coffee beans to improve the lives of people who grow them (Starbucks Coffee Company, 2013). Environment Analysis Company Analysis Starbucks Coffee is the largest...
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...Starbucks Business Analysis . Abstract Starbucks went from just a hole in a wall shop to a world known company and culture. One would wonder how it occurred, if it was over night, and most importantly the business aspect sustaining a successful international business. At the end of the day Starbucks Co. is well known for their market in gourmet coffee. On the other hand, the market has plenty of competitors in coffee, but what makes Starbucks the number one specialty coffee retailer? The answer lies in every compartment that makes Starbucks Co. what it is. From the 87,000 possible drink combinations, to the provided healthcare insurance offered to employees including part-time. Starbucks is a force to be reckoned with, business aspect of their strengths, weaknesses and all in between is worth analyzing. Starbucks Corporation Business Description Starbucks is currently operating in 65 countries specializing in high quality coffee, tea, fresh food, and branded items. In whole the Starbucks Coffee brand is sold with a license and trademarks through other channels such as licensed stores, grocery, and national foodservice accounts (Starbucks SWOT analysis 2015, 2015). Starbucks Coffee brand sell goods and services under the following brands” Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos (Starbucks SWOT analysis 2015, 2015). Starbucks business objective is to thrive to be a recognized respected brand in the world. Brief History The...
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...Table of Content Executive Summary 3 Background 4 Dunkin’ Donuts (Dunkin’ Brands) 4 Starbucks Coffee (Starbucks Corporations) 4 Leader VS Follower 5 Financial Analysis 6 Liquidity Ratio Analysis 6 Debt Analysis 11 Profitability Analysis 13 Stock Investment Analysis 16 Non-Financial Analysis 20 SWOT Analysis 20 PEST Factor Analysis 23 Product Life Cycle Analysis 24 Boston Consulting Group (BCG) Analysis 25 Conclusions and Observations 27 References 29 Executive Summary People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business. Nowadays when people think of coffee and its related items, the word “Starbucks” immediately come to mind. Internationally, Starbucks has already become a very famous brand and many are trying to study the secret of its success. In the States, however, another company rivalry is competing with it quite well. Quite often, the Americans are taking preference to this over the Starbucks. The company that is being mentioned is Dunkin’ Donuts. It is without doubt that Dunkin’ Donuts will act as the follower in this industry. Starbucks, on the other hand, is acting the leader. This paper will try to study how the Dunkin’ Donuts are performing by making the benchmarking financial analysis against Starbucks. Financial ratios are prepared and analyzed to evaluate its performance. The study will...
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...A - Starbucks in US: strategies and core competencies GROUP 6 Exercise A - Starbucks in US: strategies and core competencies GROUP 6 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Thijs Bavelaar - 091698 Carlijn Swagemakers - 120014 Sam Verlaat - 111449 Bas Vliegen - 122959 Executive summary Within this report the Starbuck’s Corporation is being analyzed, in this way the company can be positioned on how they are performing within the competitive set. Through research Starbucks’ core competencies are found, and on elaborated. Those competencies are researched in the competitive set with the main competitors of Starbucks’ as well, via basic benchmarking there has been determined where Starbucks is within the market. Table of Contents Introduction 4 Core competencies 5 Key competitors 9 Competitive advantages 11 Communication within organization 12 Competency - strategy matrix 13 Conclusion and recommendations 14 Bibliography 15 Appendices 19 Appendix 1: Value chain analysis 19 Appendix 2: SWOT analysis 22 Appendix 3: Functional analysis 25 Appendix 4: VRIO analysis 26 Introduction The purpose of this paper is to analyze both Starbucks’ strategies and core competencies, and use this analysis to assess the degree of synergy between the two. First, the core competencies of Starbucks, specified to the US, are identified and presented with the use of a value chain analysis, SWOT...
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