...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
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...Strategic Plan Overview The Human Resources department at Starbucks is not known as Human Resources, instead, it is known as Partner Resources. The Partner resources department operates out of their support center. The support center is more commonly known in business as a corporate office, however Starbucks prefers to call it a support center because they support their retail partners from there. Partner Resources at Starbucks operates in groups like any other human resource department. They have staffing, learning and development, compensation and benefits, organizational development and partner services. The Human Resource department at Starbucks is call Partner services because they work together as partners instead of colleagues. They all have the same common goal of being a strategic partner to Starbucks no matter the role the person is in. The Partner Resource team meets together monthly to share ideas and things to make the company better (Starbucks, 2015). The future of Starbucks looks very bright. Starbucks started 40 years ago and Howard S., Starbucks chairman, president and chief executive officer states what the future will look like. ‘As we look forward to Starbucks next chapter, we see a world in which we are a vital part of over 16,000 neighborhoods around the world, in more than 50 countries, forming connections with millions of customers every day in our stores, in grocery aisles, at home and at work. Starbucks will continue to offer the highest-quality coffee, but...
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...| Introduction of Starbucks | 3 | 3.0 | Introduction of PEST analysis | 4 – 6 | | 3.1 Political-legal forces | | | 3.2 Economic forces | | | 3.3 Socio-cultural forces | | | 3.4 Technological forces | | 4.0 | PEST components of Starbucks | 7 – 8 | | 4.1 Political-legal component | | | 4.2 Economic component | | | 4.3 Socio-cultural component | | | 4.4 Technological component | | 5.0 | Conclusion | 9 | 6.0 | References | 10 – 11 | 7.0 | Appendixes | 12 | 1.0 Introduction First of all, I would like to thank my lecturer, Miss Kanchini who is providing adequate information about the task which given in this Business Management assignment. For a business to be succeed in the market, each of the business need to analyze their surrounding environment for the purpose of increasing their revenue and to be stayed longer in that particular market. There having two types of environment to be analyzed which are internal and external environment. Internal environment of a business is indicating the strengths and weaknesses of a business that must be identified to do some changes on weaknesses and strengthen the strengths owned. For the external environments which influence the long run decisions of an organization also needed to be analyzed especially for the bigger company so that the business will last longer in the market. There are several types of external environment such as PEST, PESTLE, and STEEPLE analysis. (Wheelen & Hunger...
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...Table of Contents 1.0 Introduction 1 2.0 Introduction of Starbucks 1 3.0 Current situation and Performance 2 4.0 Strategic position 3 5.0 External Analysis 4 6.0 Internal Analysis and Core Competency 11 7.0 Current Strategic Choices 17 8.0 Appendices 18 1.0 INTRODUCTION Johnson, Scholes and Whittington (2006, p.9) defines strategy as, “strategy is the direction and scope of an organization over the long term; which achieves advantages for the organization through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholders expectations. Strategic Planning is a management tool that guides an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Non-profit Organizations). The Harvard Business School contended that strategy could be a potentially powerful tool for linking business functions and assessing a company's weaknesses and strengths in relationship to its competitors' strengths and weaknesses. This can be evaluated using various management analysis as such PESTLE, Porter’s Five Forces, SWOT, TOWS, CPM and...
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...Starbucks – Strategy of a global brand * Table of Contents 1 Preface 2 2 The McKinsey-7S-Model 2 2.1 Strategy 3 2.2 Structure 3 2.3 System 3 2.4 Skills 4 2.5 Shared Values 4 2.6 Staff 5 2.7 Style 5 3 The Five Forces Model 5 3.1 Bargaining power of buyers 6 3.2 Bargaining power of suppliers 6 3.3 Threat of new entrants 7 3.4 Threat of Substitute products 7 3.5 Rivalry among competing firms 7 4 PEST Analysis 8 4.1 Political Influences 8 4.2 Economic Influences 8 4.3 Social Influences 8 4.4 Technological Influences 9 5 SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 10 5.4 Threats 10 6 Entry Strategies for new markets 11 6.1 Establishing a subsidiary 11 6.2 Arrange joint ventures 11 6.3 Licensing 11 7 Conclusion 12 8 Reference List 13 Preface The following analysis of Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because...
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...Marketing Plan for Starbucks Coffee BMM 364 Assessment-Part A Written by: Tianyi Wang (WAN12383771) Written for: Leo Billington 2012/10/19 * Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 3.0 Current External Marketing Situation 4 3.1 External/General Environment analysis and Trends 4 1 Demographic Segment 4 2 Economic Segment 5 3 Political/Legal Segment 6 4 Social-Cultural Segment 6 5 Technological Segment 8 3.2 Detailed Market Analysis and Projected Demand 8 1. Market Size 8 2. Market Growth Rate 9 3.3 Industry Analysis Including Porter’s Five Forces 9 1. Threat of New Entrants 9 2. Bargaining Power of Supplies 10 3. Bargaining Power of Customers 10 4. Power of Substitutes 11 5. Intensity of Rivalry 11 3.4 Competitors Analysis 11 4.0 Current Internal Analysis 12 4.1 SWOT of the Business and the Product/Service 12 1. Strengths 12 2. Weaknesses 13 3. Opportunities 13 4. Threats 14 4.2 Issues and Risk Analysis 14 1. Strategic Risk 15 2. Operational Risk 15 3. Political Risk 15 4. Country Risk 15 5. Technological Risk 16 6 Environmental Risk 16 4.3 Ethical and Corporate Socially Responsible Behavior 16 5.0 Identify a Commercially Viable Market Opportunity 17 5.1 Market Opportunity Including Potential Segments of the Market and Justification 17 5.2 Define the Value Provided 17 5.3 Positioning statement 18 6.0 Marketing Plan Objectives 19 7.0 Conclusion...
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...------------------------------------------------- STARBUCKS MARKETING REPORT OF STARBUCKS Module code: D001 Module tutor: Moitaba Institution: Nottingham Trent International College Group: Group B T number: T0030643 Word count: 1679 words (-10/+10) 1: INTRODUCTION Starbucks Corporation, an American organization established in 1971 in Seattle, WA, is a head roaster, advertiser and retailer espresso (coffee) around world. Starbucks has around 182,000 representatives across over 19,767 organization worked and authorized stores in 62 nations. Their item blend incorporates roasted and carefully assembled high quality/premium valued espressos (coffee), an assortment of new nourishment things and different beverages. They likewise offer a variety of espresso (coffee) and tea items and permit their trademarks through different channels, for example, authorized stores, basic supply and national foodservice accounts. Starbucks additionally showcases its items blend with other brand names within its portfolio of organizations, which incorporate Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had all out income of $14.89 billion as of September 29th, 2013.2. (Starbucks annual report, 2013). This report will analyse on this business organisation (Starbucks) stating its PESTELE, SWOT analysis, customer analysis and proving recommendation according to the marketing analysis provided in this report. 2: MARKETING ENVIRONMENTAL ANALYSIS PESTEL...
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...STARBUCKS Student ID: 17834560 Subject: 2014-BUS5MMS(BU-2) - MGT AND MKT FOR SVC Submitted to: Dr. Navin Veerapa Submitted by: Ibrahim Gurgaij Date: 11, Sep 2014 Table of Contents ABSTRACT:- 4 I- INTRODUCTION OF THE COMPANY:- 4 Financial performance 5 II-MISSION STATEMENTS:- 5 III-SWOT ANALYSIS:- 6 INTERNAL ANALYSIS:- 7 Strengths 7 Experience:- 8 Brand name:- 8 Weakness 8 Dependency:- 8 Power of Substitutes 9 EXTERNAL ANASLYSIS 9 Opportunities 9 Brand Power:- 10 Customers 10 Threats 11 Rise in competition:- 11 Supplier situation 11 Ownership:- 11 IV-Competence based Strategy:- 12 V-CONCLUSION:- 13 STRATEGIC MANAGEMENT FACTORS:- 14 Marketing Mix is shown by this diagram:- 15 Product 15 Price 15 Place 16 Promotion 16 REFERENCES:- 18 ABSTRACT:- Starbucks cannot be termed as an ordinary coffee shop it represents a different culture and atmosphere beyond a cup of coffee. Starbucks is such a famous brand that it can be found in cities like Indonesia, Bali also. According to their CEO Howard Schultz their culture denotes the values of their company and share purpose like self esteem and self respect etc. For star bucks It is important to maintain their culture and also achieve their desirable levels of development and growth side by side. Their CEO tries to maintain the traditional way of making coffee mixed with new technology so that customers can...
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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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...you've been to or seen a Starbucks. Without a doubt, Starbucks is the de facto leader in the specialty coffee market, and not just in the United States. In 1999, Starbucks expanded into China. Today, their expansion continues in China and around the world. Starbucks now has stores in 47 countries. Their global expansion strategy and performance is stellar. Let's examine some possible components of Starbuck's global expansion strategy that enables them to determine how, why, and where they expand. According to their Annual Report, Starbucks opened up 2,571 new stores in 2007 (www.starbucks.com). They now operate over 15,000 stores around the globe. In China, their aggressive expansion continues. In 2006, Financial Times quoted Howard Schultz as saying "China has emerged as the strategic priority within the company today and in the long term. The opportunity we have in China is like no other" (17). To succeed globally, companies must analyze and choose from many strategic plans. One way they do this is by using a SWOT analysis a strategic planning tool used to evaluate Strengths, Weaknesses, Opportunities, and Threats. The goal of a SWOT analysis is to identify key internal and external factors that affect the desired outcome. Strengths and weaknesses are internal to the company and include things like wage/benefits, corporate culture, leadership, marketing, and operations. Opportunities and threats are external to the company and include...
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...http://prezi.com/2jzdhoz6yhqo/starbucks-industry-analysis/http://www.coursework4you.co.uk/essays-and-dissertations/porter-5-forces.php http://www.scribd.com/doc/27614539/Starbucks-a-Strategic-Report-by-James-Heavey Starbuck employees are called partners http://en.oboulo.com/starbucks-corporation-58582.html http://www.authorstream.com/Presentation/bandineepradhan-1770180-starbuck-pre-bandinee/ http://www.scaa.org/ Starbucks Strategic Report (Industry Analysis) Porters Five Forces Porter’s five forces focus on factors outside of the industry which can have an effect on the competition within the company. The force within the company (microenvironment), which in turn effects how the company deals with its competitive market place. The five forces that (Porter-1980) identifies as having an impact on a company’s behaviour in a competitive market are as followed: * The threat of new entrants to the market * Bargaining power of suppliers * Bargaining power of buyers (customers) * Threat of substitute products * Competitive rivalry Starbucks have the real threat of competitive rivalry by competing with some major competitors like McDonalds, Dunkin Donuts, Costa and other small coffee shops and cafes. With competitor’s low prices and the opportunity to break into the speciality coffee market pose a real risk to Starbuck’s. Substitute products such as tea, juices, water and energy drinks pose a real threat to Starbucks as with pubs and bars because...
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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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...External and Internal Environmental Analysis Introduction Starbucks is a coffee company based in Seattle Washington. It was founded in 1971 by three entrepreneurs, based on the idea of selling coffee beans. After substantial growth, they decided to open five stores with roasting facilities and start selling coffee beans to local restaurants. In 1987 the company was sold to Howard Schultz for $4 million, who saw a different future for the company after expanding it to 3 more stores. The company suffered a financial crisis due to mostly to the coast of its operations overhead. Despite all of that the company was able to open up 870 more stores by the year 1996, and by the year 2000 it has already 2000 stores worldwide. Much of Starbucks success is due to its employee’s treatment, their training and the way they run the company without managerial supervision. They feel part of the company and Starbucks trust their decisions in running the business. This philosophy has paid back tremendously. Starbucks is one of the fastest growing companies in the world with stores opening in Russia, China, India and remote parts of the world like Africa and South America. Internal and External Analysis The SWOT analysis is a method used to evaluate the external and internal environmental factors affecting the company wellbeing. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The Strengths and Weaknesses are part of the internal evaluation. Opportunities...
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...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...
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...Starbucks Coffee Company I. Current Performance Company Overview: Starbucks is the most well known specialty coffee company around the world. Starbucks operates over 11,000 stores throughout 36 countries. Also, the company has about 10,000 employees. The company has shown horizontal integration in the last few decades into the Japan market which has shown to be extremely successful. The next project for the company is to expand their market further into India. There are also some concerns for the company. One thing that is well known is that Starbucks is heavily dependent on one product which is their coffee. If something goes wrong with one of their suppliers and their ability to roast coffee around the world, Starbucks could be facing some serious problems very quickly. Current Objectives for International Expansion: -Be the first to enter international market such as India to gain a head start over competitors. - Build on growing desire for Western brands. - Take advantage of higher coffee consumption rates in different countries. II. External Factor Analysis External factors | Weight | Rating | Score | Opportunities | | | | Expansion into economy level market | .2 | 4.5 | .9 | New products | .1 | 4 | .4 | Expansion into India | .2 | 4 | .8 | Threats | | | | Consumer Trends focusing moving away from caffeine into other healthy substitute products | .3 | 5 | 1.5 | Increased competition/ new competitors | .1 | 3.5 | .35 | Dependence...
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