Importance of Business Strategy in Starbucks

Business Strategy

Table of Contents
INTRDOUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse the impact and influence of macro environment on an organisation and its strategy
.....................................................................................................................................................3
M1 Analyse macro environment to determine along with to inform strategic management
decisions......................................................................................................................................5
TASK 2............................................................................................................................................5
P2 Starbucks internal environment and their capabilities...........................................................5
M2 Analyse internal environment to evaluate strength and weaknesses of organisational
structure and skill-set..................................................................................................................8
TASK 3............................................................................................................................................8
P3 Porter's Five forces model to evaluate competitive force in Starbucks.................................8
M3 Appropriate strategies to improve competitive edge and market position based on
outcome.......................................................................................................................................9
TASK 4............................................................................................................................................9
P4 Range of theories, concept and models to interpret strategic plan........................................9
M4 Production of strategic management plan which has strategic priorities...........................10
D1 Interpretation of environmental and competitive data to form set of strategic directions. .10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRDOUCTION
In this competitive market, it is becoming important to focus on achieving of goals &
objectives. Business strategy refers to set of tactics that are used to increase performance and
productivity level. It is not possible for organisation to achieve business goals within time period.
Market is flexible which makes it crucial for entity to be competitive & ahead. Main aim of this
report is to examine the importance of business strategy. Starbucks, an American multinational
firm which is chain of coffee houses and is headquartered in U.S. It is located at global scale and
has number of competitors such as Cafe Coffee Day, McDonalds McCafe, Costa etc. This report
comprises of PESTLE analysis, porters five forces, Bowman's model, concept of business
strategies and internal capabilities (Pinto and Bellini, 2017).
MAIN BODY
TASK 1
P1 Analyse the impact and influence of macro environment on an organisation and its strategy
PESTLE Analysis
This refers to a strategic analysis tool which is used to analyse the impacts of external
issues in any business. This includes different factors like Political factor, Economic factor,
social factor, technological factor, legal factor, environmental factor.
Political factor- This one is one of main factor which have high impact on business of
Starbucks. This one high effects on sourcing of raw materials which is imported in all over the
country. There are different political effect which can be there can have adverse impact on the
import of raw material which is due to any change in political issues. There are different laws
and legislation which can have high impact on the business. Starbucks have to follow all the laws
and legislation which is there due to change in political view and this may highly impact the
Starbucks business (Whitler, 2020). To success of any business there is need to political stability
and this may help in to grow to Starbucks which is there can have better business and not further
change in any rules and legislation. Tax policy and employment laws are there which have high
impact on an business which is there can help the Starbucks when such rules are in their favour.
Economic factor- This is another factor which is able to highly effect the Starbucks
business. In this, people have the purchasing power and when there is high purchasing power to
people then there is high economy and business of Starbucks should have high profit by getting

high business. There is less business when there countries economy is low and due to this there is
less purchasing power to people. Starbucks have the deal with operational costs and rising
labour. There is inflationary environment and falling profitability is able to cause high stress to
Starbucks. In current time there is high fall in each and every country which is due to impact of
COVID. There is high fall in country economy and due to this there is less business to Starbucks.
There is high fall in the business of Starbucks which shows the result as high fall in buying
coffee, There is need to find out some strategy which can help them to take their business on
track which can have better result in profit. There is some economic factor like change in local
currency exchange and local economic environment which is there in different market along with
this there is another economic factor like taxation level which is there having impact on the
business of Starbucks (Stathakopoulos, 2019).
Social factor- Starbucks is able to offer cheaper product but this may take to sacrifice in
quality of their product which can have negative impact on business of Starbucks. There are
different customer base like middle class and upper middle class who are there want to come and
there are green and ethical chic of consumers which are also there concerning about which needs
to Starbucks to focus on this. there are different social factors like changing family pattern,
consumer preferences, changing in work pattern, level of education of population in local market
and there is also changing value among population which are there which is able to impact on the
business of Starbucks.
Technological factor- There is different use of technology which is there can have
different impact on business of Starbucks. There are partnership with apple which is there able to
provide different coupons to there mobile app users. There is use of app which is there only can
be access by the Apple user. Starbucks is able to provide different technology which is like using
of Wi-Fi in their outlets. Internet is very useful which make their user to stay long in their
outlets. Starbucks in context to technology there is testing on the mobile payment which is there
on the pilot locations in U.S. Some of the technology factor like emergence of innovative
technology, biotechnology development, develop0ment in agriculture which is there have the
ability to impact the business of Starbucks.
Legal factor- Starbucks must be ensure about that there should not be any violation of
any laws and legislation. There is need to stay alert which is about introduction of caffeine
production and their consumption which can have ability to change in regulation and its policy