Analysis of Strategy for Starbucks Café-Australia

Running Head: ANALYSIS OF STRATEGY 0
STARBUCKS CAFÉ-AUSTRALIA
Business Environment and Strategic Management
Student name
8/7/2019

ANALYSIS OF STRATEGY
1
Contents
Journal-Post 1:............................................................................................................................2
PESTEL Analysis:.....................................................................................................................2
Journal Post 2:............................................................................................................................4
Porter’s 5 forces model:.............................................................................................................4
Journal-Post 3:............................................................................................................................5
Key Resources, Capabilities and Core Competencies:..............................................................5
Strengths and Weakness of Starbucks Company:......................................................................6
Journal Post 4:............................................................................................................................7
Strategy for running the businesses successfully and for being competitive for rivals is as
follows:.......................................................................................................................................7
Value Chain Analysis:................................................................................................................7
Conclusion:................................................................................................................................8
Bibliography...............................................................................................................................9
Appendix:.................................................................................................................................11

ANALYSIS OF STRATEGY
2
Journal-Post 1:
Starbucks is the famous coffee company in the world and it is also largest in terms of
its sales as well as share in the market. It was founded in the year 1971 by Mr. Schulz and its
ownership is private. It is a big organization which is made up of a large number of
shareholders that’s why it is operated by managers. It has a mission ‘to inspire the spirit of
humanity’ and it is done by serving one person one coffee and one neighbourhood at a time.
It adds customization in the product so that it can easily satisfy the needs and wants of them
(Forbes, 2016).
Its vision is that it does not treat its employee mere a source to do work but as a
partner through which business runs successfully. It treats its workers with respect as well as
dignity while for dealers in an ethical way. It follows the ethics principle, for adopting the
right behaviour (Lemus, 2015).
Its goods are flowing through the help of direct selling, specialty retailers as well as
through by promotion by word- of mouth. Industry in which this operates is retail coffee and
snacks store industry. In its product line coffee, tea, beverages, and packed food included. It
provides a good environment so that people can enjoy coffee with newspaper, music and
giving them access to free Wi-Fi.
PESTEL Analysis:
It is used to measure macro-environmental factors which will impact on the economy
as well as industry.
Political:
It is influenced by the attitude of government as well as on trade relationships which
are created in the countries as it will impact on procuring the raw material and labour. Here,
domino theory is applied because it is possible that one country impacts on other
neighbouring countries of the economy. In Australia, government is supportive as, here
political conditions are stable, which helps the Starbucks to set up business (David, 2014).
Economic:

ANALYSIS OF STRATEGY
3
In economy of the country GDP, 32% comes from fast- food sector which also
includes the coffee industry in it. Thus, it is productive for Starbucks. However, it charges tax
rate 30% from businesses which may affect the operations but, not much effect is seen in the
case of large enterprises so, it is appropriate for Starbucks (Samper, 2017).
Social:
It impacts both positively as well as negatively. As a negative, it is made up of
caffeine which is not good for health and may cause sleep disorders as well as migraine
problem to the people.
As a positive, it strong the metabolism system of the body and which in turn helps to
maintain shape by removing fat. Culture also influence on this as in the East region mostly
people enjoy tea rather than coffee. It is because of the belief that it is consumed only on
special occasions so here prices can be charged high by assuming it as premium products. It
is suitable to Australia, because here, coffee culture followed (M.Grant, 2013).
Technological:
It is by this manufacturing of coffee is made efficient and also helps in developing
variations in the original product. It also supports the small manufactures so that they can
compete with bigger brands existing. But, it also serves as a threat as because coffee
machines are sold at less price and this lead to making of coffee at their homes by buyers and
by this buyer cut. Country’s environment is good which supports the innovations done and
spends amount for its investment that made Starbucks successful (Loftfield, 2016)
Environmental:
The industry is totally dependent on the crop of coffee and that one is totally reliant
on agriculture and in this uncertainty is there that it will be produced or not in the farm as it is
dependent on weather. Opportunity is that coffee is the need of some people as their day,
cannot get started by this. The threat is that most consumption happens in the winters so to
keep their body warm. Starbucks sustainable practices support the environment of country
(Ferreira, 2016).
Legal: