Business Strategy

Business strat-
egy

Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Describe the impacts of factor of external environment on Starbucks............................1
TASK2.............................................................................................................................................3
P2: Discuss internal environmental analysis of Starbucks with capabilities..........................3
TASK3.............................................................................................................................................6
P3: Analysis competitive factors for Starbucks based on Porter’s five force model.............6
TASK4.............................................................................................................................................7
P4: Implement theories with providing strategic plan for Starbucks.....................................7
CONCLUSION..............................................................................................................................10
REFEREN CES.............................................................................................................................11

INTRODUCTION
Business strategy is refers as long-term plan that is created by business entities in order to
reach desired future state and position. It is important to make effective business strategy that
contains goals & objectives, type of products and goods needs to build, customer to whom wants
to sell and market to serve for profit generation.
Starbucks is multinational chain of coffee houses & roaster reserves based on America.
The company founded in 1971 with it’s headquartering in Washington, US. It is represented as
second wave of coffee culture as the world’s largest coffeehouse chain.
This report contains external environmental factor that affects business in significant or
sometimes negative ways, further internal analysis is done based on opportunities exploration for
business growth and competitive factors that affects business are considered. At the end growth
model and strategic business plan is provided within report for effective functioning of
organisation.
TASK1
P1: Describe the impacts of factor of external environment on Starbucks.
PESTLE Analysis:- It is the effective method of identifying external factors of elements that
affects future growth and sustainability of business organisation in positive or negative ways. It
is essential to conduct pestle analysis before adopting step regarding future growth of business.
In context of Starbucks influence of these factors are explained as follows:
Political: In terms of UK political factor that impacts respective organisation are as laws
and regulations made by government of country that affects supply of raw material required for
production of Starbucks. Thus in terms of securing business for future respective firm should
need to gather a lot of attention from political parties of country. Tax policies and employment
laws of United Kingdom are major political factor that affects respective firm. Political stability,
tax relaxation fro UK government is also a positive impact of political factor on respective firm
that generates sustainable growth opportunities (Ajagbe and et. al., 2016).
Economical: The ongoing global recession is major external economic driver for
respective organisation and leads to reduce profit of firm. This influence buyer to shift towards
cheaper available supplements and if they are not stop to buying coffee it will create
opportunities for Starbucks. In term of overcome from negative impacts of rising labour cost and
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