Starbucks Business Report

Starbucks Business
Report

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Explanation on PESLTE Analysis..........................................................................................4
Explanation on Porters Five Forces........................................................................................5
Industrial Life Cycle Model...................................................................................................6
Apply VRIO for the source of competitive advantage..........................................................7
Recommendation..................................................................................................................10
PART 2..........................................................................................................................................11
Stakeholders Report..............................................................................................................11
a) Internal and external Stakeholders of Starbucks..............................................................11
b) Employees priority stakeholders group............................................................................12
c) Internet and power of employees.....................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In present scenario, Starbucks is one of the leading giant in the sector of delivering the
premium services of coffee to its customers. The company was started in the year 1971 where
three entrepreneur came together for the purpose of doing the business with innovative idea. The
founder of the organisation is Jerry Baldwin, Zev Siegle and Gordon Bowher. It is one of the
American company where its headquarter is located in 2401 Utah Avenue South, Seattle,
Washington, U.S. In present scenario company has been performing really well in the market
that even there are no company who can compete them in the sector of delivering the premium
coffee to customers. Still, company faces the competition from number of other coffee delivering
business organisation such as Caribou Coffee, McDonald's Dunkin Donuts and many more. This
are some of the organisation who are giving the competition to Starbucks because even they are
one of the those organisation who delivers the premium quality of coffee to their customers. The
reason for the premium quality of coffee is the process of bean procurement which is being used
by the organisation. The beans which Starbucks uses for the process of preparing the coffee is
from Cordillera mountain range which is located in Columbia (Woodard and et. al., 2013). The
logo of the company has been changed number of times since the 16th century where Norse
woodcut of a visibly topless mermaid. Where in the year 1992 to 2011 they uses the logo of
Nurse wood with her flowering hair afforded. In current scenario, the logo is all about omits the
nameplate from the logo.
The main policy on which Starbucks is following in the current scenario is that how they
can trained their employees so that they can perform better in the market position. It is needed to
be understood that company can perform better only in the situation where their employees will
be able to perform better within the market for the purpose of providing the effective services to
customers. Even they believes in the strategy of sustaining the employees and for that they
provide different benefits, rewards and bonus to meet their basic needs.
As report will be completely based on Starbucks where they conducts various and look at
the requirement of situation internal as well as external analysis has been discussed in the file
which will explain that how company is performing and how they can perform better in future
period of time for the purpose of accomplishing the goals of a company. Looking at the situation
result of internal and external analysis, recommendation will be provided and finally in the
ending segment, business reports will be prepared which will be based on the organisation.

PART 1
Explanation on PESLTE Analysis
PESTLE analysis can be explained as the process the process which will explain about all
of those external factors which can create positive as well as negative impact for the business. It
can easily help business organisation to determine that what are those factor which can create
issues for the business organisation. In current scenario, Coffee Cafe industry is growing day by
day which is simply allowing the organisation to performer better but to continue the stability it
is necessary for them to give a focus upon external factor for effective result. PESTLE analysis
has been discussed below in detail.
 Political Factor: This factor has the direct relations with the daily basis decision which
are being taken by the ruling government parties. It can simply change the whole working
structure of the organisation which can simply enhance the overall expenses. Talking
about the Coffee Cafe Industry, the political situation of UK is stable which is allowing
this sector industry to take long term decision which will directly help to generate more
revenue for the organisation.
 Economical Factor: Due to the effect of Brexit the economic condition were bad as
inflation rate increased, exchange rates were high which was not allowing the coffee
industry to perform better in the market. But, economic condition is improving which is
allowing the customers to spend higher amount of money on the product which they
want. It is one of the main reason that Coffee Cafe Industry can grow their market very
well in the area of UK (Woerner and Wixom, 2015).
 Social Factor: This factor has a link with the culture, believes and taste of the customers
which are connected with the organisation. Coffee Cafe Industry has the option to take
the help of customers about their preferences and according to that they can easily plan
their work to attract customers. But, if in any of the situation decisions are being taken
against the preferences of customers then industry might struggle in future period of time.
 Technological Factor: It is necessary for the business organisation to understand that
technologies can play the crucial role for the development of a organisation. By looking
at the situation it is necessary for the Coffee Cafe Industry that they must keep them
update by introducing new technologies in every short period of time. It will be one of