Starbucks Business Report

STARBUCKS BUSINESS
REPORT

TABLE OF CONTENTS
PART 1............................................................................................................................................3
Introduction............................................................................................................................3
External environment analysis...............................................................................................4
Internal environment analysis.................................................................................................7
Recommendations................................................................................................................11
PART 2..........................................................................................................................................12
A) Internal and external stakeholders...................................................................................12
B) One priority Starbucks stakeholders................................................................................12
C) Power and interest of the stakeholders groups................................................................13
REFERENCES..............................................................................................................................14
APPENDIX A................................................................................................................................16

PART 1
Introduction
Present report is based upon the case study of the Starbucks which carry the renowned
brand name in the field of the coffee chains. In the year 1971 Starbucks was founded by Gorden
Bowker, Jerry Baldwin and Zev Siegle. The company is having its main headquarter in US and
also located in around 30,000 places. They enjoy the trade mark rights in relation to undertaking
the logo and sign which attract the customer towards the business. Starbucks mainly deal in
coffee, tea, baked goods and sandwiches and through this perspective they are earning the
revenue of around the US$24.71 billion (Wang, Liu and Mingers, 2015). The total number of
employees working within Starbucks is around 2,91,000. The main reason of carrying the
famous brand image is the flavours in coffee which they use to serve to customer in their best
possible way. In the report of July, 2019 Starbucks is sharing the market value of around $110.2
billion which is increased by 41% (Starbucks marketing, 2019).
Due to having continuous success of the Starbucks coffee they had expanded the business
globally and in 2019 they opened their biggest store in Chicago which is located in Magnificent
Mile. The business is opened from 7 days a week and also such business is carrying by around
200 employees. In relation to enjoying the famous brand image in market, it also results in facing
huge competitors in business. The major competitors which is faced by Starbucks is relating to
Costa coffee, McDonald's, Cafe coffee day and Dunkin' Donuts. The main strategic planning
which is used by Starbucks is relating to setting the competitors pricing. As they set the pricing
due to maintain their stability in market and also beat competitors through managing at the top
position.
The main positive point which the Starbucks is carrying is relating to carrying the
premium coffee beans which is rarely available and also not similar to the Arabic coffee beans
which is used by other coffee shops. As the main differentiating in Starbucks products and other
coffee products is relating to the preparation and serving of the coffee (Eskerod and Jepsen,
2016). As most of the coffee shops are serving the coffee to customer in form of grinding the
coffee beans with adding milk on it. But Starbucks is serving the coffee in form of crunching the
coffee beans and than putting it in coffee. So that the fragrance of the premium coffee beans is
splintered in whole coffee and customer can feel attractive while smelling that fragrance. Thus,
through this manner they manage to build the large customer base towards the business.

The logo which is carried by the Starbucks is relating to the image of the Twin tailed
mermaid or siren. As he reason behind choosing this logo is that the siren are mainly shipwreck
in the coast of the islands in south Africa. As this is also known to be the Starbucks island. And
thus, from this perspective, the concept is undertaken regarding choosing this logo on the
company products.
External environment analysis
It is very important for organization to analyse the external environment because the
business exist in dynamic environment and for this it is very necessary for Starbucks to evaluate
the environment which is external in which it is operating. For this the company uses different
models and tools which are discussed in the following points-
PESTLE analysis- this is a tool which is very helpful for the business in analysing the changes
going on within the external environment and the impact of these changes on the business. Political factors- this is the most important factor impacting the business and its
operations. It includes all the changes taking place in the government and political
background of the country (Rastogi and Trivedi, 2016). This includes changes in the
political parties, changes in government policies, interference of the government and
many other related factors. For Starbucks currently, there is political stability which help
the company in doing business in good manner. For Instance the in all the countries the
working condition are good and because of globalization there are not much political
restriction and hence, Starbucks is able to manage operation in all countries. Economic factors- this includes changes taking place in the economic condition of the
country like changes in the foreign exchange rate, income of consumers, inflation,
deflation, interest rate changes and others. Currently, the income or the purchasing power
of the consumer is increasing which is an opportunity for Starbucks as now consumer
will more prefer the goods and services of top brand. For example if the consumer is
having good income then the people will spend that money in leisure activities like
having coffee at Starbucks and this will increase the sales of company. Social factors- this includes the changes in the values, attitude, behaviour, perceptions of
the people of the society and the consumers. In the present era the consumers are
changing their perception and the trend is increasing towards the coffee. Thus, the
consumers and people of society are developing interest in coffee and they are thinking