Starbucks Business Report

Starbucks Business
Report

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
Introduction of Starbucks and its competitors............................................................................3
External environment analysis....................................................................................................4
Internal environment of organisation..........................................................................................9
Recommendations.....................................................................................................................12
PART B..........................................................................................................................................12
Internal and external Stakeholders of Starbucks.......................................................................13
Employees as the priority in the stakeholders group................................................................13
Internet and power of the employees........................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Coffee market and the industry is increasing their business's size at global level through
formulating effective alignment into private and public corporations. At the time of European
colonial expansion the subdivision of coffee is also introduced among other countries which
include America, Asia and in other countries also. Coffee is one of the most second traded
commodity among the world. This report is written from the perspective of Starbucks which is
performing their business's at global level in the coffee industry. Further, this report highlights
on internal and external environment of organisation and the brief description about Starbucks
and its competitors (Aiello and Dickinson, 2014). Along with this recommendation will also be
given in this report on the basis of case study and research.
PART 1
Introduction of Starbucks and its competitors
Cafe and the beverage market is developing within a more diverse market by providing
and offering hot coffee, cold coffee, tea, cold-drink and many more. Coffee market is one of the
ongoing and continuous product among the beverage industry which is increasing their market
size with rapid speed by segmenting the market on demographic and characteristics basis.
Starbucks is one of the largest coffee chain that is operating their business's at global level. It is
an American coffee organisation which is satisfying the beverage needs of customer's in an
appropriate manner. Starbucks was founded in the year 1971 and initiate their business's by
offering spices and beverage products to its customer's. In the present scenario, there are more
than 2,80,000 employee's are engaged in the operations of Starbucks. Along with this, all the
products of organisation are present at worldwide level. Coffee market is growing with rapid
speed as it is enhancing the market share with 5% for each year. Among the recent years, the
potential market share for coffee is increasing among the business to business market as well as
business to customer market. From the year 2015, Starbucks is one of the major leader in coffee
retail business's that is performing their business's at global level (Booth, 2014). Costa coffee,
Barista, McDonald's are the major competitor of Starbucks which is impacting on the sale of
their business's. Their are large number of organisation are performing their work at global level
for increasing market size and enhancing the profits for management. In the context of
Starbucks, management is increasing their market with implementing new and

innovative methods to gain competitive advantage as per to other organisation. UK, America and
many more are the major nation and market area in which the demand of coffee is too high.
From the year 2014, the market share of coffee is raised with 8%. Moreover, Dunkin and
McDonald's are the major competitors of Starbucks and the number of stores, profits, employee's
are increasing and competing with each other at a global level. In the context of Starbucks and
its competitors such as Dunkin both formulate effective strategy which leads management to
increase their market with the 6% on individual basis and year. This demonstrate that market is
increasing with rapid speed and it is increasing their market area at a global level. Competition in
the coffee segment is increasing with rapid speed because of industry attractiveness. Caribou
coffee is operating their business's among 20 states. Another competitor McDonald's is well-
known for its quick service restaurant at international level (Chowdhury, 2016). Similarly,
Dunkin Donuts, is the another organisation which is performing their work at global level
along with this they are also Baskin Robbins and Togo sandwiches are also operated by Dunkin
Donuts. In the context of Starbucks, they are the leaders who are performing their work at global
level as a leader of coffee market. In the last, Starbucks is also performing their business's as per
management considerations of Starbucks and also on franchise basis.