Starbucks Business Report

Starbucks Business Report

Table of Contents
INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Overview of company and its competitors-................................................................................3
The External Environment-.........................................................................................................4
Internal Environment:.................................................................................................................8
Recommendation-.....................................................................................................................11
Part 2 .............................................................................................................................................12
Stakeholder Report :..................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Starbucks business report includes the assessment or evaluation of particular issues or set
of the circumstances or financial operation which relate to business performance of company. It
can also include the existing issue which is faced by company.
Starbucks was established in 1971. The company had its headquarter in Seattle,
Washington. It American largest coffee house chain which runs globally. The CEO of company
is Kevin Johnson. The above report includes company's overview and its competitors. The report
further includes external environment which contains PESTLE analysis, product life cycle model
and Porter's five force analysis. Report carried froward with internal environment that contains
application of VRIO, Value chain Analysis and SWOT analysis of company. The report ends
with the recommendation for company to enhance performance of company and the stakeholders
report.
Part 1
Overview of company and its competitors-
Starbucks Corporation is the American coffee organization and chain of the coffeehouse.
It was established in Seattle, Washington in 1971. Company is operated in across 30,000
locations globally. The founder of company are Jerry Baldwin, Gordon Bowker and Zev Siegl.
Company serves various products that are coffee beverages, tea, sandwiches, smoothies and
baked goods. The total revenue of company US$24.71 billion till 2018. Number of employees
who are working with company are 291,000. Starbucks has been described as main
representative of “second wave coffee” it is termed as movement which is popular as artisanal
coffee, particularly dark roasted coffee. Third wave coffee has targeted coffee drinkers by hand-
made coffee which is prepared with the help of lighter roasts. But Starbucks now uses automated
espresso machine for their safety reasons and efficiency. First company's location other than
North America opened in the Tokyo in 1996. Now there are one third of its stores which are
situated there. Starbucks during the session of 1987 and 2007 they averagely aim to open their
stores at two new locations daily. Starbucks conducts six roaster with tasting room and along
with that 43 coffee bar as being part of program (Voigt, Buliga and Michl, 2017). The CEO of
company is Kevin Johnson.
The company is the largest coffeehouse organization across the world. It has 23,187
stores in the 64 countries, which also includes the 12,973 stores in US, 1,550 in the Canada, 927

in United Kingdom, 1,897 in the China and 1,088 across Japan. They also serve the cold and hot
beverages, pastries, leaf teas and snacks. The pre-pacakage food products, cold and hot
sandwiches, and also different items that can be tumblers and mugs. They also render evening
location offers variety of wines, beers and appetizer after 4pm. Starbucks also markets films,
books and music under the brand name Hear Music and Starbucks Entertainment division. There
many of the products are based on season and particular locations of the store so that there
consumer can be satisfied. At grocery store they provide coffee and ice cream of Starbucks
brand. The company is named after first mate in the Herman Melville's Moby Dick. The logo of
company is designed by the inspiration of sea which is featured as twin-tailed siren from the
Greek mythology. Starbucks mission is to nurture and inspire human spirit that is one cup, one
persona and one neighborhood at the time. They also believe to serve the best coffee to their
consumer as possible. Their main aim and goal for all the coffee lovers to render highest and
supreme quality coffee to their customers by using the ethical business practices in their business
(Lemus and et.al., 2015). The traveler across world visit our farms in Africa, Latin America and
Asia to select the high quality beans for their coffee. The chef master at their place maintains the
balance among rich flavor of coffee beans with their peculiar Starbucks Roast. The Starbucks
Corporation is commonly listed on the NASDAQ and trade under the symbol which is named as
SBUX.
The External Environment-
PESTLE Analysis-
It is the tool or framework which is used for analyzing and monitoring macro-
environmental factor of company which can impact the company's performance significantly. It
is useful when any organization is entering into the international market and starting new
business. The all factors are described below-
Political Factors-
Political factor have deep effect on the Starbucks business and their profitability ratio.
The Political factor affects various things from taxes to business environment. Political
disruption can dis balance the supply chain and thus the day to day business activities and
operations along with profitability and sales of the company will majorly impact. The suppliers
of the company are spread-ed across the world globally (Zhang, Chien and Ma, 2015). So the