Starbucks Business Report

Starbucks Business
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to Starbucks and it's competitors.......................................................................1
The external environment.......................................................................................................2
The internal environment.......................................................................................................6
Competencies Framework......................................................................................................8
Recommendations:.................................................................................................................9
PART 2..........................................................................................................................................10
Stakeholders report...............................................................................................................10
Starbucks internal and external stakeholders.................................................................10
Workers on the priority of Starbucks among stakeholders group........................................11
Power and interest of workers..............................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
From the case study of Starbucks it has been revealed that they are numerous competitors
prevailing in the open market place. Some of the rivalry of Starbucks are, McDonald's, Dunkin'
Donuts, Costa Coffee, Caribou Coffee, Cafe Coffee day and so on. All of them are working day
and night to meet the emerging needs of the customers. To be in the leading position among it's
competitors Starbucks scan external environment in order to make changes in their working
environment accordingly. This report is based on Starbucks. The founders of this successful firm
are, Jerry Baldwin, Zev Siegl and Gordon Bowker. This coffee retailer came into existence in the
year 1971on March 31. It's headquarter is in Washington, US. This assignment covers rivalry of
Starbucks. 5 Force analysis and Industry Life-Cycle model is studied to frame strong strategies
in order to cope up with rivalry. PESTEL analysis is devalued to closely determine external
environment forces impact on business. VIRO and value chain model are illustrated to better
understand which is most suitable for the company growth and success in the global market.
Additionally, recommendation is suggested regarding how Starbucks can enhance performance
over three years.
PART 1
Introduction to Starbucks and it's competitors
Starbucks is worldwide speciality coffee retailer. This leading firm has owned reward for
Seattle's Best Coffee in the global market. The annual revenue is $16 million and around
2,00,000 staff members are working effectively in 60 countries to meet the emerging needs and
taste of the targeted customers. Across the globe Starbucks has 21,000 Starbucks branded cafes
where customers can visit and can full-fill their demand accordingly. In the year 2008 and 2009
around 900 stores where closed due to the decline in the goods and services. In order to regain
their position in the market again Organization decided to diversify their products in other
segments where new innovative goods could create value in the market. The team mates of the
enterprise are trained as per the requirement in order to make enhance their skills and capabilities
to bind loyal customers for the coffee for the years. By this Starbucks will be able to gain
competitive advantages against rivalry (Tikson, 2018).
Starbucks is well-known for it's coffee across the boundaries. There are various types of
competitors for Starbucks prevailing in the competitive market place according to the case study
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are, McDonald's, Dunkin' Donuts, Costa Coffee, Caribou Coffee, Cafe Coffee day and so on.
They are creating challenges for Starbucks in order to cut down their market share to a large
extent. By doing so competitors can grow and develop easily in the market. McDonald's has
36000 stores across the world and 420, 000 co-workers are working hard to meet the set
objectives. Whereas, Dunkin' days sales outstanding is 51.22 and has 11,000 stores worldwide.
The annual sale of firm is $ 748.71 M. The competition with Starbucks is neck to neck. In
Canada Starbucks coffee is in more preferred as compare to cafe Depot and McDonald's.
However, in UK Costa Coffee is more demanded than Starbucks. But in Eastern Europe
Starbucks is very less demanded.
The external environment
Starbucks is able to be in the leading position because they study the external
environment deeply. Researcher of the firm examine all the external factors like, political, social,
technological, legal etc. factors in order to make improvements in the business working style. By
this they are able to flourish easily in the competitive market place. External environment is
uncontrollable in nature so it is very essential to keep eye on the changes occurring in the
external surrounding so as to attain productive outcomes in Coffee Cafe industry (Sisson, 2017).
Management is able to cope with rivalry when they have measured the external environment
factors deeply. Top level management of Starbucks is able to create tough benchmark for others
because they change the working style according to dynamic environment. With the help of
PESTLE and 5 Force analysis they are able evaluate external factor smoothly. The brief
expatiation of PESTEL analysis are illustrated as under:
Political factor: It refers to as those governing bodies activities that affect smooth
functioning of the business to a large extent. Political factor covers foreign trade policy, tax
policy, trade restrictions, labour laws, corruption, government policy and so on. In order to
flourish Starbucks more in Coffee Cafe industry management need to understand political factor
on priority level.
Advantages :
 This provides mechanism which enables Coffee day industry to discover new
opportunities prevailing in the open market place.
 It helps to eliminate the influence and effects of potential threats for Coffee Day industry
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