Starbucks Business Report

Starbucks Business Report

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
External environment analysis...............................................................................................4
Internal environment analysis.................................................................................................7
Recommendations................................................................................................................10
PART 2- Starbucks Stakeholder Report........................................................................................10
a) Starbucks’ internal and external Stakeholders.................................................................10
b) Priority stakeholder’s Group – Employees......................................................................11
c) Power and interest of Employees stakeholder group.......................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
In the world of coffee maker, Starbucks is considered as one of the major brand which has a
huge coffee house chain of stores. This American global brand was firstly founded in 1971 in
Washington by Jerry Baldwin, Zev Siegl and Gordon Bowker (Bharadwaj and et.al., 2013). With
increasing its brand image among coffee lovers, give advantage to Starbucks in opening its
branches all over the world, where till 2018, it has more than 28,218 stores. By considering over
its past history i.e. it was found that Starbucks was brought in by three founders, they are
Gordon Bowher, Jerry Baldwin and Zev Siegl. They became market leader but still they faces
aggravated competition from other firms rendering their services within the market as Starbucks
renders there services in Speciality Coffee Café sector that is regarded as one of most contending
industry.
The major rivalries of Starbucks are Dunkin Donuts, Caribou Coffee and McDonalds. As
per the case study related with Starbucks, 2015, the firm possess maximum returns in context of
equity with respect to their competitors. Shares along with other securities are listed within
NASDAQ as well as stocks of the firm are taken as return generating stocks. Starbucks has
around 47.08% is return on equity and it is more than as compared to their competitors which
was 45.49% and 32.97% of McDonalds. Apart from these elements, Starbucks is also
experiencing high competition from their competitors like McDonalds. From the case study, it
has been found that Starbucks possess total 191000 employees and on the other hand McDonalds
have 420000 workforce that is double of later. Net profit margin attained by Starbucks is around
14.57% but it is less as compared to McDonalds and it is 17.43% and which is being attained by
Dunkin Donuts is 23.55%. By taking into consideration these figures as well as statistics, it has
been observed that the firm is facing intense rivalry within the industry. This denotes that the
rationale behind assertive strategies of Starbucks serves as their as their intention for sustaining
as well as surviving within the marketplace.
After examining the position of Starbucks as well as their competitors, it is apparent that
firm is market leader with respect to coffee store within the marketplace. For creation of
strategies and policies, it is crucial for firms to determine the opportunities as well as challenges
which are present within the market (Blackburn, Hart and Wainwright, 2013). In reference to
Starbucks,both (internal & external) of these environments have been identified within this
business report. The aim of this report is development of business strategy document so that
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environment in which they are delivering their services can be analysed. Starbucks is global
coffee chain that is liable for facilitating individuals with respect to products that are offered by
them. This report is being segregated within two distinct parts, the first section within this report
involves elaborated introduction related with firm and their competitive positioning within the
market place. Internal along with external environment of firm has been provided along with
recommendations by which performance of organisation can be improvised in upcoming 3 years.
It is recommended that strategies of Starbucks needs to focus on growth through
penetrating in the rural market which is not being covered by them. To address this, Ansoff
matrix must be used as well as stress must be laid on market penetration and unify with cost
effectual raw materials (Boies, Lvina and Martens, 2011). This method involves operations of
organisation associated with advanced techniques and tools that can be utilised by them. For
this, Starbucks can make use of SMART objectives to have impelling outcome: it is being
provided below:
To improvise growth rate by 10% through the usage of omni marketings channels for
disbursal of data via qualitative cost within upcoming year.
Thereby, unified operations will aid organisations in future for enhancing sales and
market shares while rendering their services. By making use of identified activities and strategies
in an effectual way, it will aid within attainment of goals in stipulated time duration. This will
assist Starbucks for evaluation of contributions that are being made by employees that will
enable them to reach their goals. Strategic relationship will provide inbound logistics through
which supply chain can be maintained with respect to coffee beans. Apart from this, Starbucks
can adopt for changing their managers with those who are innovative as well as creative in
rendering their services (Campbell, Edgar and Stonehouse, 2011). Starbucks have maintained
their strong position within the global market which furnish high revenue as well as leads within
acquisition of huge customer base with respect to their competitors and attain high productivity
along with profitability.
MAIN BODY
There are various factors of business environment that have impact over business as well
as its business activities. It is very important for organisation to analyse as well as evaluation all
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