Starbucks Business Report

Starbucks Business
Report

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
INTRODUCTION TO STARBUCKS ..........................................................................................3
EXTERNAL ENVIRONMENT ANALYSIS.................................................................................4
PESTLE Analysis of Starbucks..................................................................................................4
Porter's Five Force Analysis of Starbucks..................................................................................5
Industry Life Cycle Model..........................................................................................................7
INTERNAL ENVIRONMENT ANALYSIS .................................................................................8
VRIO Analysis............................................................................................................................8
Value Chain...............................................................................................................................10
RECOMMENDATIONS...............................................................................................................12
PART 2..........................................................................................................................................13
STAKEHOLDER'S REPORT ......................................................................................................13
Identification of Stakeholder.....................................................................................................13
Selection of a Prominent Stakeholder.......................................................................................13
Power/Interest Matrix................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Business strategy is defined as the mixture of plan of actions, decisions and activities
company performs to accomplish their goals and objective along with attaining competitive
edge. Strategy is the first and foremost step every person takes before entering the business as
without it company cannot survive in marketplace. Therefore, plan of actions or strategy is an
important aspect of every business as it enables organisations to perform in better manner and
achieving better results(Akingbola, Rogers and Baluch, 2019). This business report is on
Starbucks, which is an American coffee house chain. This report highlights the present condition
of Starbucks, including internal and external analysis of company. Recommendations are also
provided for improving its operations and performance of organisation. In another part
stakeholders analysis report is mentioned to analyse the behaviour of all parties related to
Starbucks.
Starbucks was founded in 1971 by Jerry Baldwin, Zev Siegi and Gordan Bowker.
Mission of Starbucks is to become prime quality coffee serving company in the world. Starbucks
servers in worldwide locations having almost 19,767 stores in 62 countries. Company has huge
employee base,nearly 182,000 employees are appointed by Starbucks for its stores located in
different regions. For all personnels existing or new, time to time training sessions are conducted
for keeping there product and service quality above others. Major competitors of Starbucks are
McDonald's Dunkin' Donuts and Caribou Coffee which organisation targets by offering good
quality coffee and other food products.
PART 1
INTRODUCTION TO STARBUCKS
Starbucks is a coffee house founded by three entrepreneurs in 1971, initially they started
selling coffee beans. The business worked really well and in some time company had grown to
five stores, one roasting house and a wholesale business selling coffee beans to local restaurants
and other coffee shops. The company was founded and headquartered in Seattle, Washington
serving to worldwide customers through its stores in varied locations (Nan and Li, 2017).
Starbucks serves different products like coffee, tea and other beverages, company also sell
snacks, cookies, pastries and other food item to customers. Starbucks has a very effective supply
chain, they serve to guests through its stores located in different locations. Company also use

digital technology for making sales and acquiring larger market. They are associated with
different food and drink delivery company who takes orders from customers on company's
behalf and make deliveries. Starbucks servers to their customers through online applications.
Starbucks became the most reputed brand in the world selling variety of coffee to customers and
satisfying their desires.
EXTERNAL ENVIRONMENT ANALYSIS
PESTLE Analysis of Starbucks
External marketplace has several as factors which affects the industry in which company
is performing their business activities (Baik, Kim and Patel, 2019). PESTLE analysis is a
framework which is used by marketers of organisation to study the market conditions and all
macro factors which affects the industry as a whole. This tool is also used for Starbucks to
analyse the external environment of company in order to work accordingly and attaining
effective results. PESTLE model has six factors which are studies for gaining better
understanding of company's external situations. Political- This dimension is concentrating on the level government and political parties
intervenes in particular industry. Starbucks is a multinational organisation operating in
several locations and therefore, affected by various political parties. At the moment ,
political condition of Starbucks is in favour of company as governments are focusing on
improving infrastructure of their economies. This opens new doors for company to
expand their operations. But, political stability is one factor which affects the company as
new people come with their new rules and accordingly Starbucks also have to change its
policies and processes. Economical- The current situation of economy is low due to ongoing recession, this has
dented the profitability of Starbucks. Now as purchasing power of people is decreasing
they are not stopping the consumption of coffee, public is just shifting to lower priced
goods. This is a potential threat for Starbucks as they have premium pricing policy, but is
can serve as strong opportunity too (Papa and et. al., 2018). Starbucks can start offering
lower priced products for retaining its existing customers and attracting new market. Social- This aspect of PESTLE analysis focuses on the preferences of the people in
which company is operating, their culture and their tastes. Starbucks as advised above