Strategic Management of Starbucks Coffee Company in United Arab Emirates

Running Head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1STRATEGIC MANAGEMENT
Executive summary:
Starbucks Coffee Company is renowned in the coffee industry because of their high quality
products and the quality of service. Besides providing handcrafted beverages like espresso,
frappuccino and non-coffee blends like Starbucks refreshers the Company is also popular for its
customer services. In this regard, this report is going to discuss about the Starbucks Coffee
Company located in United Arab Emirates. The reason for choosing such location is to
understand the business dynamism of the company in a global scale. The report takes support of
different business matrix in terms of Competitive Profile Matrix (CPM) and External Factor
Evaluation Matrix (EFE) which provides a detailed analysis of the operational framework and
practices of the company in the United Arab Emirates region. Therefore, in a conclusion it can be
opined that strategic management has been played an effective role to establish strong market
occupation for Starbucks.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Background..................................................................................................................................3
Mission and vision.......................................................................................................................3
New mission statement................................................................................................................3
External factors............................................................................................................................4
Opportunities...........................................................................................................................4
Threats.....................................................................................................................................4
PESTEL.......................................................................................................................................5
Political....................................................................................................................................5
Economic.................................................................................................................................5
Social.......................................................................................................................................5
Technological..........................................................................................................................5
Environmental..........................................................................................................................6
Legal........................................................................................................................................6
CPM Matrix.................................................................................................................................6
EFE Matrix..................................................................................................................................8
Internal factors.............................................................................................................................9
Strength....................................................................................................................................9

3STRATEGIC MANAGEMENT
Weakness...............................................................................................................................10
IFE Matrix.................................................................................................................................10
Recommendation.......................................................................................................................11
SWOT matrix.............................................................................................................................11
Space matrix..............................................................................................................................12
Competitive Advantage (CA)................................................................................................14
Financial Strength (FA).........................................................................................................14
Industry Strength (IS)............................................................................................................14
Environmental Sustainability (ES)........................................................................................15
Implementation..........................................................................................................................15
Evaluation..................................................................................................................................15
Conclusion.....................................................................................................................................16
Reference.......................................................................................................................................17

4STRATEGIC MANAGEMENT
Introduction
Starbucks Coffee Company is renowned in the coffee industry because of their high
quality products and the quality of service. The first initiative of the company was started in the
year 1971 in United States. The first store was opened in Seattle’s Pike Place Market. Gradually
the Company has proved its quality and service and today it has more than 21000 retail stores in
66 countries (mena.starbucks.com 2018). Besides providing handcrafted beverages like espresso,
frappuccino and non-coffee blends like Starbucks refreshers the Company is also popular for its
customer services.
In this regard, this report is going to discuss about the Starbucks Coffee Company located
in United Arab Emirates. The reason for choosing such location is to understand the business
dynamism of the company in a global scale. Moreover, it can be argued that the achievements
and popularity of the Starbucks Company has been analysed only in the Europe and Australia.
There are no such efforts to be taken in order to assess the business operation of the Starbucks
Company in Asian region especially in the Islamic regions of West Asia (mena.starbucks.com
2018). Therefore, the report is very significant in order to map the impact and organisational
performance of the Starbucks Company in countries like United Arab Emirates. In course of the
understanding, the report takes support of different business matrix in terms of Competitive
Profile Matrix (CPM) and External Factor Evaluation Matrix (EFE) which provides a detailed
analysis of the operational framework and practices of the company in the United Arab Emirates
region.

5STRATEGIC MANAGEMENT
Discussion
Background
The US based Coffee giant Starbucks had initiated its journey in the West Asia by
opening its first cafe in the Dira City Centre in Dubai in the year 2000. In fact, by the end of that
year the Company was willing to open seven cafes in the region in the Emirates. In this regard,
the M.H. Alshaya Company was the earliest company to set a partnership with the coffee giant.
In the words of the CEO of M.H. Alshaya Company, Mohammed Alshaya it can be argued that
the investment and entry of the Strabucks Company into the market of Emirates had amde a great
deal of impact on the market dynamics of the country (mena.starbucks.com 2018).
Mission and vision
The mission and vision of the company is strictly related to its customers and for the
benefits of the customers the Company sets some mission and vision statement. According to the
company website, the mission statement of the company is “one person, one cup and one
neighbourhood at a time” (Starbucks Coffee Company 2018). Therefore the company firmly
emphasises on the quality of the products with great care and services.
New mission statement
However, in case of continuing its business operations in the Emirates there must be
some addition to the mission statement of the Starbucks UAE. In this regard, the new mission
statement of the Company will be “Providing the best quality coffee beans with a soothing oasis
environment.”