Strategic Management Plan for Starbucks

STRATEGIC MANAGEMENT
PLAN

Table of Contents
INTRODUCTION...........................................................................................................................3
PESTLE Analysis of Starbucks..................................................................................................4
SWOT Analysis of Starbucks.....................................................................................................7
Porter's five strategies for Starbucks...........................................................................................9
Strategic management plan for Starbucks.................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The study is on Strategic Management plan which means the future decisions to taken by the
management which can help a company in using strategies which can increase its performance,
help recover from losses and withstand crisis. The organisation being taken for study is
Starbucks which is an American multinational coffee house chains and roastery reserves. The
company has headquarters at Seattle, Washington. It is also seen to be the second wave of coffee
culture at United States. The impact and influence of the macro environment factors on the
company has been discussed and further recommendations given to improve market presence.
The evaluation of the internal environment and capabilities has been done in the form of SWOT
analysis. Porter's five forces model has been evaluated to judge the competitive forces present in
the market and recommendations given. The detailed strategic management plan has been
provided to produce a set of valid strategic decisions and actions for strategic management plan.
PESTLE Analysis of Starbucks
Pestle analysis helps in analysing the macro factors which affect a company's economy within a
country. The factors influencing the company Starbucks are:
Political
The coffee beans business highly depends on international trade. As the biggest coffee producers
are in continents like Asia, Africa and South America but the drink is majorly popular in
continents like Europe and North America. Starbucks thus has to import coffee beans from
around the world and the trade relations with other coffee producing countries influence the
pricing of coffee beans within the country (Shtal and et.al., 2018). The tariffs are the decision
makers of the pricing and thus impact the sales of the company. There are a number of
international trade agreements which help in ensuring success for coffee industry. The other
factors playing a prominent role are tax policy and employment laws.

Economical
The economic factors related to the business is the purchasing power of customers. When
economy faces recession it is bound to have impact on sales of coffee. People would prefer
having it at home rather than taking the service outside at cafe. But when there is a good growth
rate in the economy, this has a good effect on food and drink industry. People have higher
purchasing power and can afford to enjoy outside services. Premium coffee products will also be
able to sell in these times. Starbucks has to check in these factors in pricing the product
appropriately (Basak and et.al., 2020).
Social
There are certain factors of social environment affecting the food and drink industry as:
Health consciousness
The present century has seen people growing a lot more health conscious. They are spending
more time on exercising and eating right. Thus, they are now more focused than earlier to go for
healthy choices. Coffee drinking although has not been considered unhealthy but is said to have
high amount of caffeine. People thus have decided to reduce intake of coffee and go for
decaffeinated products. This will mean reduced number of customers for the coffee business and
Starbucks would have to watch out for same (Shtal and et.al., 2018).
Changing Generation
The factor focuses on the changing revenues as the older generation who used to experiment and
spend on new products is now retiring. The company Starbucks will have to now focus on
marketing techniques to catch on the attention of the new generation.
Technological factors
The technical factors like providing of Wi-Fi access while consumers sip coffee is an advantage
of providing an added facility when customers drink coffee. Apart from this, Starbucks is also
enabling mobile payments to make convenient for customers to pay as per their convenience.
This adds to the customer experience. Speaking of the additions in coffee making, the business
has seen changes in the way coffee has made. The technical factors affecting the industry are: