Strategic Management Starbucks | Report

Added on -2020-02-05

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Strategic management
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31. ANALYZING THE EXTERNAL ENVIRONMENT OF STARBUCKS .................................32. ANALYZING THE INTERNAL ENVIRONMENT OF THE STARBUCKS 'S COMPANY.6Vision of Starbucks .....................................................................................................................6Can you please add 2-3 line of analysis under objective, competencies and resources how theyare using it to bring innovation and getting competitive advantage please...listing objective isnot enough (with reference please)..............................................................................................6Objectives of Starbucks- .............................................................................................................6Providing people finest coffee at fair prices................................................................................6Competencies of Starbucks .........................................................................................................7Resources of Starbucks – also talk about intangible resource like brand name, reputation andintellectual property.....................................................................................................................73. EVALUATING THE OUTCOMES OF ABOVE WHICH SHOWS THE ORGANIZATIONCURRENT INNOVATION STRATEGY.......................................................................................94. RECOMMENDATION TO TAKE ADVANTAGE OF INNOVATION OPPORTUNITIES.115. IMPLICATIONS ON STAKEHOLDERS BY THE INNOVATIONS....................................13CONCLUSION..............................................................................................................................15References......................................................................................................................................16
INTRODUCTIONStrategic management refers to formulation and implementation of goals and objectivesof the company given by the top management on behalf of owner of the company, resourcesavailable and seeing the internal and external environment (Ackermann and Eden, 2011). Thisprocess helps in recognizing the opportunities and the threats for the company. The present repotis based on Starbucks which is a leading coffeehouse chain of America, operating globally. Thecompany was founded in 1971, however, today, it operates in more than 23,768 locationsworldwide. The company’s has more than 428 stores in the United Kingdom which is counted tobe on 5th place As per the data of 2014, the company employs more than 191,000 employeesfrom all around the world (The Statistics Portal, 2016). The company offers both hot and colddrinks, whole-bean coffee, VIA, espresso, caffe latte, including Teavana tea products. This reportanalyzes the external and internal environment and the impact on the strategy of the company.Determining the innovation strategies which company adopt according to the environment. Italso emphasizes on recommendations of new strategy involved and the advantages of thesestrategies for the organization.1. ANALYZING THE EXTERNAL ENVIRONMENT OF STARBUCKS External environment refers to the outside factors which have a great impact on thestrategies and operations of the company. There are two types of environment, micro and macroenvironment. It is tool used by the company to analyze the macro environment factors which affect thecompany. Pestle stands for- Political factors- Political factors include tax policy, labor laws, and trade restrictions etc.which have a great impact on the company. In UK, recently the government has boostedthe rural productivity of coffee. The tax for small holder farmers were lowered whichhelp the Starbucks to save money on the purchase of coffee (The Statistics Portal, 2016).Economic factors- Economic factors include economic growth, interest rate, exchangerate, inflation etc. The percentage of economic growth in UK is rising every year. It isgrowing at the rate of 0.6 percent which means that there is an increase in the financialstability of the people (United Kingdom GDP Growth Rate, 2016). It is beneficial forStarbucks Company as more people will purchase goods which will directly increase theprofit of the company, however, declining unemployment rates affects countries.
Social factors- Social factors are also known as socio-cultural factors. This includes thepopulation growth, age distribution, career attitudes etc. The population rate is increasingat 0.63 % in UK. Further, it will also result in increasing sales of Starbucks. The peoplewho are conscious about health, the young generation, people with good income areattracted towards the Starbucks as they provide with the best quality products.(StrategicAnalysis of Starbucks Corporation, 2016). Technological factors- Technological factors include the include the latest technologywhich include rising purchases by mobile phones. This made the customers convenient toorder products There is a potential growth in the online and web based operations inStarbucks. However, in other aspects, the technology as increased the opportunity toimprove the supply chain of coffee farmers (Strategic Analysis of Starbucks Corporation,2016). Environmental factors- Environmental factors refer to the external factors which effectproduction of the company. It mainly includes government targets to keep the city green.The people also need to have environmentally friendly products which affects business.Starbucks is providing its maximum products in the recycling material which makes themenvironment friendly (The Statistics Portal, 2016).Legal factors- Legal factors include the regulations related to product safety, GMOregulations etc. Starbucks is improving their performances by satisfying the productsafety. This is done by getting products mainly from genetically modified organisms.This help the Starbucks to increase the sales using the legal factors (Strategic Analysis ofStarbucks Corporation, 2016).SWOT AnalysisSWOT analysis is a technique used for understanding the strengths, weaknesses,opportunities and the threats of the company (Keupp, Palmié and Gassmann, 2012). It refers toan internal analysis. StrengthsWeaknessesEfficient quality human resourcesCustomer are loyal to the companyExtensive global supply chainCutting down number of stores fromlast year 549 to 428 in the UK.Imitable products and High price points

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