Starbucks: External and Internal Analysis

Strategy

Contents
INTRODUCTION...........................................................................................................................3
External environment.......................................................................................................................4
Internal environment..............................................................................................................8
Recommendations..........................................................................................................................12
PART 2..........................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Starbucks is an American international business organisation that operates large chain of
coffeehouses and offer good quality of caffeine related products. The main motive of
organisation is to gain top position in coffee market by operating and controlling all operational
activities from their headquarters that is situated in Seattle. Starbucks was established in the year
1971 by three business man that provides good quality of coffee beans. Further, with expansion
of business idea management focuses for building a strong loyal customer base and enhance in
market area through providing good quality of coffee. Moreover, the main aim of business is to
match coffee products with needs and wants of customers. Starbucks open its first coffee store in
Seattle, Washington (Yuliati and Purnomo, 2019). In the present scenario, management is
completing their work at worldwide level and there are more than 28,000 stores are operated by
business among different locations. Along with this, coffee beverages, tea, baked goods,
sandwiches and many more products are offered by organisation for satisfying all needs and
wants of individuals in proper manner. Coffee industry is wide in scope which show market of
organisation is growing with CAGR rate that is 5.5% that forecast market for upcoming years.
The global coffee industry is growing its market with developing nation that is National coffee
association that show more than 70% consumer prefers to drink coffee and beverage on daily
routine basis. Espresso coffee machine, drip coffee, brewers and coffee shops are key aspects for
the coffee organisation which is operating business in coffee industry. Along with this world
coffee export their products at large level. There are various task and operations performed by
management that is leading organisation to operate business in easy manner. Export of products
defines coffee year and it is managing proceed all coffee products in easy manner but from
recent years there are various challenges faced by company which is decrease in sales of coffee
products. Prices of products and services as per year 2019 information provided by World coffee
organisation demonstrate that there sale and demand of coffee is decreasing due to which
products are demanded in field of mills. Globalisation is one of essential aspects that impacted
on all industry specifically coffee as it is demanded among all market area. The major
competitors of Starbucks is Café coffee day, coffee republic, Dunkin Donuts etc. that is directly
impacting on market area of company. Moreover, this report is composed from point view of
Starbuck case study and its highlights on internal and external analysis of market.

Recommendation and stakeholder report will also be covered in this report. With the comparison
of Starbucks and its analysis for completing all report it is identified that Starbucks is facing
regular challenges due to which market organisation and its market impacted. Moreover,
research is also based on Smart objectives for generating right recommendation for all business
products. The current situation of Starbucks is better as compare to competitors as management
offer good quality of goods with proper health safety measures.
Figure 1Sourcehttps://www.marketwatch.com/story/starbucks-drops-to-lowest-consumer-
perception-level-since-november-2017-2018-04-18 ()
External environment
Macro or external environment performs an essential role in an organisation that directly
impacts on organisational goals and objectives. In the present scenario, external environment is
too board that is impacting because all world is performing their work at global level due to
which its market area are directly impacted. This refers that external environment is generating
different challenges as they are beyond the control of organisation due to which its business task
and operations is impacted (Tikson, 2018). Therefore, various tools are utilised by management
of Starbucks such as PESTLE, Porter’s five forces etc. are implemented to obtain essential
results. Due to which it is easy for company to obtain long term results. It also increases market
size and area that enhance organisational position to gain effective and efficient results. PESTLE
analysis form perspective of Starbucks is mention as follow: