Strategy

Strategy

Table of Contents
Table of Contents.............................................................................................................................1
INTRODUCTION...........................................................................................................................2
PART 1 - Starbucks Business Report..............................................................................................2
Introduction-................................................................................................................................2
External environment analysis –................................................................................................3
The internal environment –........................................................................................................7
Recommendations......................................................................................................................10
PART 2 - Starbucks’ Stakeholder Report......................................................................................11
a) Internal and external Stakeholders for Starbucks..................................................................11
b) Priority Starbucks’ Stakeholder Group.................................................................................12
c) Critically analysis of power and interest of chosen stakeholder group and appropriate
communications strategy that Starbucks should adopt\.............................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Strategy is the main activity that is required in every stage and organisation. Every
organisation make strategies and planning for running and making higher profits. For organizing
activities and facing competition there is need to make the planning that can help to increase the
productivity and profitability (Abdel-Basset, Mohamed and Smarandache, 2018). This report is
based on Starbucks case study that is American multinational chain of coffeehouses and roaster
reserves that is large size organisation, headquarter in Seattle, Washington. This is considered as
largest coffeehouse in the world. This targeted quality minded coffee drinkers with handmade
coffee based on lighter roasts. Such organisation is operating its business at 30000 locations all
over the world in 77 countries. Every organisation is needed to have strategies which can used to
know a competitor is growing up and how they can face competition in order to attain the
business goals. This report covers report different information about Starbucks, external
environment and internal environment which helped to compete with others. Apart from this,
stakeholder report has been considered in this study that can help to maintain the profitability.
PART 1 - Starbucks Business Report
Introduction-
Starbucks is a well-known name in the coffee world. This organisation was founded by
jerry Baldwin, Zev Siegl and Gordon Bowher who are earning revenues of 16 billion dollars in
the year 2015. This has more than 22,500 stores available worldwide. The brand has gained
sustainability over years of responsible industry, concentrating on customer satisfaction and
product consistency. The main factor for Starbucks' popularity is distinction. There are three
important aspects that make the brand distinct from the others. Price is the first critical factor.
Starbucks is the world's greatest coffee company. This has a strong regional footprint. The brand
is known for its high quality products as well as its excellent customer service and in-store
climate. The business has gained a leadership role in the coffee sector with a strong emphasis on
product consistency, customer satisfaction and outstanding logistics. This organisation is
providing variety of beverages and coffee with delicious taste that attracts customers and
increase organisational productivity (Epstein, 2018). The company only offers high quality
coffee. Starbucks had started his modest tale in Seattle by offering coffee. The major rivals of
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Starbucks which are providing special type of coffee are Dunkin Donuts, Caribou Coffee,
McDonalds, Cafe Coffee Day, Barista Coffee etc.
As per the given case study, Starbucks is getting high returns by selling its delicious and
high quality of coffee as compare to rivals. The return on investment is double which helps to
maintain the high productivity and profitability. ROE of Starbucks is 47.08% which is higher
than rivals as ROE of Dunkin Donuts is 45.49% and McDonald’s is 32.97% that has stated that
management of chosen organisation are giving so many efforts and increasing organisational
effectiveness (Iritani And et.al., 2015). This seek to maintain good relationship with customers
and employees so training is provided by management to employees who treats customers in a
better way. According to the case report, Starbucks hired 191000 staff in 2015, while 420000
jobs were working in McDonald's, more than twice Starbucks. A stable amount of earnings is
really important for Starbucks to expand and thrive in the intensely competitive Specialty Coffee
Café market in the long term. The net profit margin of the company is 14.57%, Dunkin Donuts is
23.55% and Mc Donald is 17.34%.
After assessing this case study and data which is providing in Starbucks case study it has
defined that this organisation has faced problems at the tile of establish and running due to
having competition in market. To reduce the level of competition proper and best strategies are
formulated by management which helps to increase the customer bases and improve
organisational productivity.
External environment analysis –
This involves various factors and forces which are arises outside of the organisation and it
influences activities and business operation. The extrinsic environment of Starbucks coffee is
states as that helps to assessed to impacts of forces on such business.
PESTLE Analysis:- This framework focus on external factors which includes political,
economical, social, technological, legal and environmental. Managers of Starbucks implement
this analysis as to analyse the positive and negative impact of these elements on business. The
managers of Starbucks determine their competitive strategies from intrinsic environment to
increase strength for controlling risk of weakness and extrinsic atmosphere that create
opportunities to overcome threats. These factors are described with reference to managers of
Starbucks are as follows:-
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