Starbucks: External and Internal Environment Analysis

STRATEGY
1 | P a g e

2 | P a g e

Table of Contents
1. INTRODUCTION.......................................................................................................................4
1.1 About the company................................................................................................................4
1.2 Starbucks experience.............................................................................................................4
2. EXTERNAL ENVIRONMENT ANALYSIS.............................................................................5
3. INTERNAL ENVIRONMENT ANALYSIS..............................................................................8
3.1 SWOT ANALYSIS...............................................................................................................8
4. Recommendations......................................................................................................................12
4.1. Revenue Projection.............................................................................................................12
4.2. Expenses and Cash Flow Projection...................................................................................13
4.3. Relative valuation...............................................................................................................13
REFERENCES..............................................................................................................................14
3 | P a g e

1. INTRODUCTION
1.1 About the company
Starbucks Corporation is an American espresso group and a chain of coffee shops. It was
established at Seattle, Washington in 1971. As of 2018, the organization manages 28,218 areas
across the world. The Starbucks ranges various beverages such as hot and cold, bean espresso,
micro ground retail espresso, coffee, milk coffee, Teavana tea infused tea, Evolution Fresh press,
Frappuccino food and drink, La Boulange cakes and bites includes items, for example chips and
wafers; some offers (counting the annual autumn version of Pumpkin Spice Latte) are found
regularly or in evidence on the store's ground (Schultz, 2012). Numerous shops sell prepackaged
food products, various items and cold sandwiches and alcoholic products including cups and
glasses; select the "Starbucks Nights" ranges that offer beer, wine and canapés. Likewise,
Starbucks espresso, frozen yogurt and packaged cold drinks are sold on the markets (Wu, 2017).
The first North American area of Starbucks in North America was opened in Tokyo, Japan in
1996, while the Philippines became the second largest market in 1997. Starbucks joined
advertising in the United Kingdom in 1998 with the supply of $ 83 million of the 56-export,
based in the United Kingdom at the time. Seattle coffee company, renaming all stores like
Starbucks. In February 2016, Starbucks announced that it will go to Italy, their 24th market in
Europe, the cafeteria is there too. The primary branch in Milan will open in October 2018.
In September 2014, it was discovered that Starbucks would acquire the 60.5% stake in Starbuck
Coffee Japan which is not effective, at a cost of $ 913.5 million, and in July 2017 Starbucks
acquired half a Chinese capital bet resident on long-term joint efforts that satisfy Uni-President
Enterprises Corporation (UPEC) and President Chain Store Corporation (PCSC).
1.2 Starbucks experience
Starbucks' "awakening and vital support of the human soul" requires a unique espresso service
and committed customer engagement. As Schultz, a Starbucks organizer and longtime
administrator, he clarified: "We are not in the category of espresso coffee that serves people, we
are in the category of people who serve coffee". Key to the Starbucks approach is Schultz's
"Starbucks Experience" idea, which aimed to create a "third place" in a place other than home
4 | P a g e