Strategy for Starbucks: Case Study Analysis

Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to case study.......................................................................................................4
External environment analysis...............................................................................................5
Internal analysis......................................................................................................................7
Part 2 – Starbucks’ Stakeholder Report.........................................................................................11
Internal & external Stakeholders of Starbucks.....................................................................11
Human resources procedure stakeholders’ group.................................................................13
Interest & power of subordinate’s stakeholder:....................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES:.............................................................................................................................15

INTRODUCTION
Business strategy can be said to be an integration of various plans in a business in order to
attain all the set goals as well as objectives of a business.in order to develop a strategy
management of a company is required to make a particular management team in order to analyse
the best strategy fit for their company. There needs to be done internal as well as external
analysis in order to make sure that strategies are formulated effectively to support functioning
and operations of a business organisation. In the following report a case study on Starbucks is
discussed. Starbucks is an American chain which deals in which deals in coffeehouse and
roastery reserves. Its headquarters is situated in Seattle, Washington. It is one of the largest
coffeehouses in world. Starbucks have brought major second wave of coffee culture in world.
The First ever Starbucks was opened in Seattle, Washington on March 31 in the year 1971. In the
following report major steps for strategies formation such as internal as well as external analysis
of environment is done in this report (Chen, Eshleman and Soileau, 2016).
The following report is basically divided into two parts. In the first part a detailed
information is provided about the case study which also consists of competitive position of the
company. After which it consists of various methods and models use in order to identify external
as well as internal resources affecting Starbucks and strategy formation for the company. Various
frameworks used for this are PESTLE analysis, VRIO analysis, Life Cycle of products, Value
Chain analysis and Porter’s five force analysis. After this discussion are also made on
recommendations for company in order to provide recommendations for company. Stakeholder
analysis of company is also done in this report.
Competency framework for company can also be discussed. There are a number of
factors included in it such as leadership development, high talent, recruitment and selection,
succession planning, rewards and recognition and performance management. Company takes in
various efforts to increase overall performance and skills of their employees. This helps company
to gain competitive advantage in market. The experience and skills of employees in Starbucks
helps them to serve their customers with best quality of service. It is also been seen that Human
and Resource development team of Starbucks is implementing various processes for recruitment
and selection which helps company in a quiring employees who are talented and experienced. It
is also important for every organisation to look into various matters in order to fill the gap arising
in individual as well as team efforts which are different from their planned goals. Managers of

Starbucks are willingly contributing towards raising such leaders who help employees in their
personal success along with success of the organisation. Rewards are provided to employees on a
regular basis in order to help them with motivation (Eaton and Kilby, 2015). Recognition is also
a great way company is using to motivate their employees throughout the world. Company have
also applied an optimum performance management plan in order to judge performance of each
employee and take various decisions regarding its enhancement whenever required by the
organisation.
Part 1 – Starbucks Business Report
Introduction to case study
Starbucks is a multinational coffee chain which helps consumers in providing a number of
different types of coffee throughout the world. All the operations of production as Willis
functions are executed by company itself to make sure that quality products and services are
delivered by it to its customers in order to fulfil their needs and wants. The company came into
existence in 1971 it headquarters is situated in Seattle, Washington. In order to maintain the
brand image of company Starbucks uses various marketing campaigns in order to attract more
and more customers. While analysing annual report of Starbucks it has been revealed that
revenue for company is around $16 million (Higgins, Omer and Phillips, 2015).
Starbucks have a great global existence throughout the world. However, they are facing a
lot of competition from a number of various others coffee joints. From the information given in
the following case study it has been seen that major competitors of Starbucks are caribou coffee,
drinking doughnuts, McDonald’s and such other brands. All these brands have a great impact on
profitability for Starbucks. Presence of a number of competitions however have not influence
revenue for the company but definitely increased its profits. Starbucks also have its presence in
stock market as the raise the funds required by offering shares of company to general public yes.
This has helped company in generating higher revenue from the market. Has been seen that
47.08% returns on equity of Starbucks is even higher than McDonald’s which is its biggest
competitor and approximately have 32.97% of returns on equity only.
However the competition in the industry does not rely only on the one factor but this is a great
factor for measuring strength and manpower of company. It is seen that Starbucks employ
approximately 191,000 employees which is less than that of McDonald’s 420,000 employees.
Shows that McDonald’s have a larger workforce when compare to Starbucks still its profits are