Strategic Analysis of Starbucks: Overview, External Analysis, Internal Analysis

Strategy

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Overview of Starbucks and its competitors.................................................................................1
External analysis..........................................................................................................................2
Internal analysis...........................................................................................................................5
Recommendations........................................................................................................................9
PART 2..........................................................................................................................................10
Stakeholder report......................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Management is a process of administrating, planning, controlling and operating business
actions and operation with the assist of efficacious plans policies or plan of actions.
Administration of plan of actions is essential and continuing, determining, analysing and
evaluation of all that is needed for an enterprise to attain its goals and objectives. Modifications
in the business atmosphere demand organisation to appropriately evaluate their strategies and
tactics for success and growth (Le Grand, 2018). By using efficacious strategic techniques, the
administration of enterprise analyse the influence of business environmental components over
the business in several term. This written document is supported to Starbucks which is an
American multinational coffee chain and operating its business in different nations of the world
with the help of it coffee products. The report will cover information about internal analysis,
external analysis and stakeholder report of respective firm in appropriate manner.
PART 1
Overview of Starbucks and its competitors
Starbucks is an international company which was incorporated in 1971 by Jerry Baldwin,
Zev Siegl and Gordon Bowker. The firm operate its business globally in estimated 77 nation’s
approx 30,000 locations cross wise the world through its outlets. The organisation provide
employment to 291,000 individuals and they make contribution in running the business activities
and operation with the help of its different products like Coffee beverage, smoothes, tea, baked
goods and sandwiches. The vision of this firm is offering quality products and to be a worldwide
global brand and attract different organisation that would like to share partnership. Starbucks is a
retail company, roaster and brand specialism coffee in the world has been struggling as of
stumbling economy, its own rapid growth and increment competition from cheaper competitors.
The mission of the firm is to influence and nurture the human being-one person, one cup and
one neighbourhood at a time. The motive of this business is to offer quality and finest coffee
item so that it can effectively able to fulfil the needs of its customers and retain them till long
time frame (Corbett, 2019). To attain set vision and mission, the administration of the firm
design some principle like hold diversity as an essential component, heating and delivering of
coffee at its best and provide a effective workplace in form of healthy and safe so that people can
execute their work and responsibilities in appropriate manner. There are several competitors in
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market which generate competition for respective company in term of manufacturing similar
commodities. Costa Coffee, Caffe Nero, Mc Cafe, Dunkin Donuts, KFC, Cafe Ritszza, Cafe
Coffee Day, Coffee Republic and Dilmah Tea etc. are some main rivals of Starbucks which
create rivalry in coffee business sector by providing diverse substitute commodities as respective
venture. By utilising plan of actions like making appropriate human connect and providing better
quality goods to target audiences it deal with the complexities of rivalry in adequate way.
External analysis
It is a process of analysing the impact of external components of business environment that
influence the business of an organisation in positive and negative way (Burgelman, 2020). To
determine the impact of external environmental, the management of Starbucks can implement
PESTEL analysis, Porter’s five forces analysis and industry life cycle model. The explanation of
these tools in reference to Starbucks is as under:
PESTEL Analysis- It is a strategic tool that is utilised by company as business strategy to
analyse the impact of external environmental factors on business of Starbucks. The brief
explanation of this framework is as below:
Political- this factor consider different elements like trade regulation, foreign exchange,
instability and instability of politics, government interference, corruption and many more. The
main political component that impacts Starbucks is about sourcing the raw material and this has
collected a lot of get attention for politicians in the west and from those countries who resourcing
raw material. Due to it, the company wants to stay to social and atmospheric customs. The
company also positively affect by free trade which offer the opportunities to operate business in
diverse nation.
Economical- This factor include diverse factors like exchange rate, tax rate, currency
rate, economic development, unemployment and any more. Brexit is the component that
influences the business of the firm as due to this, situation of inflation arise in the world and this
component dented the profits of Starbucks. It induced customers to shift to cheap alternatives to
international economic recession.
Social- In consist different aspects like culture, value, beliefs and demographical aspects
etc. Starbucks can offer cheap products but it might have to sacrifice the quality. This is the
major social culture challenge that the start up faces (Jervis, 2019). It will enlarge customer base
to include the customers from the lower and the middle income class.
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