Strategic Analysis of Starbucks and its Rivals

Strategy

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Overview of Starbucks and its rivals...........................................................................................1
External Analysis.........................................................................................................................2
Internal Analysis..........................................................................................................................5
Recommendations........................................................................................................................9
PART 2..........................................................................................................................................10
Stakeholder report......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Management is a process of administration of employees and business activities and
operations. With the help of effective management, the company can analyse, controlling and
organising business in effective manner. Different plans and policies are making contribution in
effective management of business venture and accomplishing its aims and goals. By using
appropriate strategic techniques and concepts, the corporation can determine the impact of
business environment components over the business in several terms (Le Grand, 2018). This
document is supported to Starbucks which is an American international chain of coffee houses.
This report will cover information of organisation and its rivals in current business atmosphere,
external environment and internal environmental analysis of venture. Moreover, the written
document will discuss about suggestions for development of respective firm’s execution and
about stakeholder report of Starbucks.
PART 1
Overview of Starbucks and its rivals
Starbucks is a chain of coffeehouses which operated it business globally in approx 80
nation with the help of its number of outlets in more than 30,000 locations. The firm was
incorporated in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The organisation
operates its business activities and operations with the help of its several coffee and beverage
commodities like smoothes, tea, baked products and sandwiches. The company provide
employment to 291,000 individual and they are help in running the business by performing their
roles and responsibilities in term of their different job roles. The mission of this firm is to
influence and attract people to take the services of this company. The utility of this business is to
propose quality and better coffee goods to its consumers to provide satisfaction to their needs so
that they can show their loyalty and retain with the firm till long term (Corbett, 2019). The vision
statement of this venture is to be a internal brand which able to attract number of firms and
would like to share partnership. Starbucks is an important retail company, roaster and brand of
particular coffee in the world has be intimidating as uncertain economic system, Its own rapid
growth and increased competition from cheap competitors.
To achievement its vision and mission, the management of this enterprise devise some
principles like embrace diverseness as an essential component and roasting and allocation of
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coffee at its effective and provide a great working environment where people are ready to
execute their skills and knowledge and treated by company in effective manner without
generating any kind of discrimination. There are several rivals who create competition for
respective company in term of offering substitute products and services. Dilmah Tea, Coffee
Republic, Cafe Coffee Day, Cafe Ritszza, KFC, Costa Coffee, Dunkin Dounts, Mc Cafe and
Caffe Nero etc are some main competitor of Starbucks (Burgelman, 2020). To deal with this
competition, the management can devise and frame effective business plan of action such as
making effective human connect and providing better quality products to customers. This will
help in running the business of this firm in smooth manner and firm can sustain and survive in a
competitive environment till long term.
External Analysis
It is a process of analysing the impact of external component of business environment that
influence the business of venture in positive as well as negative form. For this, the administration
of respective company can utilise PESTEL, Porter’s five forces analysis and industry life cycle
model. The explanation of them in reference of Starbucks is as under:
PESTEL analysis- It is a tool and technique that is utilised by as business plan of action by
administration of Starbucks to analyse the macro atmospheric components impact over business
operations and actions.
Political- This component include some aspects such as foreign exchange policy, trade
restrictions, political stability and instability, interference of government etc. The main factor
that influences Starbucks is about assets the raw material and this has assembled a lot of the
attraction for politicians in the west and from those countries which are the main source of
martial for this firm. Cause of it, the organisation desires to remain to communal and
environmental culture (Baylis, Wirtz and Gray, 2018). The main factor is free trade which
positively affects the company in term of providing option of operating business in diverse
countries.
Economical- This factor involve different elements such as currency rate, unemployment
rate, interest rate, exchange rate and economic development etc. Due to Brexit, the inflation is
occur which is the factor that highly affect the firm because the rate of raw material are increased
as well as tax rate also maximised and the venture also make change in its pricing strategy in
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