Value Creation for Business Organisation - Starbucks
Added on 2020-07-22
18 Pages7263 Words47 Views
Value Creation for Business
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3PART 1 ...........................................................................................................................................31.1 Critical review of Situational Analysis.................................................................................31.2 Comprehensive understanding of the current value based inadequacies..............................51.3 Propose relevant changes to the business model that investors will accept. .......................71.4 Value based results for future shareholders as well as key stakeholder group. ...................91.5 Impact on strategic position and future business sustainability of the organization. ........10PART B.........................................................................................................................................10EVIDENCE REVIEW...................................................................................................................10PART C.........................................................................................................................................15REFLECTION...............................................................................................................................15CONCLUSION ............................................................................................................................16REFERENCES .............................................................................................................................17
INTRODUCTIONValue creation is the primary focus of each and every business organization. Creatingvalues will help in increasing the trust and loyalty of customers as well as support theorganization to maintain their sustainability in the competitive markets. Value creation for abusiness organization is the concept of recollecting all the measures that can lay emphasis on theemotions and values of the old and potential customers of the organization. In general terms,creating value is the essence of the business organization. 'Starbucks' is an American companyand chain of coffee house which was established in Seattle, Washington in 1971. As per thereports of 2017, worldwide covered locations of the company are 27,339. The founder of thecompany is Jerry Baldwin, Zev Siegi and Gordon Bowker. The main focus of this report is to layfocus upon the value creation and the parameters taken by the Starbucks to lay emphasis on theminds of their customers. PART 1 1.1 Critical review of Situational AnalysisStarbucks' is an American company coffee house which was found in the year 1971 inSeattle, Washington. As per the report of 2017, worldwide covered locations of company were27,339. Company is a top leading brand of coffee industry and it operates in approximately morethan 15,000 stores in around 50 countries such as Canada, Germany, Russia and Australia. Jointventures are used by Starbucks to expand their market along with the local shops of coffee andrestaurants. Starbucks is considered as a leader of the coffee industry but in some past recentyears, it has become essential for company to lay more emphasis upon the development of theircustomer services in order to create the exclusive brand image. Aim of Starbucks; the mission statement of the Starbucks is to achieve all the objectivesof the organization. Their main aim is to create Starbucks as one of the finest brands of coffeewith their uncompromising principles. As the coffee at the Starbucks is very unique, the main focus of the organization is uponthe standard of quality of their products. The local and international partners of the Starbucks aretreated with full harmony and respect that allow them to maintain the potential of their company.The structure of the industry was analyzed by using Porter's Five Forces Model.
Situation analysis refers to the method of analyzing the internal and external environmentof the company in order to evaluate the capabilities, customers and business environment of theorganization. Situational analysis of any organization is made up of various factors; it is thecritical and important step for analyzing the outcomes of the company. Situational analysis of the organization is based upon internal and external analysis.External factors consist of opportunities and threats while on the other hand, internal factorsconsist of strengths and weaknesses. As per the situational analysis of the organization, itsopportunities are; with other companies Starbucks uses joint ventures in order to launch newproducts that will be sell in convenient and grocery stores. Threats for the organization are; oneof the biggest issue faced by the Starbucks is economic recession, it occurs because of the priceof the products of Starbucks, customers start drinking coffee of relatively low prices. And alsothere are some countries that oppose coffee because of the low nutrition ad high calories factor.As because the prices of the products are high, it become hard for the people with low incomegroup to afford it and then they find the substitute products to fulfill their purpose. Internal factors consist of strengths and weaknesses of the organization. The other partof the situational analysis lay emphasis on all the strengths and weaknesses of the company inorder to conduct the proper evaluation of the organization. As per the analysis conducted by thecompany, strength of the Starbucks is strong brand awareness. It is a large coffee company withso many operating stores across the world. Starbucks is very famous in British countries aspeople out there really live upon coffee. The financial position of the Starbucks is very strong inboth international and local market. This is the main strength of the organization. The teammanagement of the company is very strong and impact-full. The staff at the Starbucks is welltrained and sufficient in meeting the needs of the customers. While, on the other hand,weaknesses of the organization is that the major issues for the company is to manage theiremployees at different level of their stores, there are many complaints regarding the long waitingschedules that customers have to face in Starbucks due to low staff skills. Therefore, theexpansion of company becomes slow and profit ratio also decreases. One more major weaknessof company is high cost of their products.As Starbucks is a famous organization, there are number of issues which have been facedby the organization. It is very popular among the customers but company face a huge problemduring the time of the economic recession as there are many consumer who think that products
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Micro and Macro Analysis of Starbuckslg...
|17
|4742
|470
Starbucks Business Reportlg...
|18
|5230
|100
Starbucks Business Reportlg...
|16
|5342
|48
Starbucks Business Reportlg...
|15
|5030
|1
Starbucks Business Reportlg...
|17
|5252
|87
Strategic Management: How Starbucks Gains the Competitive Advantagelg...
|12
|3949
|100