Starbucks Corporation: A Comprehensive Business Analysis (BUSN 301)

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Extended Business Project – Individual Report
Framework

Table of Contents
Introduction......................................................................................................................................3
Background of the company............................................................................................................4
Analyze the market competitiveness (Value chain analysis):.........................................................7
Marketing mix of star bucks company-...........................................................................................9
Human resource management........................................................................................................12
Recommendation of the next 2-5 years-........................................................................................14
Conclusion-....................................................................................................................................15
References:....................................................................................................................................16

Introduction-
Business is required for every level of business whether for an internal and external environment
of the business. There should be proper business planning and policies to be made in terms of the
growth and development of the business project. The extended business project has a wide scope
of business plan and efficiency of the project. It gives detailed business planning and function of
the business. the component of this business project basically includes the pestle analysis,
marketing mix concept or human resources management policies to be followed by the
Starbucks company. The recommendation of a successful and positive business plan in the
coming 2 to five years will be suggested in this project.

Background of the company- Starbucks company is an American coffee company and many
coffeehouse chains. Starbucks Company founded in Seattle, Washington in 1971. As a report of
this company presently number of locations 30000. Starbucks mainly serves hot and cold drinks.
The star bucks company basically have the first office in Seattle at 2000 Western Avenue from
1971- 1976. During this time company sold roasted whole coffee beans.
The star buck's office outside North America has opened in the year 1996 Tokyo, Japan. In
September 2002 Latin America at the Mexico City star bucks store was opened. Presently there
is a planning of opening a shop up to 850 till 2018. On 21 March 2018 the star bucks company
use of block Chain technology with an objective of coffee drinkers to involve with the coffee
farmers to increase the benefit new financial opportunity.

Pestle analysis-
The external environment and pestle analysis basically depend on helping the business
organization to perform its business activity and functions.
The pestle factor that affects the functioning of the star bucks which is located in the US.
Factors Impact
Political
economical
 The most important political review of the
star bucks access using a source of raw
material and increase the interest of
politician, where material coming from.
Another impact of the star bucks they rely
on the rules and regulation of buying
material.
 The rules and regulation pressure is the
major factor of home market basically on
the Australian market (Ho, 2014).
 The foremost economical driver for star
bucks basically involves in the global
economic recession which basically
impact on the company profitability and
performance.
 By the study of Starbucks Company
people are nor removing their expenses
related to taking coffee and cold drinks,
do they want to do less expense by finding
alternatives. It is the advantage of a star
bucks company.
 The company defines the operational and
labour cost as the inflation of the macro
environment of the business. It is affecting

Social
Technological
Legal
the profit capacity of the company.
 This is the challenges for giving quality or
sacrificing the performance of coffee.
They offer less costly service to the
customers. It basically underlines the
middle and lower level customers.
 Along with this social and environmental
cost of the brand star bucks basically
means that customer is cognizant to this
trend.
 Starbuck basically focuses on
technological advancement by using the
mobile app. They are giving high rate
discount of apps. Recently they tied up
with apple.
 The company is using a Wi-Fi facility for
customers. So that they increase customer
experiences.
 They also are giving facility of online
payment method.
 The star buck company must ensure to
follow in the home market. And rules and
regulation do not break.
 It includes the two-point
 Availability of licensing requirement.
 Giving the framework of trade regulation
(Morais, et. al., 2014).

environmental
There is a different concern about the
business standard of the group of international
group and activist.
Analyze the market competitiveness (Value chain analysis):
Inbound logistics- According to (Luna and Wilson 2015), it includes the various activity in a
relation of collecting, storing or distributing of the work. It basically for the goods and service in
relation to the operational process. It basically is restructuring the initiative of Starbucks
simplification and easier form of the supply chain management. The unroasted Arabica coffee
beans are providing in Asia, Africa, and Latin America to us and Europe. The different region of
coffee producing range from the 2 lack to 3 lack square feet in size by six local regional
distribution centres. It basically for an opportunity to grow of own coffee company.
Outbound logistics- various company that is located in the US which basically for the buying
Starbucks goods and licensing requirement. The online sales channel also using the packaging
coffee and drink related equipment. This gives the addition of the range of product that is 3 in 1
coffee sachet can be purchased. The whole seller and retailer are the important factor of the
Starbucks buck’s outbound logistics.
Starbucks operations-
Starbucks operates in 75 countries operated in two formats.

1. The company operated stores- company-operated stores are important for the business
because they know of the consumer taste and preferences of product and collect information in
relation to information of the market. Starbucks majorly focus on the operation of the many
stores.
2. Licensed stores-there were 12374 licensed Starbucks store at the end of the year 2016. This
represents the forty-nine percent of the total number of stores.
Source: https://research-methodology.net/Starbucks-value-chain-analysis/
The main theme of the operational value of Starbucks big visibility locations and location of the
stores in the high traffic. In addition, the company variety of setting for an office building and
university for various size and format.
Starbucks marketing and sales- in old scenario Starbucks was not comfortable to marketing.
They are involving in the cost-effectiveness-cost-effectiveness and it is based on the product

quality but the level of performance is high. It basically for promoting brand over the years. The
company budget in relation to the market increased USD 351.5 million at the end of the fiscal
year. This budget for the purpose of print media, promotion, and public relation and direct
marketing. The high value of Starbucks coffee increasing day by day because of social media
promotion and advanced technology (Chua and Banerjee, 2013.).
Starbucks services- Starbucks services basically for the competitive advantages of the firm.
This basically advertises them add to gain brand image. Starbucks generally shows polite and
good gesture towards with the regular customers.
Marketing mix of Starbucks company-
Starbucks corporation has a 7Ps of the marketing mix. That gives the firm industry position as a
big coffee house chain in the world. Marketing mix mainly has a component i.e. product, place,
promotion, price, people, process, physical evidence. Starbucks marketing strategy basically
relates to the marketing quality product. It based on the premium quality product and it should be
the centre pillar of its marketing effect. The 7 Ps of the marketing mix are as follows
(Harrington, et. al., 2017).
Product – This component basically highlights what business offers to the consumers. Starbucks
Company regular does product innovation in context to collect food and beverage market. The
company wants to modify product and product line, with the expanding in relation to the
marketing share. The following main classification of the product.
 Baked goods
 Tea
 Coffee
 Frappuccino
 Smoothies
 Merchandise (mugs, instant coffee, etc.)
Starbucks mainly results in the product mix of the innovation of business. This company added
Frappuccino in 1994. The business mainly involves new product innovation. They have a goal of
attraction of new customers to purchase a new product.

Place- Starbucks buck mainly present more than 70 countries in the world. They have approx.
the 5000 licensed location. This component basically has driven the venue for customer access. It
offers its product to cafes or coffeehouse. Following are the venue or places that Starbucks want
to reach is specially target customers.
 Retailer
 Coffee house
 Mobile apps
The Starbucks company sold his product to coffeehouses. After that, they provide product in the
online stores. This emphasis majorly on e-commerce product. But the company close his online
store. Company changes his online store by the happening of brick and mortar coffee house.
Starbucks merchandise operation available through the retailer. On the other way, mobile
application basically gives facility to customers in relation to the book coffee and cold drinks by
ordering online coffee in mobile apps. So, they can easily take coffee (Balasubramanian, et. al.,
2015).
Starbucks promotions-
This component basically emphasis on the communication strategy in relation to the sharing of
information and receiving customer satisfaction. It gives belief to purchase a product by
consumers. This company promotes the product through personal relation and communication.
The advertisement is also part of the promotional approach. The Starbucks buck’s promotional
approach basically highlights the following promotional mix.
 Advertisement
 Sales promotion
 Public relation
 Word of mouth marketing
The Starbucks basically highlight the concept of promoting by word of mouth. They want to get
satisfaction result from the customers. They try to customers to speak good world about the
company. They do promote by print media. Television media. Sales promotion basically
involves in the Starbucks reward and program involving freebies that can customer easily

purchase a definite amount of the product of the company. The part of Starbucks marketing mix
basically highlights the core advantages of the advertisement, word of mouth marketing and
public relation, coffeehouse chain business.
Price-the Starbucks basically use the premium price policy. In the marketing mix concept, this
price strategy highlights the behaviour and tendency of the people towards buying a product
which they are having high value and high price. The company coffee product is much expense
in relation to MacDonald's items. The company basically want to develop high-quality
development product and get customer satisfaction in relation to the growth of the company.
People- Company have a strength to handle of the 33800 employees. The company put a very
much effort to keep unite of the partner, client and other stakeholders. This basically understands
the customer, management, culture, and employees.
Process- presently Starbucks buck operate his coffee chain to the seventy countries. They give
more focus on the product quality, cost effectiveness and simplify the procedure of the product.
Physical evidence- the company gives importance to the packaging of new product in relation to
the different countries of different product in relation to the colour, design. The company
basically give a mark of the original and healthy pictorial of all the product packages.

Human resource management-
Objectives- the key objective of the Starbucks buck coffee is to achieve the success of the
employee and achieve leadership in the coffee market. For that purpose, the company produces
an innovative product in relation to coffee, cold drinks in the world. This company wants to do
success in product development and new customer attraction. The hr department aim of hiring a
good person which they must have knowledge (Noe, et. al., 2017).
Functions of hr
The function of hr in the Starbucks company to follow compliance with appropriate laws. It must
be ensuring the basic laws relating to the coffee shop, cafe. They should be hiring the candidates
and give training to them. They should preference firstly to maintain employee and employer
relationship and maintain tax and necessary record to the company. They should do an employee
performance plan in context to the achievement of goals (Budhwar and Debrah, 2013).
Corporate and regulatory affairs-
The company must regulate the number of laws and corporate affairs in context to give guarantee
to the stakeholder and who influence the business directly or indirectly. Corporate affairs of the
company promote corporate social responsibility or corporate communication of three main
corporate regulatory frameworks.
Human resource strategy
Employee selection is essential for hiring the right person. Effective selection is a major point to
qualification and skills. They should pick the best application for the job; the organization will
get a good performance of employees. By employing the right candidate company saves money
and time. During the selection process, the candidate screening test must take place, there is a
testing of the entire potential candidate for the job who applied. To collect the necessary
information there must be an interview of the candidate. The interview allows the candidate to
show his confidence, skills, personality, and knowledge of the company.
There must build an effective management team are required in the growth of the companies. A
good business effective management team must be for an efficient way to delegate leadership to