Analysis of Starbucks' Business Strategy and External Environment

This report provides a comprehensive analysis of Starbucks' business strategy, focusing on its response to the external environment. The introduction provides a brief overview of Starbucks, highlighting its global presence and the importance of a well-defined business strategy. Task 1 delves into the impact of macro-environmental factors on Starbucks using the PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors. The report also explores the stakeholder matrix, assessing the influence and interest of various stakeholders. Furthermore, the report addresses the internal capabilities of the organization. The report also provides an explanation regarding Porter's five Force model that helps in achieving competitive edge at Marketplace. The report utilizes these frameworks to evaluate Starbucks' strategic positioning and competitive advantages in the coffee industry.

Business Strategy

INTRODUCTION
Business strategy signifies plan which is formulated by administration team of business
organisation in order to smooth running of company in an effective manner. It assists in
achieving competitive advantage over rivalries at Marketplace. It focuses on those strategies
which are implemented by administration team that help in accomplishing vision of business
organisation. This report is carried upon the company named as Starbucks. It is the American
International chain of Coffee houses which is founded in year of 1971. This assignment will
provide discussion regarding influence of external atmosphere by adopting proper framework
and assess internal ability of organisation. Furthermore, they also provide explanation regarding
porter's five Force model that help in achieving competitive edge at Marketplace. By executing
conception theories as well as model that helps in conducting different work in an appropriate
manner.
TASK 1
P1 Impact of macro environment factor on organisation and its strategies
The mission of business organisation is to provide superior quality product and services to
its customer according to their needs.
The vision of Starbucks is to achieve leading position around world.
Objective:
 The objective of Starbucks is to increase sales by 20% in upcoming 1 year.
 They also focus on increasing profit margin by 10% in upcoming 6 month.
Therefore, macro environment signifies component and factor that imposes direct effect on
organisation in both a favourable or adverse manner. In order to control this kind of factor, the
management team of chosen organisation can adopt PESTEL analysis that is going to be
mentioned below:
PESTEL analysis is a tool that help organisation to scan external environmental factors
through which the organisation conduct their operations in an appropriate manner that help in
taking better decisions during particular phase of time period.
Political factor involves government political condition as well as laws and regulation in
many more. In context of Starbucks, it is determined as a global organisation having above
30,000 stores in different countries then the political factor imposes direct effect on company is
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law as well as regulation. It is necessary for Starbucks Company to follow rules and regulation in
order to conduct operations and functions of business organisation in an appropriate manner that
imposes positive impact on organisation. On the other hand, due to stability in political condition
of country such as India and any other developing country in which the Starbucks start their
outlets that imposes adverse effect on the country. Therefore it is necessary for Starbucks to
consider those factors in order to run their business in an appropriate manner.
Economic factor involves unemployment rate, interest rate, exchange rate and many more
that imposes direct effect on company. Due to having low wage rate in US it provide affordable
cost of labour for conducting their work in an appropriate manner that increases positive effect
on company. In addition to this, Starbucks provide product and services to its user according to
their needs that help in achieving competitive advantage over rivalries at Marketplace. It
increases profit margin and sales in future period of time.
Social factor social factor involves taste, preferences, need and want of its customer that
enforces direct effect on organisation. The company provide products and services according to
need of customer that help in satisfy them. In addition to this, due to change in need and want of
customer frequently so that it is not possible for organisation to provide good like coffee
according to their need.
Technological factor Technology plays an important role within business organisation
and it is important for management team of Starbucks to implement advanced technology in
order to provide appropriate services to its user. Therefore, in context of a Starbucks they focus
is on tied up with Apple to launch app based discount for its customer and also launched free Wi-
Fi in store that attracted large number of user during particular phase of time period. In addition
to this, due to increase in cost of advanced technology that increases cost for the company that
imposes negative effect on organisation.
Environmental factors it involves climatic and weather condition that impose positive
effect on organisation. The organisation focuses on protecting environment in order to provide
eco-friendly goods to them that increases profit margin of organisation. In addition to this, due to
increasing rate of pollution that enforces negative effect on activity and functions of business
organisation.
Legal factor involves laws regulation which must be followed by company in order to
carry out their operations in an appropriate manner. Such as in context of Starbucks, their focus
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is on confronting need for regulating in context of beverages so that the management team of
chosen organisation focuses on regulating its goods as per law passed that imposes positive
effect on company. In addition of this, due to change in law in frequent manner it is not possible
for organisation to follow according to need of its user.
Stakeholder matrix- Stakeholder Matrix it is determined is activity to collect qualitative
data in order to assess interest of an individual person or improve policy accordingly.
High power low interest in reference of stakeholders possesses higher authority and low
attention within business organisation. The individual person include such as customer, sponsor
and many more. In reference of Starbucks, customer is determined as a stakeholder of this
Matrix and the consumer possess power of bringing changes within strategy of business
organisation. Therefore, they possess the interest because they do not take product according to
need and wants as well as they switch to another brand.
High power high interest it signifies individual person who possess high power as well as
high interest within business organisation. In context of Starbucks, it is necessary to implement
strategies within business organisation in order to increase success as well as growth in future
period of time.
Low interest Low power low interest it signifies those individual person who possess low
interest as well as low power because they do not increase their involvement within business
organisation. It determines these types of individual person who does not increase involvement
within business organisation.
Low power high interest it signifies internal user, employees as well as a stakeholder of
organisation. Employee possess high rate of interest because they increase their responsibility for
work but they do not possess power because they directly manage senior authority of
organisation.
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REFERENCES
Books & Journals
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