This report offers a comprehensive strategic analysis of Starbucks and Costa Coffee, two major players in the global coffee shop industry. It begins by evaluating the external business environment using PEST and Porter's Five Forces models, providing insights into the political, economic, social, and technological factors influencing the companies, as well as the competitive dynamics of the industry. The internal business environment is then examined through SWOT and VRIO analyses, highlighting each company's strengths, weaknesses, opportunities, and threats, along with their valuable, rare, inimitable, and organizationally supported resources and capabilities. Furthermore, the report explores the companies' corporate social responsibility (CSR) initiatives and strategic development goals, including a comparison of their approaches and impact. A key aspect of the analysis involves comparing and contrasting the two companies across various dimensions, including their responses to globalization, competitiveness, and CSR initiatives. The report concludes with a discussion of the similarities and differences between Starbucks and Costa Coffee, emphasizing the implications for their competitive positioning and long-term sustainability. The analysis is supported by relevant data and information, with sources cited using Harvard referencing style, as requested in the assignment brief.