Starbucks Expansion Plan: Czech Republic Market Analysis Report

This report analyzes Starbucks' expansion strategy within the Czech Republic's coffee house industry. It begins with an introduction highlighting the market's growth and Starbucks' existing presence in Prague. The report then provides a background of Starbucks Corporation, detailing its global operations and core objectives. It examines the Czech Republic's business environment, including political and economic stability, consumer behavior, and technological advancements. The analysis incorporates Porter's Five Forces to assess the competitive landscape, along with data and graphs illustrating market trends, coffee consumption patterns, and socio-demographic profiles of coffee drinkers. The report concludes that Starbucks has significant opportunities for growth in the Czech Republic, supported by the country's favorable market conditions. It also includes a time plan, references, and a bibliography for a comprehensive overview of the topic.

GUIDANCE NOTES FOR PLANS.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUND OF BUSINESS ORGANISATION....................................................................1
BACKGROUND OF BUSINESS ENVIRONMENT.....................................................................1
DATA/ GRAPHS/ TABLES...........................................................................................................2
REFERENCES................................................................................................................................5
TIME PLAN....................................................................................................................................5
CONCLUSION................................................................................................................................6
BIBLOGRAPHY.............................................................................................................................7

INTRODUCTION
Coffee house industry of Czech Republic is performing well. In the year 2018 Roast coffee
segment has generated revenue of US$294m. The country has largest coffee market and
consumption of coffee is increasing with the rapid speed. Present study is based on Starbucks
which is the operating in the same industry. Currently it is operating its business in Prague and it
is planning to expand its business in Czech Republic. Current assignment will describe
background of the firm and its business environment in Czech Republic. Furthermore, study will
present some graphs and charts in order to show its performance in the market.
BACKGROUND OF BUSINESS ORGANISATION
Starbucks Corporation is the multinational firm and is known among has largest coffee
house chains across the globe. Recently entity is operating its business in approx 28218 locations
globally. The main motive of firm is to offer high quality services to consumers according to
their needs. Enterprise aims to satisfy its guest by offering them high quality coffee services and
products. It offers bean, espresso, caffeelatte etc. Mmany kinds of coffee products to customers
(Tučková, 2017). There are many big organisations such as cafe Lounge, cafe Savoy, Friends
coffee house etc. those which are operating in the country tremendously in Czech Republic.
Starbucks has chance to grow well in this country and enhancing its profitability. In the year
2017, enterprise has generated 2.885 billion revenues and. It has employed 238000 employees
across the world those who are continuously working for the growth of business.
BACKGROUND OF BUSINESS ENVIRONMENT
External environment of Czech Republic impacts on overall operations of the company to
great extent. Political situation of Czech Republic is stable and government always encourage
export and import activities. Economic condition of the nation is stable and GDP is also growing
at fast pace. growing in Czech Republic. Population has adequate income sources and their
spending power is good. Czech Republic is the nation where high number of working class
people exists. People like to have coffee but they prefer want amazing and high quality products
and services (Lemus and et.al, 2015). Due to advancement of technology Starbucks will be able
to can minimize its operational cost which will helps the firm in and can reducinge errors. Entity
follows all regulation and conduct operations in the Prague as per the industry standards. Czech
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Republic is the country where no legal barriers are exists and therefore , firm can expand its
business easily and will be able to can trade freely. If company is expanding its business in the
Czech RepublicRepublic, then it will require huge quantity of water which can lead to
exploitation of natural resources. that can create problem for natural resources.
Figure 1Porter's five forces
Source:( Starbucks in India and Czech, 2017)
Supplier’s power in the coffee house industry is low. Competitors have moderate power;
and therefore they can influence the entire operations of the firm. New entrants have moderate
power because it is not easy to enter in this sector easily as it requires without any experience.
Buyers have high power whereas and power of substitute products is medium (Luce, 2016).
DATA/ GRAPHS/ TABLES
In order to identify scope for the Starbucks in Czech Republic, individual is required to take
support of secondary information. Internet articles, revenues of existing competitors, their annual
performance will can help in gathering detail about market size and scope. Starbucks will also
seek has to take support ofrom social media sites, in order to promote effective communicatione
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with the population of Czech Republic (PESTLE Analysis of Czech Republic: 2012-2017, 2017).
This will assist in identifying their requirements and offering them products as per their need.
This can make them loyal and can raise their satisfaction level to great extent.
Figure 2coffee drinkers
Source: (Caffeine fix: new coffee buyers grow the category by 9.9M, 2015)
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Figure 3Coffee capsule sales by socio- demo profile
Source :( Coffee Consumption Trends Worldwide In 2016, 2016)
Figure 4coffee consumption
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Source:( Coffee Consumption Trends Worldwide In 2016, 2016)
REFERENCES
Individual is required to use Harvard style referencing. It is essential to these references in
order to show evidences from where that data has been collected from correct sources.
TIME PLAN
Activities 1th
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
Week
10th
Week
Selection of
industry and
country in
which business
is planning to
expand
Gathering
literatures to
understand the
situation of
particular
location
Selection of
correct
research
method to
conduct
research in
effective
manner
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Budget
allocation
Data
collection
through social
sites
Reviewing
data
Data analysis
Discussion
and conclusion
Edition and
final
submission
CONCLUSION
From the above study it can be concluded that Starbucks has high opportunity to
grow well in the Czech Republic. By entering into this market the firm it will be able to generate
more profit.
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BIBLOGRAPHY
Books and Journals
Lemus, E. and et.al., 2015. Starbucks Corporation: Leading Innovation in the 21st Century.
Luce, S., 2016. Background report for the UNI Europa commerce conference.
Tučková, K., 2017. Trends in Intercultural Marketing: The Reception of Starbucks in France and
Czechia.
Online
Caffeine fix: new coffee buyers grow the category by 9.9M. 2015. [Online]. Available through <
http://www.nielsen.com/nz/en/insights/news/2015/caffeine-fix-new-coffee-buyers-grow-
category-by-9m.html >
Coffee Consumption Trends Worldwide In 2016. 2016. [Online]. Available through <
https://knowyourgrinder.com/coffee-consumption-trends-worldwide-2016/ >
PESTLE Analysis of Czech Republic: 2012-2017. 2017. [Online]. Available through <
https://www.lucintel.com/pestle-czech-republic-2017.aspx >
Starbucks in India and Czech. 2017. [Online]. Available through <
https://www.scribd.com/doc/24497282/Starbucks-in-India-and-Czech>
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