starbucks: a strategic report

Length: 30 Pages 7595 Words

STARBUCKS A STRATEGIC REPORT BY JAMES HEAVEY CONTENTS Introduction page 1 PESTEL analysis page 1 Five forces analysis page 4 Competitor analysis page 6 Resource Audit page 6 Value system analysis page 7 Core competences page 8 Stakeholders page 8 SWOT analysis page 8 Future strategic options page 9 Recommended option page 12 Critical review page 12 References & Bibliography page 13 Introduction: This is a strategic report on Starbucks. First of all I will explain the external environment of Starbucks using PESTEL analysis, Porter’s five forces analysis and competitor analysis. Next will be an analysis of Starbucks’ strategic capabilities. These will be determined using a resource audit, a value system analysis, the identification of possible core competences and the identification of important stakeholders. After this I will present a SWOT analysis of Starbucks before discussing three possible strategic options open to the company. Using the information I generate I will decide upon the most suitable option and then critically evaluate all the models and techniques used. Howard Schultz bought a Seattle coffee comp Continue...

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It is important to note that companies that are in a bad position also have strengths. Thus far Starbucks have proved how successful diversification can be when a new product can be combined with the existing product. Intellectual capital: These are the intangibleimmeasurable resources of Starbucks. Recommended option: On the basis of all the research and evidence consulted for these three strategic decisions, I am inclined to suggest Expansion would be the most profitable and successful venture to undertake. By 2002 these figures had risen to 5,689 stores in 28 countries. As a company's volume increases, so does its experience and knowledge which tends to decrease the cost of their products The power of buyers: Buyer power is likely to be high if a number of conditions are in place. Social: Population demographics - Population demographics are a very important factor for Starbucks as they identify what parts of the population they need to aim their products at or which parts of the population they need to encourage to visit their stores more than they presently do. Although this option would appear to be a good direction for the company go in it may have a few problems at the suitability level. This advantage will provide value to customers. It is a method of examining the many different external factors affecting an organisation - the outside influences on success or failure. I propose Starbucks attempt related diversification; by this I mean diversification reflecting some connection with the organisation's activities. There is so much exploitable potential out there undiscovered by Starbucks. Expansion: A firm can expand within a country it already exists or branch out and expand into a foreign market. SWOT analysis is widely used by businesses to identify internal strengths and weaknesses.


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