Preview

Environmental Analysis Paper in Starbucks

Better Essays
Open Document
Open Document
3034 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Environmental Analysis Paper in Starbucks
Environmental Analysis Paper
Macroeconomic Forecast The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing amount of success. Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks has proven to be highly innovative in business culture that offers prepaid cards, priced from $5 to $500. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of "Hear Music" have developed Starbucks with great success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than their competition (Investment Group, 2001).

Social and Culture The social factors that affect Starbucks involve the beliefs, values, attitudes, opinions and lifestyles of persons in the external environment as developed from cultural, demographic, education, ethnic conditioning and customers' needs and the size of



References: Starbucks Corporation (2007). Starbucks Corporation: Retrieved on December 01, 2007 from Website, http://www.starbucks.com/aboutus Investment Group (2001). Starbucks Coffee Company: Retrieved on November 30, 2007 from Website, http://academicmind.com/unpublishedpapers/business. Pearce-Robinson (2004). Strategy Formulation Ninth Edition: Retrieved on November 29, 2007 from the Strategic Analysis and Choice in Single or Dominant-Product Businesses. Pearce-Robinson (2004). Strategy Formulation Ninth Edition: Retrieved on December 02, 2007 2007 from Internal Analysis.

You May Also Find These Documents Helpful

  • Better Essays

    References: Neilsen, F. (2006). “The Story of Starbucks.”, Cand.Merc. International Marketing and Management Journal, pp. 2-56…

    • 1452 Words
    • 5 Pages
    Better Essays
  • Best Essays

    * Herve R, (2004). The past, present and future of Starbucks corporation. Available: http://www.calarosbay.com/files/StarbucksCaseStudy.pdf. Last accessed 30 September 2011.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Starbucks is a company in which purchases and roasts high quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment (starbucks.com). During my environmental scan in which took place at the Starbucks on the corner of Fair and Newport across the street from vanguard, I noticed many things in which where never brought to my attention in prior stays and visits at Starbucks; such as the many social groups in which choose to have their meetings at Starbucks. Thus in this essay we will discuss things in which many people do not really notice when going to Starbucks.…

    • 1130 Words
    • 5 Pages
    Good Essays
  • Better Essays

    The issues of concern within company for the purpose of understanding the strategic planning the initiative of expanding their product base. After careful evaluation of the financial records and information on the new initiatives, Starbucks provided, it is clear that this particular initiative is important to the company. The review and evaluation of this strategic plan will provide an idea of the direction the company is heading and how the implementation of this new plan facilitates the goal of the company and where they are headed. We will explain how this initiative will affect the company in the areas of cost and sales and just as importance is how this will affect the future success of the company.…

    • 1351 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Many factors accounted for the extra-ordinary success of Starbucks in the early 1990’s. Starbucks owns nearly one-third of America’s coffee bars, which is more than its next five biggest competitors combined. Almost all of Starbucks’ locations in North America are company-owned stores located in high-traffic, high-visibility settings such as retail centers, office buildings, and university campuses. This made Starbucks a very convenient coffee bar because of the many different locations. Starbucks also worked to add more depth to their product in the coffee shops. In addition to selling whole-bean coffees, these stores sold rich-brewed coffees, Italian-style espresso drinks, cold-blended beverages, and premium teas. Product mixes vary depending on the stores size and location; however, most stores offer a variety of pastries, sodas, juices, coffee-related accessories and equipment, CDs, games, and seasonal novelty items.…

    • 2285 Words
    • 10 Pages
    Better Essays
  • Good Essays

    In order for Starbucks to even understand growth, they will need to identify their weaknesses as well as implement different strategies to address the weaknesses that were identified. Starbucks needs to consider a value discipline, generic strategy, and grand strategy to remain competitive in today’s economy. The following paper will discuss strategies recommended as well as provide examples of how combining different strategies can increase their profitability and achieve growth.…

    • 855 Words
    • 4 Pages
    Good Essays
  • Good Essays

    I chose to conduct my field research on Starbucks and Dunkin Donuts. Dunkin Donuts and Starbucks are more or less similar in the fact that they are both known for selling coffee along with other products. They both offer various types of coffee, iced and hot drinks, sandwiches, other food products available, and miscellaneous merchandise. Starbucks is more on the expensive side compared to Dunkin Donuts. Furthermore, Dunkin Donuts cup sizing is larger than Starbucks; in that at Dunkin Donuts the cup gives the customer more to drink for a lower price. It also appears that the Starbucks menu is more complex than that at Dunkin Donuts…

    • 511 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. In October 2006, Starbucks was the largest global roaster and retailer of coffee with more than 12,000 retail stores in 60 countries, some 3,000 of which are to be found in forty countries outside the United States. Looking forward, the company expects 50% of all new store opening to be outside the United States. In 2006, Starbucks closed a decade of astounding financial performance with increasing sales from $697 million to 7.8 billion, net profit from $36 million to 40 million and ROIC was 25.5%. These superior financial performances resulted from the excellent coffeehouse format with designing stores to create a relaxed, informal, and comfortable atmosphere and selling premium roasted coffee, freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products in a coffeehouse setting. This also resulted from superior customer services through highly trained and progressively compensated employees; the strategy of owning stores rather than making franchising arrangement for the basic formula. Sophisticated location strategy, and successful exploration of foreign opportunities also contributed to the Starbucks financial performance.…

    • 1136 Words
    • 33 Pages
    Good Essays
  • Best Essays

    Starbucks--Then and Now

    • 1723 Words
    • 7 Pages

    As for the cooperative environment, this led way to several opportunities for Starbucks. Coffee drinkers were actually increasing in the mid 1990’s. The company picked up an alliance with SYSCO Corporation, as well as several licensing agreements with: Pepsi-Cola Company, Kraft Foods, Inc., Dreyer’s Grand Ice Cream, Inc., and Jim Beam Brands, Inc. This helped Starbucks distribute its products; not only the in-store coffee experience, but the bottled products, packaged products, ice cream, and its premium liqueur products. This helped with profit, and between 1997 and 2007, revenue continued to increase. But as time went on, a few factors caused Starbucks’ stock price to drop.…

    • 1723 Words
    • 7 Pages
    Best Essays
  • Satisfactory Essays

    First, Starbucks Company faced socio-cultural forces when Chicago people didn’t like dark-roasted coffee as fast as Schultz had. In addition, Star bucks menu is adapted to local cultures for example, the menu in North America include selection of muffins, but stores in France have French pastries and no muffins. Secondly, economically Starbucks had a decline in its profit because of the economic down term in 2008 – 2009. Also, Starbucks adapted some of the political legal in some countries. For instance, in Saudi Arabia there is a legislation says that stores have to close in the prayer times, and Starbucks could adapt this legislation and get along with it. Technologically, Starbucks introduced star bucks VIA Ready Brew- Packets of roasted coffee in an instant form, in the fall of 2009. Starbucks supply themselves; Howard Schultz –CEO of Starbucks- has said: “people sometimes fail to realize that almost unlike any restaurant, we are completely vertically integrated. We source coffee from 30 countries we have a proprietary roasting process. We distribute to company owned stores, and finally serve the coffee. Others are resellers of commodity-based coffee”. The Starbucks buyers are regular costumers, hotels, hospitals, and airlines. Starbucks has 10% market share in the United State and 1% in the world. Starbucks’ competitors are Coffee Bean, Dunkin Donuts, and other small shops. There are some substitute products such as soft drinks, power drinks, and fresh juice. Costumers’ loyalty to their coffee brand is the biggest threats of new firms entering the industry.…

    • 513 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    competitve advantage

    • 1858 Words
    • 5 Pages

    Grant, R (2010) Contemporary strategy Analysis: Text and Cases (7th ed). A John Wiley & Sons, Ltd, Pubilication…

    • 1858 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Marketing

    • 745 Words
    • 3 Pages

    altered in the long run and, usually, in the short run to adjust to changing market conditions,…

    • 745 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    case study

    • 2398 Words
    • 10 Pages

    altered in the long run and, usually, in the short run to adjust to changing market conditions,…

    • 2398 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Starbucks Case Analysis

    • 687 Words
    • 3 Pages

    Starbucks must research into trends and tastes of local consumers into which they intend to develop a Starbucks in…

    • 687 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    to increase the revenue of SBUX 2.3 Competitors Strategy employed by Starbucks helps it to be differentiated from its competitors be it customer devotion...…

    • 685 Words
    • 3 Pages
    Satisfactory Essays

Related Topics