Preview

Starbucks Case Analysis

Powerful Essays
Open Document
Open Document
7872 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Case Analysis
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 company in 1987 then transformed the six coffee stores into a national, publicly owned company with more than 25, 000 employees and over 1,300 stores. By 2002 these figures had risen to 5,689 stores in 28 countries. He is the man behind, and CEO of, Starbucks.

PESTLE Analysis:

PESTLE analysis is a tool that can aid organisations making strategies by helping them understand the external environment in which they operate now and will operate in the future. It is a method of examining the many different external factors affecting an organisation – the outside influences on success or failure.
PESTLE stands for:

Political – The current and potential influences from political pressures
Economic – The local, national and world economy impact
Social – The ways in which changes in society affect us
Technological – How new and emerging technology affects our business
Legal – How



References: and Bibliography: Chambers I (1997) Business Studies (7th ed.) Causeway Press Genus A (1996) Flexible Strategic Management (2nd ed) Chapman & Hall Johnson G Scholes K (2002) Exploring Corporate Strategy (6th ed.) FT/Prentice Hall www.microsoft.com/resources/casestudies/CaseStudy.asp?CaseStudyID=10664 http://www.investopedia.com http://faculty.babson.edu/gwin/indstudy/valuechain.gif

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Starbucks Case Analysis

    • 434 Words
    • 2 Pages

    From analysis of the Porter’s Five Forces above, it shows the biggest challenge for Starbucks are the company like McDonald’s, Dunkin Donuts and Peet’s Coffee & Tea, due to their ability of offering fast service and capacity of their stores. Therefore, the low…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    A PESTLE analysis is used in business to assess the industry which an organisation is in. The PESTLE analysis looks specifically at factors which are external to the organisation which will impact on the business. This is with a view to determining the current role and status of the organisation in relation to its competitors and can be used as a marketing tool.…

    • 709 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Pestle For Londis

    • 1163 Words
    • 5 Pages

    A PESTLE analysis is method for reviewing the macro environment factors that affect a business. It stands for: Political, Economic, Sociological, Technological, Legal, And Environmental. This analysis technique contributes towards the decision making that businesses are faced with. The analysis gives an insight into some of the potential risks and uncertainties the business or company may face; it also helps them to examine the future as well as current circumstances.…

    • 1163 Words
    • 5 Pages
    Good Essays
  • Good Essays

    2. Premium location: They located their stores in premium location as possible before its competitors could.…

    • 1136 Words
    • 33 Pages
    Good Essays
  • Powerful Essays

    Starbucks Case Analysis

    • 1308 Words
    • 6 Pages

    In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.…

    • 1308 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    A PESTLE analysis is a useful tool for understanding the ‘big picture’ of the environment in which an organisation is operating. Specifically a PESTLE analysis is a useful tool for understanding risks associated with market (the need for a product or service) growth or decline, and as such the position, potential and direction for an individual business or organisation.…

    • 359 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Starbucks Case Study

    • 809 Words
    • 4 Pages

    2011 was a lucrative year for Starbucks. Overall sales increased to $11.7B, there was a 22% increase in profitability, and its stock price increased 43%. How was this possible? Well, in 2011 there were approximately 17,000 stores open worldwide, and about 10,800 solely in the United States. Having more stores than ever provided Starbucks with more customers and supporters therefore, increasing sales. With the rising amount of customers in outside countries, Starbucks continued to gain worldwide recognition, also influencing on the major increases in sales, stock price, and profitability.…

    • 809 Words
    • 4 Pages
    Good Essays
  • Best Essays

    YUM Brand

    • 4307 Words
    • 12 Pages

    A PESTLE analysis is a tool to review the macro environment or external forces, outside the company’s control, that can affect the business plans and future projects. PESTLE stands for…

    • 4307 Words
    • 12 Pages
    Best Essays
  • Satisfactory Essays

    pestle swot

    • 1067 Words
    • 4 Pages

    A PESTLE analysis is a framework used to evaluate an organisations external macro-environment. 1When used, a business will analyse the multiple factors that are out of their control. By doing this a business can be aware and prepared for future changes.…

    • 1067 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Starbucks Global Strategy

    • 5602 Words
    • 23 Pages

    I would like to proceed with my analyses of the global market place, with examination the young but already well recognized brand world wide – Starbucks. In my research I will explore on changes in the product, operations, and strategies at Starbucks influenced by the changes in the global marketplace. Due to word limitation on the essay, please refer to Appendixes for more detailed information.…

    • 5602 Words
    • 23 Pages
    Good Essays
  • Powerful Essays

    This case study is presented in the format of a formal business report – prepared by a consultant and presented to the Starbucks ' Board of Directors and CEO – that provides an analysis of Starbucks ' mission and strategic choices, and a summary of the alignment of those strategies to its mission. This report is based on a critical review of the Starbuck mission statement, goals, and objectives, which is then compared against the strategic choices that Starbucks has made (e.g., product differentiation, research and development, operations) to determine how well Starbuck’s strategic choices are aligned to the company’s mission and vision. Finally, this study answers the question: Will the company continue its past success?…

    • 5809 Words
    • 24 Pages
    Powerful Essays
  • Powerful Essays

    PESTLE Analysis is a simple, useful and widely-used tool that helps you understand the "big picture" of your Political, Economic, Socio-Cultural and Technological, Legal and Environmental aspects. As such, it is used by business leaders worldwide to build their vision of the future.…

    • 5189 Words
    • 21 Pages
    Powerful Essays
  • Best Essays

    Starbucks Case Study

    • 2691 Words
    • 11 Pages

    Recently iphone has become the most popular mobile device in the smart phone market. People have high expectation for iphone being the smartest mobile device ever made. Besides, its popularity Apple has to look upon the situation between the customers and the company itself. The product has become popular in the market but not the service. There is still the gap between the expected service and the perceived service. After getting a lot of complaints from the customers, Apple should take immediate steps to build and improve the customer relationship problem with the company. The main content in this report is to define the scope and the problem and to bring a solution to that problem through CRM Programme. This report also stresses on the present CRM Architecture of the company and on the development of the Architecture. Besides this issues, the ways and methods to bring a solution and to conduct the analysis and if required change on the on the present plan and implement the new plan are also highly highlighted.…

    • 2691 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Pestle Analysis

    • 1738 Words
    • 7 Pages

    the pestle analysis is a set of tools used to analysis and evaluate various factors which determines and affects the environment of an organization, which should be identified in order to aid company's so they can achieve optimum performance . (c) . pestle analysis' also help in the decision making process a as it gives companies more knowledge about their business . pestle analysis is divided in 6 main categories which are Political, Economic, Social , Technological, Legal, Environmental. pestle analysis is basically gathering information about the each categories of pestle then Identifying which of the PESTLE factors represent opportunities or threats to company.…

    • 1738 Words
    • 7 Pages
    Better Essays
  • Good Essays

    PESTLE analysis is the analysis of macro external environment in which business is operates. These factors which are beyond the control of business however are the important to be aware of when doing product development, business or strategy planning.…

    • 766 Words
    • 4 Pages
    Good Essays

Related Topics