Strategic Fit Analysis of Starbucks Coffee Company
1.0 INTRODUCTION
This report deals with a Strategic Fit Analysis of Starbucks Coffee Company with focus on the United States Segment. Genus (1998) highlighted that strategic fit is the concept whereby strategy is a means for achieving a match between the external environment of an organisation and its internal capabilities, as part of a quest for establishing competitive advantage over rival competitors.
The researcher will evaluate the market environment that Starbucks occupies as well as the internal environment of the company. The researcher will also highlight strengths/weaknesses and opportunities/threats of the current Strategic Fit of Starbucks.
The Starbucks Coffee Company evolved from a single store in Seattle’s historic Pike Place Market. In August 1987, Howard Schultz (Starbucks chairman, president and chief executive officer) purchased Starbucks with the help of local investors. He fashioned a new mission for the company: to inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time. Today, with more than 17,000 stores in 55 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world.
The recession of 2008-2009 posed a great threat to Starbucks resulting in many of the stores being closed in an effort to re-examine its sales and growth strategies in order to deter customers from other cheaper-priced competitors such as Dunkin’ Donuts and McDonald’s Café. After the great financial struggle, Starbucks reclaimed its position in the US market.
TASK A 2.0 ANALYSIS OF STARBUCKS EXTERNAL ENVIRONMENT
The environment is what gives organisations their means of survival (Johnson et al, 2008). Ghuman (2010) classified the external environment into micro- and macro-environment. The author explained that micro-environment consists of different stakeholders outside of the organisation such as customers, suppliers, creditors, distributors and dealers. Although these
This report deals with a Strategic Fit Analysis of Starbucks Coffee Company with focus on the United States Segment. Genus (1998) highlighted that strategic fit is the concept whereby strategy is a means for achieving a match between the external environment of an organisation and its internal capabilities, as part of a quest for establishing competitive advantage over rival competitors.
The researcher will evaluate the market environment that Starbucks occupies as well as the internal environment of the company. The researcher will also highlight strengths/weaknesses and opportunities/threats of the current Strategic Fit of Starbucks.
The Starbucks Coffee Company evolved from a single store in Seattle’s historic Pike Place Market. In August 1987, Howard Schultz (Starbucks chairman, president and chief executive officer) purchased Starbucks with the help of local investors. He fashioned a new mission for the company: to inspire and nurture the human spirit – one person, one cup, and one neighbourhood at a time. Today, with more than 17,000 stores in 55 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world.
The recession of 2008-2009 posed a great threat to Starbucks resulting in many of the stores being closed in an effort to re-examine its sales and growth strategies in order to deter customers from other cheaper-priced competitors such as Dunkin’ Donuts and McDonald’s Café. After the great financial struggle, Starbucks reclaimed its position in the US market.
TASK A 2.0 ANALYSIS OF STARBUCKS EXTERNAL ENVIRONMENT
The environment is what gives organisations their means of survival (Johnson et al, 2008). Ghuman (2010) classified the external environment into micro- and macro-environment. The author explained that micro-environment consists of different stakeholders outside of the organisation such as customers, suppliers, creditors, distributors and dealers. Although these