External Environmental Analysis of Starbucks and the Coffee Industry

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External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management March 3, 2011

External Analysis of Starbucks 2

Contents
1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................................................................... 16 Table 2: Tracking Measures of Coffee Demographics ........................................................................... 17 3.1.2. Economic Segment ........................................................................................................................... 18 3.1.3. Political/Legal Segment .................................................................................................................... 19 3.1.4. Socio-Cultural Segment .................................................................................................................... 19 3.1.5. Technological Segment ..................................................................................................................... 20 3.1.6. Global Segment ................................................................................................................................. 21 3.1.8. Driving Forces .................................................................................................................................. 22 Diagram 2: Effect of Driving Forces on the Coffee Industry ................................................................. 25 3.2.0. Industry Analysis .............................................................................................................................. 25 3.2.1. Description of the Industry ............................................................................................................... 26 3.2.2. Industry Dominant Economic Features............................................................................................. 26 Diagram 3: Coffee Industry Dominant Economic Features.................................................................... 27 3.2.3. Market Size ....................................................................................................................................... 27 3.2.4. Market Growth Rate ......................................................................................................................... 28 Table 3: Global Hot Drink Data for Coffee Industry: Global hot drinks market value: $ millio09 ... 28 Table 4: Global Hot Drink Data for Coffee Industry .............................................................................. 28 Table 6: U.S. Hot Drink Data for Coffee Industry.................................................................................. 29 United States Hot Drinks Market Volume...
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