Environmental Scanning Paper

Topics: Strategic management, Starbucks, Coffee Pages: 6 (1844 words) Published: March 6, 2011
Environmental scanning is the first portion to an organization’s strategic management and is very important to the corporation. Environmental scanning is gathering information for the external and the internal of the company. A SWOTT is the best way to gather the information. A SWOTT is determining the strengths, the weaknesses, the opportunities, the threats, and the trends of the organization. Starbucks is a coffee shop that sets out to be different from the competitors. The company does not just focus on coffee but “bring a feeling of connection” to the people. Starbucks mission is “to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” (Starbucks, 2010, Para. 1 & 3). Starbucks is a multi-billion dollar corporation and is the go to place if someone is looking for a great cup of coffee. By using an environmental scan and determining the strategies the company uses to have competitive advantages will help explain why the company is so successful. Determining the values and what measurement guidelines Starbucks uses will promote how the corporation stands out for the rest of the competitors in the market.

Environmental Scan Paper
Environmental scanning can be described as the process of collecting, examining, and assigning information for strategic purposes. “The environmental process entails both factual and subjective information on the business environments in which a company is operating” (Ask Kids, 2011, Para 1). The best way to perform environmental scanning is by creating a SWOTT analysis. A SWOTT analysis is how a corporation can outline the company’s strengths, weaknesses, opportunities, threats, and trends that are important to the organization. In this paper the internal and external environments of Starbucks will be described using an environmental scan. The competitive advantage and what strategies being used for Starbucks will be determined, but answering the following questions. How does Starbucks create value and sustain competitive advantage through business strategy? What measurement guidelines is each company using to verify its strategic effectiveness? And how effective are the measurement guidelines that Starbucks is using? Internal and External Environments of Starbucks

The strengths and weaknesses that are within Starbucks are the variables that make up the corporation’s internal environment. The opportunities, threats, and trends that are outside Starbucks are the variables that make up the organization’s external environment. Starbucks strengths include profitability, popularity, respected employer, and have ethical values. Starbucks is a very profitable, earning over 800 million dollars in 2009. The revenue of Starbucks in 2010 excessed 7000 million dollars. Starbucks is a global coffee brand that can be purchased all over the world. As of 2011, the organization has over 8000 cafes throughout the United States. In 2005, Starbucks was one of the “Fortune Top 100 companies to Work For.” Starbucks thrives on having an ethical mission statement and values within the company. (Marketing Teacher.com, 2011, Para 3). There are only a few weaknesses that Starbucks has, nevertheless, crucial to the corporation. Starbucks products can be purchased all over the world. However, over three quarters of the cafes are located in the United States. The reputation Starbucks upholds with the public on new and creative products is incredible, but over time the public may get bored with coffee or find an alternative way to consume caffeine, such as energy drinks. Starbucks has opened up to new ideas as pastries and a small lunch menu, but most of the revenue is the retail of coffee. Starbucks depends on having a competitive advantage over the competitor, but only having a small menu forces the customer to look elsewhere, such as McDonalds. Starbucks price are much higher than the competitors. The price for a regular cup of coffee at...
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