Starbucks Corporation

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Maria Kozlowska
Professor Joel Reichart
BUS 451
February 24, 2013
Forth Assignment

INTERNAL FACTORS EVALUATION MATRIXSTARBUCKS|
KEY INTERNAL FACTORS| WEIGHT| RATING| WEIGHTED SCORE|
Strength| |
1. Company’s reputation, valued company’s brands| .20| 3| .60| 2. Market expansion, domestic and abroad| .25| 4| 1.00| 3. High standard of customers service| .10| 3| .30|
4.Using natural products, no chemical flavors| .02| 2| .04| 5. Stores location| .10| 2| .20|
 |
Weakness| |
1. Higher prices of products than other competitors| .10| 2| .20| 2. Focus on domestic market| .10| 2| .20|
3. Not enough effective advertising and marketing campaign| .05| 2| .10| 4.Less control of stores outside US| .06| 1| .06|
5.Lower customer’s acceptance of new products| .02| 1| .02| TOTAL| 1.00| | 2.72|
|

The internal environment of company is build up by organizational resources, capabilities and core-competencies. To create firm’s competitive advantage each company supposes to identify and determine the power of its resources and capabilities. Relationship between resources, capabilities, core-competencies and competitive advantage shows how their use can lead to strategic competitiveness of the company. There are two types of resources:

-tangible
-intangible
Tangible resources are assets, which can be observed and quantified. For Starbucks Corporation tangible resources are coffee beans, roasting coffee machines, store equipment. Starbucks is trying to use tangible resources to create competitive advantage for company. Intangible Starbucks Corporation resources coming from company’s over 40 years history very different for competitors to understand, analyze, imitate and substitute are employee’s skills, technology and reputation/value of company. Starbucks staff is well educated and motivated what is very important because development and increasing sale of company’s products depend on in front...
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