Strategic Analysis of Starbucks India

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1.0 Introduction

“Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson & Scholes 2008)

In every organization managers make strategic decisions to address the changing environment of the business in order to gain competitive advantage. These decisions are usually complex in nature which can affect the operational decisions of the business and is usually made in situations of uncertainty.

This assignment is to provide a strategic Fit Analysis of Starbucks India within the International business segment.

1.1 Overview of Starbucks
Starbucks Corporation is a global coffee company and coffeehouse chain, which began in 1971 as a roaster and retailer of whole bean and ground coffee, tea and spices in Seattle. Starbucks’ Mission is “to inspire and nurture the human spirit – one person, one cup and one neighbor at a time.” (Starbucks Company Profile 2012)

Over the years Starbucks’ has expanded rapidly and is now the largest coffeehouse company in the world with over 149,000 employees. In 2010, the company profits were over 945.6 million dollars. (Starbucks Marketing – YouTube). As of July 2012, there were 17,651 stores operating in 61 countries. Today, the company connects with millions of customers by providing over 30 blends and single-origin premium coffees in a customer service family type environment. Their brand portfolio includes Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, LaBoulange and Torrefazio ne Italia Coffee. (Starbucks Company Profile 2012)Their ability to gain large market share has been specifically defined by the well-defined target audience and their incredible staff that they call “Partners”.

1.2 Introduction to India’s Market environment
Demographic characteristics strongly affected the buying behavior in any...
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