Strategic Management Case Study: Starbucks Coffees

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EXECUTIVE SUMMARY

The aim of this report is to analyse Starbucks Corporation’s business model in Australia. The analytical techniques include external, internal, competitor and SWOT analysis to determine how Starbucks performed in Australian market.

The PEST analysis includes trade practices act which deals with wholesaler, supplier and ensures that trading in the marketplace is fair both for your business and your customers. The Australia Competition and Consumer Commission also illustrates the rules and regulation applying on fair trading and it could effectively avoiding other competitors from conducting unethical behavior. The industry analysis provides information regarding to Porter’s five force model. In this model, it is to be examined the bargaining power of supplier, buyer, threat of substitute, barriers to entry and rivalry of existing competitors. Meanwhile, a SWOT analysis is to be structured consisting of strengths, weakness, opportunity and threat in which it could potentially analyze different field regarding to the operation of Starbucks.

Under strategy evaluation analysis, it is to conduct four different aspect; internal strength and weakness; external opportunity and threat. It is stated that Starbucks is implementing differentiation strategy. For example, Starbucks has adapted to new products to fit the consumers’ tastes. Consumers are more concerning with health and environmental issues. In consequence, it is believed that healthy products like skim milk and salad are on the menu to suit the current environment. Regarding to environmental issues, it is believed that Starbucks implement using eco-bags to hold coffees instead of using cup holders. Starbucks’ roasting technology provides a great opportunity in providing good quality coffee and also in innovating new product.

Content Page

EXECUTIVE SUMMARY1
Content Page2
1.0Introduction5
1.1Objective of the report5
1.2Overview of main strategic issues related to case5
1.3Scope of report5
2.0COMPANY DESCRIPTION AND BACKGROUND INFORMATION5
3.0EXTERNAL ANALYSIS7
3.1PEST Analysis7
3.1.1Political/ Legal7
3.1.2Economic10
3.1.3Social/ Cultural Environment10
3.1.4Technological Environment12
3.1.5Demographic Trends12
3.1.6.Global Segment14
3.2Industry Analysis – Porter’s Five Forces15
3.2.1Low Bargaining Power of Suppliers15
3.2.2High Bargaining Power of Buyers15
3.2.3High Threat of Substitute Products16
3.2.4High Threat of New Entrants17
3.2.5Rivalry Among Existing Firms17
3.3Competitors Analysis18
3.4Opportunities21
3.4.1Product innovation21
3.4.2Expanding the Australia current market22
3.4.3Provide wireless internet22
3.4.4Create a New Culture23
3.4.5Opportunity to get expertise and experience people23 3.5Threats23
3.5.1The consumption of superior products (coffee) would decline23 3.5.2Focus mainly only to young culture24
3.5.3Customers changing taste because of massive competitors opening beside24 3.5.4The geographical location of Starbucks is inappropriate24 3.5.5The rapid pace of opening new store24

4.0INTERNAL ANALYSIS25
4.1Tangible Resources25
4.1.1Strong Executive Team - Starbucks Coffees Executive Team25 4.1.2 Physical Resources – variety of locations26 4.1.3.Technological Resources26
4.2Intangible Resources27
4.2.1Innovation Resources - Product Innovation27
4.2.2 Human Resources - FORTUNE 100 Best Companies to Work27 4.2.3 Brand Name - the World’s Coffeehouse28
4.3Capabilities29
4.3.1Brand Power29
4.3.2Human capital:30
4.3.3Being environmentally friendly30
4.3.4 Differentiation:30
4.4Core Competencies31...
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