Strategic Evaluation of Starbucks|
Aims of Report3
Performance & Finance & Assets4
Five forces analysis7
Recommendation and Conclusion8
Aims of Report
The aim of this report is to analyse Starbuck’s strategic plan in addressing the company’s identified opportunities and threats by looking at areas such as the company’s performance, strategy, objectives, assets and finance, along with major themes such as customer’s, Innovation and competitors. Business Models
A few models have been selected to help analyse Starbuck’s environment, these are: * Porter’s Five Force analysis
* Key factors for success
* Competitors analysis
* Customer analysis
Starbucks Corporation was founded by Jerry Baldwin, Zev Siegel and Gordon Bowker in March 1971. Starbucks is the most successful coffee shop chain in the past ten years. Using their aggressive growth most of its competition. Starbucks is located worldwide in many countries of more than 17,651 (as of July 1, 2012) retail stores in 50 countries. Starbucks first opened its stores in Washington, America in 1971 and first location outside of North America opened in Tokyo, Japan in 1996. It wasn’t until 1998 Starbucks entered the UK market with more than 60 stores. Starbucks’ offer a variety of beverages to their customers such as, coffee, hot chocolate, lattes and cappuccinos’. They also supply snacks and hot and cold sandwiches. One of the reasons for Starbuck’s success is that they noticed customer’s need for relaxation. So they offered and environment where customers are able to study read and enjoy music while drinking their coffee.
Performance & Finance & Assets
There are many factors that could affect the performance of Starbucks. We will see the effects of different stakeholders have from internal and external influences. Also will be discussed is the attractiveness of the market in terms of how strong their market and industries are, also the company assets. Stakeholders
Stakeholders are individuals or group of people who have an interest in, and stand to be affected by, the success or failure of an organisation; they can also affect the company’s performance. Stakeholders can be split into two groups which are internal and external. The internal groups can be owners, managers and employees. Managers will want a chance of promotion and growth to ensure their own job security whilst employees will be concerned about pay levels, working conditions and also job security. According to Macmillan and Tampoe (2000) the balance of power between these two stakeholders has its roots in the relative value of labour and capital in contributing to success. It seems that skills and knowledge are now seen to be more or often important than capital which allows an increase of power to the employees which requires managers to have a change of lead and co-ordinate from giving commands. Starbucks has nearly 200,000 employees worldwide and each employee has an effect on performance. Internal stakeholders such as managers and employees can have an effect on the performance of the company as described above; employees now have more bargaining power and so may create a difficult situation that will affect their behaviour and the company reputation, to over all company performance.
External stakeholders such as the government will want to ensure the organisation complies with the law, pays the correct amount of Corporation Tax and Value Added Tax, and provides employment for the working population. According to (Macmillan and Tampoe 2000) large...