BUS402: Strategic Management and Business Policy
April 22, 2013
SWOT Analysis: Starbucks
SWOT is an analysis of a company’s strengths, weaknesses, opportunities, and threats. This gives a company an idea of things that are working for them as well as areas of opportunity. It also informs them where there are areas of opportunity and the threats that may keep the company from improving. The strengths and weaknesses are internal and the opportunities and threats are considered external. In this case Starbucks is the company of interest and will be further analyzed using the SWOT method. Competitive strategies are formulated through a SWOT analysis, and then translated into the weights and/or scores of the variables associated with market attractiveness and competitive position. (Lee, 2010)
Strengths for Starbucks include the company’s initial mission of satisfying the customer with the best coffee experience around. The three original owners, English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker had a vision for this company that would prove to be one of the best coffee bean blending and grinding companies. They were intent on their efforts to purchase only the best, most exotic coffee beans for their customers. They had an interest in sharing their love for coffee with the public. They wanted to keep the company as loyal to its heritage as it did its customers and their experience in their facilities. They, as well as their new member Howard Shultz were committed to making the customer experience one that would not be forgotten and would bring repeat business and word of mouth to grow their investment.
Shultz was a visionary that could not be subdued. Through many idea rejections and hold-backs by the owners Shultz was committed to his ideas and would not give up on an innovation or idea that he thought would grow the business. The training of employees is strength...