External Analysis of Starbucks - Case Study Example

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The paper "External Analysis of Starbucks" discusses that the survival elements involve the need to close down some US branches and open up branches overseas. In terms of growth, the diversification and establishment of more cost-effective systems of trade should be considered by Starbucks…
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External Analysis of Starbucks
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Download file to see previous pages Starbucks has acquired several processing plants and manufacturing entities that supply other corporate bodies with coffee and snack products which helps to boost the brand image. Stakeholders are the major entities who affect and are affected by the activities of an organisation (Freeman, 2004). In the case of Starbucks, the main stakeholders are employees, customers, the community, coffee producers and shareholders. In the mission statement of Starbucks, it seeks to satisfy the needs and aspirations of all these groups of stakeholders. The mission of Starbucks promises to provide a great work environment for the employees of Starbucks where diversity and excellence are at the core of its vision. They also seek to provide absolute customer satisfaction through excellent products. Also, Starbucks seeks to give back to the community and provide good arrangements and agreements with the coffee producers in different parts of the world. On the side of the shareholders, Starbucks seeks to provide the highest possible profits year-in-year-out for them. Starbucks' core strategy is 'to build a company with a soul'. This means it desires to set up a socially responsible organisation that seeks to provide the best results for all classes of stakeholders. It focuses on common values, common purpose and respect of people as well as shared success to create a bond between employees, suppliers, shareholders and management. Starbucks has different types of outlets found in several forms and systems through which they serve world class premium coffee. The growth of the Starbucks brand is an important element of the strategy. So Starbucks continues to provide high-quality services and create a conducive atmosphere for coffee lovers. It embarked on an expansion drive in the 1990s by selling in top restaurants and hotels. It also entered joint ventures and strategic alliances with food manufacturers and CD manufacturers to create a unique brand that could be used to sell products around the world. Starbucks also expanded into other markets through strategic acquisition drives. They continue to spread their coffee brands through licensing and international expansion. However, Starbucks is going through some strategic challenges. The focus on the US markets seems to be proving less profitable due to the recent financial crises. Starbucks is, therefore, focusing on expanding to other foreign markets. They also seek to diversify and continue the vertical integration drive which seeks to acquire different business concerns related to the coffee industry. External Analysis External analyses refer to the points or situations where an organisation's activities interact with the elements in the wider society; naming governmental, international, macroeconomic and socio-cultural and technological trends relevant (Scott, 2009). Political The years 2007 – 2009 were tough times for the United States in general. The War in Iraq and the global financial crises created a strong impact on the nation as a whole. The US Congress passed 3 stimulus bills in the period (The New York Times, 2012). These bills were meant to provide recovery to the financial system. It provided tax cuts as well as an unemployment fund to support the social security of laid-off workers. ...Download file to see next pagesRead More
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