Starbucks Corporation's Strategy - External and Societal Environment, SWOT Analysis, and Porter's Five Forces - Research Proposal Example

Download file to see previous pages An operation in an organization needs a plan to be built so as to achieve the targeted goals within a definite time. The plan is otherwise known as strategy. A successful strategy in management strategies are identified and carried out by managers and these leads to overall better performance and advantaged competition for their respective companies. An organization is said to be highly competitive if it is more profitable compared to other companies in its industry. Strategy in management deals with the evaluation and controlling of a business. Though the future of business is either predictable or unfeasible, it can be planned for with the help of strategic management. High levels of knowledge are required of the managers. They should analyze the competition and the general business environment. With substantial knowledge, the right decisions are made and the right course of action taken. In this study, SWOT and competition analysis are going to be conducted and proven to be of great importance to any business organization.
All the outside factors that impact businesses’ operations are composed in the external environment. An urgent action or reaction is needed to maintain the flow of operations. The external environment is divided into two that is macro-environment and micro-environment. It comprises; the government, industry associates, customers, competitors, suppliers, and other social factors, they all influence the company’s decisions (Yajiong, Liang & Boulton, 71). Microenvironment factors impact a company’s operations directly while macro-environment factors cannot be controlled by the company. In this case, the success of the company solely depends on how quick it can adapt to the changes. Some of the external factors include climate, economy, technology, political, legal, competition, and media.
Starbucks has failed to offer recycling in its stores, at least many of them, thereby taking the heat. According to Kamenetz Anya (4), the coffee cup problem in Starbucks has prolonged than expected. The cups are not recycled and this negatively affects the environment. Starbucks seems to have a hard time finding a long-lasting solution to this cup problem. The usage of energy during the production of coffee by Starbucks is high. Starbucks falls behind in many of their environmental goals. To offset the use of electricity, Starbucks needs to purchase renewable sources of energy yet this process is slow-paced. Gamma et al. emphasized that a high intake of coffee risks the development of breast cancer (2071). Physicians recommend a low intake of caffeine and this poses a great challenge to Starbucks Company. The scarcity of raw materials caused by climate change makes coffee production more expensive and this directly influences coffee pricing. When coffee is expensive then, fewer customers are expected.
The framework of PESTEL analysis elaborates the social aspects and trends that influence Starbucks’ customers and the whole business organization. Starbucks addresses various external factors such as the growth of the coffee culture. Catherine Tucker (3) acknowledged that coffee existed for the past 500 years but in recent years its expansion has been enormous. This clearly shows that coffee is not just a mere product but a way of life. With coffee culture well established, an increase in the number of customers is guaranteed. Starbucks increases its array of better products health-wise so as to increase the number of customers, no matter their health issues. All these factors present opportunities for Starbucks Company. ...Download file to see next pagesRead More