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Strategic management analysis. Starbucks - Essay Example

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The principal objective of this paper will be to conduct an analysis of the Starbucks coffee house that will be both incisive and in-depth. The analysis will be in relation to the current macro-environmental and other related factors that affect the organization’s operations in the United States…
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Strategic management analysis. Starbucks
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Download file to see previous pages History of Starbucks
Starbucks as a company was started way back in 1971 in Seattle Washington. The company is an American global cooperation that happens to center its core business in the selling of coffee at its coffee houses which are globally distributed. The company currently has about 19,972 stores operating in 60 countries world-wide. The United States alone is host to about 12,937 branches of the coffee company. In the 1990’s the company happened to experience a period of rapid growth and was estimated to be opening at least one branch of the coffee house each and every day. This positive trend in company growth was seen and experienced late into the 2000’s (Thompson and Gamble 1997).
In line with the current market demands, the coffee house has been introducing various new product offerings to satisfy the evolving needs of its clients. Some of the new product offerings include the introduction of sweet pastries, hot and cold sandwiches and snacks. The coffee house has also started selling items such as Starbucks tumblers and mugs. The company’s product offering is found to be mostly seasonal and tailor made to satisfy the needs of its clients in a given geographical location. Recently, the company’s ice cream and coffee products have started being distributed in various grocery stores all over the United States (Hill and Jones 2012).
Starbucks has also recently been working hard at expanding into other sectors via the establishment of several subsidiaries such as its Hear Music Brand as well as the Starbucks Entertainment Division. The company has also taken to marketing books, films and even music (Starbucks 2012). The Coffee House Market in the United States In the United States, there has been a significant boom in the coffee shop business. This has been largely noticed especially in the offering of specialty coffees that are currently being offered by certain shops in the industry. The spur in growth in the coffee house market in the country has been mainly spurred by the recent trend by American coffee consumers which has seen them becoming increasingly educated as to how the espresso-based drinks in the industry are made (Starbucks 2012). As per the data provided by the First Research, the United States alone is host to an estimated 20,000 coffee shop businesses whose total annual combined revenue is estimated to clock at around $10billion as of the ...Download file to see next pagesRead More
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