COMPANY STRATEGIC ANALYSIS- Starbuck - Essay Example

An enterprise needs, at the very least, to define its role in the value chains based on its unique mix of strengths and weaknesses and design its processes, supporting assets and organizational structure and decision making. Firms create value for their customers by establishing a value chain within the organization. When customers recognize these values as being superior to the firm's competitors, the firm has established competitive advantage within its marketplace. Porter describes two broad ways in which firms can deliver this value: lower cost and differentiation.

A lower cost emphasis is one where the firm can provide a good or service more efficiently than either the client or other competing firms; a differentiation emphasis is one where firms create superior value in the form of product or service quality. Starbucks Coffee is the leading coffee shop globally. It manages over thousands of branches across United Kingdom, Ireland, Central Europe and Asia. This study explored the competition inside the coffee shop industry. Starbucks Coffee is the most competitive company in the coffee shop industry. . The study arrived to the conclusion that Starbucks Coffee is continuing to be the most competitive coffee company, however, since there are some competitors in the industry, Starbucks still needs the aid of Michael Porter's five forces, generic studies and cost leadership in order to stay on the top in the retail industryCompany Background Starbucks, the coffee company, is the perfect example of a product that could have gone the route of a shallow brand.

After all, what is so special about serving coffee As the Starbucks brand proves, this is a question that other retailers would have benefited from asking. Starbucks is full of warm, rich colors and shapes and is set up so customers have a lot to look at while waiting for their order. It is visually stimulating in a way that is pleasant to most people. Compare this to a typical coffee shop, where the customer is often subjected to bright, harsh lighting and is often in the way of traffic flow, making him or her feel vaguely uncomfortable.

Accommodating fast growth also meant putting in systems to recruit, hire, and train baristas and store managers. (Student Resources:2005) Starbucks' is simply looking for passionate people who love coffee, diverse workforce which reflects their community and who enjoys what they're doing and for whom work is an extension of themselves. 16 Some 80 percent of Starbucks employees were white, 85 percent had some education beyond high school, and the average age was 26. All positions are filled internally about 60-70%.

Automated staffing services between hiring managers and staffing teams and Starbucks has a user friendly field sourcing and selection tools in place. Internal movement processes and systems in place and broadly understood. (Student Resources:2005)