Starbucks Case Study

Starbucks Case Study

Table of contents

1. Introduction Pg 4

2. An analysis of the Environmental influence on Starbucks Pg 5-9

2.1. A PEST Analysis of Starbucks

2.1.1. Political - Pg 5

2.1.2. Economic - Pg 5

2.1.3. Social - Pg 6

2.1.4. Technology - Pg 6

2.2. Porters Five Forces Analysis of Starbucks.

2.2.1. The threat of new entrants - Pg 7

2.2.2. The threat of substitutes - Pg 8

2.2.3. The power of buyers - Pg 8

2.2.4. The power of suppliers - Pg 8

2.2.5. Competitive rivalry - Pg 9

3. An analysis of the Strategic capability of Starbucks Pg 10-16

3.1. Intangible Resources - Pg 10

3.2. Tangible Resources - Pg11-13

3.3. A SWOT analysis of Starbucks

3.3.1. Strengths - Pg14-15

3.3.2. Opportunities - Pg 15

3.3.3. Weaknesses - Pg 15

3.3.4. Threats - Pg 16

4. An analysis of the Strategic Purpose of Starbucks Pg 17-19

4.1. Corporate Governance - Pg 17

4.2. Corporate Social Responsibility - Pg17-19

5. An analysis of the Cultural issues that may influence Pg 20-22

implementation of strategy

6. A recommended Competitive Strategy for Starbucks Pg 23-25

7. Conclusion Pg 26

8. Table and Figures Pg 27

9. List of References Pg 28

1. Introduction

The name Starbucks is synonymously is associated with quality coffee and service excellence.

Starbucks Corporation is currently the largest buyer of fair trade coffee in the world, and holds a dominant role in the retail coffee sector on a global platform. The company started in 1971 in Seattle with a single coffee shop. Through the vision and drive by then Chairman and current CEO, Howard Schultz, the company has now grown to 17,009 stores in 40 countries as of 2nd January 2011, whilst generating a profit of $10.7 billion in the 2010 financial year (www.starbucks.com).The company has three business divisions through which revenue is generated, namely the US market; International market and Consumer products group. Starbucks management team have adopted a hands on approach in terms of their interaction with their suppliers, employees and customers. The company has placed themselves at the forefront of social causes, and are closely with several key charitable organizations to facilitate upliftment of communities across the world.

Whilst there remains potential for further expansion, the company has now had to downscale their planned growth based on the current