HEADER: ANALYSIS

Reflective Report of Strategic Analysis on Starbucks

[Name of Student]

[Name of Institute]

[Date]
 Analysis 2

Table of Contents

Introduction......................................................................................................................................3

About Starbucks...............................................................................................................................3

Overviewing Company’s Strategy...................................................................................................3

Swot Analysis Technique................................................................................................................4

Strengths..........................................................................................................................................5

Weaknesses......................................................................................................................................5

Opportunities...................................................................................................................................6

Threats.............................................................................................................................................6

Conclusions......................................................................................................................................6

References........................................................................................................................................8
 Analysis 3

Reflective Report of Strategic Analysis on Starbucks

Introduction

I am writing this report as the contribution to the group under Individual reflective report

submission. The report will be including strategic analysis and with the help of essential tools

and techniques to learn about different aspect of this corporation.

About Starbucks

A premier American coffee brand found in 1971 Seattle, WA is a competitively a

premium roaster, vender and marketer of special coffee across the globe. Starbucks Corporation

has been ruling dramatically in hot beverage market due to their quality assured hand crafted

coffee beans that has attracted the consumers on huge scale Starbukcs is especially known for the

finest superiority of coffee and hot beverages (Chuang, 2019). Besides operating enormous

amounts of stores within America, Starbucks is also available across 70 countries worldwide.

The corporation also possess varieties in coffee products and continuously looking forward for

innovation and new experiments in their services.

Starbucks is also recognised for their collaboration in products mixed with other coffee

companies such as Tazo, Seattle’s best coffee, Starbucks VIA, Teavana and so more. Taking care

of profitability, progression in business and increment in customer satisfactions relates to the few

key aspects such as ability to benchmark economy by indicating worth of plans that are

strategically devised (Sakal, 2018)

.
 Analysis 4

Overviewing Company’s Strategy

Starbucks strives to enlarge their availability around the world especially in the places

that are noticeable at large scale. However, the studies revealed that company face the numerous

setbacks in recent times. Yet, they did not totally fail to come up with new ideas that includes

ready-to-drink coffee and new packaging in their offered products (Abdel-Basset, Mohamed,

and Smarandache, 2018)

. The social challenges faced by the firm that includes lifestyle, tastes, opinions and values of a

person are followed by cultural values, educational background, demographic impacts, and

situations that are ethnic. However, to approach the consumers despite of social barriers,

Starbucks adopts the corporate social responsibility (CSR) that includes ethical activities such as

involvement in educational programmes based on cultural diversity, practices of ethical

understandings and much more (Glowik, 2017).

They are also involved in funding the water projects in the countries that are needy.

Taking positive steps towards social responsibilities gives the corporation an edge. Moreover, the

company does not act interested only in the outside environment. They also take high care of

their employees. Starbucks considers their employees as the most valuable asset to the firm. The

corporation is constantly involved in encouraging the workers to pursue the best abilities of them

at work. In addition to employee values given by Starbucks, the organisation also withstands the

morals of respect that is mutual, dignity of oneself, success that is shared and cooperation

between the team. One of the key examples of it is that the workers are granted access to free

Wi-Fi within work premises. One of the researches named “Schultz” stated in the CSR report

2007 that incorporating social morals has always been the basic rule of thumb for the Starbucks

(Phillips and Moutinho, et al., 2018).

 Analysis 5

Swot Analysis Technique

This tool of stratetgic analysis contains the four important factors that will help to know

about the firm’s position in market. The four factors are strengths, weaknesses, opportunities and

threats. This is the common strategic analysis which explains the basic steps to be taken in order

to have balance in the business growth.

Strengths

The Starbucks have been successful in keeping their brand image as a socio-ethical

business brand which is seriously strong. Whilst keeping the premium quality of coffee, the firm

is also well recognised for their customer centric ability. One of the main values of brand is to

focus on customer satisfaction and attraction all over. The strong image of brand helps it to have

serious strength in many areas (Garthwaite, et al., 2017). Besides generating high income, the

strong image also looks after the costs in regards to marketing which helps firms like Starbucks

to grow rapidly. Along with that, Starbucks is a global brand which means higher reputation and

business growth. However, America is the main market targeted by Starbucks. The Starbucks

holds highest number of coffee outlets in America that is followed by Asia pacific and Chinese

region. Additionally, the Starbucks itself is financially strong and brand with this strength is able

to invest in high quality raw materials that enhances the quality of the product (SHTAL, et al.,

2016).
 Analysis 6

Weaknesses

Every brand faces their weaknesses. Despite of the fact that Starbucks is highly stable in

its market, they still struggle to overcome the weakness. The main weakness is the less attention

paid to marketing. Generally, Starbucks has not involved into marketing at large scale. The main

sources to rely on are word of mouth. The company has spent on the product advertisement and

promotional activities. Still, the marketing budget and expenditures are lower in comparison to

competitor brands. Along with that, prices of premium products are for high end consumers than

over all consumers which is alarming weakness. This can lead to the decline in number

customers. The higher revenue has also put Starbucks in weak spot as the operational

expenditures are also increasing (Chuang, 2019).

Opportunities

In the digital era, brands have many opportunities of becoming popular and reputable in

market by the means of digital marketing. The use of AI and modern technical advancement has

the ability to develop high quality relationship with consumers which is the advantage for the

brands like Starbucks. The variety of channels can be explored digitally by Starbucks that will

put customer numbers on incline. Furthermore, Starbucks is also involving in targeting the Asian

market. The brand awareness will increase in this market and will result in positive progression

of business (Phillips and Moutinho, et al., 2018).

Threats

The threats are basically result of not over coming weaknesses. The increase in operating

costs of Starbucks is alarming. Besides the cost of raw items, the costs of workers have also
 Analysis 7

increased dramatically. Along with that, the consumer requirements and tastes change rapidly

which is threatening for Starbucks. Changing in products too often can be expensive. Starbucks

will have to modify their list of options for products according to the change in trends of

consumers (Sakal, 2018).

Conclusions

This report contains the basic tools to know about Starbucks. According to my personal

researches about market value of Starbucks and how they operate in the marketing aspect and

consumers, the firm needs to be more innovative according to the current time. The competition

is increasing and customers have multiple tastes in one area. The Starbucks should not just rely

on their strengths only. They need to fit in with modern social circle and market there inventive

products smartly the way people love to interact.

 Analysis 8

References

Garthwaite, C., Busse, M., Brown, J. and Merkley, G., 2017. Starbucks: A story of

growth. Kellogg School of Management Cases.

SHTAL, T.V., BURIAK, M.M., AMIRBEKULY, Y., UKUBASSOVA, G.S., KASKIN, T.T.

and TOIBOLDINOVA, Z.G., 2018. Methods of analysis of the external environment of

business activities. Revista ESPACIOS, 39(12).

Phillips, P. and Moutinho, L., 2018. Strategic analysis. In Contemporary Issues in Strategic

Management (pp. 46-79). Routledge.

Glowik, M., 2017. 4.7 Case study: Starbucks. Global Strategy in the Service Industries:

Dynamics, Analysis, Growth, p.156.

Sakal, D.V., 2018. COMPANY ANALYSIS OF STARBUCKS CORPORATION.

Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic

AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4),

p.116.

Chuang, H.J., 2019. Starbucks in the World. HOLISTICA–Journal of Business and Public

Administration, 10(3), pp.99-110.
Analysis 9
Analysis 10
Analysis 11