Professional Documents
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Internal and External Factors Analysis Internal Analysis
Internal and External Factors Analysis Internal Analysis
Internal Analysis
The internal analysis is meant to provide a review of Starbucks’ organizational strengths and
weaknesses. The analysis culminates in an Internal Factor Evaluation Matrix (IFE Matrix)
which summarizes and evaluates distinct strengths and weaknesses according to their
importance to Starbucks’ overall business strategy
The Internal Factor Evaluation (IFE) Matrix can be utilized to evaluate the major internal
strengths and weaknesses in functional areas of Starbucks company to make new strategies.
The IFE Matrix has resulted in a final score of 3.45, which scores above then average score
meaning that with its current strategic orientation Starbucks is Good and able to respond to
internal factors.
External Analysis
The external analysis will unravel potential opportunities and threats that exist in the
environment to which Starbucks is exposed. It provides an insight into the global coffee
market and will give an impression on how competitive the industry is. The analysis
culminates in an External Factor Evaluation Matrix (EFE Matrix) which summarizes and
evaluates distinct opportunities and threats according to their importance to Starbucks’
overall business strategy
The EFE Matrix has resulted in a final score of 3.15, which scores above then average score
of 2.5 meaning that with its current strategic orientation Starbucks is marginally able to
respond to external factors.