HOLY ANGEL UNIVERSITY

SCHOOL OF BUSINESS AND

ACCOUNTANCY

Case Study: Starbucks Coffee

Presented to:

Mr. Darriel Balajadia Mendoza

Presented by:

Bituin, Joshua Raphael

Guese, Hannah Celine

Guevarra, Karen Joy

Guintu, Jonalyn Mae

Manlapaz, Theresa Dinelle

Yutuc, Raljon

Date Submitted:

November 11, 2022

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A. How to better match a company’s strategy to its resource strengths and market
opportunities

Starbucks Corporation, an American multinational chain of coffeehouses and

roastery, has long been acknowledged on a global scale. In fact, they are regarded as the
best coffee shop, and by 2021, they already have more than 33,000 locations worldwide,
making them the biggest coffee company. They have been effectively leveraging their skills
for years, one could argue. Starbucks' corporate vision is focused on industry leadership
while its corporate mission is focused on the company's core purpose. Its success and
triumph in responding to its competitive environment depend on how well these business
statements are implemented. Operations can be made more efficient by having strategic
goals that are in line with the company's purpose and vision statements. In order to better
align with its resource strengths and market prospects, Starbucks' strategy must
acknowledge the significance of strategic alignment incorporating numerous aspects of the
business, meaning that everyone, regardless of position, contributes to its success.
The company's mission is to inspire and nurture the human spirit one person, one
cup, and one neighborhood at a time, and their values are to create a culture that makes
their partners and customers feel welcomed and valued, and to act with courage and take
risks in finding new ways to grow, to be connected with transparency, and to hold
accountability. Starbucks meets these requirements based on where they are right now. We
may therefore claim that they are maximizing the benefits of their strengths.
Starbucks will be able to maintain its long-term strategic goal of being one of the
most well-known and admired brands by making wise acquisitions and expanding its global
presence into developing and growing markets, which is one of the specific resolutions that
align the company's strategy with its resource strengths and market opportunities.
Additionally, they unveiled the Starbucks Rewards Card, which comes with a number of
advantages. Due of this, clients are more inclined to make purchases and return, boosting
loyalty. Not only that, but they also have a limited edition of planner each year which they
call as Starbucks Tradition Planner, that comes in a beautifully crafted leather cover that
you can acquire through collecting stickers unto which their consumers enjoy so much. 
Also, Starbucks created a survey for customers to provide feedback on their
experiences when visiting the company. This demonstrates Starbucks' dedication to
building lasting client relationships. Additionally, their leadership is concerned with taking
good care of its partners, employees, and customers while contributing positively to local
communities and neighborhoods all around the world. In order to create and sustain long-
term relationships with customers, Starbucks wants to offer a connected customer
experience. Along with being tasty, the coffee offers customers the "Starbucks Experience,"
which makes them feel at ease and builds a close emotional connection. Starbucks
locations are created with an emphasis on accessibility and ambiance, well-kept cafes that
represent and reflect the cultures of the communities in which they operate, and a high level
of customer loyalty in mind.

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B. How to alleviate the important weaknesses

Starbucks is well-known for its wide selection of beverages and desserts. It is no secret that
they have expensive products, which is one of their weaknesses. Other customers prefer to
purchase low-cost beverages from Starbucks competitors. To address this significant issue,
the corporation should aim to cut the pricing of their products so that they may fit into
consumers' budgets and compete effectively on competitors' price lists.

The menu they provide is their second weakness. Starbucks should provide a diverse menu
that can appeal to and satisfy not only teenagers and up, but also children. Despite their
age, they can readily attract clients in this situation.

In addition, the company should increase product quality such that others will not be able to
duplicate the flavor quality, even if they attempt. The product's high cost is another problem.
When compared to other competitors, the prices are higher, and it is cheaper and more
convenient to make coffee at home. To get around this problem, the company needs to
make its product stand out and have a high-quality taste. Buyers will never forget the
product once they have tried it, prompting them to return to the store and purchase it again
due to its superior flavor. While it is true that buying coffee at a lesser cost or preparing it at
home is more convenient, Starbucks' coffee is great, and the flavor will be worth it even if
the cost is higher. Aside from that, having efficient material handling may assist you to deal
with unforeseen usages or demand concerns. The corporation may improve the efficiency
of production by having effective material handling. This will save time and indirectly save
labor costs because processes would run faster. It can also increase space utilization by
keeping things in the appropriate manner, as well as save costs by reducing inventory
carrying costs that are not adequately managed.

The last significant problem of Starbucks is that, because they are successful, customers
rush to their stores, resulting in long lines and a lack of workers at the store/branch.
Starbucks should hire additional individuals for manpower because customers tend to wait
longer because there is only one bartender in each shop at times. Customers can save time
in this instance, and Starbucks can accommodate more customers.

C. How to defend against external threats

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Starbucks has consistently maintained a competitive edge through leading product
development. It has stayed ahead of the competition by utilizing opportunities to adjust to
changing consumer tastes and preferences.

Starbucks Corporation faces a variety of rivals in the international market. The business
faces competition from large restaurant chains that provide inexpensive coffee products,
such as Dunkin Donuts and Mcdonald’s. Furthermore, a rise in the market price of dairy
and coffee goods will be detrimental to the company's financial position. This external
strategic component poses a threat to Starbucks since rivals may reduce the company's
market share by offering low prices while using expensive raw materials. Additionally, there
have been considerable changes in the coffee business due to the widespread popularity of
coffee and new competitors who are more responsive to regional trends and desires.

Starbucks needs to maintain its emphasis on high-quality goods while also examining
opportunities for international growth in developing nations and developing a wide selection
of goods that suit regional preferences. The company will continue to be relevant in the
future thanks to these initiatives, which will strengthen Starbucks' customer-centric culture
and dedication to innovation.

Starbucks' remarkable worldwide success can only be compared to McDonald's growth and
dominance of the fast-food business. It demonstrates that the business of selling coffee and
other related beverages is a tenacious one, even in times of economic downturn. Starbucks
has always stood out over its competitors, showing dominance over the market by utilizing
all the available opportunities in its hand. It faced a lot of challenges in its way and some of
these threats are even converted into new opportunities.

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