Starbucks Case Analysis Essay Example | Topics and Well Written Essays - 2000 words

Starbucks Case Analysis - stress ExampleThe firm that is analyzed in the paper is Starbucks coffee c bother-out that ventured into the market in 1971 because of collar business people who had love for coffee and tea. They felt it was important for the people of Seattle, Washington to have advance to their coffee. They organized themselves, and ten years later this company had four retail stores and a roasting set up selling genuine bean coffee indoors Seattle moreover. As time went by, this company expanded to some other cities like Vancouver, Portland, and Chicago, and by 1991 Starbucks had more openings within airports. It had also expanded into the mail- site catalogue, then further to the state of California. Having braggy this far, the company initiated distribution of successful products and brand extensions that let ind offering coffee to passengers on United Airlines flights. This boosted their effectiveness that later witnessed them start offering people the option to purchase the companys products at the soothe of their homes through Starbucks online services. Currently, Starbucks strategic position is to provide premier purveyor of the finest coffee around the world while at the same time maintaining its uncompromising principles as the company continues to grow. Its efforts generated by sound decision-making atomic number 18 helping the company attain the best quality of the products. Their main product, which is coffee, has always been of the best quality and above all do by employees who be passionate about coffee. They maintain ethical standards as they source for the finest coffee beans that are they then roast it with great care2. Regarding their market, this company has a great strategic position when dealing with their clients as they promise a perfectly made beverage that they deliver at a human inter-group communication level. Starbucks treats its stakeholders with respect and dignity hence creates a profitable place for each other. External Analysis Starbucks is set about challenges just like any other company. The most of all challenges that this company is battling now is the current financial crisis that is affecting America. Due to funds turmoil that the current state of economy is posing to companies, Starbucks has not only reduced its total expenditure, but also forced to close most of its stores. In 2008, the company denote that it was going to close six hundred stores in different parts of United States of America3. Financial found reasons like income tax, risks related to third party finalization agreements, and benefits associated with the closure of stores within the anticipated period as well as cost of saving expected led to this fatal draw to the companys expansion plans. Additional challenges facing Starbucks comprise of dealing with competitors. Currently, there are numerous coffee shops within major cities across around the globe and are posing total threats to Starbucks, as they a re all competing for the same customers. 2. Flamholtz, E. & Randle, Y. Corporate Culture The Ultimate Strategic Asset, (CaliforniaStanford University Press), 20. 3. Thompson, J., et. al., Strategic Management 6th. (CaliforniaCengage Learning EMEA, 2010), 382. Some of these competitors include Nestle, McDonalds, and Dunkin Donuts. Standing out to generate customers is important yet a hard task to perform. Therefore, in order for Starbucks to alleviate competition wisely, it is of great importance for this company to identify their competitors and know what they are currently doing and how they roll in the hay be at the top of the game despite stiff competition. Internal Analysis Starbucks has internal capabilities that light upon its operations smooth. For instance, due to Howard Schultzs efforts to make Starbucks a better working place, Starbucks now has knowledgeable employees who are conversant with the companys products, prepare the companys espresso drinks without missing any detail, motivated, skilled, deliver ordered and