Starbucks External Factors

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The researcher examines internal and external factors of specialty coffee industry leader Starbucks and how much these factors affect the operation process of the company. Analytical tool SWOT is used to determine firms’ positive and negative sides and to give a detailed synopsis whether the company’s strengths overtake the weaknesses. Starbucks is in a continuously growing market and stands in a relatively good but risky position facing dangerous external factors that could significantly affect the business. The researcher also provides an understanding of Starbucks internal factories and what makes it a strong, industry leading company giving examples of firms successfully adapted programs and innovative decisions. Keywords: Starbucks, strength,…show more content…
It is an American company founded in 1971, it is a leading retailer and marketer of specialty coffee around the world and according to (Starbucks, 2016) it has a majority of market share having 32,8% in U.S. alone. This is a brand that has grown from a small retailer to a multibillion-dollar company and gained global recognition and worldwide success. Starbucks has opened over 20,000 operated and licensed stores in 70 countries and currently has employed over 180,000 employees (ibid.). Starbucks product assortment consists of premium coffee, high variety of beverages, fresh food and healthy snacks as well as offering an upbeat environment in their coffee shop. This research paper uses SWOT as analytical tool to examine internal and external factors, which affect the operation process of this coffee industry leading company. SWOT is the comprehensive interpretation of a company’s strengths, weaknesses, opportunities, and threats. According to (Makos, 2015), the value of SWOT analysis is to sum all the information together and help to assess the most secure situations and the vital issues. With the help of this analytical tool the researcher will analyze Starbucks strengths, weaknesses, opportunities and…show more content…
According to an article written by (University of San Francisco, 2016), adapting efficient and effective supply chain allows Starbucks to maximize its profits and development. This coffee industry leading company has integrated their distribution and logistic centers across six continents, they are able to distribute their product quickly to destined locations in different countries while reducing their operating costs and increasing their clout in the industry. Furthermore, adapted enterprise risk management program (ERM) allows this company to track and recognize upcoming issues in the supply chain lowering the possibilities of failure. According to (Supply Chain Quarterly, 2014), “The ERM program allows the worldwide beverage company and coffee house chain to identify macro trends that could interrupt its supply chain and impair its ability to service its customers” (para. 2), this initiative prevents any possible failures securing the supply chain. Enterprise risk management program provides an enormous advantage for firms strategic risk management leading towards the evasion of potential profit loss situations in the

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