Starbucks Strategic Position Case Study

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The Strategic Position involves the impact of external environment, the resources and competences, the strategic capability, the goals and the culture of Starbucks have on its strategy. These are major drivers of change that have brought a decline in the growth of Starbucks in 2000 as illustrated by the Product-Life Cycle of Starbucks in Appendix 1. There has been a shift in the position of Starbucks in terms of market growth and market share, which is further explained by the Boston Consulting Group in Appendix 2. One of the major tools that assess the strategic position of Starbucks is PESTEL framework. Involving the concept of the broad macro-environment, it helps further to explore the different scenarios. In 2000, the main political factor that could have changed the scenario was the elections of United States. That explained a political instability that arise from the considerable reform policies both The Republican Party and The Democratic Party were proposing. The working population in United States was defying a lack of any open political alternate. Economic aspects are strong drivers that had led to Starbucks’s decline. The article mentioned that gas rose to five dollars tied with the financial crisis. As referred to Beams (March 2002), the basic economic indicators were increasing. The personal income in United States and Gross Domestic Product increased less than 30 per cent, which was initially provoked by inflation, explaining the rise in prices of gas.

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