Starbucks Strategic Analysis

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STARBUCKS STRATEGIC MANAGEMENT ANALYSIS INTRODUCTION Starbucks Corporation is an American multinational corporation founded in 1971 in Seattle, Washington. Starbucks is the leading marketer, retailer and roaster of specialty coffee around the world. The company has more than 182,000 employees in more than 19,767 company licensed and operated stores that are found in 62 countries around the world. Starbucks product mix includes roasted premium coffee, handcrafted high-quality coffees, a variety of fresh food items, tea, and other beverages. Starbucks also sells a variety of tea and coffee products under their licensed trademarks through different channels such as food service, grocery, and stores accounts. Starbucks also has another product…show more content…
The strategic management analysis should focus on the organization’s sole purpose of managing courses of actions that prevail in cost effective and the informed execution of strategies to enhance smooth running of the business. The activities that are under strategic management involve utilization of resources to facilitate the performance of Starbucks in its external environment. The activities and process in strategic management entails of the developing the organization’s vision, mission, objectives, policies and plans that are in the form of programs and projects; all this are designed to achieve the business objectives, allocate resources efficiently…show more content…
The growth should be supported by the growth of the economy and by increasing the confidence of the customers through expansion of menus that are offered within the industry. Starbucks is the major player and has a market share of 36.8 percent, followed by Dunkin Brands with 24.7 percent and other companies included McDonalds, Tim Horton’s, Costa Coffee among others (Box, 2011). PORTER’S FIVE FORCES ANALYSIS OF COFFEE INDUSTRY THREAT OF NEW ENTRANTS The threat of entry of new entrants into the industry is moderate as the barrier to entry is not discouraging to new companies or competitors to enter the market. The coffee and snacks industry is moderately high with a monopolistic competition state; some companies like Starbucks are dominating the market. The new companies entering the industry do not find problems; an initial investment is not important as they can lease stores to INTRODUCTION TO STRATEGIC MANAGEMENT AND5 start the

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