Strategic Analysis of Starbucks

Strategic Analysis of Starbucks

Introduction

In the competitive era of 21st century, where the world has done the technological advancement, it has become significant for the organizations to design effective corporate strategies to remain competitive and active in the industry they operate. A corporate strategy lists the objectives to be achieved in order to harmonize the expectations of shareholders or political leaders with the values ??around which the entity is organized. The corporate strategy also establishes policies for half of which is integrated portfolio of businesses, organizations private sector, and the portfolio of programs, industry organizations public. These are further brought down to the internal and external environment strategies. Thus, the following essay will evaluate the strategic analysis of Starbucks Company. (www.businessweek.com)

Discussions

Introduction about the Company

Starbucks Corporation is a company that offers coffee products. It has a large international chain of coffee shops offering its customers coffee, desserts and products of pastry. In the United States of America, it is considered as a venue for young people, especially students and residents in large cities. The name "Starbuck" belongs to a character in Moby Dick. The logo is a mermaid with two tails stylized. (Dutton, Walton. et.al.1989)

The group headquarters is in Seattle, where he also opened the first Starbucks store in 1971, in Pike Place Market, three friends, Jerry Baldwin, an English teacher, Zev Siegel, a history teacher, and Gordon Bowker, a writer. The breakthrough came from an idea by Howard Schultz, old CEO, now recognized as the true founder of the famous chain. During a trip to Milan in 1983 developed his plan to bring America into the authenticity of Italian coffee.

Starbucks Corporation began its operation in 1985. Currently Starbucks is a multinational operating in countries located in U.S., Latin America, Europe, Asia and Australia. Starbucks stores are usually located at airports, malls, hotels and universities.

Corporate Strategy

The corporate strategy of Starbucks is highly classified in the two well defined categories of internal and external environments. These are explained in details below. (Eisenhardt, Sull.2001)

Internal Environment of the Company

The strategy began in 2001 but was formally introduced in the financial reports of 2004. Starbucks Cafe Practices gave initiated to evaluate, recognize and reward their coffee suppliers, seeking to control an external factor (threat): The constant variation in coffee prices.

Through this strategy seeks to stabilize the price Starbucks purchase coffee, putting their own rules and making an external threat to a corporate strength.

At the corporate level, "be careful" means for Starbucks-depth study of the circumstances of life partners and the people with whom they intersect, and at the same time caring for cultivated land, so that it can meet all the needs of Starbucks. By this, in particular, refers to research into alternative and renewable energy, sponsored by Starbucks.

A significant step for us was the replacement of 5% of all energy used in coffee houses Starbucks, located in the U.S., wind energy. This step helps to reduce by 2% of carbon emissions into the atmosphere. The company takes such measures, even though wind ...