This document provides an analysis of Starbucks as a company. It discusses Starbucks' strengths as the world's largest coffee house chain with over 20,000 locations globally. It also examines some of Starbucks' weaknesses, such as its high price point limiting some customer access. The document then analyzes how Starbucks can maximize its strengths, like using high quality to increase prices, and address weaknesses like introducing more affordable products. Overall, the document performs a comprehensive SWOT analysis of Starbucks and its position in the coffee industry.

1. Running head: STARBUCKS
1
STARBUCKS
2
Starbucks Research
ASSIGNMENT #2
Starbucks is recognized as the world largest coffee house
chain with more than 20,000 locations in the entire world. Since
its establishment in 1971, this firm has been offering hot and
cold beverages especially coffee and snacks. In recent times,
this firm has increased its efforts towards selling branded goods
like packaged coffee beans, mugs, and other gifts (3). This
paper is therefore aimed at discussing the strengths and
weaknesses of this firm, the tactic that this firm needs to choose
to ensure that there is maximum use of its advantage as well as
the tact it can use to fix the weakness. Other sections to be
discussed in the paper include the tangible and the intangible
resources, the core abilities, and the core competencies; two
segments of the general environment that is likely to influence
on Starbucks; the forces of competition; how to improve to
address its ability in the near future to overcome the
competition; the greatest external threat; and the greatest
opportunity presented to Starbucks.
The strengths and weaknesses
The first strength is related to the quality, profitability,

2. and ethicality. This firm has established itself as the premium
coffee house chain despite the existence of the global presence
especially firms producing fast food. The products produced by
Starbuck are excellent in terms of quality, environmentally
friendly, and consistent between regions. The next strength is
related to the effectiveness and re-investment strategies used by
the firm and this implies that the profit made by this firm is
going straight to the expansion of the business and this is why
this firm is increasing its chains all over the world. This
organization is also treating its employee. It is among the top
100 firms according to the Fortunes Top 100 Places to work for
due to the manner, in which it treats its employees.
With regard to its weaknesses, this firm is having a high
price point and this means that many customers are being
prevented from visiting this firm to make their purchase.
Another weakness is related to the lack of over uniqueness of its
products. This firm does not have a unique market and this,
therefore, implies that it provides products, which are similar to
the majority of those, which are being provided by other firms.
How to take maximum advantage of the strength and fixing of
the weakness
One of the strengths of Starbucks is related to its quality,
profitability, and ethicality. This, therefore, implies that the
majority of the customers get attracted to the products being
produced by this firm. Therefore Starbuck can take advantage of
this strength to increase the prices since the majority of the
customers will be willing to pay. For the purposes of reducing
the weakness related to the high price point which appears to be
pushing some customers away, this firm can increase its
customer base by introducing new products and co-branding by
targeting the supermarkets to attract more customers. Through
the selling of their own-branded products in stores will help in
the maximization of the value of their huge reputation (2).
Starbucks tangible and non-tangible resources, core capabilities,
and core competencies
Starbuck organization is having both intangible and

3. tangible resources or assets, which are put into action with the
ability possessed by the firm. With regard to the tangible assets,
there is the location of their stores, which is considered to be
the additional company, which is owned by the Starbuck firm.
The other tangible resource is the location for of the roasting
plants where this firm buys its beans. The last tangible resource
is the employee benefits package. Starbuck is having about
17,000 branded cafes in approximately 40 nations in the entire
world. There are also about 9,000 regions, which are considered
to be the corporate that is owned and license as well as other
franchisees, which operate in more than 8,000 locations.
Location assets are important for this firm since they are aimed
at bringing about the experience to the clients with each cup of
coffee (3).
With regard to the intangible resources, there is the
existence of procurement processes of the coffee beans, the logo
of the firm, the Shultz’s knowledge and the workers training
programs. The procurement process or the roasting of coffee
beans is playing an important role in the products of this firm.
The log is helping in displaying the brand of this firm. The logo
is representing the mermaid who has flowing hair that afforded
her more modesty and the logo is used to present broader
products of the firm.
Regarding the core-capabilities, this firm is having the
abilities to productively utilize their resources. Other abilities
include procurement process, which is relied on for the
purposes of producing coffee, recruitment and training methods.
The hiring practices of Starbuck are having the ability to
recruiting proper workers that helps this firm to find a quality
business. The core-competencies of Starbucks are its
unwavering focus on quality, outstanding customer services,
ongoing production advancement, caring for its workers, and a
drive to operate everywhere in the entire world (3).
The general environment that would rank highest in influencing
Starbuck
Usually, the general environment is consisting of

4. dimensions within the society that is influencing businesses
within it. Environmental segments are grouped into
demographic, economic, political or legal, socio-cultural,
technology, international, and physical environmental segments.
Out of these environmental segments, the general environment
that can be considered to be the highest in influencing on
Starbucks is the socio-cultural and the physical environment. A
socio-cultural segment is concerned with the mind-sets as well
as the cultural values of the society. Starbuck has since made an
effort to employee more than 5,500 veterans and spouses
according to the announcement it made in 2013 over the
recruitment of more than 10,000 military veterans and spouses.
This firm has managed to use the American values towards the
military and spouses to ensure that there is a promotion of
greater firm while at the same time creating a workplace with
diversity (4).
The physical environment segment simply means the
ability as well as the actual changes within the physical
environment in addition to the business practices that are aimed
at constructively responding to and dealing with changes.
Therefore, in dealing with this segment, this firm has put a
focus on energy consumption, the sources of energy, the
environmental footprint, and the production of environmentally
friendly products for the consumers. Addressing issues related
to environment is performed on an annual basis. All these
segments are important in ensuring that there is a good
relationship between the customers, society, and the government
especially with regard to the observance on the ethical values
(4).
The forces of competition
The common forces that shape industry include the
presence of the competitive rivalry between the dealers, threat
from the new market opening, the bargaining power of the
purchasers, the power of the sellers, and the threats caused by
the substitute products. Starbuck firm has remained competitive
through providing its products via its grocery stores and

5. licensing its brand for other products such as food and other
beverage products. One of the forces of completion is the threat
of the substitute products especially from its competitor like
McDonald (2).
The substitutes for Starbuck coffee are tea, soft drinks,
water, and energy drinks. In addition, pubs and bars are also
considered as substitute places for other customers.
Nevertheless, the suppliers of this firm have higher bargaining
power since the demand for coffee is higher internationally and
due to the fact that the production of coffee can only take place
within a single geographical area. Another force of completion
is the presence of competitive rivalry between the suppliers.
The main competitor of Starbuck is McDonalds Corporation;
nevertheless, Starbuck still rises above it despite the higher
prices of its products. Starbuck is controlling more market share
than its competitors (1).
What can be done to improve the two competitive forces?
The competitive force related to the presence of rivalry
firm can be handled in the future by ensuring that Starbuck
makes more investment in its initiative process to ensure that its
products are unique from the competitors. Lack of unique
products is one of the weaknesses of Starbuck and therefore if
this is not done, then it means that the competitors will
capitalize on this weakness. With regarding the threat from the
substitute product at a competitive force, it is a time for
Starbucks to reconsider the prices of some of its products. It is
important to ensure that some of the products are charged at a
price that can be afforded by many people (2).
The greatest external threat to Starbuck
The greatest external threat for this firm is the
increasing presence of the substitution or substitutes to the
products of Starbucks. There is high substitute availability
lower switching cost for these products, and higher affordability
of the substitute products. This threat can be overcome by
making the products by this firm to be unique so that they can
be easily differentiated from those of the competitors and attract

6. more market share. Another solution is to ensure that the prices
of the products produced by Starbuck are reduced or made
affordable to the general public. This is important in competing
against the wave brought by the new substitute products (1).
The opportunity presented to Starbucks
The opportunity presented to this firm is the ability to
expand internationally. Even though this firm does have several
coffee houses in the entire world, most of these coffee houses
are found within the United States. There are a number of
available market opportunities and areas which this firm can
expand its stores to generate more profits. Some of the regions
which Starbuck can expand its stores include India, Central
Europe, and some African Nations. In Africa, Starbuck is
having more bargaining power due to the absent as well as
negligible switching cost for its consumers. There is the
availability of offers for Starbuck firm. There is also a low
threat of new entrance in Africa since the market seems to be an
extremely saturated and considerable amount of financial
resources are also linked with the buildings and assets that are
acquired for the purposes of gaining entry in the industry (3).
References
Bush, T. (2016, April 20). SWOT Analysis of Starbucks, the
World’s Leading Coffeehouse Chain. Retrieved August 30,
2019, from PESTLE Analysis: https://pestleanalysis.com/swot-
analysis-of-starbucks/
Dobbs, M. (2014). Guidelines for applying Porter’s five forces
framework: A set of industry analysis templates.
Competitiveness Review, 24 (1), 32-45.
Glowik, M. (2017). Case Study: Starbucks. Global Strategy in
the Service Industries, 156-164.
Kimball, D. (2016). Corporate Social Responsibility at
Starbucks: 2016-2017 Issues for Discussion.

7. Running head: STARBUCKS RESEARCH 1
STARBUCKS RESEARCH 2
Starbucks Research
ASSIGNMENT #1
Starbucks Research
Globalization and Technology
Globalization and technology have significantly impacted
how business operations are conducted. Fundamentally
globalization tends to be the increasing economic
interdependence among nations as well as their organizations
around the globe in reflection to the flow of financial capital
across border knowledge as well as product and services.
Starbucks is a coffee outlet organization, which was founded in
the year 1971. The organization is an American firm which is
headquartered in Seattle Washington. The organization could
conduct its business globally with an approximate of 97, 768
stores in 62 countries. Through the aid of embracing
globalization, Starbucks has been able to supply its products
and services in various markets around the globe and in return,
it increases its revenue (1). For instance, Starbucks often buys
coffee from different regions such as Africa, Asia as well as
Latin America and through this the organization creates
employment opportunities as well as it increases the export of
goods hence improving the revenues of the various countries.
Generally, through globalization Starbucks has been able to
reach its full potential in the foreign market. Also, it has been

8. able to sources its raw materials as well it has been able to
develop new business strategies which aid the organization to
remain competitive.
On the other hand, through the aid of information
technology Starbucks has been able to develop innovative ideas
as well as forward-thinking solutions such as the mobile app,
and Starbucks reward loyalty program has enabled the
organization to be able to improve its revenue.
Additionally, through technology Starbucks has been able
to develop successful analytical solutions, which are aimed
at solving complex business solutions (5). Also, technology has
aided the organization to manage both long and short-term
project outcomes that involve huge data processing, artificial
intelligence and machine learning among other technological
practices. Fundamentally, through the embracement of the vast
alteration of technology Starbucks has been able to apply
technology in different areas of its business operation assisting
it to effectively satisfy the needs of their diverse client
population.
Earning above-average returns
Starbucks may be able to attain above-average returns
by ensuring that it attains a global brand recognition and equity,
customer loyalty, leveraging technology and mobile outlets,
having an effective human resource management
and organizational culture, good corporate social responsibility
image and emphasizing on the strategic location of stores.
Factors such as strategic location often promote a temporary
competitive advantage for the organization (2). On the
other hand factors such as good corporate image, and customer
loyalty tends to promote a permanent competitive advantage.
For example, through the recently established projects such
as the Starbucks Card as well as the Starbucks Reward, the
relationship between the company and its clients’ have
significantly been strengthened due to effective satisfaction of
the clients' needs and in turn, the clients have become loyal to

9. the organization. Additionally, the experience that Starbucks
has on providing quality client services, as well as store
ambiance, which mainly reflects the culture of the regions
where the organization operates, enables Starbucks to always
remain competitive in the coffee industry. The store ambiance is
a significant contributor to client loyalty, however also through
effective human resource management, the employees
are provided with strong values which improve in the
development of both external and internal relationship among
the suppliers and the clients (2). Generally, Starbucks may be
able to attain an above-average return through ensuring that it
continues to uphold its strong values and culture,
which significantly enable it to provide a special client
experience.
Vision and Mission Statements
The mission and the vision statements of Starbucks have
significantly influenced the overall success of the organization.
Through its mission and vision statement, Starbucks can
emphasize leadership in the coffee industry. Generally, the
mission Statement of Starbucks mainly focuses on the
philosophical aim of the business. The mission statement states
“to inspire and nurture the human spirit – one person, one cup
and one neighbourhood at a time (4).” it fundamentally reflects
what the organization does to keep the bunnies running. Also, it
asserts that its target clients are provided with the required
attention to satisfy their needs. On the other hand, the vision
statement of the organization mainly focuses on emphasizing its
leadership ability in the coffee industry. Starbucks vision
statement is “to establish Starbucks as the premier purveyor of
the finest coffee in the world while maintaining our
uncompromising principles while we grow (4).” Through the
effective implementation of the mission and the vision
statements Starbucks has been able to efficiently respond to its
competitive environment enabling it to remain competitive in
the coffee industry. The implementation of the corporate
statements has enabled Starbucks to be able to develop a

10. general strategy as well as intensive growth approaches.
Additionally, the organization can develop
corresponding strategic objectives hence enabling the
organization to streamline its operations in alignment with the
mission statement as well as satisfying the organization’s vision
statement. Additionally, the Starbucks mission statement tends
to focus on preparing the organization for future business
operations and this enables the organization to efficiently
develop effective business approaches which meet and
satisfying the ever-changing market trends and demand (4). On
the other hand, the vision statement of Starbucks tends to be
clear, concise as well as inspiring and this enables the
organization to be able to set and maintain a premier status in
the coffee industry. Also, the focus on leadership tends to be a
driving power that challenges the organization’s human
resource and other related stakeholders to ensure that Starbucks
provides its clients with satisfactory services and products.
Stakeholders
Stakeholders tend to have a significant impact on the
overall success of the organization. At Starbucks stakeholders
also significantly influence the success of the organization as
well as the corporate social responsibilities. The main
stakeholders at Starbucks are employee, customers, suppliers,
investors, environment and the government. Employees as one
of the major stakeholders at Starbucks they are provided with
satisfactory working conditions as well as their employment
needs such as job security, high wages among other essential
needs are effectively addressed and in turn, they are motivated
to assist the organization to attain its corporate goals (Kimball,
2016). Customers, on the other hand, influence the success of
Starbucks through the purchasing of goods and services.
Starbuck ensures that it effectively meets the needs of its
customers by providing them with high-quality services and
products and in turn, the organization’s success is attained
through customers becoming loyal to the organization. Suppliers
are major influencers of Starbuck’s success because without

11. their supplies the client needs would not be attained. Thus they
influence the success of the organization through providing the
required supplies on time and in turn Starbucks provides them
with compensation based on their materials (3). The
environment is another significant stakeholder at Starbucks
because it encourages the organization to develop business
strategies that focus on improving and promoting biodiversity.
Investors are also the main influencers of Starbucks success
because they provide the organization with the required
financial ability to expand its business around the globe. Lastly,
governments are essential stakeholders because for Starbucks to
be able to expand its business around the globe it needs to meet
the standards and regulation provided by the different
governments around the globe.
References
1. Diversity and Inclusion | Starbucks Coffee Company. (2019).
Retrieved from
https://www.starbucks.com/responsibility/community/diversity-
and-inclusion
2. Glowik, M. (2017). Case study: Starbucks. Global Strategy in
the Service Industries, 156-164. doi:10.4324/9781315682167-10

12. 3. Kimball, D. (2016). Corporate Social Responsibility at
Starbucks: 2016–2017 Issues for Discussion.
doi:10.4135/9781473972261
4. Mission Statement | Starbucks Coffee Company. (2019).
Retrieved from https://www.starbucks.com/about-us/company-
information/mission-statement
5. Technology: Starbucks Coffee Company. (2019). Retrieved
from https://www.starbucks.com/careers/technology