Business Analysis - Starbucks Part 1

2016 WordsOct 13, 20129 Pages
Business Analysis Part I Business Analysis Part I One of the most vital roles of business leaders today is the ability to conduct a comprehensive and honest analysis of the business. Such analysis can be conducted for strategic and business planning purposes or simply to determine if a company is a good investment opportunity. To demonstrate the importance of business analysis from both a business leader’s strategic point of view and from a business investor’s point view, this paper will provide the following study of Starbucks Coffee Company: (1) SWOT Analysis; (2) Relevance of Threats; (3) Internal and External Stakeholders; and (4) Balancing the stakeholders’ needs. Starbucks Coffee Company Overview Starbucks Coffee Company…show more content…
“Opportunities and threats are often external to the firm and cannot always be anticipated” (Nickels, 2010, p. 17). Starbucks’ opportunities include expansion of menus offered for sale, expansion to other countries, and franchising opportunities. Starbucks limited menu is one of its weaknesses; however, it may also be considered as an opportunity. Although Starbucks does impeccably well in serving its specialty beverages, its limited food menu items are clearly an opportunity. It can add more revenues by expanding its menu items to other gourmet food items and drinks. Moreover, it appears that although Starbucks has expanded in multiple numbers of countries, it can continue its expansion in some underserved and growing regions in countries in Southeast Asia. Finally, even though Starbucks licenses its trademark, it can expand and start franchising its stores. Franchising provides for additional revenue and operators worldwide. Threats to Starbucks include the entry of new competing gourmet coffee providers, the increasing overhead costs, and the ongoing sluggish economy. The success of Starbucks has garnered many admirers and competitors. Because the barrier to entry is relatively low, many coffee companies are copying and competing with Starbucks, such as Coffee Bean and Tea Leaf, Seattle’s Best Coffee, and even McDonald’s Cafe. In addition, the increasing overhead costs and the sluggish economy further negatively impact Starbucks’
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