Environmental Scanning Paper

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

The environment of any organization consists of internal and external factors. An organization should conduct a scan of its environment in order for it to determine development, and a forecast on the factors that may influence the success of the organization. Scanning the environment refers to the possession and utilization of the information that an organization has about trends, patterns, occasion and the external and internal relationship that are within an organization. A scan of the environment may assist the management team of an organization in making a decision about the future path of the

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

The first opportunity is that over 50% of eighteen year olds and older drink 3 or more cups of coffee per day in the United States. This group of coffee drinkers consists predominately of college students and career professionals who adding the morning cup of joe to their study time or work schedule. Currently in the coffee industry, competition is minimal for Starbucks, which has allowed Starbucks to capitalize on one of the biggest industries in the world behind crude oil. This

The business environment of an organization reveals much about its competitiveness and the possible influences on the success of its strategies. The focus of this paper will be an environmental scan of the internal and external environments of two real-world firms, their competitive advantages and company strategies for creating value and sustaining competitiveness, measurement guidelines for verifying strategic effectiveness and their evaluation.

Starbucks generally wants a safeguard that is maintainable of the stock of high value coffee from Latin America and also around the world. Orin Smith wants an agreement to purchase about sixty percent of coffee under those terms by 2007. (Association Press, Lee, 2004) The arrangement considers the increasing influence of premium coffee in the marketplace and determinations to utilize it for the further of the minor growers. While it reaches to the supply, demand and means of coffee there are specific elements that can vary these qualities to increase or decrease. For example, utilization of coffee that many people are likely to have thirst-quencher for coffee due to the fact its winter and not summer hence the cold high temperature, Starbucks has struggled to prevent these affected decline in the summertime by proving a range of cold beverages and sweet desserts on the other hand; throughout the summertime these issues are measured by "want" contrasted to nearly a "need" throughout the winter.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

Study shows that U.S. per capita coffee consumption has not really varied in over 15 years. Although the consumer has since evolved from regular brewed coffee to a more sophisticated gourmet brew, the overall intake for coffee has relatively remained the same based on the Gallup polls. (Brown, 2015) The Starbucks Company has managed to change the pallet of the consumer by the type of coffee they distribute. Companies like Dairy Queen, McDonalds, and Dunkin Donuts have had a complete coffee menu makeover in hopes to keep pace and their customer base. (Cowan, 2014) (Company Profile, 2015) Since 2003 there has been a noted growth of coffee import to the United States (U.S.), regions such as New York, Miami, New Orleans, Houston, and San Francisco have become major ports on handling imported coffee. The United States have increased their secondary countries in Latin and Central America in order to meet the demands of coffee beans here in the U.S. (Plume, 2003)

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The threats to the Starbucks Corporation are associated with competitive rivalries in the coffee market, rise in price of raw materials, cultural and political factors related international business.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

In terms of competition and the forces, which could limit the success of Starbucks it is important they stay ahead or even with other companies concerning innovative products. Many more micro companies are coming up with new products with a similar quality and a lower price/cost. It is important that Starbucks continues to search for innovative products to continually satisfy their customers. At the same time “rivalry” amongst Starbucks and smaller providers of coffee will continue to increase as the demand for coffee continues. The buyers bargaining power is significant as they can determine the cost, type of product, quantity and ultimately

Starbucks primary weakness stems from the pricing of its coffee in comparison to its competitors. Since Starbucks makes 75% of its profit from coffee (unlike the McDonalds and Dunkin’ Donuts which make most profit from food), it is exposed to rising coffee-bean costs and stepped-up competition from lower-priced competitors.

The greatest threat of them all at this particular moment for Starbucks, or any other company for that matter, is the global economy crisis. In particular the source of the crisis, this lays in its home country the U.S. So if more than ¾ of the companies growth is depended on the U.S. then the