External Factor Evaluation 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

Since Starbucks entered the coffee retail business, the company has made many trade-off business decisions. The first major trade-off was made when Howard Schultz wanted to acquire present day Starbucks from three entrepreneurs Baldwin, Siegel and Bowker. Therefore, Schultz prior to the acquisition made the trade-off to open his own coffee bar in 1986 instead of staying at Starbucks as the manager of retail sales and marketing. A bold feat, Schultz was able to replicate success and was offered to buy Starbucks for $4 million. At the time of the acquisition, many investors, including the former Starbucks owners, would not expect that the American consumer would pay a premium for coffee products. Schultz, after calculating the opportunity cost, was convinced that Starbucks would become a large coffee chain not only in the United States but internationally too. Reflecting this approach, Schultz’s trade-off worked. Starbucks, according to our book has revenue exceeding $13 billion and nearly 200,000 employees. The company has also expanded to 40 countries with 17,000 stores (Hill et al., 2015).

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.

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

Starbucks financial statements were analyzed for the fiscal year ended September 27, 2015. Like all public companies, annual and quarterly financial statements are required to allow regulators and other interested parties to analyze the financial status and management decision making of the company. This analysis focuses on the results of Starbucks most recent published annual report containing their balance sheets, statement of earnings and cash flows. These statements will be analyzed against the results of one of its competitors, Dunkin Donuts, to investigate how the two companies compare to each other. It was noted that Starbucks and Dunkin Donuts do not have corresponding fiscal year ends. The data therefore is not directly comparable since the reports do not reflect the same time period of data but should provide additional insight. The paper will attempt to provide a brief analysis of Starbucks operations in terms of its liquidity, leverage, activity, profitability and growth ratios used by analysts in the industry.

With over 20,000 locations worldwide, people are willing to pay over five dollars per cup for the bit of luxury (Horovitz, 2014). Not to mention the fact that Starbucks prides itself in using ingredients from exotic locations, produced by farmers, rather than corporations. Additionally, Starbucks takes a personal sense of pride in the personal and professional growth of their employees. First of all, Starbucks changed the title of their employees from Counter Help to Barista (Horovitz, 2014). Secondly, Starbucks offers a fully paid tuition assistance program to Arizona State University to all of its employees (Rooney, 2015). With this program, Starbucks is acknowledging the benefit of a well-educated workforce, while helping to improve the individual quality of life for all

Moreover, most of the people know the brand Starbucks as the leader of the coffee industry. It is enormously successful and it comes out with no surprise that this will be used as benchmarking against the study of Dunkin’ Donuts.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

There are many external and internal factors that impact the planning functions of management. We must all be mindful of these factors because they could have an enormous impact on organizations productivity. The process of assessing the external and internal factors that an organization will face can be vital to the planning function of management. One must determine a set of issues and constraints and then list the assumptions that will impact the implementation of the plan. The environmental assessment develops understanding of external and internal processes that influence the organizations success rate. The purpose of the environmental assessment is to identify and analyze the key trends, forces, and

Google is one of the largest and well-known companies in the technology industry. They have been known for their search engine for many years now. Also, Google has expanded their business into several other areas in technology from smart phones, tablets, android, and business software. Google’s search engine is known for reliably getting its users the information they want. One unique aspect that Google has is its business organizational structure is that it is flat and formed up into project teams, unlike most businesses.

A.   CASE  ANALYSIS       “Growing  Big  while  Staying  Small:  Starbucks  Harvests  International  Growth”     by  IAN  E  NIS  TIRYAKI                                         DATE         April  28,  2011  Thursday                                             A.  EXECUTIVE  SUMMARY   1. Situation  Overview   Globally  recognized  coffee  house  and  coffee  brand  Starbucks  has  changed  its  targeted   markets  more  towards

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.

Starbucks is known for selling and roasting its famous whole bean coffees made of Arabica beans, and also sells teas, baked goods, and even merchandise worldwide. Customers can now order what they want directly online, in a supermarket, and other food service markets too. The company has reached success and keeps growing over the years. Considering market demand, as a consultant, I will evaluate the trends in demand over time and the impact on the firm and industry. Starbucks invests in trendy advertisements and décor that attracts their customers and keeps their products well known. Their central target market is “men and women aged 25 to 40” (O’Farrell, 2016). These customers are about half of their entire business. The company also target “young adults, aged 18 to 24, total 40 percent of Starbuck’s sales” (O’Farrell, 2016). This target market focuses on college students, because their business place is usually an area these customers go to study, hang, or have meetings. Finally, Starbucks targets 13 to 17 year olds, which consists of two percent of sales (O’Farrell, 2016). Although Starbucks does not target market kids they do offer kids drinks, which parents tend to buy for their kids. Starbucks sells to a particular demographic. The majority of their customers are from the city or “upscale suburban areas” (O’Farrell, 2016). The target market focuses on well-established people with high incomes. By having this specific target audience Starbuck is able to grow and

to evaluate Starbucks’ current strategies in addition to the retail coffee market as a whole. To

The coffee industry is one of the world’s largest commodities, produced in over 70 countries and employing nearly 20 million people. The United States accounts for approximately 20,000 coffee shop businesses with revenues totaling $10 billion in 2011 and on an upward trend, according to the Small Business Development Center (SBDC). Industry analysis, conducted in 2012, found the coffee industry to be controlled by the top 50 companies, which account for 70% of the sales. The remaining 30% of