Situational Analysis of Starbucks

13207 Words Oct 13th, 2012 53 Pages
Strategic Analysis of Starbucks

Leo Dela Rosa

Strategic Management 4340

Dr. Uche Nwabueze

0. Executive Summary

The entirety of the executive summary encompasses all of what is discussed on the Strategic Analysis of Starbucks. It is discussed and dissected into two distinct parts, the external and internal analysis.

At first we discover the history of Starbucks and how influence grew into a huge success.

Then, upon the external analysis, we discover more on the coffee industry as a whole. We explore on how the roles of the General environment are dissected as the competing grounds for the coffee industry. Then, we delve into the driving forces and
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As explained via the financial analysis excel chart, we see that the natural progression of Starbucks is also in the current ratio. This defines the overall financial progressive movement of Starbucks. Current Ratio is defined by the success that is generated from the sales department.

The current ratio defines from $0.79 (10/06) to $1.55 (10/10) and 1.74 (1/11) that cash situation is very strong. Simply put, it states that for every dollar that is owed, went from $0.79 out of efficient funds (Oct 06) to now at $1.74 (Jan. 11). This proves that Starbucks has a very strong financial growth that is fuelled by the sales growth for the "sales 5 yr growth" financial snapshot. In comparison to the coffee industry today, Starbucks proves that their Current Ratio exceeds the industry standards.

This is only a minor snapshot of how Starbucks has progressed in terms financially.

2.2.0 Purpose of this Study

The purpose of this study is to convey and compare the information of the external analysis, and the internal analysis of the coffee industry. Once both sets of analysis (internal & external) has been successfully analyzed, we then reach conclusions by means of internal and external recommendations.

0. External Analysis

The study of the external analysis in the coffee industry, is the study of its macroenvironment. This includes the
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