Starbucks Swot

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Business Organization and Management Group Case Study

Introduction. 3

What is the product in this business and its value? What type of business is it and why? 4

What is a competitive advantage for the company? How can the management use it? Make SWOT analysis for the company. 5

What types of decisions did the owners have to make? Why you think they had to make those decisions? 7

Which are the reasons of success for a coffee shop in Greece? 9

What can we assume for the BDI (Brand Development Index) and CDI (Category Development Index) of the company? 10
How can the environment influence the company? How can the current environment influence the company? 11
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Starbucks has a reputation for new product development and creativity. But new ideas can not come so often and even if they do they may not be on target. Moreover, almost the ¾ of their shops are located in the U.S. which means they are depended too much on one country. They need to spread into another group of countries in order to spread the business risk. Also organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.
Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

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
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