Swot Analysis of Starbucks and Future Scenarios That May Affect Their Success.

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O.N Week 3 assignment Bus520 SWOT Analysis of Starbucks and Future Scenarios that May Affect Their Success. The complete SWOT analysis that analyzes Starbucks’ current situation and future prospects are as follows: Strengths: ● Product diversification ● Established logo, developed brand, copyrights, trademarks, website and patents ● Company operated retail stores, International stores (no franchise) ● High visibility locations to attract customers ● Valued and motivated employees, good work environment ● Good relationships with suppliers ● Industry market leader ● Globalized ● Customer base loyalty ● Product is the last socially accepted addiction ● Widespread and consistent ● Knowledge based ● Strong Board…show more content…
("CVI") and Coffee Vision Atlantic, Inc. ("CVAI"), its licensee in Quebec and Atlantic Canada. Upon closing this transaction on August 25, 2008, Starbucks will transition approximately 40 licensed locations to company-operated locations. In addition, Starbucks will also acquire full development and operation rights for retail stores in these provinces. As part of the agreement, more than 740 CVI and CVAI employees are expected to become partners (employees) of Starbucks Coffee Canada. In addition to Canada, Starbucks is also progressively expanding in China and other countries. Besides Starbucks’ successes and its continuous expansion, it still has external factors impacting its decisions and possible future scenarios, which they need to be aware of. The major factors are Competition and A Slowing Economy. Starbucks posted a 69% drop in fiscal first-quarter profit and announced more cost-cutting measures including layoffs and store closings. It reported a net income of $64.3 million, or nine cents a share in the first quarter, which included charges to close stores and cut staff. The company earned $208.1 million, or 28 cents a share the same period a year ago. The company also announced it plans to slash 6,000 jobs in 2009 and close 200 domestic stores and 100 overseas. The closings come on top of the 600 closings the company announced in July. The company announced it plans to stop continuously

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