We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Situational Analysis of Starbucks Essay

Essay Topic:

Sorry, but copying text is forbidden on this website!

We start off with the organizational analysis’s corporate mission, products and services, leadership Organizational Culture, and Strategy. Next we analyze the firms resources by means of tangible & intangible resources, capabilities and core competencies. Then we move into the financials analysis which divides into subcategories such as valuation, growth, profitability, financial strength and management efficiency. The final aspect of the internal analysis is the SWOT analysis which clarifies Starbuck’s Strengths, Weaknesses, Opportunities and Threats.

The final closure of the Strategic Analysis is the recommendations for both internal and external analysis along with a conclusion.

2. 0. 0History The history of Starbucks starts in Seattle in 1971. (George, 2010) Three friends; Jerry Baldwin, Zev Sigel, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet, coffee beans and brewing and roasting accessories. (George, 2010) The company did well, but things began to change in the 80’s. (George, 2010)

McDonald’s has no issue with the generating locations and hitting targeted demographics.

Primarily because, McDonald’s is the oldest business in the food service industry. The most common demographic in the American trends are the tweens to teens segment. Here, the up and coming teenagers, or teenagers dive into a new hangout place in order to gain the “feel” and “experience” the coffee industry offers. Starbucks offers an influence in the youth of America into employment roles or simply influential leisure hangouts for teenagers.

Adam Smith’s “The Wealth of Nations” best defined competition amongst the market as Lassiez Faire – “A philosophy or practice characterized by a usually deliberate abstention from direction or interference especially with individual freedom of choice and action. ” However, no single firm, or group of firms, must ultimately have complete power over any industry because that firm would have the power to regulate prices of that particular commodity. (Dept. of Labor, 2011) This would be known as a monopoly.

Should a firm be in recognition of monopolistic power, they would be violating the Sherman Anti-Trust Act in practicing in unfair business practices. (Dept. of Labor, 2011) One example that led to unfair business practices is known as price fixing. (Dept. of Labor, 2011) Price fixing is defined as an agreement between business competitors selling the same product or service regarding its pricing. (Dept. of Labor, 2011) Other pieces of Government regulation is OSHA (Occupational Safety & Health Administration). (Dept. f Labor, 2011) Here these laws are backed by the federal governing body of the United States Department of Labor. (Dept. of Labor, 2011) Simple laws here give the employee factions laws to simply abide by in case of any unfair management practices such as quid-pro-quo. All firms must abide by both means of competition and OSHA’s regulator laws. The only real factor in the government/political segment that affects the industry is the EBIT (Earnings Before Interest in Taxes), because it defines the net worth after gross income a firm can accumulate in the coffee industry.

How to cite this page

Choose cite format:

Situational Analysis of Starbucks. (2018, Jun 08). Retrieved from https://studymoose.com/situational-analysis-of-starbucks-essay

We will write a custom sample essay onSituational Analysis of Starbucksspecifically for you

for only $16.38 $13.90/page
Order now

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service

Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b


Hi, I am Sara from Studymoose

Hi there, would you like to get such a paper? How about receiving a customized one? Click to learn more https://goo.gl/CYf83b


Your Answer is very helpful for Us
Thank you a lot!