Starbucks Frameworks in Global Business Operations Order Instructions: Assignment Objective: #1 Compare and contrast frameworks to analyze global business operations.
#2 Evaluate an organization’s internal and external environment and competitive position.
Assignment Purpose: To generate a strategic plan
Assignment Details: Assignment #1, Vision and Mission; Company Overview
Students will be generating a strategic plan for Starbucks. Create a general description of the organization, define what is core and non-core business, 5 sources of revenue analysis, including vision and mission statements.
Starbucks Frameworks in Global Business Operations Sample Answer
Compare and Contrast Starbucks Frameworks to Analyze Global Business Operations
Enhancing customer experience through Innovation
Starbucks has been on the forefront to innovate as the only way for the company to acclimatize with its local environment. This has been very successful for the company to penetrate China. The company is taking advantage of the decentralized e-commerce in China to craft an experience that blends its store and digital space. Through mergers and acquisitions, Starbucks has been exploring the likelihood for exceptional digital innovations. With a B2C e-flagship store in Alibaba, the company has the capability to offer social prizes to clients in China (Das, Eisner & Korn, 2015).
Starbucks Frameworks in Global Business Operations and Capturing the Indian Market
The exponential growth of the Indian economy presents Starbucks with enormous prospects with respect to the budding middle class with the highest disposable income. Despite intense competition in India, the company has partnered with Tata Global Beverages to jostle for the café market valued at $1.1 billion (Elder, Lister & Dauvergne, 2014). Apart from packaged products, the company intends to introduce “Teavana,” one of its tea brands to India. The fact that India is largely a tea-drinking nation, the introduction of Teavana in India could help Starbucks amass a considerable market share. While the company’s mobile order and pay will help enhance retail services by cutting down long queues, it will offer the company a competitive edge.
Evaluate an organization’s internal and external environment and competitive position.
External Environment
1) Political：
Starbucks has been able to penetrate countries like China that were previously closed to the world. While globalization shattered trade barriers, this has attracted international trade and investment.
2) Economy:
The economic boom in China has brought about new markets for Starbucks an aspect that gives the company the prospects for exponential growth.
3) Social:
The lifestyle change in China has many prospects as far as coffee drinking is concerned. A report by Mintel Inc shows that the annual sales of coffee in China are 30 percent. Nonetheless, the current inflation and CPI being witnessed in China may lead to high costs, an issue that may have a negative impact on sales.
4) Technology:
Because coffee technology is not engineered in China, this gives Starbucks a competitive in terms of technology.
Internal Environment
SWOT:
Strength
1) The company’s name and brand value is its strength
2) Employees give clients a superior experience
3) The company is responsive to customers
4) Productivity is rather high
Weakness:
- The failure by a merchant or supplier to meet standards, offers products in a way that is prompt and proficient and in tandem with applicable statutes beyond control.
- Differentiating the development platform and start the packed coffee business may terminate the significance of the brand.
Opportunities
- The economic conditions in India and China provided a platform for the company to enter the market and increased its profit margin.
- Another opportunity is the coffee culture that prevails in developing nations.
Threat
- Increasing cost and decreased the availability of quality Arabica coffee beans
- Economic recession that contributes to reduced demand for coffee products
- New entrants in the coffee sector that lead to increased competition
- Fluctuation in foreign currency
Competitive Position
Starbucks operates among the most companies. Coffee sector fragmented. Starbuck’s rivals for coffee include specialty coffee and quick –service shops like Costa and Nestle. Nestle has adopted low pricing started to attract clients, which poses a great challenge on Starbucks (Paharia, Keinan & Avery, 2014).
Bargaining Power of Consumers
Consumers have low bargaining power. Their choice for Starbucks is based on comfortable environment, quality products and services rather than cost.
Bargaining Power of Suppliers: Low
Bargaining power of supplier is low since the firm is dominant in its operations. The amount of beans required is huge; therefore Starbucks is strict with quality and can reduce the cost.
Substitute Products
Alternative products to coffee are soft drinks including juice, soda, tea and so forth. A few years ago, the company acquired Evolution Fresh to meet the needs of Asian clients. As such, substitute products and no effect on Starbucks (Paharia, Keinan & Avery, 2014).
Vision and Mission; Company Overview
Company Overview
Starbucks began in 1971, as a roaster and retailer of ground coffee in Pike Place Market, Seattle. In addition, the firm’s logo is inspired be the sea with a twin-tailed siren. Currently, the company have over 24, 000 stores in 70 nations across the world. Starbucks offer the finest coffee internationally, prepared and severed by the finest individuals (Paharia, Keinan & Avery, 2014). The firm’s workers or partners are the main competence of the firm’s experience. Moreover, the company offers a variety of products including;
- Coffee; over thirty blends as well as unique-origin coffees
- Beverages such as teas, iced and hot espresso, Frappuccino coffee and non-coffee blends, smoothies and Starbucks Refreshers.
- Merchandise like tea and coffee making tools, cups, books, and packaged goods
- Fresh food such as sandwiches, salads, oatmeal, fruit cups, and pastries
- Consumer products like ready-to-drink (RTD) such as energy Coffee drinks, Evolution Fresh and Starbucks Double shot (Paharia, Keinan & Avery, 2014).
The company’s mission is inspiring and nurturing the human spirit– “one person, one cup and one neighborhood at a time”. The firm’s vision statement is establishing Starbucks as the premier purveyor of quality and finest coffee globally and ensuring uncompromising values.
Starbucks Frameworks in Global Business Operations References
Das, D., Eisner, A. B., & Korn, H. J. (2015). TATA Starbucks: how to brew a sustainable blend for India instructor’s notes. Journal of the International Academy for Case Studies, 21(4), 43-50. Retrieved from http://search.proquest.com/docview/1761070630?accountid=45049
Elder, S. D., Lister, J., & Dauvergne, P. (2014). Big retail and sustainable coffee: A new development studies research agenda. Progress in Development Studies, 14(1), 77-90. doi: http://dx.doi.org/10.1177/1464993413504354
Paharia, N., Keinan, A., & Avery, J. (2014). The upside to large competitors. MIT Sloan Management Review, 56(1), 10-11. Retrieved from http://search.proquest.com/docview/1627695299?accountid=45049
