Week 2 Assignment
Starbucks: SWOT Analysis
Starbucks is a leader in the coffee drink industry, as many are well aware of. However, the company has gone through different changes, challenges, and opportunities that have led the company to where it is today. Through SWOT analysis, we will take a deep dive into Starbucks’ organizational environment, look at alternative business strategies to consider, assess the quality of decision making, and provide possible recommendations for improvement.
Collins Dictionary of Business defines SWOT analysis as “a framework for identifying the internal strengths (S) and weaknesses (W) of a firm, and the external opportunities (O) open to it and the threats (T) it faces, which can be used by corporate planners in formulating the firm’s competitive strategy and marketing strategy in individual product markets and its overall business strategy” (2006). Through knowing the general definition of SWOT analysis, we can begin to break down the pieces of SWOT analysis by the internal and external factors. Internal factors are the strengths and weaknesses. Business leaders must be mindful during SWOT to maximize our strengths and improve our weaknesses through surveys of our customers and employees. We can also identify the resources and processes that work or need improvement. Once again, strengths and weaknesses focus solely on the internal factors of one’s business, those areas leadership can directly impact by action. On the other hand, SWOT also focuses on external factors known as opportunities and threats. Opportunities can be seen as areas of investment that we can capitalize on strengths within our company. Leadership must be knowledgeable to identify threats from analyzing competitors and industry trends to stay ahead of the game. These opportunities and threats arise outside the company through data research that delivers information to show these different areas of concerns for one’s business. This data can be obtained through
Starbucks is a leader in the coffee drink industry, as many are well aware of. However, the company has gone through different changes, challenges, and opportunities that have led the company to where it is today. Through SWOT analysis, we will take a deep dive into Starbucks’ organizational environment, look at alternative business strategies to consider, assess the quality of decision making, and provide possible recommendations for improvement.
Collins Dictionary of Business defines SWOT analysis as “a framework for identifying the internal strengths (S) and weaknesses (W) of a firm, and the external opportunities (O) open to it and the threats (T) it faces, which can be used by corporate planners in formulating the firm’s competitive strategy and marketing strategy in individual product markets and its overall business strategy” (2006). Through knowing the general definition of SWOT analysis, we can begin to break down the pieces of SWOT analysis by the internal and external factors. Internal factors are the strengths and weaknesses. Business leaders must be mindful during SWOT to maximize our strengths and improve our weaknesses through surveys of our customers and employees. We can also identify the resources and processes that work or need improvement. Once again, strengths and weaknesses focus solely on the internal factors of one’s business, those areas leadership can directly impact by action. On the other hand, SWOT also focuses on external factors known as opportunities and threats. Opportunities can be seen as areas of investment that we can capitalize on strengths within our company. Leadership must be knowledgeable to identify threats from analyzing competitors and industry trends to stay ahead of the game. These opportunities and threats arise outside the company through data research that delivers information to show these different areas of concerns for one’s business. This data can be obtained through
References: SWOT analysis. (2006). In Collins Dictionary of Business. Retrieved from http://www.credoreference.com/entry/collinsbus/swot_analysis Marcus, A.A. (2011). Management Strategy: Achieving Sustained Competitive Advantage 2nd ed. New York: McGraw-Hill Irwin. Shah, A., Hawk, T., & Thompson, A. (2006). Starbucks’ Global Quest in 2006: Is the Best Yet to Come?. Retrieved from: http://vizedhtmlcontent.next.ecollege.com/pub/content/d4f60ce0-7506-4a67-b040-9a031affbc80/Starbucks2006.02.15.12.mjn.pdf Market penetration. (2005). In International Encyclopedia of Hospitality Management. Retrieved from http://www.credoreference.com/entry/esthospitality/market_penetration