Swot Analysis Starbucks Essay Example
SWOT Analysis
Strengths
The main strengths of Starbucks come from the company’s brand image as well as the high visibility that the company has in various markets. Additionally, Starbucks also has experienced and competent workforce that ensures that quality services are offered to the customers. The existing relationship with supplies of coffee beans also means that Starbucks is able to get quality coffee all year round.
Weakness
Even though there are a few weaknesses, the main weakness can be argued to come from the company’s overreliance on its CEO since its inception implying that the company might struggle if the CEO was to leave Starbucks.
Opportunities
One of the major opportunities for the company is that there exist various high potential markets that the company can expand its operations into.
Threats
The ever increasing number of the competitors in what can be described as an already overcrowded market can be argued to be one of the major threats to Starbucks.
PESTLE Analysis
PESTLE as explained by Bensoussan & Fleisher (2008) is stands for political, economical, social, technological, legal and environmental factors. Proctor (2000) noted that PESTLE analysis can be an important tool in any given organization strategic planning process as it
Three Year Strategic Proposal 6 analyzes the different external environmental elements that have to be considered by an organization when developing strategies.
Political
From the discussions of Thomson, Shah and Thomas (2006), the withdrawal of the USA from the International Coffee agreement that set limits of coffee exported could have a major impact on Starbucks operations. Furthermore, political stability in coffee producing regions like
Zimbabwe will have huge impact on Starbucks operations as farmers can be able to concentrate on producing quality coffee beans.
Economical
High inflation rates in the countries where Starbucks have established presence might result to low sales as potential customers might
Strengths
The main strengths of Starbucks come from the company’s brand image as well as the high visibility that the company has in various markets. Additionally, Starbucks also has experienced and competent workforce that ensures that quality services are offered to the customers. The existing relationship with supplies of coffee beans also means that Starbucks is able to get quality coffee all year round.
Weakness
Even though there are a few weaknesses, the main weakness can be argued to come from the company’s overreliance on its CEO since its inception implying that the company might struggle if the CEO was to leave Starbucks.
Opportunities
One of the major opportunities for the company is that there exist various high potential markets that the company can expand its operations into.
Threats
The ever increasing number of the competitors in what can be described as an already overcrowded market can be argued to be one of the major threats to Starbucks.
PESTLE Analysis
PESTLE as explained by Bensoussan & Fleisher (2008) is stands for political, economical, social, technological, legal and environmental factors. Proctor (2000) noted that PESTLE analysis can be an important tool in any given organization strategic planning process as it
Three Year Strategic Proposal 6 analyzes the different external environmental elements that have to be considered by an organization when developing strategies.
Political
From the discussions of Thomson, Shah and Thomas (2006), the withdrawal of the USA from the International Coffee agreement that set limits of coffee exported could have a major impact on Starbucks operations. Furthermore, political stability in coffee producing regions like
Zimbabwe will have huge impact on Starbucks operations as farmers can be able to concentrate on producing quality coffee beans.
Economical
High inflation rates in the countries where Starbucks have established presence might result to low sales as potential customers might