As of October 2, 2016, the Company

operated in 75 countries. The Company

operates through four segments:
Americas, which inclusive of the United
States, Canada and Latin America;
China/Asia Pacific (CAP); EUROPE,
Middle East, and Africa (EMEA), and
Channel Development.
The Company purchases and roasts
coffees that it sells, along with
handcrafted coffee, tea and other
beverages and a range of fresh food
items, including snack offerings,
through Company-operated stores.
 The Company also sells a range of
coffee and tea products and licenses its
trademarks through other channels, such
as licensed stores, grocery and
foodservice accounts.
 In addition to its Starbucks Coffee
brand, the Company sells goods and
services under various brands, including
Teavana, Tazo Seattle’s Best Coffee,
Evolution Fresh, La Boulange and Ethos.
Mission and Vision
Starbucks Corporation (also known
as Starbucks Coffee) mission statement
and vision statement represent the
company’s emphasis on leadership in
the coffee industry and the coffeehouse
market.
A company’s corporate mission
statement is an indicator of what he
business does for its target customer. In
this business analysis case of Starbucks,
the corporate mission focuses on the
philosophical purpose of the business
On the other hand, a company’s
corporate vision statement reflects the
strategic direction of the business in
terms of what it wants to achieve in the
future
In this case, Starbucks’s corporate vision
focuses on leadership in the industry
.The company’s success in responding to
its competitive environment depends on
the effectiveness of implementing these
corporate statements
This implementation influences
Starbuck’s generic strategy and intensive
growth strategies. Corresponding
strategic objectives enable the business
to streamline its operations toward
following the corporate mission
statement and satisfying the corporate
vision statement.
Customer Driver and
Objectives
According to this perspective, the most
important to Starbucks, It’s easy to
identify 3 main drivers, all of them
obviously related to the first point of
Starbucks’ strategy, the <<social>>side
of its activity.
1. With the customer as main reference,
the company focuses its effort on the
existing market, the US one, looking for
a diversification in its product offer, in
order to increase the costumer
profitability and the brand loyalty
through a higher client satisfaction, in
order to maintain and enhance its
customers’ sense of community.
2. Taking into consideration the new
market (Europe and Asian), the main
goal for Starbucks is the expansion of
its market share, through the acquisition
of new customers and the increment of
the sales per customer
3. Taking about reputation the
company cares about 2 main aspects
of its strategy: the awareness of the
public about its environmental effort
and the creation of the <<Third place,
between work and home>>,both
oriented to the improvement of its
public image.
Swot Analysis of Starbucks
Starbucks corporation (also known as
Starbucks coffee company) maintains its
position as the biggest coffeehouse chain in
the world through innovative strategies that
utilize business strengths in overcoming
weaknesses to exploit opportunities and
overcome success barriers, such as the threats
in the coffee industry environment, as
identified in this SWOT analysis.
The SWOT Analysis. Model is a strategic
management tool that assesses the strengths,
weakness, opportunities, and threats ()SWOT
relevant to the business and its internal and
external environment. In this business
analysis case, the SWOT analysis of
Starbucks Coffee considers the strengths and
weakness (internal strategic factors) inherent
in operation in the coffee, coffeehouse and
related business.
 The analysis also considers the opportunities
and threats (external strategic factors) related to
the competitive landscape, which is partly
based on the strong force of competition
determined in the Porter’s Five Forces analysis
of starbucks Corporation. Such a competitive
environment requires that the company
continuously improve its business strengths to
optimize its financial performance and growth
trajectory.
Strengths
1. The main strength of
Starbucks is its strong financial
performance which has resulted
in the company occupying the
number one spot among coffee
and beverage retailers in the
world.
2. The company is valued at more than $4
Billion which is a key strength when
compared to its competitors.
3. The intangible strengths of Starbucks
include its top of the mind recall among
consumers and by virtue of its brand,
which symbolizes excellence, and quality
at an affordable rate, the company enjoys
a dominant position in the worldwide
market for coffee and beverages.
4. The company is the largest coffee house
in the world and because of its size and
high volumes; It can afford to price its
products in the premium as well as the
middle tier range to attract more costumers.
5. The company is known for its pioneering people
management in an industry where people management
in an industry where people skills and soft skills make
the difference between success and failure. In other
words Starbucks has actualized a positive and
welcoming workplace for its employees, which
translates into happier associates serving customers in a
superior way leading to all round benefits for the
company.
 Weakness

1. The company is heavily dependent on its main and key

input, which is the coffee beans and hence, is a cutely
dependent on the price of coffee beans as a determinants
of its profitability. This means that starbucks is overly
price sensitive to the fluctuations in the price of coffee
beans and hence, must diversity its products range to
reduce the risk associated with such dependence.
2. The company has come under fire in recent times for
its procurement practices with many social and
environmental activities pointing to the unethical
procurement practices of coffee beans from
impoverished third world farmers. Further, the company
has also been accused of violating the “Fair Coffee
Trade” principles that were put in place a few years ago
to tackle this precise problem.
3. The company prices its products in the
premium to the middle tiers of the market
segment which places its products outside
the budgets of many working consumers
who prefer to frequent McDonald’s and
other outlets for their coffee instead of
starbucks.
4. The company must immediately diversity its product
range if it has to complete with full spectrum competitors
like McDonald’s and Burger King in the breakfast
segment which is rapidly growing as a consequence of
compressed schedules of consumers who would like to
grab a bite and drink something instead of making it at
home
Opportunities

1. The company has an opportunity to expand its supplier

network and expand the range of suppliers from whom it
sources in order to diversity its sources of inputs and not
be at the mercy of whimsical suppliers. Further, this
would also help the company in becoming less sensitive to
the prices of coffee beans and make it resilient against
supply chain risks.
2. The company has huge opportunity waiting for it as far
as its expansion into the emerging markets is concerned.
With a billion consumers likely to join the pool of those
who want instant coffee and breakfast in China and India,
the company can expand into these countries and other
emerging markets, which represents a lucrative
opportunity for the taking.
3. Starbucks also has the opportunity to expand its product
offerings to take on the full spectrum food and beverage
retailers like McDonald’s and Burger King as the
consumer segment which these retailers target is
expanding leading to more business opportunities for
Starbucks to take advantage of.
3. The company can significantly expand its network of
retails stores in the United States opportunity part of its
push towards greater market share and more consumer
segments. This opportunity ties with the other
opportunities described above related to the expansion
into newer markets, diversifying into newer consumer
segment, and increasing its footprint across the US and
globally.
Threats

1. The company faces threats from the rising prices of

coffee beans and is subject to supply chain ricks related to
fluctuations in the prices of this key input. Further, the
increase in the prices of dairy products impacts the
company adversely leading to another threat to its
profitability.
2. The company is beset with trademark and
copyright infringements from lesser-known
rivals who wish piggyback on its success.
As with other multinational retailers in the
emerging markets, Starbucks has fought
litigation against those misusing its brand
and famous logo.
3. The company faces intense competition from local
coffeehouses and specialty stores that give the company a
run for its money as far as niche consumer segments are
concerned. In other words, the company faces a tough
challenge from local stores that are patronized by a local
clientele, which is not enamored of big brands.
4. Starbucks has to expand into emerging markets as a
necessity as the developed markets that it has traditionally
relied on are saturated and given the fact that the ongoing
recession has made the going tough for many retailers, it
faces significant threats from this aspect.
5. Finally, as mentioned earlier, Starbucks faces
significant challenges because of its global supply chain
and is subject to disruptions in the supply chain because
of any reason related to either global or local conditions.
Pestel Analysis of Starbucks

Starbucks Coffee Company, founded in

1971, has grown to an international brand.
As the world’s biggest coffeehouse
company, Starbucks continues to lead the
industry in sustainable business and
innovation.
 Such success is attributed to the
firm’s ability to address the external
PESTEL/PESTLE factors. The
PESTEL/PESTLE analysis
framework indicates the most
significant influences on Starbucks
based on characteristics of the
remote or macro-environment.
Despite its current industry leadership,
Starbucks must continue monitoring its
remote or macro-environment. The
PESTLE/PESTLE analysis model can be
used to satisfy this need. Through continued
effectiveness in addressing the external
factors identified in the PESTEL/PESTLE
analysis of its remote/macro-environment,
Starbucks coffee can continue to succeed
despite the negative forces impacting its
business.
Starbucks Coffee’ industry leadership is
linked to the company’s effectiveness in
addressing external factors identified in
this PESTEL/PESTLE analysis. The
PESTEL/PESTLE analysis model is used
to determine the most important issues
that Starbucks must address in its
business strategies.
Political Factors Affecting
Starbucks Coffee’s Business
This part of the PESTEL/PESTLE
analysis framework identifies the impact
of governments on business. Starbucks
experiences the following political
external factors in its remote/macro-
environment:
1. Regional integration of markets
(opportunity)
2. Improving governmental support for
infrastructure (opportunity)
3. Bureaucratic red tape in developing
countries (threat)
 Regional integration is a current trend and external
factor that presents an opportunity for Starbucks to
global expand also most government around the word
are improving infrastructure which create the
opportunity for the Starbucks to access more market
or supplier however bureaucratic red tape persist in
most countries this external factor is a threat because
it makes business expansion more difficult for
Starbucks especially in developing countries. Thus,
this aspect of the PESTEL/PESTLE analysis model
present mostly opportunities for Starbucks coffee.
Economic factor important to
Starbucks coffee
This component of the
PESTEL/PESTLE analysis model refers
to the economic condition and changes
significant to business Starbucks faces
the following economic external factors
in its remote or macro-environment:
1. High growth of developing countries
(opportunity)
2. Declining unemployment rates
(opportunity)
3. Rising labor cost in suppliers’
countries (threat)
The high economic growth of
developing countries and the
declining unemployment rates create
opportunities for Starbucks to gain
more revenues from various markets
around the world.
However, the rising labor cost in
developing countries is an external factor
that threatens Starbucks because it
increases the company’s spending for
ingredients. The firm sources much of its
coffee beans from developing countries.
Thus, this part of the PESTEL/PESTLE
analysis model presents mostly
opportunities for Starbucks coffee.
Social/Sociocultural Factors
Influencing Starbucks Coffee’s
External Environment
This aspect of the PESTEL/PESTLE
analysis framework shows the social
conditions and trends influencing
consumers and business. Starbucks must
address the following social/macro-
environment:
1. Growing coffee culture (opportunity)
2. Increasing health consciousness
(opportunity)
3. Growing middle class (opportunity)
 Starbucks has opportunity to increase
its revenues based on increasing
demand for specialty coffee, which is
due to growing coffee culture and a
growing middle class around the world,
Also, the company has the opportunity
to widen its array of more healthful
products to attract health-conscious
consumers to Starbucks cafes.
Thus. All the identified external factors
in this component of the
PESTEL/PESTLE analysis model
present opportunities for Starbucks
coffee.
Technological Factors in
Starbucks Coffee’s Business

In the part of the PESTEL/PESTLE

analysis model, technologies and related
trends are identified. Starbucks experiences
the following technological external factors
in its remote/macro-environment:
1. Rising mobile purchases
(opportunity)
2. Technology transfers to coffee
farmers (opportunity)
3. Rising availability of specialty
coffee machines for home use (threat)
Starbucks has the opportunity to improve
its mobile apps and linked services to
gain more revenues through mobile
purchases. The company also has the
opportunity to improve its supply chain
efficiency based on new technologies
coffee farmers use.
However, the rising availability of
home-use specialty coffee machines is a
threat to Starbucks because it increases
the availability of substitutes to
Starbucks products. Thus, this aspect of
the PESTEL/PESTLE analysis
framework presents mostly
opportunities for Starbucks coffee.
Ecological /Environment Factors
This component of the
PESTEL/PESTLE analysis model
identifies the effect of the ecological or
environment condition and changes on
business Starbucks faces the following
ecological/environmental external factor in
its remote or macro environmental
1. Growing popular support for
responsible sourcing (opportunity)
2. Growing popular support for
environmentally friendly (opportunity)
The business sustainability trend focuses
on business processes that ensure minimal
environmental impact. In relation,
responsible sourcing emphasizes
corporate social responsibility in the
supply chain. Starbucks has opportunities
to enhance its performance in these areas.
Note that the company already has
responsible sourcing policies.
Starbucks also has the opportunity to
offer more of its products in recyclable
packaging. Thus, in this part of the
PESTEL/PESTLE analysis model,
Starbucks Coffee has major
opportunities.
Legal Factors
The legal factors in the
PESTEL/PESTLE analysis model are
the laws and regulations on business.
Starbucks must address the following
legal external factors in its remote
/macro-environment:
1 Product safety regulations
(opportunity)
2 GMO regulations outside the
United States (opportunity)
3 Increasing employment
regulations (Threat)
Starbucks has opportunities to improve its
performance by satisfying product safety
regulations and regulations on ingredients
from genetically modified organism
(GMOs). Starbucks is already performing
well in these aspects. However, increasing
employment regulation, especially in
developing countries, threatens Starbucks
Coffee’s access to the labor market.
This external factor also impacts
Starbucks through increased spending
for humans resources. Thus, in the
aspect of the PESTEL/PESTLE
analysis model, the identified external
factors present mostly opportunities for
Starbucks Coffee.