...PURPOSE OF A SWOT ANALYSIS 1 The Purpose of a SWOT Analysis Charles Anderson Joyner III Grantham University PURPOSE OF A SWOT ANALYSIS 2 Abstract Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, production capacity and capital. Evaluating the company’s strengths, weaknesses, opportunities, and threats helps it determine how to allocate these resources in a manner that will result in the highest possible potential for revenue growth and profitability. The management team examines where the company can compete most effectively. The company more times than not discovers competitive strengths that have not been fully utilized in the past in addition to critical areas that needs to be improved in order for the business to more effectively compete. A realistic assessment also prevents strategic blunders like entering a market with products that are clearly inferior to what well-entrenched competitors are offering. Continuous improvement in all areas of a company’s operations is an important aspect of staying ahead of competitors. Weaknesses and opportunities can--and must--be turned into future strengths. PURPOSE OF A SWOT ANALYSIS ...
Words: 1304 - Pages: 6
...SWOT Analysis: Starbucks Coffee Company Ravineel Chand MGT 450: Strategic Planning for Organizations (BII1607A) Professor John Bruning February 27th, 2016 Introduction SWOT Analysis is a useful technique utilized by organizations to understand the strength and weaknesses of the organization. Furthermore, it is also utilized to understand the opportunities which may be open to the organization and the potential threats that it may face. “Once a company has a firm understanding of where it stands financially, the next part of the internal assessment is conducting a SWOT analysis, which stands for a company’s strengths, weaknesses, opportunities, and threats.” (Abraham. S.C, 2012) Using a SWOT analysis allows organizations to carefully pinpoint where they stand against competition, where their weaknesses and strengths lie, and how to gain more opportunities within their respective markets. The purpose of this paper is to conduct a SWOT analysis of the Starbucks (SBUX) corporation This paper will also describe the history of the organization, its products and major competitors. History Starbucks Corporation, founded in 1971, is a retailer of specialty coffee. Starbucks retails a variety of drip brewed coffee, espresso-based hot drinks, other hot and cold beverages, complementary food items, coffee-related accessories and equipment, teas, ice cream, and items such as mugs, coffee beans, and music and other non-food products through retail stores in approximately 39 countries...
Words: 1493 - Pages: 6
...Starbucks Business Analysis . Abstract Starbucks went from just a hole in a wall shop to a world known company and culture. One would wonder how it occurred, if it was over night, and most importantly the business aspect sustaining a successful international business. At the end of the day Starbucks Co. is well known for their market in gourmet coffee. On the other hand, the market has plenty of competitors in coffee, but what makes Starbucks the number one specialty coffee retailer? The answer lies in every compartment that makes Starbucks Co. what it is. From the 87,000 possible drink combinations, to the provided healthcare insurance offered to employees including part-time. Starbucks is a force to be reckoned with, business aspect of their strengths, weaknesses and all in between is worth analyzing. Starbucks Corporation Business Description Starbucks is currently operating in 65 countries specializing in high quality coffee, tea, fresh food, and branded items. In whole the Starbucks Coffee brand is sold with a license and trademarks through other channels such as licensed stores, grocery, and national foodservice accounts (Starbucks SWOT analysis 2015, 2015). Starbucks Coffee brand sell goods and services under the following brands” Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos (Starbucks SWOT analysis 2015, 2015). Starbucks business objective is to thrive to be a recognized respected brand in the world. Brief History The...
Words: 1698 - Pages: 7
...organization. A tool used as a part of environmental scanning is the SWOT analysis which pinpoints the Strengths, Weaknesses, Opportunities and Threats of an organization. This paper will present a SWOT analysis of three companies from three different industries, Starbucks Coffee, southwest Airlines and Wendy’s Old Fashion Hamburgers. In addition to the SWOT analysis there will be information regarding the company’s competitive advantage, strategies used, how value is created by each company along with the measurements guidelines used to verify strategic measurements SWOT Analysis: Starbucks Coffee, Southwest Airlines & Wendy’s Starbucks Coffee, Southwest Airlines, and Wendy’s operate in three different industries, something each company has in common is utilizing as a tool the internal and external environments based on the SWOT analysis. Starbucks Coffee began as a single store in Seattle; now, the number one coffee chain in the world located in over 62 countries with 18,000 stores. In order for Starbucks to have its current success and continued success a SWOT analysis breaks down the favorable and unfavorable factors to determine the appropriate strategy to stay on top in the premiere coffee industry. The Strengths of Starbucks Coffee to name a few are the experience the customers have with Starbucks, a brand widely recognized valued over $4 billion along with being the largest coffee chain globally. Starbucks Weaknesses are expensive pricing of its products in addition...
Words: 1155 - Pages: 5
...Week Four Starbuck’s SWOT Analysis Karen Mueller Upper Iowa University Chris Worley 11/12/2014 A SWOT Analysis of Starbuck’s Organizational Introduction Starbucks got its start in 1971 by three academic teaching professionals. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, all three love coffee and decided to open Starbucks Coffee, Tea, and Spice in Pikes Place Market, Seattle Washington. The three partners shared a common love for fine coffees and exotic teas. They believed they could build a customer base in Seattle that would appreciate the best coffees. With this being the case, they borrowed the money and Starbucks’ was born. Since the first stores grand opening, Starbucks has made the fortune 500 list, they had a goal of opening 30,000 stores by 2013 and half of those are going to be outside the U.S. (Starbucks, 2014) Starbucks is the largest coffeehouse chain in the world with presence in 50 countries and about 15000 stores (Starbucks, 2014). The Seattle based company sells espresso based hot drinks; drip brewed coffee, coffee beans, snacks, Panini and pastry (Starbucks, 2014). The company also sells items such as tumblers and has an entertainment division which markets music, books and films. The company has diversified on its product range in order to gain a competitive advantage over other similar companies. According to Starbucks, (2014). Starbucks Corporation is a dealer in coffee retailing, its product is known as specialty...
Words: 1819 - Pages: 8
...------------------------------------------------- STARBUCKS MARKETING REPORT OF STARBUCKS Module code: D001 Module tutor: Moitaba Institution: Nottingham Trent International College Group: Group B T number: T0030643 Word count: 1679 words (-10/+10) 1: INTRODUCTION Starbucks Corporation, an American organization established in 1971 in Seattle, WA, is a head roaster, advertiser and retailer espresso (coffee) around world. Starbucks has around 182,000 representatives across over 19,767 organization worked and authorized stores in 62 nations. Their item blend incorporates roasted and carefully assembled high quality/premium valued espressos (coffee), an assortment of new nourishment things and different beverages. They likewise offer a variety of espresso (coffee) and tea items and permit their trademarks through different channels, for example, authorized stores, basic supply and national foodservice accounts. Starbucks additionally showcases its items blend with other brand names within its portfolio of organizations, which incorporate Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had all out income of $14.89 billion as of September 29th, 2013.2. (Starbucks annual report, 2013). This report will analyse on this business organisation (Starbucks) stating its PESTELE, SWOT analysis, customer analysis and proving recommendation according to the marketing analysis provided in this report. 2: MARKETING ENVIRONMENTAL ANALYSIS PESTEL...
Words: 1787 - Pages: 8
...5. 5. 2016 PESTLE Analysis of Starbucks What are you looking for? PEST ANALYSIS MARKETING SWOT ANALYSIS STEEP ANALYSIS BUSINESS PEST Analysis, PEST Examples GET MORE ANALYSIS Subscribe to our mailing list and get our articles and updates to your email inbox. Enter your name here PESTLE Analysis of Starbucks Jim Makos 1 Year Ago FACEBOOK 0 Comments PREV ARTICLE NEXT ARTICLE PESTLE is a strategic analysis tool. It is often seen as the most effective analytical tools to analyze the Enter your email here impacts of external issues. It is an extended version of PEST analysis. Other forms of this tool are PESTEL, SIGN UP NOW STEEP, and STEEPLE. The acronym PESTLE stands for 6 factors which affect the business. The factors are: We respect your privacy Political Economic http://pestleanalysis.com/pestleanalysisofstarbucks/ 1/9 5. 5. 2016 PESTLE Analysis of Starbucks Social Popular Recent Technological Legal Environmental In this article, I am discussing the PESTLE analysis of SWOT Analysis Examples for Every Business Situation December 30, 2013 Starbucks. The constant global economic recession has dented the macroeconomic environment which Starbucks operates in. The recession has hurt the consumer’s purchasing power. Recent market research re䈠ects that consumers have not cut down on their coffee...
Words: 1434 - Pages: 6
...2006 A SWOT analysis address the components of the organization’s environment which is internal strengths and weaknesses, and external opportunities and threats. Strength we capitalize on them and Weaknesses we shore up. As for opportunities we invest in, and threats we identify. Data that are used for Internal components are customer feedback , employee information , Capabilities, Resources, Processes. Data that are used for external components are secondary data, environment, industry , competitive ,customer feedback primary. The reason behind achieving these organizational components are to achieve ideas which result in organizational goal statement. Goal statement are derived by (Opportunities +threats), strengths-weaknesses, Strength vs opportunities. One great example of a mega organization that we can use the SWOT analysis on is “Starbucks Global Quest 2006”. Starbucks was established in 1971 in Seattle, Washington. This company is famous for its quality fresh roasted coffee and friendly atmosphere. The company sits on over 9,000 stores worldwide. It’s product lines include beverages (coffee, Tazo tea, soda, juices),pastries, whole coffee beans, coffee-related hardware and equipment, merchandise (mug, CDs) In 1971 Starbucks Coffee, Tea, and Spice store (coffee bean roasting) opened in Seattle’s Pike Place Market. 1982 A man called Howard Schultz joined Starbucks. 1986 Howard Schultz established “Il Giornale Coffee Company”. 1987 Il...
Words: 1028 - Pages: 5
...many uncertainties organizations face when operating their businesses. These uncertainties can be limited if organizations perform environmental scans for their organizations. Environmental scanning assists businesses in providing information from internal and external environments to the executives so measures can be taken to take advantage of the information and succeed. SWOT (strengths, weaknesses, opportunities, threats) analysis is a key element of environmental scanning process which provides detailed information for the organization that can assist in growth and profits. Environmental scanning and SWOT analysis and how organizations use these tools to succeed and grow will be discussed in this paper. Environmental scanning is a process which monitors, evaluates, and disseminates information from internal and external environments to the people of the organization responsible of making decisions regarding growth and success of the company. Scanning the natural environment, societal environment (STEEP analysis), and task environment are the key elements of identifying the external environment. SWOT analysis should be performed to assess the internal environment of the organization. (Wheelen & Hunger, 2010) In scanning the natural environment, strategic managers must assess physical resources, wildlife, and climate. “The concept of sustainability argues that a firm’s ability to continuously renew itself for long-term success and survival is dependent not only upon the greater...
Words: 1305 - Pages: 6
...STARBUCKS STARBUCKS, One of the most well known and leading coffee supplier around the world. Starbucks began its business in 1971. Before that they are a roaster and retail seller of whole bean and ground coffee, tea. They have only one store at that moment which is located in Seattle's pike place market. At present starbucks serves millions of customers walking into their stores every day. The stores are presently in 17,000 locations in 50 countries (STARBUCKS 2013). Starbucks has revolutionised after HOWARD SCHULTZ became the director of retail operations. (Strategic development of starbucks) MISSION STATEMENT: "TO INSPIRE AND NURTURE THE HUMAN SPIRIT- ONE PERSON, ONE CUP AND ONE NEIGHBOUR AT A TIME". (Our starbucks mission statement 2013) STARBUCKS mission statement clearly depicts that they are not only giving importance of coffee, also to bestow the customer with rich experience. To enact these principles, Starbucks does everything in order to accomplish their aims and objectives. Starbucks treats their employees in prominent manner and respects them in each and every aspect. Starbucks always believes that they serve the customer with the best coffee possible. Starbucks does everything in a perfect and particular genre like buying coffee beans. They buy coffee beans by travelling personally to coffee farms in Latin America, Africa and Asia. After careful consideration and selecting the beans, the beans are then transported...
Words: 2105 - Pages: 9
...http://prezi.com/2jzdhoz6yhqo/starbucks-industry-analysis/http://www.coursework4you.co.uk/essays-and-dissertations/porter-5-forces.php http://www.scribd.com/doc/27614539/Starbucks-a-Strategic-Report-by-James-Heavey Starbuck employees are called partners http://en.oboulo.com/starbucks-corporation-58582.html http://www.authorstream.com/Presentation/bandineepradhan-1770180-starbuck-pre-bandinee/ http://www.scaa.org/ Starbucks Strategic Report (Industry Analysis) Porters Five Forces Porter’s five forces focus on factors outside of the industry which can have an effect on the competition within the company. The force within the company (microenvironment), which in turn effects how the company deals with its competitive market place. The five forces that (Porter-1980) identifies as having an impact on a company’s behaviour in a competitive market are as followed: * The threat of new entrants to the market * Bargaining power of suppliers * Bargaining power of buyers (customers) * Threat of substitute products * Competitive rivalry Starbucks have the real threat of competitive rivalry by competing with some major competitors like McDonalds, Dunkin Donuts, Costa and other small coffee shops and cafes. With competitor’s low prices and the opportunity to break into the speciality coffee market pose a real risk to Starbuck’s. Substitute products such as tea, juices, water and energy drinks pose a real threat to Starbucks as with pubs and bars because...
Words: 1347 - Pages: 6
...bought in any coffee shops, cafes, restaurants and even sold by vending machines. Besides that, Singapore is one of the highest coffee-consuming countries in the world which is meant that 4.4kg of coffee per year (280 cups of coffee) (Channel NewsAsia, July 14, 2013). For coffee lovers, Starbucks is a famous name. It is because of the high quality of coffee bean used and the environment that lets customers enjoy the coffee. So, Starbucks is always the first choice of many people. The purpose of this report is to investigate about how Starbucks can expand their market in Singapore. This report will provide the background of the company and country. A SWOT analysis, PEST analysis and Porter’s 5 forces also will be provided in this report. Lastly, this report will give the recommendation and conclusion. 2. Company Background Starbucks is mainly famous for selling coffee, but it also sells other hot and cold beverages, pastries, sandwiches and other snacks. Today, Starbucks is the top largest coffee chain in the world which has more than 19000 branches in more than 60 countries (Hawthorn, October 30, 2013). Singapore is the third international country outside North American to introduce the Starbucks (Our heritage, 2011). 3. Country Background Singapore is a prosperous developing country. It is one of the commercial hubs in the world. Although it is a small country, it has education, healthcare, government transparency and economic competitiveness which are placed with the...
Words: 2911 - Pages: 12
...FIN 534 FINANCIAL MANAGEMENT Financial Analysis (Starbucks) Lisa Massey Strayer University Due Date: September 14, 2013 Starbucks is a strong competitor in the service sector and a leader in the gourmet coffee industry. With a continued growth rate in store openings and maintaining successful profitability of its operations, Starbucks has demonstrated its ability to sustain a reliable and steady growth. Starbucks’ ability to contend with the vulnerability to current financial threats such as economic recession, higher interest rates, and global competition, is constantly proven by its incomparable brand image, its continual product innovations, and its exceptional customer service. This also proves to be its strongest investment strategy. One strategic way to evaluate the vulnerability of Starbucks to current financial threats is to execute a SWOT Analysis. A SWOT analysis is a situation analysis in which the strengths and weaknesses of an organization, and external opportunities and threats it faces are examined to chart a strategy (Business Dictionary, 2012). SWOT is the acronym for strengths, weaknesses, opportunities, and threats. The purpose of the SWOT analysis is to assess what an organization can and cannot do in addition to evaluating the potential opportunities and any financial and economical threats it may face. Over the years, Starbucks have developed much successful strengths. Here are a few of the most recognizable...
Words: 1556 - Pages: 7
...6-2 Final Project Milestone Three: PEST Analysis Wilhelmina Williams MBA 515 July 3, 2016 Dr. Jonathan Sturtz 6-2 Final Project Milestone Three: PEST Analysis A PEST Analysis is used to assess a business’ external factors. PEST stands for Political, Economic, Social, and Technological. The analysis will help to establish how the four elements will affect the behaviors and operation of the company in the long-term. The significance of the four sections means: • Political – Legal elements and government guidelines are evaluated for the ability that affects the trade markets and corporate environment. The relevant topics to address include tax guidelines, trade regulations, political stability, work laws, and safety regulations. • Economic – is examining the economic matters that develop an impact on the company. The factors contain interest rates, price increases, economic growth, commerce cycle the country follows, and unemployment rate and procedures. • Social – analyzing the socio-economic environment of the market through fundamentals of consumer demographics, lifestyle assertiveness, cultural limitations, and education. With this analysis, the company can identify the customer needs and determine what to bring to the market for purchasing. • Technological – whether it can negatively or positively impact the presentation of products and services to the marketplace. The issues include lifecycle of technologies, advancements, and the government spending for...
Words: 663 - Pages: 3
...Contents Introduction 3 PEST Analysis 4 References 8 Picture references 9 APENDIX A 10 APENDIX B 11 Introduction The coffee industry is a multi-billion dollar industry which is getting bigger and bigger each year. Coffee is a huge industry and is the second most traded product in the world after oil. Even though there is an economic crisis going on in many countries, there strong demand for coffee keeps rising. All the major companies including Starbucks are repeatedly raising prices and consumers are spending as normal. Starbucks is an international coffee chain and is the largest such company in the world. The industry that Starbucks can be placed in is within the speciality coffee industry. Starbucks total net revenues went up to $3.032 billion, up 15% on last year. As of January 2nd 2011, they have 17,009 stores worldwide operating in more than 50 different countries. Their products include coffee, hand crafted beverages, merchandise and fresh food. Within the speciality coffee industry there are many companies. Some of Starbucks competitors include 7-Eleven, Dunkin Donuts, Caribou Coffee and McDonalds which are all USA based. In the UK Starbucks main competitors would be Costa Coffee, Café Nero and McDonalds. On top of these big competitors there are countless small independently owned coffee shops. Competitors like 7-Eleven, Dunkin Donuts and McDonalds offer coffee at relatively low prices. These chains simply just sell coffee to customers who want it...
Words: 2654 - Pages: 11
