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Starbucks Expansion in the United States Segment

Table of Contents


Task A (1): Analysis of Starbuck's External Environment3

PESTLE Analysis3

Porter's Five Forces Analysis4

Market Segment4

Life Cycle Analysis5

Task A (2): Identifying Opportunities and Threats from CSF5

Task B: Analysis of Starbucks Strategic Compatibility6

Strategic Compatibility6

Value Chain Analysis and Value Networking7

Critical Success Factors8

Model of BCG Matrix9

Identifying Strengths and Weaknesses9

Task 3: Strategic Fit Analysis10



Starbucks Expansion in the United States Segment


The Company Starbucks is a well-known US Company, which is listed in the Fortune 500 companies of the world. The headquarters of the company is based in Seattle, and the company operates in more than 55 countries across different continents and regions of the globe. This company is the most honorable company regarding coffee business as it is operating in eateries industry. Apart from more than 18000 stores and coffee shops, the company is famous for its involvement in the community, ethical sourcing and environmental protection policies. More than 149,000 employees are employed in Starbucks, and the annual turnover of the company is $11.7 billion. The mission statement of the company is to operate ethically in the premium coffee chain and to maintain its principles of uncompromising in the quality during the process of expanding.

The history of the company is that it is founded in the year 1971 by three partners who initiated the plan to bring coffee in Seattle. Currently, the company is offering different products for its consumers that include brewed premium coffee, Frappuccino beverages and roasting equipments. The company is specialized in using best coffee beans, and this is the reason that the company has sole rights of using Narino Supremo beans and signature techniques in order to provide one of the best coffees to its customers. The present CEO of the company has made this company from small chain of coffee suppliers to the global coffee chain that operates all around the globe (Starbucks Investors Overview, 2011).

Task A (1): Analysis of Starbuck's External Environment

PESTLE Analysis Since Starbucks has to rely on under-developed countries for the raw material of their different coffee, this is a major concerning the area for the company as the political situations in these regions are not stable, and the staff of the company is under continuous pressure regarding their safety and prosperity. The political crises in different regions such as India, Ethiopia, Middle Eastern countries are not suitable for the company, and it has become difficult for Starbucks to import beans for the under-developed or developed countries. The oil prices has also increased which led transportation charges rise more quickly along with the weakened currency and more inflation rate, the cost of beans has become difficult to manage by the company , but for maintaining quality of their coffee, Starbucks is persistent on importing beans from these countries.

The economic factors such as cost are also responsible for the success or failure of the company, and Starbucks has considered this factor when making its future strategies. The people are becoming conscious towards their health and use of artificial flavors and ...
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