As Starbucks is a high end coffee retailer, one of the biggest societal factors that affects their market is the financial economy of the communities where they reside. Starbucks relies on the discretionary spending of their customers, for their income. Consumer trends are also a societal threat to Starbucks, in today’s consumer market. Drinking coffee in the “unique” Starbucks environment is the “trendy” activity for consumers to do, but if Starbucks does not continue to introduce new products and services, Starbucks patrons may get bored when the “uniqueness” wears off, or competitors duplicate similar products or services. Health conscientious consumers also pose a threat to Starbucks business strategy. With the going trend of “healthy
…show more content…
It is imperative for Starbucks to continue to build a positive brand name and earn the trust and respect of their customers both internal and external. Starbucks needs to have strong relationships that can withstand these trials, so they can continue to grow and work towards their mission while dealing with these business issues. A strong global brand will also make it easier for them to grow in a foreign market and make substantial growth in an emerging market.
Summary of External Factors (EFAS) According to Essentials of Strategic Management, the weighted score for an average firm is always calculated to be 3.0 (Hunger, Wheelen, 2016, p. 50).
The following table is an EFAS for the Starbucks Corporation calculating their external opportunities and threats. It took into consideration their highest weighted opportunities to be product innovation and avenue for sales as well as education on foreign markets, considering that Starbucks largest opportunity for growth is in the Foreign emerging …show more content…
This drive and positivity towards excellence in customer service, experience uniqueness, improving community, corporate responsibility and desire for employee enrichment, creates the Starbucks culture that is created by and for everyone that comes into contact with Starbucks, both internal and external. This corporate culture is not only reinforced by the actions of Starbucks towards their patrons and internal and external customers, but it is shown by their actions in improving the communities around them. For example, Starbucks not only wants to improve the social and environmental standards for their suppliers, but to educate anyone in the communities of their suppliers that wish to participate in the education. Globally, Starbucks is enhancing better environmental practices to become a more environmentally friendly company. They not only practice water conservation, but they also tract their energy impacts in their environments. They have started recycling programs in their company owned stores encouraging their patrons to become “green” as well. On a larger scale, they inspire their supply chain to become aware of their environmental footprint as
It is imperative for Starbucks to continue to build a positive brand name and earn the trust and respect of their customers both internal and external. Starbucks needs to have strong relationships that can withstand these trials, so they can continue to grow and work towards their mission while dealing with these business issues. A strong global brand will also make it easier for them to grow in a foreign market and make substantial growth in an emerging market.
Summary of External Factors (EFAS) According to Essentials of Strategic Management, the weighted score for an average firm is always calculated to be 3.0 (Hunger, Wheelen, 2016, p. 50).
The following table is an EFAS for the Starbucks Corporation calculating their external opportunities and threats. It took into consideration their highest weighted opportunities to be product innovation and avenue for sales as well as education on foreign markets, considering that Starbucks largest opportunity for growth is in the Foreign emerging …show more content…
This drive and positivity towards excellence in customer service, experience uniqueness, improving community, corporate responsibility and desire for employee enrichment, creates the Starbucks culture that is created by and for everyone that comes into contact with Starbucks, both internal and external. This corporate culture is not only reinforced by the actions of Starbucks towards their patrons and internal and external customers, but it is shown by their actions in improving the communities around them. For example, Starbucks not only wants to improve the social and environmental standards for their suppliers, but to educate anyone in the communities of their suppliers that wish to participate in the education. Globally, Starbucks is enhancing better environmental practices to become a more environmentally friendly company. They not only practice water conservation, but they also tract their energy impacts in their environments. They have started recycling programs in their company owned stores encouraging their patrons to become “green” as well. On a larger scale, they inspire their supply chain to become aware of their environmental footprint as