Starbucks Essay

3667 Words Oct 7th, 2014 15 Pages
| BA 101 Assignment 2/2 | An analysis on the external environment and its impact on Starbucks | | 5/25/2014 |

While planning for the future direction of the business, Starbucks has to consider many factors. One of these is the external environment in which it does so, something which Starbucks has a limited extent of control over. The impact of the external environment is divided into three major categories: Economical, Socio-cultural and Technological. Through the study of their impacts, opportunities and threats are then identified and recommendations presented which best prepare Starbucks to meet them. |

Table of Contents 1 Introduction 1 1.1 Starbucks 1 1.2 Core operations 1 2 Impact of external
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(http://www.starbucks.com/about-us/our-heritage.html) 1.2 Core operations
The core operations of Starbucks involve the sale of their beverages, retail and franchise operations, while also providing the Starbuck’s experience to its customers. As stated on Starbuck’s mission statement, “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time”. (http://www.starbucks.com/about-us/our-heritage). This statement shows that Starbucks is not only creating a business based on its product and services, but also aiming to build a closer connection with their customers through a “connect, discover, respond” approach (Michelli 2009). Through the Starbucks experience with the customers, it enables them to attract and retain its customer’s loyalty without extensive marketing, instead relying on their customers to bring in more customers. In order to achieve this, they not only deal with coffee, but everything that contributes towards providing customers a full and rewarding coffeehouse experience. Every little detail, down to the décor and music played in outlets, all come together to provide the ambience that their loyal customers know and love and return for every time.

1 Impact of external environments
In the modern globalized world, every business activity carried out is interconnected, both within and across national boundaries. For example, making a good coffee requires good coffee beans from

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