Starbucks Slides Essay

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STARBUCKS UK | Strategic Management Report | By Navneet Madan | | Contents Introduction 3 Background 3 Company Analysis 3 External Analysis 4 Industry Value and Growth 4 Porter’s Five Forces and PESTLE Analysis 6 UK Consumers’ Brand Perception of Starbucks and Its Competitors 11 Internal Analysis and Competitor Analysis 13 Competitive Analysis and Distinctive Position against Competitors 16 Concluding Internal and External Analysis 18 Competitive Advantage: 19 Strategic Options 20 Strategic Directions 21 Suitability, Acceptability and Feasibility 23 Strategic Method: 26 Conclusion 26 Recommendation 27 Reflection 27 APPENDIX 28 APPENDIX 1 28 APPENDIX 2: 29 Bibliography 30 Executive Summary A Fortune 500 company, Starbucks share prices reached its peak in 2006 and declined unexpectedly in 2008. Although its business has picked up in 2011 with an increase in operating profits, Starbucks has lost its market leader position to Costa, a chain coffee shop business owned by Whitbread plc. Starbucks’ strategic issues are its decrease in marketshare, negative brand perception that was invoked by its competitors and its devalued Starbucks’ Experience that was its competitive advantage. A situational analysis of Starbucks was conducted to indicate possible opportunities and threats. Internal analysis and competitor analysis was conducted simultaneously to identify Starbucks distinctive capabilities and weaknesses against competitors. Strategic options such as Market Penetration, Product Development and Market development were assessed for their suitability, acceptability and feasibility. Strategic choices that unravel three issues that Starbucks is challenged with are presented in the report.

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