Evaluation of Starbucks Strategic Position In the Market Essay

Evaluation of Starbucks Strategic Position In the Market - Essay Example ?s customers are mainly coffee lovers from all walks of life and it can be noted that it has been pursuing a differentiation strategy by Porter (1985). Starbucks’ cornerstone value is to â€Å"build a company with a soul† and its broad mission is â€Å"To inspire and nurture the human spirit—one person, one cup, and one neighbourhood at a time.† The organisation broadly aims to be â€Å"a purveyor of fine coffees in the world while maintaining uncompromising principles.† Its intent has been to do the right thing and conducting its business in ways that earned the trust and respect of the customers, partners/employees, suppliers and the general public. The stakeholders include Howard Schultz, employees, customers, community members and the shareholders. 2.0 External analysis of Starbucks This section of the report seeks to analyse the external factors affecting the operations of the organisation. Two models namely PESTEL analysis and Porter’s five forces model are going to be utilised in carrying an analysis of the external factors impacting on the operations of Starbucks. Critical success factors will also be analysed in this section of the report. 2.1 PESTEL analysis A close analysis of Starbuck’s case study shows that there are various external forces obtaining in the macro-environment in which the organisation is operating and these have an impact on its operations. As such, a PESTEL analysis is going to be used to evaluate the external factors affecting the operations of Starbucks. Basically, PESTEL is an acronym for political, economic, social, technological, environmental as well as legal factors impacting on the operations of the organisation (McCarthy & Perreault, 1996). The table below outlines the analysis in detail. Table 1: PESTEL analysis for... This report seeks to analyse the external factors affecting the operations of the Starbuck’s organisation. Two models namely PESTEL analysis and Porter’s five forces model are going to be utilised in carrying an analysis of the external factors impacting on the operations of Starbucks. Critical success factors will also be analysed in this section of the report. A close analysis of Starbuck’s case study shows that there are various external forces obtaining in the macro-environment in which the organisation is operating and these have an impact on its operations. As such, a PESTEL analysis is going to be used to evaluate the external factors affecting the operations of Starbucks. Basically, PESTEL is an acronym for political, economic, social, technological, environmental as well as legal factors impacting on the operations of the organisation. In evaluating the strategic capabilities of the company, the following factors will be discussed in detail as they cons titute the internal environment of the company. Strydom posits to the effect that a key strategy should utilise the strengths of the organisation in order to gain a competitive advantage. These include human, physical and financial resources as they have a direct bearing on the performance of the company. The company’s value chain will also be discussed in this section. Since the period Howard Schultz assumed the CEO position of the company in 1987, it can be noted that it has harnessed on a number of strategic capabilities as going to be explained in brief below.