Starbucks Internal Environment Essay

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External and Internal Environment Analysis

...Running head: EXTERNAL AND INTERNAL ENVIRONEMNT External and Internal Environment Analysis Bharti Gupta University of Phoenix External and Internal Environment Analysis: Mayo Clinic The purpose of this paper is to analyze the External and Internal environmental factors of Mayo Clinic (MC). Mayo Clinic is a nonprofit worldwide leader in medical care, research and education for people from all walks of life (Mayo Clinic, 2011). Various types of external and internal factors affect the smooth flow of business at Mayo Clinic. External environment analysis is important in determining the strategy that should be adopted by a business and internal environment analysis is critical to identify the core competences of the business. External Environment External environment (EE) can be broadly classified into three types: Remote, Industry and Operating. Remote environment (sometimes called as macro environment) consists of the forces at work in the general business environment which will shape the industries and markets in which an organization competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Industry environment (sometimes called as micro environment) is the competitive environment facing a business. It consists of the industries and markets in which the organization conducts its business competes (Stonehouse, Campbell, Prudie & Hamill, 2008). Operating environment also called the competitive or task environment comprises factors in the competitive......

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External and Internal Environments

...External and Internal Environments Business 499 Zavier Pyles Professor May January 30th, 2013 Vroom Vroom!   This is the welcomed sound that automobile owners and manufacturers like to hear.   It is the sound of completion, success, and satisfaction.   But what happens when this sound is drowned out by weakened profits, customer dissatisfaction, and industry weakness?   In comes the government bailout of the automobile industry.   In recent years, 2008-2010, Ford, GM, and Chrysler had to be saved from self-destruction and bankruptcy through government incentives, loans, and emergency funding.   In December of 2008 these 3 automakers asked the government for monetary assistance that totaled approximately 34 billion dollars (About, 2013).   Ford, GM, and Chrysler asked for these funds to avoid impending job layoffs in the millions and also to avoid further financial trouble for the economy during the recession (About, 2013).   All three of the car companies that had to be bailed out were American based and had for years been facing stiff competition from foreign car makers especially Honda, Hyundai, and Toyota.   During this time there was quite a bit of finger pointing and blame being placed surrounding the reason for the failure of the American car industry.   Was the failure based on external factors such technology, political/legal parties and organizations, or economic issues (Hitt, Ireland, Hoskisson, 2013)?   Or was the failure of this industry based on internal......

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Internal and External Functions of Starbucks

...Internal and External Factors MGT/230 September 23, 2011 Internal and External Factors Normally when someone thinks of diversity, he or she will usually think that it is only about race and gender. When it comes to the four functions of management, it is much more than that. Diversity in Starbucks incorporates ethnic group, age, personality, thinking style, religion, job position, education, sexual orientation, and personal background. These are just some of the types of diversity that Starbucks faces on a daily bases and must deal with in to implement a successful management system. Diversity not only affects a Starbucks internally but also externally in the sense that it must protect its public image to customers and creates a higher standard of competition with other businesses. Leading in any business also can be considered as a practice for diversity management because it gives the understanding that in order to fix external diversity problems; it must start by working with the internal diversity problems. (Starbucks Blog, 2011) A perfect example of this is when allegations surfaced in June 14, 2011 of a Long Island Starbucks being anti-gay after a customer posted a blog on her personal website of a manager yelling at a gay employee that they are not interested in in his politics or beliefs and his thoughts were down right offensive to his co-workers and that they are not welcomed in Starbucks. (KIROTV, 2011) This caused thousands of customers to post angry......

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Internal Environment

...Internal environment analysis: Resources: Tangible: 1. Starbucks has a lot of real estates. 2. Starbucks has a very effective and efficient supply chain. 3. Starbucks has a very good and advantage roasting and blending technology. 4. Through the financial statement, the revenue of starbuck increased from 1994 to 1999E which means its revenes increased every years. Intangible: 1.high quality brand image 2. Holding the largest market share and having a high reputation in the specialty coffee industry. Capabilities: 1. Starbucks diversified the source of its coffee beans. It can make sure that they have less risk of the supplier and other factors that can effect the coffee beans. 2. Starbucks keeps a very good relationship betweent themselves to customers and suppliers. They directly connect to the customers. 3. Starbucks treats their employees and suppliers. They teach their employees coffee knowledge to satisfied the more and more educated customers problems. Strengths: 1. High quality brand image. 2. Advantage roasting technology. 3. Effective and efficient supply chain management/ 4. Loyal employee and friendly valued, and honest partners. 5. Well strategy to acquire retail store location and real estate. Weakness: 1. Expansion to international market without suitable infrastructure which may hurt starbucks high quality brand image. 2. Starbucks did not forcus on its products different from other brand strategy. Core......

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Starbucks: Internal Assesssment of Strategic Variables

...Starbucks: Internal assesssment of strategic variables CONTEXT: Starbucks was started in 1971 and is famous for its quality fresh-roasted coffee beans. An internal variable that Strabucks have is its resource and capabilty. It is a financially sound company which have a rapid pace of growth both domestically and internationally. The majority of their stores are located on the international market in over 62 countries contributing significantly to them being the market leader in the coffee industry. To be able to operate on such a global scale signifies strength of the company’s internal resources and capabilities. During the recession in 2008, their stock price went down significantly, but the profits were hardly affected. Starbucks also focus its resources on giving back to society as well; helping to improve social and economical conditions for small coffee farmers, provide financial help to community literacy in developing countries in which it operates and a major contributor of the Worldwide relief Development Organization. Its present consolidated revenues for quarter one of 2014 were $4.2 billion which is and increase of 12% over quarter one of 2013; this was due to 5% growth in global store sales. With the resources that Starbucks have had enabled them to expand globally on a rapid pace not to mention its manpower team (employees) whom is of utmost value to the organization making it what it is today. From initiation, the starbucks business culture have......

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Starbucks and Environment

...Our Starbucks Mission Statement Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time. Here are the principles of how we live that every day: Our Coffee It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our Customers When we are fully engaged, we connect with, laugh with and uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savoured, sometimes faster. Always full of humanity. Our Neighbourhood Every store is part of a community, and we take our responsibility to be good neighbours seriously. We want to be invited in wherever we do business. We can be a force for positive action –......

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Internal and External Factors Affecting Starbucks

...Internal and external factors affecting Starbucks Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed. Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world, with over 16,000 stores in 50 countries (Starbucks Annual Report, 2009, p. 1). Starbucks sells high-quality whole coffee beans along with fresh, rich-brewed coffees, cold blended beverages, a variety of complimentary foods, coffee related accessories and a selection of premium teas primarily through Company-operated retail stores (Starbucks Annual Report, 2009, p. 1). In May 1998, Starbucks successfully entered the European market through its acquisition of 65 Seattle Coffee Company stores in the UK (Starbucks, 2009). In 1998, since opening its first UK store in London, Starbucks has been growing rapidly at a steady rate with over 660 stores opened by the end of 2009 (Starbucks Annual Report, 2009, p. 3). This report aims to evaluate major internal and external factors affecting Starbucks using different environmental analysis methods such as SWOT......

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Internal Environment of Starbucks

...INTERNAL ENVIRONMENT 1. Organizational structure 2.Strengths and weaknesses Strengths * Brand Recognition * High quality products * Strong Culture * Social responsibility * Use of technology | Weaknesses * Expensive products * Overcrowding * Culture clash in different markets | As a company of world’s top five hundred, Starbucks has some strengths. Global Brand Recognition Starbucks has a distinct purpose. It has built as a place between homes and offices for their target customers. There is an atmosphere,where people are able to relax, meet friends and business partners and surf the Internet. Nowadays, the majority of people accept that every time they see a green mermaid they know it is the logo of Starbucks and they would like to buy the products and enjoy the environment in there. High quality products Starbucks pay attention on the high quality of their products. Their coffee is famous for delicious flavor and aroma. Strong culture It is often said that organizational cultures is the key values. Starbucks are doing very well on it. It is widely accepted by their target customers that they identify with the culture. There are two kinds of culture that are notable in Starbucks. Attention to detail Howard Schultz who is the founder and CEO of Starbucks focus on details which some businessman think that are not important. The reason why Starbucks are famous and popular is because Starbucks not only sell good coffee but also let......

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Internal Environment

...reinforcement. The most effective mystery shopping system provides the employees with a list of items the mystery shoppers will be checking. If employees feel that the only purpose of a disguised shopper program is to report poor service and reprimand them, the program will not fulfill its full potential. Marketing Analysis (S.W.O.T Analysis) SWOT analysis can be dividing into internal, external Environment and positive, negative aspects. Internal environment would be strengths and weaknesses, strengths are internal capabilities that may help a company reach its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance. For example, Hawaii as a tourism destination, the strengths would be perfect weather, there about 21.6-25 degree in the whole year, and also, there have 6 unique island, which making tourists feel private and safe. Weakness is, Hawaii as a part of USA, there have highest level of consumption, is about 30% higher than other state of USA. Hawaii as an island, so there should spend more for the transportation. External environment include opportunities and threats. Opportunities are the company may be able to exploit to its advantage. And threats are current and emerging external factors that may challenge the company’s performance. For example, the opportunities for the Hawaii are, there have many investors to invest in Hawaii, such as providing high quality hotel, restaurant,......

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Starbucks Business Environment

...Foresight Exercise - W1 Assignment Company nominated: Starbucks Corporation (Starbucks) Outline what the Probable scenario might be in 3-5 years time. Then consider if you could predict the future by creating it; what would be the Preferred scenario? Outline what the gap between the two scenarios are and outline some strategies that could be used to bring the Probable outlook closer to your Preferred outlook, thereby gaining competitive advantage. The business environment is the internal and external conditions with legal, social, economical, political or technological character that affects the operation of organizations. Current Scenario: Starbucks Internal Environment: (based on 2008 to 2010 Starbucks’ information) * People: Highly trained Baristas. Employees are called “partners” and has power of making decisions at the stores * In 2009, the corporation had a significant restructure, review of stores portfolio (which included a closing of about 182 stores in 2010 and 659 in 2009), headcount reduction of non-store support, product waste reduction and stores labor efficiency. * Product & services: Launching and expansion strategy in 2009 of the “Seattle’s Best Coffee” coffee places and in 2010 the ready brew Starbucks VIA (instant coffee sold at Starbucks stores and grocery markets). There is a trends to keep launching on a quarterly basis new products, some of them different from coffee, such as Food (sandwiches, muffins, etc), and Tazos tea flavors ...

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External and Internal Environment Analysis

...External and Internal Environmental Analysis DSW is the leading footwear specialty retailer in the United States operating 305 shoe stores in 39 states as of January 30, 2010. The shoe warehouse offers a wide assortment of better-branded dress, casual and athletic footwear for women and men, as well as assessories. The company’s main focus is to create a distinctive shopping experience that satisfies both the rational and emotional needs of DSW customers by offering a vast, exciting assortment of in-season styles combined with the convenience and value they desire (DSW, Inc. 2009 Annual Report). External Environmental Factor in the Remote, Industry, and External Operating Environments Part of DSW’s external environment factor in the remote is their economic factor. DSW is in a leading marketing position that is driven by their competitive strengths, the breadth (heart) of their branded products, their distinctive and convenient store layouts, the value proposition they offer to their customers, and their financial strength (DSW, Inc. 2009 Annual Report). DSW stores and sell a large assortment of merchandise. They purchase shoes and athletic footwear from over 400 domestic and foreign vendors. DSW’s growth is attributable to their operating model and management’s focus on store-level profitability and economic payback. Over the five fiscal years ending in January 30, 2010, their net sales grew at a rate of 11%. They have also generated a positive operating cash......

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Evaluation of Internal Control Environment

...personnel. The company's accounting staff and management are frustrated with the situation because, among other problems, internal management budget reports, inventory status reports, and receivables billings are often late and inaccurate, and several deadlines have been missed. Your audit team has never audited a company with the specific brand of IT system which is installed at XYZ Sdn. Bhd. However, your accounting firm’s IT team is confident they will be able to diagnose XYZ's control weaknesses and help to overcome current difficulties. Accounts Receivable, Cash, and Inventories The sales/receivables system handles a volume ranging transactions per month, including sales and payments 1,200 active credit customers. The six largest customers about 15% of accounts receivable, whereas the remainder from 2,900 to 3,400 on account for about currently account for of the accounts range 4|Page CASE STUDY PA503 FUNDAMENTALS OF AUDITING JABATAN PERDAGANGAN from RM1, 500 to RM32, 000, with an average balance around RM8, 000. Predecessor Auditor When your audit team approached the company GM-F, Abdul Halim, to request permission to speak with the previous auditor, he seemed hesitant to discuss much about the prior audit firm. He explained that, in his opinion, the previous auditor did not understand the company's business environment very well and was not technically competent to help the company with its new IT system. He further indicated......

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Internal and External Environment Scan

... Internal and External Environments Nokia and Facebook Student’s Name Professor’s Name Date Internal and External Environments of Nokia and Facebook Nokia Environmental Analysis Internal Environment Nokia being the most renowned name in the world has a very big network which is distributed across the world, and has large selling when it is compare to other phone company in the world. It is of very high quality and has user-friendly features. The company has strong financial base which enables it to make innovations with a lot of ease. Nokia has a high product range which makes it very attractive many customers. Nokia’s financial health is strong, which makes it very profitable. Essentially, the price of the product is actually the main issue, as some of the Nokia’s products are not friendly to the users, which fail to sail through in the market. The service centres in some countries are quite few quite often there or no quality after sales services. Most of these product models are quite heavy to carry and not easy to handle. External Environment The digital market is developing so fast. Hence, Nokia has the opportunity to improve its sales as well as its share n the market. Due to An increase in the income level of the people, the purchasing power also increases; therefore, Nokia has to strategically go for the right customer so as to be able to achieve a big gain out of this important situation (Nokia Company, Investor relations, 2015). Also, they would have the good......

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External and Internal Environments

...I will choose two segments of the general environment business factors that I feel influence this company and the industry to assess how they affect both Adidas Group and the Sporting Goods Industry. In addition I will use the five (5) forces of competition and evaluate which two of the processes are the most significant to the corporation by evaluating how Adidas has addressed them in the recent past. I will further use the two forces to predict what the Adidas Group might do to improve their corporation by addressing these forces in future endeavors. By choosing this corporation I will identify the external threats that affect them in the industry as well as the opportunities available. By doing this I will attempt to give my opinion on the corporation’s greatest threat and opportunity to identify some of their strengths and weaknesses for future growth potential. Identifying the firm’s resources, capabilities, and core competencies will assist in these opinions. Identifying its greatest competitor will also give me an idea of the competition and what their core competencies are that Adidas Group has to compete with in order to continue to be a giant in this industry. Finally I will analyze the firm’s value supply chain to determine where they have room to try and create opportunities using the information found for the above mentioned resources, capabilities and core competencies. Choose two segments of the general environment that would rank highest in their influence...

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External and Internal Environment

...External and Internal Environment Organizations normally operate in a network and are not entirely independent because of the several environments that influence their activities and actions. Some examples of internal and external factors are micro and macro environment that could influence Starbucks are; suppliers, competitors, customers, finances, economic, political, social, environmental, as well as legislation (Starbucks, 2010). Starbucks’ home market is based in the United States which is critical in understanding the internal and external surroundings that impact the organization and its growth. Statistics indicates that coffee sales has grown by 20% percent each year and 18% of it is contributed to the 18 billion dollar coffee market in the United States. At the end of 2011, coffee shops were expected to exceed well over $50,000 (, 2012). With that said, the growth of coffee consumption and potential maturity of the American coffee market may have influenced overcapacity and may have intensified the organizations growth plan. Tariffs and International Trade regulations has contributed to some of the environmental factors for Starbucks; due to high tariffs the company would be compromised, the ability to source quality coffee beans would affect Starbucks reputation, global sales, and competitiveness. Economical Influences pertains to the exchange rate, Starbucks import coffee, sugar, and milk; with a weaker currency the cost will eventually......

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This report deals with a Strategic Fit Analysis of Starbucks Coffee Company with focus on the United States Segment. Genus (1998) highlighted that strategic fit is the concept whereby strategy is a means for achieving a match between the external environment of an organisation and its internal capabilities, as part of a quest for establishing competitive advantage over rival competitors.

The researcher will evaluate the market environment that Starbucks occupies as well as the internal environment of the company. The researcher will also highlight strengths/weaknesses and opportunities/threats of the current Strategic Fit of Starbucks.

The Starbucks Coffee Company evolved from a single store in Seattle’s…show more content…

The recession of 2008 and 2009 affected both businesses with rising operational costs and lower profit margins, and consumers of the products that have seen product prices rise while wages remain the same and unemployment levels increase (Bureau of Labor Statistics, 2011). This resulted in consumers making severe spending cutbacks. The US consumers continued drinking the same amount of coffee per day which is on average 3.3 cups per day however they simply opted for lower cost options (Moreno, 2008). * Inflation rates –Starbucks will have an increase in business costs with inflation. Starbucks will need to evaluate the inflation rate for all of its affiliated countries in order to project the demand or sales of the coffee. * Competitors pricing - Competitive pricing from competitors such as McDonald’s Cafe and Dunkin Donuts can start a price war for Starbucks that can drive down profits and profit margins as they attempt to increase, or at least maintain, their share of the market. In Starbucks’ Annual Report for 2011, the company stated, “We continue to experience direct competition from large competitors in the US quick-service restaurant sector and continue to face competition from well-established companies in many international markets and in the US ready-to-drink coffee beverage market.” * Globalisation - Globalisation of the coffee market has meant mass production by

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