Suppliers, creditors, and public groups are all considered external stakeholders.' Starbucks Corporation (Starbucks Coffee Company), examined in this SWOT analysis, positions itself as the biggest coffeehouse chain in the world through innovative strategies that employ business strengths to overcome weaknesses, exploit opportunities, and protect the business against threats and barriers to success in the coffee industry environment. Starbucks Coffee Company (Starbucks) was established in 1971 as a fine coffee retailer by three academics in . It is a place where customers can submit and discuss their ideas to make Starbucks better. Effective capabilities for managing a global supply chain of coffee and related materials. Which of the following are aims of stakeholder strategy? Pizza Hut, Starbucks, Domino's, Dunkin' Donuts, and Wendy's are some of those competitors. Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. Starbucks impacts its employees in several ways - income, working conditions and benefits. (2009). Internal stakeholders may include top management, project team members, your manager, peers, resource manager, and internal customers External stakeholders may include external customers, government, contractors and subcontractors, and suppliers. As the worlds most popular specialty coffeehouse chain, Starbucks effectively addresses this interest. Grow Together, 3. First name. Stakeholders can affect the firm's actions. "Starbucks Company's External and Internal Analysis." Successful marketing campaigns and branding strategies are needed to counteract the effects of these trends. Internal stakeholders include employees, board members, company owners, donors and volunteers Anyone who contributes to the company's internal functions can be considered an internal stakeholder. For instance, additional or reinforced alliances with major retailers can improve the distribution and market share of the companys consumer goods, such as ready-to-drink coffee. In this case, Starbucks uses high pricing to differentiate itself from the rest of the competition (Starbucks, 2011). Stakeholder analysis refers to the range of techniques or tools used to identify and understand the needs and expectations of major interests inside and outside the organization environment. Currently, 90% of Starbucks supply is from CAFE-certified farms. Our responsibility starts with being accountable to Starbucks stakeholdersour partners, customers, shareholders, suppliers, community members and othersand communicating openly . Even though it suffered considerable decline in 2007, Starbucks has recovered and is on a growth path once more. Starbucks suppliers are composed of wholesale supply firms and coffee farmers. 82% of Starbucks employees feel their work environment is positive meaning Starbucks is a happy place to work. Washington, D.C.: Department of Labor. External stakeholders are those who do not directly work with a company but are affected somehow by the actions and outcomes of the business. Our risk assessment, supply chain and corporate social responsibility teams also monitor for landscape changes and emerging risks on a continuous basis. The Customers can be considered as the most important external stakeholders. However, the management recently modified the logo in which the words Starbucks Coffee were removed. strategic commitments Starbucks has a diverse set of stakeholders, and therefore, it is important for it to have an effective communication strategy with these groups. Results are Weaknesses are internal factors that reduce or limit the capabilities of the coffeehouse company. The history of Starbucks dates as far back as 1971 when Starbucks opened its first coffee store in Seattles Pike Place market (Patterson et al. For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders Starbucks performances and business strategies could also affect the general public and the society. The Canadian coffee consumer: Understanding consumer preferences for Fair Trade coffee products. Within the SWOT analysis framework, this business condition creates a challenging environment where the company needs to use different sets of strategies and competencies that match various industries. Copyright by Panmore Institute - All rights reserved. The current strong brand and corporate image of Starbucks indicates the firms efforts to include stakeholders in its strategies and success. Every business has its stakeholders. McDonalds challenging Starbucks with cheaper coffee drinks. For instance, small local competitors can develop beverages similar to the companys products. Starbucks Company's External and Internal Analysis Case Study Exclusively available on IvyPanda Updated: Aug 4th, 2021 Abstract Starbucks was started in 1971 and since then, the company has expanded very fast. Internal stakeholders include your board of directors, upper management, and other departments in your company that may influence your flow of resources (e.g., human resources, finance team, etc. Activists have protested outside its stores for various reasons, including human rights, union issues, and animal cruelty. Houston Chonicle, 1. External stakeholders are individuals or groups outside an organization who are vested interest in a company's success. Launch Your Survey and Start Collecting Insights. In general, Starbucks complies with rules and regulations. (2008). Starbucks cut costs of at least $500 million, closed 800 stores in the U.S. and laid off more than 4,000 employees. IvyPanda, 4 Aug. 2021, ivypanda.com/essays/starbucks-5/. Mars is the world's leading manufacturer of chocolate, chewing gum, mints and fruit confectionery. Starbucks's Weaknesses (Internal Strategic Factors) Business weaknesses are identified in this component of the SWOT analysis. Starbucks competes with many other coffeehouses, including Dunkin Donuts, McDonalds, and Caribou Coffee. Thus, Starbucks corporate social responsibility efforts comprehensively address the interests of this stakeholder group. The three major stakeholders for Starbucks are their suppliers, employees, and customers. The coffeehouse chain business faces issues such as competition, imitation, and social trends that oppose international players in local markets. Internal stakeholders are those persons or organizations who have some sort of vested interest in the company's success. Although after that recession, revenue growth remained well. Starbucks has also been successful because it has managed to create an atmosphere that enables customers to relax away from home. The SWOT Analysis model is a strategic management tool for assessing the strengths, weaknesses, opportunities, and threats (SWOT) relevant to the business and its internal and external environments. (2011). However, as competition becomes stiffer, Starbucks has had to embrace various promotional strategies. The internal customers will be the people that work within the business of Starb. Starbucks was started in 1971 and since then, the company has expanded very fast. The variety of these industries has increased over time, as the company develops more products to complement its core coffeehouse business. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University. Internal stakeholders are people who are on the inside of the business that already serve the organisation these include staff managers board members etc. Copyright 2017 2025. Cateora, P., Papadopoulos, N., Gilly, M., & Graham, J. https://ivypanda.com/essays/starbucks-5/, IvyPanda. The company had previously relied on word of mouth and a strong global brand as part of its marketing efforts However, with competition getting stiffer by the day, Starbucks has had to employ various promotional strategies such as the use of loyalty cards. Mason, A., Cole, T., & Goza, N. (2017). The company has a growing population of loyal customers, which adds to the stability of the coffeehouse business. The main difference between internal and external stakeholders is that internal stakeholders have more . The global financial crisis of 2008 greatly affected the operations of Starbucks in various countries. A stakeholder is anyone who has a "stake" in the success of a business - a person who can be affected by, or affect, the operations of a business. This is because by the time the company ventured into the Australian market, smaller boutique-style coffee shops in the country had already gained popularity with coffee drinkers since they offered personalized and services. Starbucks prioritizes employees in its corporate social responsibility efforts. Farmers aim to increase coffee yield to generate more revenues. In light of the companys weaknesses, the threat of imitation involves firms that try to copy the taste, look, and feel of Starbucks products. Dieting: Sugar is the New Fat. Innovation can make the companys products more difficult to imitate. IvyPanda. While analyzing Starbucks ' finances during 2007-2014, in the seventh period, the ratio and growth decreased (2008/09). This is IvyPanda's free database of academic paper samples. The report outlined the internal and external challenges that Starbucks faced. Join to apply for the client relationship manager - 12 month FTC role at Starbucks. Private: What Are Internal And External Stakeholders In Starbucks? This is an expensive way to capture attention, but . The following are the main stakeholders in Starbucks Coffees business: Employees. These threats are external factors that reduce or limit business performance. Stake: Health, safety, economic development. Web. We use cookies for website functionality and to combat advertising fraud. The report further recommends that Starbucks should consider forming partnerships with local companies in the coffee industry. Jolanda Logan Consulting (JLC) is a boutique consulting agency led by Jolanda Logan, a strategic, business-minded communications professional with more than 25-plus years of progressive experience . Delivering our very best in all we do, holding ourselves accountable for results. On the one hand, McCafe maintains a low price strategy o its products (Burritt, 2007). Opening a new store can have a negative impact on the community because the local coffee shops may have to close down or be forced to change what they offer to compete with Starbucks. Shaoul, J. The company also includes customers as major stakeholders by extending the Starbucks culture to customers at its cafs. In the context of corporate social responsibility, Starbucks needs to account for the demands or interests of stakeholders, because the company is viewed not just as an organization for profit, but also as a citizen of society. It is worth noting that it serves millions of customers every week which attests to an excellent customer retention (Starbucks, 2023). Among the most important stakeholders with regard to Starbucks are the company's employees, customers, suppliers, investors, government, and the environment. In addition, the discerning nature of the Australians, along with the fact that they had already developed sophisticated palates meant that Starbucks did not appeal to the locals as the management had anticipated. Coffee drinkers in Australia can be discerning and are therefore not easily dissuaded by foreign coffee companies (Patterson et al., 2010). In this partnership, Starbucks pays for 56% of tuition fees for employees junior and senior years at the University. It is becoming increasingly important for firms to work closely with competitors (Walters & Rainbird, 2007) and as such, Starbucks should also consider entering into a partnership with fast-food chains in a bid to improve its coffee offer, in addition to fighting stiff competition from such direct competitors as McDonalds. We will write a custom Case Study on Starbucks Companys External and Internal Analysis specifically for you for only $11.00 $9.35/page. For example, Starbucks Corporations marketing mix or 4P indicates product mix expansion to include tea, food, and merchandise, in addition to coffee. Starbucks has since won the hearts of the Filipinos. Those people or group affected directly is called internal stakeholders and those who are indirectly affected are . 100% pure kona coffee is distinguished from all other coffees by its unique island microclimate and extra care, starbucks cups for keurig pods have the following amount of caffeine: Standard pod: 130mg per 8 fluid ounces, auto-drip coffee is the coffee that you make in a homebrewer that automatically controls the brewing duration and, Can coffee be shipped? TASK # 1: Nestle is one of the leading brand in Pakistan. The external stakeholders of Starbucks are the suppliers and customers, while employees are internal stakeholders. External stakeholders are those who do not directly work with a company but are affected somehow by the actions and outcomes of the business. "Starbucks Company's External and Internal Analysis." Starbucks Key Resources Human resources, high-quality coffee farmer centers, product developers, and stores. Advances in technology affect product innovation, product services, customers store experience, and the way organizations are able to interact with other business partners. Starbucks Corporations Organizational Culture & Its Characteristics, Whole Foods Market Stakeholders: A CSR Analysis, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Starbucks Five Forces Analysis (Porters Model) & Recommendations, Harley-Davidsons Stakeholders: A CSR Analysis, Burger Kings Stakeholders: A CSR Analysis, Costco Wholesales Stakeholders: A CSR Analysis, Home Depots Stakeholders: A CSR Analysis, Microsofts Corporate Social Responsibility Strategy & Stakeholders (An Analysis), General Electric Companys (GE) Corporate Social Responsibility (CSR) Strategy and Stakeholders - Analysis, Amazon.com Inc. Stakeholders, Corporate Social Responsibility (An Analysis), Starbuckss Organizational Structure & Its Characteristics, Starbucks SWOT Analysis & Recommendations, Starbuckss Mission Statement & Vision Statement (An Analysis), Starbucks Operations Management, 10 Decision Areas & Productivity, Starbucks organizational culture emphasizes the employees-first attitude, Responsibly Grown and Fair Trade Coffee Starbucks Coffee Company, Stakeholder Analysis & Corporate Social Responsibility (CSR), Starbucks Corporation (Starbucks Coffee Company). The industry environment also presents the opportunity to strengthen the companys market position through additional partnerships or alliances with other firms. The target audience of Starbucks is middle to upper-class men and women Its the percentage of the general public who can afford their higher priced cups of coffee on a regular or daily basis. stakeholder strategy. IvyPanda. External stakeholders are entities that don't belong to your organization but are impacted by or impact your performance. Strategic Operations Management a value chain approach. Internal&External Customers: Example of Starbucks - 574 - GRE - Studocu Internal&External Customers: Example of Starbucks Internal&External Customers: Example of Starbucks prof. digesh pawar international journal for research in DismissTry Ask an Expert Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew My Library Modules Last name. Stakeholders Businesses have different types of internal and external stakeholders, with different interests and priorities. Companies keen on venturing into the international market must be prepared to encounter various obstacles (Cateora et al 2011). Internal stakeholders include employees, owners, shareholders, and managers They are simply anyone within the organization. Technological improvements can enable a company to market its products directly to their target market using emails, text messages, and social network sites as well (Moreno, 2008). Starbucks has also embraced a philanthropic philosophy as a tool for promotion. Imitability of products, especially beverages. Starbucks offers such differentiation through an excellent customer experience and quality coffee The Starbucks Experience is achieved through its well-designed stores with good ambiance and well-trained staff. Summary of Stakeholders of Starbucks (Stakeholder analysis of Starbucks). The main external stakeholders of McDonald's include the customers, suppliers, governments, and local communities. The contact personnel at Starbucks play a very vital role in enhancing relationships with customers. World Bank. Copyright by Panmore Institute - All rights reserved. Until recently, Starbucks has relied heavily on word of mouth and its strong brand as the main marketing tools but with increased competition and imitation, the company has moved fast to enhance repeat business and customer loyalty. The interests of this stakeholder group are high quality service and products, such as coffee and related beverages. NAB's Code of Conduct outlines the standards of behaviors expected of employees in order to better serve clients. ensure the integrity of our platform while keeping your private information safe. Essay Example on Starbucks . Moderate diversification through various subsidiaries and products, including merchandise. By the time Starbucks ventured into the Australian market in 2000, the country already had in place a thriving urban caf culture. However, it experienced supply shortages in the USA in the past, making many thirsty, and coffee-crazed customers unhappy. Starbucks has many different stakeholders such as individuals, and institutions (hedge funds and mutual funds). In addition, Starbucks Coffee and Farmer Equity (CAFE) program requires transparency among wholesale suppliers to ensure that coffee farmers are properly paid. Cateora, P. R., Graham, J. L. (2007). It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. In 1987, current chairman and CEO Howard Schultz took over and transformed the company into a global brand through emphasis on building a strong customer base built on the appreciation for and education of customers on high quality coffee . In some countries like New Zealand, Starbucks gives very low wages to juvenile workers (youth rates). The database is updated daily, so anyone can easily find a relevant essay example. Email. These are standard stakeholders of almost every business that operates in the United States or overseas. For CCPA and GDPR compliance, we do not use personally identifiable information to serve ads in California, the EU, and the EEA. On the other hand, external stakeholders include customers, clients, business partners, suppliers and shareholders. To have a positive impact on the communities it works with and in, Starbucks develops community stores that partner with local nonprofits The nonprofits these stores work with offer services aimed to meet the needs of the communities theyre located in. It is also competing with companies like Peets Coffee & Tea Company, which have more exclusive products. "Starbucks Company's External and Internal Analysis." Regional and state unemployment 2010 Annual averages. Once you own the shares, you can hold or sell them its up to you. In addition, the report shall also explore Starbucks failure in Australia, and the reasons behind this failure. New York: McGraw-Hill Irwin. Also, this SWOT analysis considers generalized standards a weakness that limits the flexibility of the coffeehouse chain business organization. However, Starbucks needs to improve its CSR performance to reach a 100% CAFE-certified supply chain to maximize environmental benefits. Starbucks continues to improve its corporate social responsibility practices to address the concerns of different stakeholder groups. Starbucks Corporations weaknesses are as follows: Starbucks has high price points that maximize profit margins but reduce the affordability of its products. Buckstein, J. A handful of strategic priorities makes it easier for external stakeholders to assess what matters most to the company. Starbucks operates in various industries that have different challenges to business growth. Since then, over 300 stores have opened. These shops provided personalized, individualized and intimate service, something that Starbucks could no longer provide. Trader Joe has a variety of both internal and external stakeholders, its internal stakeholders include the management, employees, and Investors. In the SWOT analysis model, effective capabilities for managing a global supply chain strengthen Starbucks by supporting operations that connect production (e.g., Arabica coffee beans in plantations) to consumption (e.g., caffeinated drinks in coffeehouses). At present, much of this system remains, with Starbucks paying unexpectedly low taxes in the U.K. This study discusses the internal and external business ethics practiced at Starbucks Corporation. (1998). A mysterious, nautical figure called to them, as sirens do They really loved the look of it and it kind of tied into what they felt Starbucks stood for, Steve said. In addition, the company should consider diversifying to other food products besides coffee in a bid to cushion its revenue collection during harsh economic conditions. The Starbucks journey began with a single store in Seattle in the year 1971. These four words represent the major constructs firms need to consider to make the most of their internal set up and the external marketplace characteristics. 2010). Internal and external stakeholders are those within your organization and outside your organization, respectively. In order to communicate effectively with customers, Starbucks needs to be aware of their differences what they care about and the ways in which they want to be communicated with. Starbucks works with many suppliers around the world.

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