Strategic Analysis of Starbucks Coffee Company Case Study by Anu

Strategic Analysis of Starbucks Coffee Company
A strategic analysis of the Starbucks Coffee Company.
# 153732 | 2,876 words | 41 sources | APA | 2013 | US
Published on Nov 25, 2013 in Business (Companies) , Business (Marketing)

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This report provides a strategic analysis of Starbucks Coffee Company, including an evaluation and synthesis of its strategy formation. The paper uses a range of appropriate strategic tools and models, including Ansoff's growth matrix, a SWOT analysis and Porter's five forces model. The paper evaluates the company's strategy formation in relation to its positioning in the market, and focuses on its key functions pertaining to information systems and human resources. The paper shows how Starbucks has effectively adapted and responded to the business environment in which it operates to ensure continued success.

Executive Summary
Strategic Analysis
Strategy Formulation

From the Paper:

"Coffee is the second-highest traded commodity in the world (Shjarback, 2011). In 2012, the UK Fairtrade Foundation reported that an estimated 1.6 billion cups of coffee are consumed every day. From humble beginnings in 1971, Starbucks has grown into one of the world's largest chains of coffee houses (Paryani, 2011), and is the international market leader in the speciality coffee industry with a presence in around 50 countries and over 16,000 outlets worldwide (Euromonitor International, 2012). It has around 200,000 employees (Starbucks, 2012).
"Starbucks reported a 6% global growth in 2012, an opening of 1,063 net new stores globally, and a total operating cash flow of $1.7 billion. However, despite its current success, in 2008, Starbucks experienced their first-ever drop in sales in its US outlets (Civiat, 2010). Although sales were still high, the prolonged economic downturn was forecasted, and therefore the company reinstated former CEO Howard Schultz, who instigated a series of control measures and a new strategic approach. Under his leadership underperforming outlets were cut, and products were restructured. Processes were reviewed using lean techniques, and new initiatives were introduced to increase throughout at off-peak times to boost average sales (Euromonitor International, 2012)."

Sample of Sources Used:

  • Adamy, J. (2008) "With Starbucks, Investors Need Patience". Retrieved February 4, Wall Street Journal: [accessed: 19 November 2013].
  • Argenti, P. A. (2004). Collaborating with Activists: How Starbucks Works with NGOs. Haas School of Business: Berkeley.
  • Baker, R. (2012) "Starbucks on first name terms", Marketing Week, 12 March 2012: available at: [accessed 19 November 2013].
  • Baker, R. (2011) "Starbucks reorganises business to drive growth", Marketing Week, 12 July 2011: available at: [accessed 20 November 2013].
  • Behar, H.P. and Goldstein, J. (2008) "It's Not about the Coffee: Leadership Principles from a Life at Starbucks", Portfolio.

Cite this Case Study:

APA Format

Strategic Analysis of Starbucks Coffee Company (2013, November 25) Retrieved April 18, 2024, from

MLA Format

"Strategic Analysis of Starbucks Coffee Company" 25 November 2013. Web. 18 April. 2024. <>