SWOT analysis
- Introduction
The international company Starbucks, founded in Seattle, WA in 1971, is a global leading roaster, marketer, and retailer of quality coffee. In 19,767 companies in 62 countries, Starbucks employs approximately 182,000 people and operates licensed businesses. Their mix of items includes high-quality roasted and made coffee, tea, fresh food, and other beverages (Rendtorff, 2011). They even sell and approve their marks on other platforms such as licensed shops, foodstuffs, and national food services to vend a range of coffee and tea items. Starbucks also advertises its products blended with other brand names through its Tazo and Teavana portfolio. This paper undertakes an extensive analysis of Starbucks performance in the market. It further makes a SWOT analysis while assessing the ethical and CSR input in their policing. Eventually, the paper evaluates leadership and employee motivation within the company.
- SWOT analysis
2.1 Strengths
Starbucks does have a wide spatial presence worldwide and retain a 39.8 percent retail sales in the United States and also has activities across over 62 countries (Lee & Jung, 2020). Starbucks is by far the most known brand within the coffeehouse category and is listed 60th throughout the world’s most valuable brands of 2018.
2.2 Weaknesses
Consumers switch to lower-cost competing products and give up premium payments in periods of economic stagnation. Fast growth and high competition due to the boom in the market contribute to branches attracting customers all along, thus decreasing Starbucks’ long-term development targets.
2.3 Opportunities
The increasing saturation and autocannibalization of the American market are placing even greater importance on its global strategy. Throughout the period 2018-2022, Starbucks intends to launch 600 new retail stores, extending its footprint to 6,000 stores across 230 cities (Lee & Jung, 2020). Given Chinese middle-class development and the use of west coffee consuming habits rather than tea, the earnings in the coming years are expected to continue to grow by a large double-digit.
2.4 Threats
Only with market maturing, its competition like McDonald’s and Dunkin Brands are increasingly pressuring Starbucks. Specialty coffee roasters like Black Rifle coffee and Caveman coffee are also becoming increasingly popular. Such businesses are directly open to customers via a growing influence in the social networks and exposure on uncommon paths like podcasts.
- Ethics
Business ethics examine acceptable policies and procedures about potentially contentious issues such as governance, trading in insiders, bribery, discrimination, social responsibility, and trust.
Donaldson argues that a business has a responsibility to keep citizens from being stripped of their rights. It should also defend people from rights being robbed. It will eventually help those in need. Furthermore, Hartman notes that a company is obligated to avoid poverty.
Starbucks offers social welfare for its workforce and an atmosphere that respects their human rights regardless of race, sex, color, or sexual orientation. Starbucks offers quality products and healthier options for its customers. Starbucks seeks to shield the community from economic hardships through their public outreach projects and lending to farmers. Starbucks partners with its suppliers to ensure that human rights are respected and Starbucks does business for them in situations where they are not covered.
Explain how the company is ethical using the approach
4.0 CSR
Corporate social responsibility is an ethical philosophy that incorporates businesses into their corporate practices and relationships with stakeholders.
The standard ethical rating is the metric used to estimate CSR for Starbuck business. In this case, the benefits based are views and evaluations on how an enterprise can control environmental, social, and governance issues. It tests the capacity of businesses to benefit through the middle to long-term risk management and opportunities.
The CSR policy of Starbucks consists of three foundations: the community, moral natural resource management. Starbucks builds up community shops that are partnering with non – profit organizations to have a positive contribution to society with and within it. The non-profit organizations in such stores work with serving the needs of the local communities. Starbucks offers a non-profit affiliate $0.05 to $0.15 in exchange. The business also undertakes to ensure the responsible and ethical processing and procurement of coffee, tea, cocoa, and imported products (Peiritsch, 2019). Starbucks inevitably aims to make every part of its activities as efficient and effective as possible.
Explain how the company can use CSR using the approach
Recommendations
In the foreign division of Starbucks, the highest growth is. With a growing middle-class population, developing economies in Mexico, South Africa, India, and Brazil, tend to deliver substantial opportunities for additional retail stores and customer service (Flamholtz & Randle, 2019). The market in China has already been significantly induced by Starbucks but the prospects for market expansion remain unexplored. In such developing market areas, Starbucks could perhaps grow through a local award. Starbucks should be customer-relevant for market expansion and its organizational leaders should be free to work inside a tailor-made format framework, to provide local product mixes, priced points for the community’s needs, cultures, and flavors. Besides Starbucks, the mixture of Tea and Fresh Juice products has significant opportunities. These products should be constructed in line with their central coffee products.
Conclusion
It has been found that the U.S. coffee, as well as a snack store, are an attractive market through the use of these studies. In contrast to the cost-effective management of Dunkin ‘ Donuts, Starbucks is dominating the industry in terms of its dominant international presence and pricing strategies. Consumer experience at the venue of Starbucks is likely different from any other coffee shop since it is intimate, hospitable, and authentic.
Their environment in the coffee shop will prove to be a competitive, sustainable benefit. Higher response levels have been achieved for Starbucks’ implemented retails as well as on-site partnering strategies, making them the leader in thoughtful business. When reviewing Starbucks’s financial statements, progress is also evident. Furthermore, the previous evaluation shows Starbucks that other players in nearly all aspects are outscoring financially.