Evaluation of Starbucks Strategic Position In the Market Essay

Evaluation of Starbucks Strategic Position In the Market - Essay Example?s customers be mainly coffee lovers from all walks of spirit and it can be noted that it has been pursuing a differentiation strategy by Porter (1985). Starbucks cornerstone value is to build a company with a soul and its broad mission is To inspire and nurture the human spiritone person, one cup, and one neighbourhood at a time. The organisation mostly aims to be 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 realise the trust and respect of the customers, partners/employees, suppliers and the general public. The stakeholders embroil Howard Schultz, employees, customers, community members and the shareholders. 2.0 External psychoanalysis of Starbucks This section of the report seeks to analyse the external factors affecting the trading operations of the organisation. Two models namely P ESTEL analysis and Porters five forces model are going to be utilised in carrying an analysis of the external factors impacting on the operations of Starbucks. lively success factors will as well as be analysed in this section of the report. 2.1 PESTEL analysis A close analysis of Starbucks 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 utilize 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 Starbucks organisation. Two models namely PESTE L analysis and Porters 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 in addition be analysed in this section of the report. A close analysis of Starbucks 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 constitute 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 companys 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 subjugate of strategic capabilities as going to be explained in brief below.