Strategic Management Analysis - Starbucks in US Essay

Strategic Management Analysis - Starbucks in US - Essay Example..............................................................................14 Figure 3 Number of stores in coupled States......................................................................15 Figure 4 Value of Gift Cards.............................................................................................15 List of Tables Table 1 Coffee Industry Analysis......................................................................................9 Table 2 Opportunities & Threats.......................................................................................12 Table 3 Strengths and Weaknesses....................................................................................16 1. Introduction universal millions of Americans walk into Starbucks coffee shops and live the unique experience offered by it. Despite the fact that US coffee industry is saturated with many giant organizations such as Dunkin Donuts, Mc Donalds and Peets, the experience that Starbucks offers is exclusive and acts as its niche. No different restaurant or brand offers a coffee house full of technological interventions, sumptuosity and comfort, aroma of freshly roasted and grinded coffee beans. Starbucks is not just a coffee with its extensive chain of stores it has become part of American life style. This query paper is intended to identify strengths and weaknesses of Starbucks and also the opportunities and threats faced by it. In the light of these identifications, strategic fit analysis would help in understanding the strategies adoptive by Starbucks and helps it in exploiting these opportunities, mitigating threats and weaknesses and further enhancing its strengths. 2. Task A 2.1 PESTLE Analysis 2.1.1 Political Analysis Starbucks initiated its business from United States but has extended it exponentially into other regions as well, however the United States remains its major market. Current political issues fa ced by it in US surround its strategic alliances, agreements with vendors, taxes and government policies. Starbucks has been import its raw material mainly coffee beans from other parts of the world. The quality of the coffee beans serves as a critical factor for Starbucks success and an good over other competitors. Government tariffs and political relations between the US and other countries have a direct impact on the whole deglutition industry and in extension on Starbucks business performance. A thorough analysis of various indicators below, exhibit and inquire the performance of Starbucks as a business entity. 2.1.2 Economic Analysis Few economic factors having the tendency of affecting Starbucks survival and development in United States these factors are consumer ability to purchase, tariffs, modify pass judgment, and industry environment. Like stated earlier, Starbucks has strategic alliances with a substantial pool of suppliers but most of them are from other countries. The always fluctuating exchange rates result in higher costs passed on to the consumer or reflected in the form of lower profit margins. Furthermore, overall economic scenario