These are standard stakeholders of almost every business that operates in the United States or overseas. Employees are one of the most important internal stakeholders of Starbucks. Which of the following are aims of stakeholder strategy? Copyright by Panmore Institute - All rights reserved. Mars is the world's leading manufacturer of chocolate, chewing gum, mints and fruit confectionery. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. Starbucks is one such organisation. IvyPanda. Exchange rate and taxation shall also affect the operations of Starbucks through currency conversion. Another lesson that firms can learn from the failure of Starbucks in the Australian market is that it is always important to keep sight of the principles that made you successful in the first place. Most Starbucks coffee stores are located in neighborhoods with high traffic. Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. Customers are the most important stakeholders of Starbucks. Until very recently, Starbucks has relied on word of mouth and its large store presence as its advertising and promotional and advertising tools (Patterson et al., 2010, p. 45). Web. Farmers aim to increase coffee yield to generate more revenues. Starbucks Coffee Companys stakeholder management approaches are based on different programs for corporate social responsibility (CSR). The paper will also describe the risks associated with initiatives that management has announced and the financial impact that these risks may have. 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 provides interpersonal services to its customers in whereby there is high contact between baristas, staff, and customers (Miller, 2010).. Shareholders are a major stakeholder group for Starbucks because the company's success or failure has a direct impact on the value of their investments. You may also like reading SWOT analysis of Starbucks. Northey, J. Good organisations are mainly based on cultivating customer retention relationships, as opposed to the acquisition/transaction mentality. 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. Wall Street Journal, p. A14. The internal factors in this part of the SWOT analysis of Starbucks Coffee Company show that the business must develop strengths to reduce the adverse effects of imitation and high price points on the companys market share in the global industry. Ontario, Canada: A & I. Patterson, P. G., Scott, J., & Uncles, M. D. (2010). Our responsibility starts with being accountable to Starbucks stakeholdersour partners, customers, shareholders, suppliers, community members and othersand communicating openly about our business practices and performance. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. ensure the integrity of our platform while keeping your private information safe. There are many more stakeholders that need to be recognized when companies consider their strategic and operational decisions. Internal stakeholders are individuals or groups within an organization with a vested interest in the success of a business. Successful marketing campaigns and branding strategies are needed to counteract the effects of these trends. 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. Considering that Starbucks coffee is priced at a premium, the fact that baristas and the staff had limited time to engage with customers was proving to be counterproductive to the very premises on which Starbucks was built. These threats are external factors that reduce or limit business performance. It now has over 15,000 stores in over 44 countries. Retrieved from https://ivypanda.com/essays/starbucks-5/. Brewed for those who love Coffee. Starbucks has already implemented various corporate social responsibility programs for its stakeholders. Every business has its stakeholders. These are people and organizations that are outside of the business. Once you own the shares, you can hold or sell them its up to you. Cateora, P. R., Graham, J. L. (2007). In. The revenue growth in 2010- 2014 was at a . In 2014, Starbucks boosted its CSR performance for this stakeholder group by giving scholarships to employees based on a partnership with Arizona State University. At present, much of this system remains, with Starbucks paying unexpectedly low taxes in the U.K. For example, further diversification can reduce the coffee companys dependence on a single market, market segment, or industry, thereby reducing risks and improving revenue growth opportunities. (2011). Sometimes these interests can conflict. (2011). Also, this SWOT analysis considers imitation as a major threat against the coffeehouse business. Starbucks should also continue to be produce innovative products in order to capture the changing tastes and preferences of its growing consumer base. It now has over 15,000 stores in over 44 countries. At the moment, Starbucks is ranked as the leading global coffee chain operator. 2021. Threats against the coffeehouse business are identified in this part of the SWOT analysis. Starbucks should continue to be more innovative in the design and development of new products. This study discusses the internal and external business ethics practiced at Starbucks Corporation. Buckstein, J. Stake: Revenues and safety, #5 Communities. The main interest of this stakeholder group is compensation and a growing demand from Starbucks. Furthermore, a suitable recommendation in this case is to implement creative marketing and branding strategies that build Starbuckss corporate image as a contributor to community development. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. The three major stakeholders for Starbucks are their suppliers, employees, and customers. The external strategic factors in this part of the SWOT analysis show that Starbucks can improve its industry position by exploiting the opportunities, such as through diversification and alliances in the global industry environment. In general, Starbucks complies with rules and regulations. Since then, over 300 stores have opened. Although after that recession, revenue growth remained well. (2010). Password (8+ characters) . It is so successful because it was able to provide an experience that changed how much of the world thought about coffee shops and how many of us drink coffee outside of our homes. They also have a legitimate interest in the business, and are generally grouped into two; the internal and external stakeholders. An internal stakeholder is anyone who has a direct interest in you or your organization. Use a Multi-Channel Promotional Strategy Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. Internal Stakeholders are directly influenced by the company's activities because they are the part of the organisation which is just opposite in the case of External Stakeholders. Starbucks Key Resources Human resources, high-quality coffee farmer centers, product developers, and stores. Consumers across the world are increasingly demanding fair practices, and this has seen many firms change their operating practices in order to accommodate these demands (Northey, 2007), and Starbucks is no exception. The stakeholder will be directly affected by the success or failure of the organization. IvyPanda, 4 Aug. 2021, ivypanda.com/essays/starbucks-5/. Identify primary and secondary internal and external stakeholders affected, describe their stakes in the issue, analyze the situation for effect on these stakeholders, and describe the issues and impact from the stakeholders' views. 82% of Starbucks employees feel their work environment is positive meaning Starbucks is a happy place to work. External stakeholders are those who do not directly work with a company but are affected somehow by the actions and outcomes of the business. The company enjoys a superb distribution channel. Starbuck's financial performance will be an analysis and comparison of its performance through the years 2007- 2014. This group involves owners, investors, customers, competitors, employees and suppliers. Starbucks does a great job at listening to their consumers with their twitter handle @mystarbucksidea This twitter handle is used to circulate ideas that users have submitted and voted on to be implemented. Instead . strategic commitments This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. This includes your impact on the environment and the quality of life of communities. Corporate Governance. Internal stakeholders are people whose interest in a company comes through a direct relationship, such as employment, ownership, or investment. of caffeine, over four times the amount of caffeine For example, the firms supplier diversity program ensures that more suppliers from around the world are included in the supply chain. It also uses sales promotions, events, direct marketing, print media, and PR in an integrated manner to multiply the impact of its promotions. 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. How does Starbucks communicate with its stakeholders? external stakeholders are from outside of the company but Free Employment Stakeholder 803 Words 4 Pages International Marketing. Strategic Operations Management a value chain approach. Opportunities and Threats. NAB's Code of Conduct outlines the standards of behaviors expected of employees in order to better serve clients. Need a custom Case Study sample written from scratch by On the other hand, external stakeholders include customers, clients, business partners, suppliers and shareholders. (2007). 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. What are Starbucks CSR initiatives? Even though it suffered considerable decline in 2007, Starbucks has recovered and is on a growth path once more. Starbucks has since won the hearts of the Filipinos. 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 By the time Starbucks ventured into the Australian market in 2000, the country already had in place a thriving urban caf culture. This way, it can take advantage of any feedback from these groups and make changes as needed. Sustainability Inititives. It is also important for Starbucks to keep in touch with activist groups that include unions and environmentalists when considering sustainability matters. The internal strategic factors identified in this part of the SWOT analysis of Starbucks Corporation show that the business has strengths that promote resilience through diversification and a global supply chain. Suppliers. A recommendation to protect Starbuckss business against imitation is to aggressively innovate, especially in the area of product development. So we took inspiration from that and created the logo from there. SWOT analysis applications: An integrative literature review. Starbucks Coffees main strengths are as follows: Starbucks Corporation has one of the worlds strongest and most popular brands. 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. How the local competition defeated a global brand: the case of Starbucks. Starbucks Company's External and Internal Analysis. The companys stores are normally located conveniently on busy streets and in major malls that command heavy traffic. The database is updated daily, so anyone can easily find a relevant essay example. Read More Some companies listed short strategic priorities like "invest in infrastructure" or "international expansion" without elaborating on the meaning of these objectives. Important stakeholders include customers, employees, suppliers, competitors, local communities, investors, activist groups, and government. Grow Together, 3. External stakeholders still experience the effects of the business's activities but rarely hold any shares or ownership of the company. Compensation is an important aspect of employee happiness and at Starbucks, 62% of employees feel they are paid fairly, 80% are satisfied with their benefits, and 75% are satisfied with their stock/equity. Thus, the firm satisfies this stakeholder groups interests. As the worlds most popular specialty coffeehouse chain, Starbucks effectively addresses this interest. Starbucks, American company that is the largest coffeehouse chain in the world. Starbucks has corporate social responsibility programs for environmentally sound business. It needs to know that some customers may prefer a more direct approach while others may prefer a more personal approach. Starbucks's Weaknesses (Internal Strategic Factors) Business weaknesses are identified in this component of the SWOT analysis. Although Starbucks was very successful in the United States, this success was not replicated in the Australian market. In everything we do, we are always dedicated to Our Mission: to inspire and nurture the human spirit one person, one cup, and one neighborhood at a time. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. Imitability of products, especially beverages. This external strategic factor threatens Starbucks because such competitors can reduce the companys market share by competing based on low prices. Starbucks can also improve its CSR performance in addressing governments around the world by improving its tax compliance. To conclude, Starbucks has several internal and external stakeholders who can impact on it its operations and strategies significantly. The report outlined the internal and external challenges that Starbucks faced. Stronger market position through additional partnerships or alliances. These recommendations focus on minimizing the negative impacts of the internal and external factors enumerated in this SWOT analysis. First name. Starbucks prioritizes employees in its corporate social responsibility efforts. They can be owners, shareholders, employees . Starbucks uses a network of locations in different European countries to exploit tax advantages. Diversification makes the effects of market and industry risks on the coffee business more manageable. Stakeholders of Starbucks (Stakeholder analysis of Starbucks). Web. Communication from Starbucks happens through many channels including social media, press releases, websites, and customer surveys. 2010). In addition, the brand image should also have appealing attributes. The success of any service firm largely depends on the ability of the organisation in question to target, acquire, get hold of, and retain keep the right customers. Starbucks considers customers as among its top stakeholders. The variety of these industries has increased over time, as the company develops more products to complement its core coffeehouse business. . The company implemented the C.A.F.E program with a view to addressing issues raised by customers regarding Starbucks social reasonability (ICO, 2011). Provide a concise explanation of what a priority means. Strategic planning that accounts for the internal and external factors shown in this SWOT analysis can increase Starbucks Coffees success in competing against various coffeehouse firms and other food service businesses, such as Dunkin, McDonalds, Burger King, and Wendys. External stakeholders comprise of the customers, competitors, suppliers, creditors, public and the government. External stakeholders are entities that don't belong to your organization but are impacted by or impact your performance. Origins of SWOT analysis. Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Starbuckss Organizational Structure & Its Characteristics, Starbucks Coffees Stakeholders: A CSR Analysis, Starbuckss Generic Strategy & Intensive Growth Strategies, Starbucks Corporations Organizational Culture & Its Characteristics, Starbucks Five Forces Analysis (Porters Model) & Recommendations, Starbuckss Mission Statement & Vision Statement (An Analysis), Starbucks Operations Management, 10 Decision Areas & Productivity, McDonalds SWOT Analysis & Recommendations, Walt Disney Company SWOT Analysis & Recommendations, Sony Corporations SWOT Analysis & Recommendations, Whole Foods Market SWOT Analysis & Recommendations, Procter & Gamble SWOT Analysis & Recommendations, Burger King SWOT Analysis & Recommendations, Home Depot SWOT Analysis & Recommendations, Porters Five Forces analysis of Starbucks Corporation, Starbucks Corporations marketing mix or 4P, Starbucks Corporations generic competitive strategy and intensive growth strategies, PESTEL/PESTLE analysis of Starbucks Corporation, U.S. Department of Agriculture Economic Research Service Food Service Industry Market Segments, U.S. Department of Commerce International Trade Administration Consumer Goods Industry, Starbucks Corporation (Starbucks Coffee Company). On the other hand, external stakeholders are parties that do not have a direct relationship with the company but may be affected by the actions of that company. How Much Caffeine Does The Starbucks Cold Brew Have? The company has had to contend with various legal, political, economic and social factors as it undertakes its business activities. For example, warm and friendly relations are emphasized within the company and in how baristas interact with customers. The external stakeholders include the suppliers, government, customers, society whose influence has an impact on the business. Customer. IvyPanda. One of the lessons learnt is that it is always important to recognize and appreciate the importance of local culture. Starbucks seeks to sell experience, and not just coffee. Streamline effective communication to keep internal and external stakeholders systematically and proactively informed of project progress. Internal stakeholders are people whose interest in a company comes through a direct relationship, such as employment, ownership, or investment. Starbucks boasts of a wide variety of over 30 coffee products that customers can choose from. This part of the SWOT analysis of Starbucks Coffee Company identifies external strategic factors that impose challenges to international expansion and market penetration. In this case, Starbucks uses high pricing to differentiate itself from the rest of the competition (Starbucks, 2011). The companys coffee stores are also located in different large chains. Common examples of internal stakeholders in companies are senior management, project sponsors, and project team members. In order to stay competitive, Starbucks redefined its strategy and changed its risk appetite. Thats the role a small group of social media strategists has taken on for Starbucks partners (employees) who communicate with each other through Facebook, Twitter and Instagram. External stakeholders are those who do not have a direct tie to the company. We hope the article Stakeholders of Starbucks (Stakeholder analysis of Starbucks) has been helpful. Thus, Starbucks Coffees corporate social responsibility efforts fulfill the interests of this stakeholder group. A handful of strategic priorities makes it easier for external stakeholders to assess what matters most to the company. The third place concept as practiced by Starbucks has helped to turn its stores into an ideal environment away from home where customers can relax, surf the internet, or listen to music (Patterson et al., 2010, p. 45). (1998). Today, thanks in part to Gates Sr., there are more than 25,000 Starbucks locations that employ more than 300,000 people. Puyt, R., Lie, F. B., De Graaf, F. J., & Wilderom, C. P. (2020). Stakeholders can be briefly defined as any party who are interested in an organization. Imitation of Starbucks concept by such competitors as McCafe and Gloria Jeans also played a role in the failure of Starbucks as customers could no longer identify Starbucks unique selling proposition relative to its competitors (Cateora et al., 2011). How Much Caffeine Is In A Starbucks Mocha K-cup? Consider the importance for Starbucks of developing long-term relationships and alliances with different stakeholders. IvyPanda. Imitability is a weakness that empowers competitors. Launch Your Survey and Start Collecting Insights.
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