Starbucks Swot

Internal Analysis

a) Operations and Logistics (Strength and Weakness)

Starbucks’ business and operations strategies have proven successful. They are constantly modifying their strategies in order to ensure continued growth and success. They provide office beverage service to larger companies, complete with brewing equipment and merchandise with the Starbucks logo i.e. cups and napkins. Starbucks offers office delivery service for smaller companies, which includes ready to brew packages of coffee, certain pastries, and tea.

Starbucks uses high quality Arabica Beans but unfortunately they don’t have their own beans/farms. It was said that they are planning to have their own farms by 2011.

b) Marketing And Sales (Strength and Weakness)

From the very beginning, the Starbucks marketing strategy has focused on creating the “third place” for everyone to go to between home and work. Creating this unique and relaxing “experience” and “atmosphere” for people has been very important for the company as they have realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted.

c) Human Resources Management (Strength and Weakness)

Starbucks Corporation treats their employees with respect and dignity, they treat them as partners. Starbucks paid more than the going wage in the restaurant and retail industries, granted stock options to both full and part-time partners in proportion to their level of base pay, and offered health benefits for both full and part-time partners. Furthermore, it was rated that 82% of the partners rated being “very satisfied” and 15% as “satisfied” with their jobs when asked by outside audit agencies. They don’t reward their employees and this is considered as an internal weakness.

d) Firm Infrastructure (Strength)

Starbucks Corporation is a decentralized organization since they treat their employees as partners and they give ability to their employees (partners) to take part in organization’s decision making and actions.

e) Customer Service (Strength)

Starbucks has one of the best customer service policies like a drive through, a car parking delivery and nearby offices. they serve free unlimited WiFi to customers Starbucks a competitive advantage.

f) Procurement

One of the keys of success for Starbucks in building the brand is that Starbucks placed quality as its top priority. To distinguish their coffee from the bland and tasteless store brands, Starbucks only purchased Arabica beans from a carefully selected network of suppliers across the globe. Arabica beans were selected because the bean’s chemistry could withstand high roasting temperatures, resulting in a richer flavour. Starbucks also sought vendors who sold products that would protect, and even enhance, the Arabica’s flavour, which required the formation of partnerships across the globe with coffee brewing equipment suppliers who provided products that captured the essence of the coffee brewing tradition. Simplicity was valued over advanced technology

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