Essay About Premier Purveyor Of The Finest Coffee And Prices Of The Product

Starbucks Case Internalanf External Analysis
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[pic 1][pic 2][pic 3][pic 4]Vision and Mission Statements and StrategiesOur visionTo inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.Our missionTo establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.StrategiesEarlier Starbucks strategies revolved around its main objective of providing the best qualities to customers this caused the prices of the product to be higher than other competitors who had the same type of products. But as recession hit the global market they decided to change their strategies with focusing a little on the prices also so that they could match the now budget-conscious people. They changed their strategy especially after they lost their sales due to recession coupled with McDonalds introducing the same products at a significantly cheaper price.Modified Vision and Mission StatementsVisionTo enrich human spirit with one person, one cup and one neighbourhood at a time.MissionTo establish Starbucks as the producer of finest coffee in the world while maintaining the highest quality for our customers and maximizing value for our shareholders with being uncompromising on ethical beliefs while we grow.The vision statement didn’t need a lot of changing but the mission statement was modified to include shareholders who are another important stakeholder in this company. Another thing that was added was the unsaid promise of keeping together with the ethical beliefs and morals and not changing even when they are growing.External EnvironmentThe following are the external opportunities: Entry into Asian markets.Competition with McDonald became an opportunity for them as it created awareness for the coffee category overall.Co-branding with other food manufacturers.Whole bean sale in supermarketsThe following are the threats that Starbucks faces:There is an economic recession.They were not proactive to McDonald’s low prices of coffee.High competition both locally and in foreign markets.Variation in coffee prices in developing markets.Health consciousness increasing.Cultural and political issues in local and foreign countries.External Factor Evaluation Opportunities/ ThreatsWeightsRatingScoreOpportunitiesEntry into Asian markets.0.1540.6Awareness for the coffee category overall0.240.8Co-branding with other food manufacturers0.130.3Whole bean sale in supermarkets0.0530.15Threats There is an economic recession0.1520.3McDonald’s low prices of coffee0.120.2High competition 0.0530.15Variation in coffee prices in developing markets.0.0510.05Health consciousness increasing.0.0510.05Cultural and political issues in local and foreign countries.0.130.3Total2.9Competitive Profile MatrixStarbucksMcDonaldsDunkin DoughnutsCritical Success FactorsWeightRatingScoreRatingScoreRating ScoreAdvertising0.120.230.320.2Coffee quality0.240.820.430.6Price Leadership0.120.240.430.3Financial Positions0.0520.120.120.1Global Expansion0.1530.4540.630.45Market Leadership0.240.810.230.6Customer Loyalty0.230.610.220.4Total3.152.22.65Internal Environment