Starbucks Primary Stakeholders Analysis Essay Example - PaperAp.com Starbucks has indeed the highest share of the coffee shop market in the USA in terms of number of stores; however, it is well behind the market leader Costa Coffee in the UK (Lock, 2022). External stakeholders are individuals or groups outside an organization who are vested interest in a company's success. The company had previously relied on word of mouth and a strong global brand as part of its marketing efforts However, with competition getting stiffer by the day, Starbucks has had to employ various promotional strategies such as the use of loyalty cards. Internal and external factors affecting Starbucks - UKEssays.com 3 pages, 1441 words. What Are Internal And External Stakeholders In Starbucks? Houston Chonicle, 1. Copyright 2017 2025. Threats against the coffeehouse business are identified in this part of the SWOT analysis. In this partnership, Starbucks pays for 56% of tuition fees for employees junior and senior years at the University. (1998). The internal customers will be the people that work within the business of Starb. In the context of corporate social responsibility, Starbucks needs to account for the demands or interests of stakeholders, because the company is viewed not just as an organization for profit, but also as a citizen of society. This paper seeks to describe the relationship between strategic planning and financial planning in the case of Starbucks. With being the leader in a multinational industry, Starbucks understands that it has to manage and maintain its relationships with all its stakeholders in order to continue its reign on coffee. In the case of Starbucks, the companys logo still retains the mar maid image that was adopted upon its inception in 1971. To have a positive impact on the communities it works with and in, Starbucks develops community stores that partner with local nonprofits The nonprofits these stores work with offer services aimed to meet the needs of the communities theyre located in. This way, it can take advantage of any feedback from these groups and make changes as needed. Internal stakeholders are those 'whose interest in a company comes through a direct relationship, such as employment, ownership, or investment.' External stakeholders are anybody 'affected somehow by the actions and outcomes of the business. A lot of service firms crossing international borders can learn a lot from the failure of Starbucks in Australia. 13 Internal Stakeholder Examples (2023) - Helpful Professor Starbucks Corporations weaknesses are as follows: Starbucks has high price points that maximize profit margins but reduce the affordability of its products. The three major stakeholders for Starbucks are their suppliers, employees, and customers. For example an external OD consultant may take a lot of time to understand the organization where internal OD consultants have a stronger understand being an insider of the organization. Origins of SWOT analysis. Web. The company should consider partnering with other firms in foreign markets so that it can ride on the success of the local company. A stakeholder is anyone who has a "stake" in the success of a business - a person who can be affected by, or affect, the operations of a business. Such sociocultural trends influence consumer perception and purchasing behaviors, as shown in the PESTEL/PESTLE analysis of Starbucks Corporation. How the local competition defeated a global brand: the case of Starbucks. Even the design and ambiance of the companys cafs are imitable. Introduction Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich brewed, Italian style . Advances in technology affect product innovation, product services, customers store experience, and the way organizations are able to interact with other business partners. 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. Customers Customers are the external stakeholders of the company, no customer mean zero profit. It took out an eight-page ad in the Wall Street Journal declaring its new vision, a message directed at both customers and internal stakeholders. Read More These are the people who will consume the end products or use the services of the company They, therefore, decide whether a business succeeds or not, even though they are not concerned with its day-to-day running. Purpose At Work: How Starbucks Scales Impact By Listening To - Forbes Stakeholders, Mission, and Vision. Starbucks was started in 1971 and since then, the company has expanded very fast. Starbucks imports coffee beans from different countries and each of these countries has its own tariff and customs regulations. 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. 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. Bureau of Labor Statistics. Stakeholders: Nestle Private Limited Analysis - GraduateWay Dunkin Donuts Vs. Starbucks. Employees are also given wages above the legally mandated minimum wage. External stakeholders are those who do not directly work with a company but are affected somehow by the actions and outcomes of the business. For example, it is one of the first companies to offer full healthcare to full-time and part-time employees. to gain and sustain competitive advantage to manage various stakeholders effectively Effective guiding policy is supported by and stays consistent through the use of ______. For example, Starbucks now non-fat milk coffee (Wall Street Journal, 2009). Starbucks has also been successful because it has managed to create an atmosphere that enables customers to relax away from home. The division contributed 13 percent of PepsiCos net revenues in 2015. However, the companys performance in addressing employees as stakeholders has room for improvement. Currently, our board has 9 directors, a substantial majority of whom . Starbucks must address the interests of numerous governments as stakeholders, considering the companys global presence. Web. Cateora, P., Papadopoulos, N., Gilly, M., & Graham, J. Why are customers external stakeholders? Mason, A., Cole, T., & Goza, N. (2017). Innovation can make the companys products more difficult to imitate. This has seen Starbucks launch the Starbucks Card (Starbucks, 2011) to facilitate customer loyalty. The first Starbucks opened in 1971 at Seattle's historic Pike Place Market and went public two decades later in 1992. In addition, the company should consider diversifying to other food products besides coffee in a bid to cushion its revenue collection during harsh economic conditions. Stakeholders are parties that take interest in a specific company, often for financial investment. Web. In some countries like New Zealand, Starbucks gives very low wages to juvenile workers (youth rates). These shops provided personalized, individualized and intimate service, something that Starbucks could no longer provide. There are two types of stakeholders: internal stakeholders and external . Starbucks has many different stakeholders such as individuals, and institutions (hedge funds and mutual funds). Starbuck's financial performance will be an analysis and comparison of its performance through the years 2007- 2014. 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. By contrast, external stakeholders include suppliers, governments, customers, trade unions, and creditors. (2007). We use cookies for website functionality and to combat advertising fraud. Other relevant articles for you are: Competitors of Starbucks (Competitor analysis of Starbucks), Lock, S. (2022) Selected leading coffee shop chains in the UK, available at: https://www.statista.com/statistics/297863/leading-coffee-shop-chains-in-the-united-kingdom-uk-store-number/ (accessed 01 March 2023), Sainato, M. (2021) Coffee-making robots: Starbucks staff face intense work and customer abuse, available at: https://www.theguardian.com/business/2021/may/26/starbuck-employees-intense-work-customer-abuse-understaffing (accessed 23 January 2022), Starbucks (2023) About us, available at: https://www.starbucks.co.uk/about-us (accessed 01 March 2023). Every business has its stakeholders. The factors included competition, economic factors, and technological factors while the internal challenges included lack of work performance culture among the employees, lack of ingredients in some stores, and diminishing company values. External stakeholders are those who do not have a direct tie to the company. Until recently, Starbucks has relied heavily on word of mouth and its strong brand as the main marketing tools but with increased competition and imitation, the company has moved fast to enhance repeat business and customer loyalty. In the absence of internal stakeholders, the organisation will not be able to survive in the long run That is why they have a great impact on the company. . He holds an MSc in Tourism & Hospitality from the University of Sunderland. Stakeholders Analysis - 1484 Words | Studymode These youth rates are often criticized. Starbucks Case Study, SWOT, Internal and External Analysis 1. Starbucks hiring client relationship manager - 12 month FTC in London Stake: Health, safety, economic development. 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. Starbucks products are priced at a premium owing to the perceived upscale image in the eyes of the consumers. ). Within the SWOT analysis framework, this business condition creates a challenging environment where the company needs to use different sets of strategies and competencies that match various industries. Starbucks's Weaknesses (Internal Strategic Factors) Business weaknesses are identified in this component of the SWOT analysis. Starbucks Corporations Organizational Culture & Its Characteristics, Whole Foods Market Stakeholders: A CSR Analysis, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Starbucks Five Forces Analysis (Porters Model) & Recommendations, Harley-Davidsons Stakeholders: A CSR Analysis, Burger Kings Stakeholders: A CSR Analysis, Costco Wholesales Stakeholders: A CSR Analysis, Home Depots Stakeholders: A CSR Analysis, Microsofts Corporate Social Responsibility Strategy & Stakeholders (An Analysis), General Electric Companys (GE) Corporate Social Responsibility (CSR) Strategy and Stakeholders - Analysis, Amazon.com Inc. Stakeholders, Corporate Social Responsibility (An Analysis), Starbuckss Organizational Structure & Its Characteristics, Starbucks SWOT Analysis & Recommendations, Starbuckss Mission Statement & Vision Statement (An Analysis), Starbucks Operations Management, 10 Decision Areas & Productivity, Starbucks organizational culture emphasizes the employees-first attitude, Responsibly Grown and Fair Trade Coffee Starbucks Coffee Company, Stakeholder Analysis & Corporate Social Responsibility (CSR), Starbucks Corporation (Starbucks Coffee Company). Through the use of technology, Starbucks has managed to change its product mix to suit new market segments. Starbucks has corporate social responsibility programs for environmentally sound business. External stakeholders are those who have an interest in the success of a business but do not have a direct affiliation with the projects at an organization. There is two different types of stake holders these are internal and external. Ontario, Canada: A & I. Patterson, P. G., Scott, J., & Uncles, M. D. (2010). Some of the lessons that other aspiring companies who want to venture into the international market can borrow from the failure of Starbucks in Australia is that it is important to study, adopt and embrace the cultural differences in a given country. In addition, the firm can improve youth rates/wages to ensure satisfaction of youth workers in some markets like New Zealand. A handful of strategic priorities makes it easier for external stakeholders to assess what matters most to the company. Starbucks prioritizes employees in its corporate social responsibility efforts. Stakeholders can affect the firm's actions. Simply put, if you stay employed by Starbucks for at least one year from the grant date with no breaks in service, youll receive the first half of your Bean Stock If you remain employed two years from the grant date, youll receive the second half. The company is an advocate of CSR movements, especially those pertaining to sustainability in business. Starbucks: Internal and External Ethics - 2818 Words | Bartleby The 10 Types of Stakeholders That You Meet in Business TASK # 1: Nestle is one of the leading brand in Pakistan. Wall Street Journal. Starbucks has been the target of activists who are both for and against its actions. They also have a legitimate interest in the business, and are generally grouped into two; the internal and external stakeholders. Starbucks has many different stakeholders such as individuals, and institutions (hedge funds and mutual funds). PDF RESPONSIBLE BUSINESS PRACTICES - Starbucks Coffee Company Vlados, C. (2019). Stronger market position through additional partnerships or alliances. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. Instead . - Starbucks Coffee We going to look. Starbucks is a global coffee company that has been in business for over 50 years. Customer. The company has tried to change the formula of some of its products to suit the tastes and preferences of customers in certain markets (Patterson, Scott & Uncles 2010, p. 44). The Customers can be considered as the most important external stakeholders. Starbucks Corporation (Starbucks Coffee Company), examined in this SWOT analysis, positions itself as the biggest coffeehouse chain in the world through innovative strategies that employ business strengths to overcome weaknesses, exploit opportunities, and protect the business against threats and barriers to success in the coffee industry environment. How Much Caffeine Is In A Grande Iced Cold Brew At Starbucks? Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. Essay Example on Starbucks . The companys stores are normally located conveniently on busy streets and in major malls that command heavy traffic. Starbucks Essay - 827 Words | Bartleby A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. Provide a concise explanation of what a priority means. It needs to know that some customers may prefer a more direct approach while others may prefer a more personal approach. Also, the company gradually diversifies its business through new products and new subsidiaries, resulting in the current product mix and brands of Ethos Water, Seattles Best Coffee, Teavana, and others. New York: Palgrave. The company has had to contend with various legal, political, economic and social factors as it undertakes its business activities. Starbucks mission statement is: "To inspire and nurture the human spiritone person, one cup, and one neighborhood at a time". Stakeholders of Starbucks (Starbucks stakeholder analysis) Our risk assessment, supply chain and corporate social responsibility teams also monitor for landscape changes and emerging risks on a continuous basis. Business Analysis, Decision Making: Starbucks Transformational Experience, Howard Schultz View of the Possibilities for the Fledgling Specialty Coffee Market, A Advertising Campaign for Boutique Gelato, Starbucks Company's Pay Model Implementation, An Analysis of a Manufacturing Company Hesketh & Brown, Circa' External Environment and Industry Analysis, 2401 Utah Avenue South, Jolanda Logan - Chief Executive Officer - LinkedIn By this time, the company already had 140 stores in operation. For example, the company competes against major restaurant chains that offer lower-cost coffee products, such as McDonalds and Dunkin. For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders. 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). The recession resulted in an increase in the operational costs of the company (Bureau of Labor Statistics, 2011). Weaknesses are internal factors that reduce or limit the capabilities of the coffeehouse company. 7 Examples of External Stakeholders. Internally, Starbucks stakeholders include the employees, the shareholders, subsidiaries and the management. Buckstein, J. (2011). The company has also had to adjust its product offerings in order to meet the growing demands of the rising number of educated and health conscious consumers. The community may also be worried about how this would affect unemployment rates and other racial inequality issues in their neighbourhood. First name. In 2014, Starbucks boosted its CSR performance for this stakeholder group by giving scholarships to employees based on a partnership with Arizona State University. Stakeholder analysis refers to the range of techniques or tools used to identify and understand the needs and expectations of major interests inside and outside the organization environment. For example, the companys generalized standards for crafted beverages reduce these products cultural alignment with local target markets and consumer preferences. 4.6 Stakeholders - Principles of Management - University of Minnesota 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 Moreno, J. In this company analysis case, the following are the main threats relevant to Starbucks Coffee Company: Starbucks Corporation competes against a variety of firms in the international market. Internal stakeholders include employees, owners, shareholders, and managers They are simply anyone within the organization. The current strong brand and corporate image of Starbucks indicates the firms efforts to include stakeholders in its strategies and success. The company also includes customers as major stakeholders by extending the Starbucks culture to customers at its cafs. Copyright by Panmore Institute - All rights reserved. McDonalds challenging Starbucks with cheaper coffee drinks. Miller, C. C. (2010). Since then, over 300 stores have opened. Starbucks Corporation, the American multinational headquartered in Seattle, Washington, is the world's largest coffeehouse chain. The history of Starbucks dates as far back as 1971 when Starbucks opened its first coffee store in Seattles Pike Place market (Patterson et al. Cateora, P. R., Graham, J. L. (2007). In light of the companys weaknesses, the threat of imitation involves firms that try to copy the taste, look, and feel of Starbucks products. Corporate Governance: Starbucks Coffee Company Internal stakeholders are, as the name suggests, stakeholders that exist inside a business. In addition, the industry environment is subject to independent coffeehouse movements. What to do when stakeholders matter: stakeholder identification and analysis techniques. strategic commitments Mars is the world's leading manufacturer of chocolate, chewing gum, mints and fruit confectionery. Starbucks: Analysis Of External And Internal Strategic Factors (2021, August 4). Companies keen on venturing into the international market must be prepared to encounter various obstacles (Cateora et al 2011).
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