Strategic management analysis Essay Example | Topics and Well Written Essays - 3000 words - 1

Strategic management analysis - Essay ExampleThe company is the largest coffee tree ambit store in the world and has its operations in 61 countries with more than 20000 stores. The product portfolio of Starbucks includes hot and cold drinks, sandwiches, coffee beans, snacks, pastries, etc. The company has its foundation in Seattle long time back in 1971 as a roaster and retailer of local coffee bean and has expanded to a large extent since then. The company is the market leader in its coffee segment and its basic strategies are competence based strategy and the focus strategy based on which it adds value to its products and establishes the image of luxury and elegance (About Us 2012). The report presents the strategic management analysis of Starbucks considering its international segment out of the three segments. The country chosen in its international segment is UK. Starbucks entered the UK market in 1998 with the investment of $83 million and launch of more than 60 stores (Luss ier 2008). The present coffee shop market environment of UK is very competitive with presence of septuple players in the market including branded coffee shops, independent retail stores and small coffee stores presenting a tough competition to Starbucks (Weston 2009). The report analyses the external environment of Starbucks with watch to UK coffee market, strategic capability of the company and the strategic fit with the help of suitable models such as Porters five forces, value chain analysis and PESTEL analysis. Task A (1) Analysis of Starbucks external environment Macro-environment PESTEL Analysis Political touch on 3 of 5- Coffee beans is grown in the developing countries. The study aspects about which the discussions keep going on in the UK political environment are work conditions and child labor. The political influence is also high by tariffs and taxes (Press Release Project Cafe11 UK 2011). Economic Impact 4 of 5-The major business challenge for the industry as a who le is related to the economic inlet of 2008. Owing to the recession period, consumers have become much more cautious with their discretionary expenditures due to the presence of high unemployment and debts on individuals (Weston 2009). Socio-cultural Impact 5 of 5- deal in UK spends more and more on coffee. It is included in their trend to go out and have a cup of coffee. The expenditure on afternoon tea by UK people is 623 million pounds, while on coffee it is 738 million pounds. Customers visit the coffee shops not only for having a coffee drink tho also for sitting down and have a relaxed time out of their daily hectic routine (The Future of the Coffee Market 2012). Technological Impact 4 of 5- Technology has become advanced as better as well as cheaper coffee machines are available to make a broad(a) coffee at home, for instance Senseo. Environmental Impact 3 of 5- There is a considerable increase in the environmental awareness due to which coffee companies in UK have to re main concerned about the way their coffee beans are produced and roasted, the way of the designing of the supply chain and the manner in which they forge and finally sell their coffee products (Weston 2009). Legal Impact 3 of 5-