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Starbucks in the UK | Analysis

Business strategy is a permanent plan of action designed to achieve a particular goal or group of goals or objectives.

Strategy is a management's game plan for conditioning the performance of the enterprise. It states that how businesses should be conducted to attain the desired goals. Without a strategy management does not have a roadmap to steer the professionals and their groups.

Company Introduction

Starbucks is the famous and most significant coffeehouse in the word as well as Starbucks Organization is an international coffeehouse string located in Seattle, Washington, USA with 17, 133 stores in 49 countries. Starbucks provides drip brewed espresso, espresso-based hot beverages, other hot and wintry drinks, coffees, salads, hot and wintry sandwiches and panini, pastry, treats, and items such as mugs and tumblers.

Starbucks has always been the spot to find the world's best coffees. 1970s The first Starbucks opens. The name comes from Herman Melville's Moby Dick, a vintage American novel about the 19th century whaling industry. The seafaring name seems befitting a store that imports the world's finest coffees to the cool, thirsty folks of Seattle.

Mission Statement

To inspire and nurture the real human spirit- one person, one glass, and one neighbourhood at a time

Our Coffee

It has always been, and will always be, about quality. We're interested in ethically sourcing the finest coffee beans, roasting them meticulously, and improving the lives of folks who expand them. We caution deeply about all of this; our work is never done.

Our Partners

We're called lovers, because it's not just a job, it's our enthusiasm. Together, we adopt diversity to make a place where each of us can be ourselves. We always treat each other with value and dignity. And we hold each other to that standard.

Our Customers

When we live fully engaged, we connect with, have a good laugh with, and uplift the lives of our customers- even if just for minutes. Sure, it starts with the promise of a properly made drink, but our work runs far beyond that. It's really about human connection.

Our Stores

When our customers feel this sense of owed, our stores become a haven, a rest from the problems outside, a location where you can talk with friends. It's about entertainment at the rate of life-sometimes poor and savoured, sometimes faster and always packed with humanity.

Starbucks in the UK

In May 1998, Starbucks has effectively enter the Western market through its acquisition of 65 Seattle Caffeine Company stores in the UK. Both companies shared a common culture, concentrating on a great dedication to customised coffee, similar company principles and a common respect for folks and the environment.

The layout and atmosphere of Starbucks stores are specifically made to be cosy and close, while at the same time providing people who have their own personal space to use as they wish. The mixture of sofas, armchairs, caffeine tables and chairs, bars and stools and conference room tables means that there surely is something for everybody.

Those looking for tranquility abroad or the office can relax and linger in an armchair and get away from into a book, whilst those looking for an intimate place to meet friends can huddle on a sofa and talk more than a mug of espresso, as they would in their own house. Soft light and vocals make the experience complete.

SWOT Analysis

SWOT analysis is an extremely useful tool to comprehend different situations and helps in decision-making for any type of situation in businesses and organizations. SWOT involves four different movements and it means Advantages, Weaknesses, Opportunities and Hazards.

The SWOT examination mainly offers a good support for looking at strategy of your company, its position, tendencies and route of business. It is fairly simple to complete a SWOT examination and may be used for business planning, strategic planning, competitor evaluation, marketing, business development, product development and making research records etc. A SWOT examination measures a business product and the ideas or concepts behind an effective business strategy.

Following are a few examples for which a SWOT analysis may be used to assess a performing or a proposed business:

Position of any company on the market and its own commercial feasibility

To define and increase the ways of sales distribution

To identify a product or a brand

To make a business idea or idea

Finding tactical options like talking about the ways to get into a fresh market or starting of a new product

To provide chance for a gain

To visit a potential partnership

To find better suppliers or changing a present-day supplier

To outsource services, activities or resources

To find investment opportunities

SWOT Analysis of Starbucks


Starbucks is known as the market leaders of the coffee market

Customers are very happy with their service and say it excellent

Customer feedback implies that the customers are content with the quality as well as flavor of the coffee

Starbucks is operating its business in 40 countries worldwide

Starbucks is known as a global coffee brand that is made after a reputation for fine products and services

People have high brand understanding for Starbucks

The company motivates its employees by training different strategies and by giving a good working environment that really boost the performance of the employees and ends up with getting more business to the company

Starbucks believe in a good marriage with its suppliers

Strong budget of Starbucks in the market in coffee market is a genuine plus

Starbucks having an edge on its competition using its customer based mostly loyalty

Starbucks has become globalised as functioning in many countries

The company has the majority of high awareness or best locations to catch the attention of the maximum of its customers

It is becoming a business market innovator with a internationally renowned brand

The company is famous for its special flavors and drinks


Starbucks offer high price for its products as compared to the other competition in the market like Costa, Caf Nero etc.

By producing and applying high quality specifications the operating cost has become higher.

Most of the business gains are highly reliant on its caffeine products

The company also facing a growing number of competitors in this growing market

Starbucks is having less control over stores beyond your US

Closing of lots of stores in several countries is offering hard time to the company

Protest from some environment coverage groups or businesses is another problem, that the business is having in recent times


Advance technology options can be utilized for the business with a solid financial hold as compared to other names

Brand expansion in global market will be a great opportunity for Starbucks

Co-branding with other manufacturers for different food items and drinks, may provide an possibility to further expand the business and to get some more talk about of the market

Launching of some services in Parts of asia looks attractive

Product diversification

Option to explore the marketplace by introducing variety of products

The company may plan to offer some new products for its customers

The company may attract people who have new presentation designs


As other business security is the main element concern for Starbucks at different community places

New Rivals with better plans can be a huge threat to the company in these times

Low price offers from its competitors

Volatile costs of espresso in producing countries

Political and culture issues in overseas countries

Dissolving signals of potential espresso markets

The PEST Framework

PEST analysis actions a company market and its own potential according to external factors, which are Political, Economic, Public and Technological. It is helpful to complete a PEST analysis, prior to a SWOT analysis. In a nutshell PEST analysis steps market.

Political Factors

Political factors include federal rules & restrictions and other legal concern as well as both informal and formal rules, that your company has to follow. When Starbucks enter into a new market then it has a lot of challenges plus some of those are:

Pricing regulations

Political instability

Taxation guidelines and Policies

Employment Laws

Environmental laws

Wages legislations

Property protection acts

Trade restriction or limitations

Economic Factors

Different monetary factors may influence the purchasing electric power of potential customers and the cost of capital of the company.

When Starbucks launched a fresh coffeehouse in UK, the business has affected by the local economic growth, interest rates, currency exchange rates and the inflation rate

in the spot. The factors of this kind may have major influences on how businesses operate and how they make decisions for the business. For example, interest rates will affect the price tag on capital and therefore the business grows and expands to a certain degree. In the same way, the exchange rates will have an effect on the costs to export goods, supply of the merchandise and price of imported goods to a region. It is vital for Starbucks as it imports coffee beans from African countries. Pursuing are some important elements that are significant for a firm and its businesses:

Type of monetary systems in various countries to operate

Interest rate

Discretionary income

How efficient will be the financial markets of an region

Economic development rate

Exchange rate and how secure is the currency of host country

Government involvement at different times

Social Factors

Social factors play a really pivotal role when introducing a product in international market segments. On its entry to UK Starbucks targeted young people keeping in mind the folks and the tendencies in the region. Here are some factors which could have an effect on customer needs and the full total size of a potential market.

Health consciousness

Population growth rate

Age distribution


Working environment



Class structure

Culture etc

Technological Factors

Technological factors may help companies to lessen the number of obstacles to entry market or to lessen the intensity of a barrier. Starbucks is using new technology and equipment in different countries and employing this technology they have got managed to increase production of their coffee products. Following are some factor that may influence a company or its products:

Research and development activity

Impact on cost structure

Automation of the system

Technology incentives

Rate of the technological changes

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