Starbucks Coffee

Starbucks: beginnings
 Starbucks: beginnings

Every day, we go to work hoping to

do two things:

1. share great coffee with our

friends
2. help make the world a little
better.
 Starbucks: beginnings

The first Starbucks opened in 1971 as a

single store in Seattle's.

In 1981, Howard Schultz (Starbucks

chairman and chief executive officer)
had first walked into a Starbucks store.

In 1983, Howard travelled to Italy and

became captivated with Italian coffee
bars brought it to America
 Starbucks: beginnings

He left Starbucks for a short period, and

returned in August 1987 to purchase
Starbucks with the help of local
investors

From inception is not only most

celebrated coffee and the rich tradition,
 POLITICAL EFFECT ON
STARBUCKS
The Starbucks business environment in
Middle East and South Asia suffered due
to war on Iraq in early 2003 by the US.

Starbucks was boycotted at the top list due

to Shultz close relationship to the Jewish

Starbucks had two class action suits pending

 ENVIROMENTAL EFFECT

Starbucks waste millions of litters of water

a day by keeping it running in order to
make the coffee.

Their cups are made out of materials that

can't be recycled.

For the disposable coffee cups, the cups

 ECONOMICAL EFFECT
Non Government Organizations want the
company to get certified beans and those
coffee beans should be grown and marketed
under some economic and social conditions.

Economic recession in European countries

in the early 2000s affected the sales and
revenue declining for the company.
 LEGAL EFFECT
Starbucks must ensure no violation of in the
home market and countries from where they
buy raw materials.
It should also stay alert about introduction of
caffeine production and consumption related
policies and regulations by health authorities.
Introduction of stricter customs and trade
regulations
 SOCIAL EFFECT

Increasing employment regulation,

especially in developing countries,
threatens Starbucks Coffees access to
the labour market.
This external factor also impacts
Starbucks through increased spending for
human resources.
SWOT ANALYSIS
 STRENGHT
Most popular brands.

Growing population of loyal customers

In addition, the companyhas a global

network of suppliers.

This part of the SWOT analysis shows that

Starbucks is resilient through
diversification and a global supply chain.
STRENGHT
 WEAKNESS
Higher prices of Starbucks products make them
less accessible to the large population of lower-
middle class and lower class consumers.

Starbucks Coffees business can be easily is

imitable in terms of products and caf ambiance.

This part of the SWOT analysis shows that

Starbucks must innovate to overcome its
weaknesses, especially the imitability of
products
 OPPORTUNITIES
Starbucks has the opportunity to expand in the
Middle East and Africa, where the firm currently
has minimal presence.

The company also has the opportunity to expand

in Asia, where economic growth rates are high

Partnerships and alliances can also strengthen

Starbucks Coffees competitive position.

SWOT analysis shows that Starbucks has major

opportunities for global growth.
THREATS FACING STARBUCKS
Low-cost coffee from firms like
McDonalds and Dunkin Donuts
compete against the more pricey
Starbucks products.

Company can be easily imitated.

SWOT analysis shows that Starbucks must

ensure competitive advantage amid
potential negative effects of the
 RECOMENDATION
Starbucks Coffees SWOT analysis shows that the
firm has the business strength to maintain
competitiveness.
Exploration of opportunities for global expansion
as soon as possible to gain advantage

Starbucks can also increase efforts for trademark

and intellectual property protection to reduce the
threat of imitation.
THANK YOU!!!