The stakeholder will be directly affected by the success or failure of the organization. Internal stakeholders of Starbucks Shareholders A company's shareholders are the people and organisations who invest in the company and share in the benefits or losses of ownership. International Marketing. Use a Multi-Channel Promotional Strategy Starbucks predominantly uses its website, social media channels and in-store displays to promote the brand and the products. Delivering our very best in all we do, holding ourselves accountable for results. of caffeine, over four times the amount of caffeine Internal stakeholders may include top management, project team members, your manager, peers, resource manager, and internal customers External stakeholders may include external customers, government, contractors and subcontractors, and suppliers. This competitive environment requires that the company continuously improve its business strengths to optimize its financial performance and growth trajectory. Stakeholders are parties that take interest in a specific company, often for financial investment. Conduct Initial Stakeholder Outreach. Instead . What are Starbucks CSR initiatives? The company satisfies most of the concerns of stakeholder groups like customers, employees, suppliers, the environment, and investors. 82% of Starbucks employees feel their work environment is positive meaning Starbucks is a happy place to work. One of the Starbucks guiding principles is "to contribute positively to communities and environment.". All rights reserved LCHW. Internal stakeholders include employees, board members, company owners, donors and volunteers Anyone who contributes to the companys internal functions can be considered an internal stakeholder. Based on the current condition of the business, some of the most notable strategic management concerns enumerated in this SWOT analysis of Starbucks Coffee Company are the imitability of products and the corresponding threat of imitation, the threat of competition involving low-cost sellers, and independent coffeehouse movements. Customers are the most important stakeholders of Starbucks. These recommendations focus on minimizing the negative impacts of the internal and external factors enumerated in this SWOT analysis. August 4, 2021. https://ivypanda.com/essays/starbucks-5/. Strategic planning involves the design of options from which the company . Examples of internal stakeholders include employees, shareholders, and managers. Your privacy is extremely important to us. Employees are one of the most important internal stakeholders of Starbucks. Starbucks has been the target of activists who are both for and against its actions. (1998). The branding symbols should be easily recognised. The current strong brand and corporate image of Starbucks indicates the firms efforts to include stakeholders in its strategies and success. 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. Consumers across the world are increasingly demanding fair practices, and this has seen many firms change their operating practices in order to accommodate these demands (Northey, 2007), and Starbucks is no exception. Sustainability Inititives. However, the companys performance in addressing employees as stakeholders has room for improvement. In the SWOT analysis model, effective capabilities for managing a global supply chain strengthen Starbucks by supporting operations that connect production (e.g., Arabica coffee beans in plantations) to consumption (e.g., caffeinated drinks in coffeehouses). Internal stakeholders are, as the name suggests, stakeholders that exist inside a business. Based on the foregoing arguments, the following recommendations are made to enable Starbucks enhance its business philosophy in the face of increasing competition and challenging business environment: Starbucks sells experience, and not just coffee. The smaller boutique-style coffee shops are very popular with Australians because they offer personalized service, familiarity, and intimacy (Patterson et al., 2010). ICO. Internal Stakeholders serves the organisation, but External Stakeholders deals with the company externally. The coffeehouse chain business faces issues such as competition, imitation, and social trends that oppose international players in local markets. Stake: Employment income and safety, #4 Suppliers and Vendors. Customers 3. Stronger market position through additional partnerships or alliances. Ontario, Canada: A & I. Patterson, P. G., Scott, J., & Uncles, M. D. (2010). Smith, M. D. (1996). It must abide by the rules and regulations, tax, and other relevant issues very carefully as any breach may be costly for it. Starbucks. Starbucks could also consider partnering with other unrelated firms such as airlines and multinational retail chains like IKEA and Wal-Mart, car washers, and cinemas. Multinationals should be in a position to adapt environmental differences between markets successfully. The companys CAFE program has led to higher biodiversity and shade quality in certified coffee farms. It is worth noting that it serves millions of customers every week which attests to an excellent customer retention (Starbucks, 2023). Starbucks global expansion and continued dominance in the coffeehouse industry indicates high financial performance. Stake: Product/service quality and value, #2 Employees. These are stakeholders who are directly affected by a project, such as employees. They are highly affected by the decisions, performance, profitability and other activities of the company. (2010). 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. They can affect how successful Starbucks is by doing their job and providing inputs into decisions that go into creating products and services that customers want. By this time, the company already had 140 stores in operation. External stakeholders are individuals or groups outside an organization who are vested interest in a company's success. For example, the firms supplier diversity program ensures that more suppliers from around the world are included in the supply chain. Also, the report shall endeavour to provide recommendations for the case study in view of the marketing issues raised. Measuring performance using SWOT analysis and balanced scorecard. Weaknesses are internal factors that reduce or limit the capabilities of the coffeehouse company. They can be owners, shareholders, employees . Pepsico will market and distribute Starbucks products in several Latin American countries for 2016. Also, this SWOT analysis considers imitation as a major threat against the coffeehouse business. ). This SWOT analysis of Starbucks Coffee considers the strengths and weaknesses (internal strategic factors) inherent in coffee, coffeehouse, and related businesses. As part of the Starbucks mission we are committed to maintaining our uncompromising principles while we grow. Stakeholders can be briefly defined as any party who are interested in an organization. Customers Customers are the external stakeholders of the company, no customer mean zero profit. Starbucks continues to improve its corporate social responsibility practices to address the concerns of different stakeholder groups. Examples of external stakeholders are customers, suppliers, creditors, the local community, society, and the government. Starbucks to Expand Premium Single-Serve Coffee Offerings. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. . Starbucks Coffees main strengths are as follows: Starbucks Corporation has one of the worlds strongest and most popular brands. At present, much of this system remains, with Starbucks paying unexpectedly low taxes in the U.K. This business analysis case also considers the opportunities and threats (external strategic factors) related to the competitive landscape, which involves the strong force of competition, as determined in the Porters Five Forces analysis of Starbucks Corporation. Private: What Are Internal And External Stakeholders In Starbucks? It is also recommended that Starbucks Corporation consider pricing strategies that attract more customers. For example, Starbucks Corporations marketing mix or 4P indicates product mix expansion to include tea, food, and merchandise, in addition to coffee. They are not employees and do not have any direct financial interest in the profit or loss of the company. The industry environment of Starbucks involves diverse challenges, especially because of the companys moderate diversification. Its Starbucks. Our responsibility starts with being accountable to Starbucks stakeholdersour partners, customers, shareholders, suppliers, community members and othersand communicating openly . A firm's attempts to manage the web of relationships between internal and external stakeholders in order to create value is known as ______. School principals interact closely with internal stakeholders, teachers, students and employees On the other hand, there are external stakeholders, such as parents, school authorities, local policy makers, and donors. It is recognized worldwide for its high-quality coffee and espresso drinks, as well as its commitment to social responsibility and environmental sustainability. The empire filters back: consumption, production, and the politics of Starbucks Coffee. The company has even been involved in lawsuits because of these protests. In addition, any political upheavals in the countries where Starbucks imports its coffee beans would greatly interfere with the companys operations. Also significant in this SWOT analysis is higher business diversification, which can improve Starbuckss long-term stability. Once you own the shares, you can hold or sell them its up to you. Consider the importance for Starbucks of developing long-term relationships and alliances with different stakeholders. Years of coffee drinking has seen many Australians develop a more sophisticated palate and as such, they are able to enjoy a stronger and straighter coffee with no need for flavours and syrup shots to disguise the taste (Patterson et al., 2010). Starbucks Corporations weaknesses are as follows: Starbucks has high price points that maximize profit margins but reduce the affordability of its products. at Starbucks coffee as an example of a company that has both internal and external customers, and we should be able to apply some of the terminology that we introduced above. The database is updated daily, so anyone can easily find a relevant essay example. Internal stakeholder group External stakeholder group As seen from the Fig. In. This group involves owners, investors, customers, competitors, employees and suppliers. The revenue growth in 2010- 2014 was at a . For instance, small local competitors can develop beverages similar to the companys products. The internal IvyPanda. 1 the most of the stakeholders that were identified for CSR represents based on the stakeholder power-interest matrix key players with higher level of both dimensions. This study discusses the internal and external business ethics practiced at Starbucks Corporation. Employees 2. Copyright 2017 2025. Such a move would impact positively on Starbucks business model. Origins of SWOT analysis. The Starbucks journey began with a single store in Seattle in the year 1971. Advances in technology affect product innovation, product services, customers store experience, and the way organizations are able to interact with other business partners. The division contributed 13 percent of PepsiCos net revenues in 2015. These shops provided personalized, individualized and intimate service, something that Starbucks could no longer provide. Sometimes these interests can conflict. Washington, D. C.: World Bank. Starbucks should also continue to be produce innovative products in order to capture the changing tastes and preferences of its growing consumer base. In August 1987, Schultz bought Starbucks for $3.8 million He served as CEO from 1987 to 2000, stepped down briefly and then returned to take the helm in 2008. A companys shareholders are the people and organisations who invest in it and share in the benefits or losses of ownership. Web. Starbucks is expected to file for all important permits and forms, before it can be authorized to conduct business in a foreign country (Buckstein, 2010). Savvy Shoppers in a Brave New World. Stake: Revenues and safety, #5 Communities. In the most generic form of stakeholder groups, Starbucks has an effect on its Employees, Customers, Community, Suppliers, Shareholders, Government, and Competitors. Cateora, P., Papadopoulos, N., Gilly, M., & Graham, J. Starbucks has a long-standing commitment to sustainability , and as part of our ongoing aspiration to reduce waste and become a resource positive company, we are continuously looking for ways to better manage our waste in stores and in communities; and developing more eco-friendly operations, from stores to supply chain. The company is always introducing novel products in the market to suit the changing demands, tastes and preferences of its growing customer base. Jolanda Logan Consulting (JLC) is a boutique consulting agency led by Jolanda Logan, a strategic, business-minded communications professional with more than 25-plus years of progressive experience . The external strategic factors in this part of the SWOT analysis show that Starbucks can improve its industry position by exploiting the opportunities, such as through diversification and alliances in the global industry environment. Stakeholders Businesses have different types of internal and external stakeholders, with different interests and priorities. (2010). August 4, 2021. https://ivypanda.com/essays/starbucks-5/. Regional and state unemployment 2010 Annual averages. Successful marketing campaigns and branding strategies are needed to counteract the effects of these trends.