Bus 402 Swot Analysis

STARBUCKS: SWOT ANALYSIS

THERESA MEROLD

BUS 402: STRATEGIC MANAGEMENT AND POLICY

INSTRUCTOR: J. BANKS

NOVEMBER 26, 2012

A SWOT analysis is defined as “strengths, weaknesses, opportunities, and threats

analysis; examining the internal strengths and weaknesses of a firm, comparing them with

external opportunities and threats, and matching the two in order to choose a strategy based on

the analysis” (Marcus, 2011). Several companies, businesses, firms or whichever word you

prefer use SWOT analysis. These companies have separate business units (SBUs) within.

Therefore, a SWOT analysis is used as a method of evaluation in helping draft strategies for

goals that need to be achieved within these SBUs.

STARBUCKS

In 1971, the first Starbucks opened. By the close of the fiscal year 2005, there were 10,

241 store locations worldwide. (www.ecollege.com). Total net revenues for the company at the

end of fiscal year 2005 totaled over $6 million. Once Starbucks began offering stock, the stock

has continued an upward trend.

Jerry Baldwin, Zev Siegel, and Gordon Bowker opened the first Starbucks Coffee, Tea,

and Spice in Seattle. These three wanted to open up a place where people could enjoy

the finest teas and coffees. By the early 1980’s, these three went different directions even though

the stores were doing well. “ Siegel experienced burnout and left the company. Baldwin

functioned as CEO (chief operating officer). Bowker remained as an owner but devoted his time

elsewhere.” (www.ecollege.com). Howard Schultz joined Starbucks in 1982. “Shultz’s

aspiration for Starbucks was to become the world’s most respected brand name in coffee and for

the company to be admired for its corporate responsibility”(www.ecollege.com).

Starbucks drafted a mission statement in 1990. The mission statement of Starbucks is to

“Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining

our uncompromising...