Starbucks Internal Evaluation

Starbucks Internal Environment Evaluation

STARBUCKS INTERNAL FACTOR EVALUATON MATRIX

KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE

Internal Strengths

1. Reputation and name .15 3 .45

2. Financial Strength .10 4 .40

3. Employee quality & training .10 3 .30

4. Strong management team & business

strategy .10 3 .30

5. Good relationship with suppliers .05 3 .15

6. Innovative ideas and aggressive

Research and Development .15 4 .60

Internal Weaknesses

1. Lack of presence in coffee producing

Countries & reliance on US market .10 2 .20

2. Operation hurdles in new countries .05 2 .10

3. Union disputes and legal actions .05 2 .10

4. Overcrowding the market .10 2 .20

5. Volatile coffee market causing

selling price fluctuations .05 3 .15

TOTAL 1.00 2.95

As seen in the above Internal Factor Evaluation Matrix Starbucks’ rated score is well above the average of 2.50. With their reputation and brand name they are able to expand their business and offer new products with less effort than those companies who are not as well known. Starbucks financial position is another of its internal strengths. With a Net income of $550.80M, Revenue of $7.08B, and a Quarterly revenue growth of 24.2% it is far ahead of its competitors and has ample funds available for its extensive research and development. Research and development is where Starbucks has another great advantage. This company is constantly introducing new products, flavors, and ideas to attract new customer sectors and further its world wide growth. Along with all of its new product introductions Starbucks is even able to introduce coffees from all over the world. The relationship this company has with its suppliers is excellent and allows them to import coffee from several countries to then export to their...