Environmental Analysis Paper

Environmental Analysis Paper

Jorge Baro

MMPBL 590

June 18 2012

Environmental Analysis Paper

To compete in domestic and global markets, organizations must have a flexible strategic plan that can respond to the changes in the trends and forces that have a tremendous influence on businesses today. Starbucks in the 90s was the main company involved in the gourmet coffee industry rise. After its successful opening in Seattle in 1971, Starbucks has expanded both domestically and internationally. Starbucks has become “the premier roaster and retailer of specialty coffee in the world, with more than 16,706 (December 2009) stores in 50 countries and, with every cup, we strive to bring both our heritage and exceptional experience to life” (Starbucks, company profile, 2012, p. 1). Part of the success comes from their continuous innovative and imaginative way to provide new ready-to-drink beverages and expanded coffee packaging offerings. Also the success is attributed to their “unique marketing strategies.” “These strategies include: offer an excellent product through stringent quality control accomplished through vertical integration; adopting a profitable niche strategy in a weak coffee market; inform the consumers to an innovative coffee experience by meeting the consumers demands; by building and maintaining a workforce motivated to offer superior service and convey the coffee experience to consumers; and convey other Starbucks branded consumer products” (Starbucks Coffee Company, John Wiley and Sons, Inc, 2012. p. 19).

Economic Factors

Economic factors have an influence on the organizations operating in the economy. Starbucks like many corporations in the United States is not immune to the effect of the dollar falling and the economic hardships experienced in 2008. “Economic Factors concern the nature and direction of the company in which a firm operates because consumption patterns are affected by the relative affluence of various market segments, each firm...