Mason, A., Cole, T., & Goza, N. (2017). See our Privacy Policy page to find out more about cookies or to switch them off. On the other hand, external stakeholders are parties that do not have a direct relationship with the company but may be affected by the actions of that company. Burritt, C. (2007). Some examples of internal stakeholders are employees, board members,. It needs to know that some customers may prefer a more direct approach while others may prefer a more personal approach. Pepsico will market and distribute Starbucks products in several Latin American countries for 2016. 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. International Marketing. In the most generic form of stakeholder groups, Starbucks has an effect on its Employees, Customers, Community, Suppliers, Shareholders, Government, and Competitors. Starbucks' Stakeholders: Employees and Customers SWOT analysis applications: An integrative literature review. The firm can improve its corporate social responsibility performance by addressing such issue in this stakeholder group. The literature examines the impact of firms' corporate social responsibility (CSR) activities on employees' organizational identification without considering that such activities tend to have different targets. Moreno, J. Some of the lessons that other aspiring companies who want to venture into the international market can borrow from the failure of Starbucks in Australia is that it is important to study, adopt and embrace the cultural differences in a given country. This case study on Starbucks Companys External and Internal Analysis was written and submitted by your fellow These are standard stakeholders of almost every business that operates in the United States or overseas. Web. The company also includes customers as major stakeholders by extending the Starbucks culture to customers at its cafs. There are two types of stakeholders: internal stakeholders and external . In 2014, Starbucks boosted its CSR performance for this stakeholder group by giving scholarships to employees based on a partnership with Arizona State University. For instance, they rejected an executive compensation plan for the CEO in a non-binding vote in 2021 (Sainato, 2021). Starbucks has many different stakeholders such as individuals, and institutions (hedge funds and mutual funds). Shareholders are a major stakeholder group for Starbucks because the company's success or failure has a direct impact on the value of their investments. (2021) 'Starbucks Company's External and Internal Analysis'. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. One of the lessons learnt is that it is always important to recognize and appreciate the importance of local culture. Ontario, Canada: A & I. Patterson, P. G., Scott, J., & Uncles, M. D. (2010). Trader Joe has a variety of both internal and external stakeholders, its internal stakeholders include the management, employees, and Investors. student. For instance, bundle pricing can help address the threat of competition involving low-cost sellers. Starbucks has corporate social responsibility programs for environmentally sound business. Currently, our board has 9 directors, a substantial majority of whom . One of the fundamental requirements for successful promotion is to facilitate friendly and smooth interactions among the companys representatives and the market without compromising the efficiency manner in which a company is able to offer its services to the target market. stakeholder strategy. The external customer is the person who purchases the goods or services, while the internal customer is anyone within an organization who at any time is dependent on anyone else within the organization. All rights reserved LCHW. Starbucks has a duty to maximize shareholder value by increasing profits and dividends, while also managing risks and complying with relevant laws and regulations. It took out an eight-page ad in the Wall Street Journal declaring its new vision, a message directed at both customers and internal stakeholders. We can define internal stakeholders as those directly involved in running an organization or a given project and who have a legitimate interest. Good organisations are mainly based on cultivating customer retention relationships, as opposed to the acquisition/transaction mentality. In addition, the firm can improve youth rates/wages to ensure satisfaction of youth workers in some markets like New Zealand. However, as competition becomes stiffer, Starbucks has had to embrace various promotional strategies. This is IvyPanda's free database of academic paper samples. Starbucks key stakeholders. Starbucks Stakeholder Analysis. 2022-11-17 These stakeholders are said to have a vested interest in the success of the company because of their financial investment. The following are the main stakeholders in Starbucks Coffees business: Employees. Copyright 2017 2025. We use cookies for website functionality and to combat advertising fraud. As stakeholders, employees typically demand for better working conditions, job security and higher wages. This detailed piece of work identifies some of the internal and external stakeholders of Starbucks. Customers want to receive the best possible product or service. Today, thanks in part to Gates Sr., there are more than 25,000 Starbucks locations that employ more than 300,000 people. Stakeholders of Starbucks (Stakeholder analysis of Starbucks). Join to apply for the client relationship manager - 12 month FTC role at Starbucks. Starbuck's financial performance will be an analysis and comparison of its performance through the years 2007- 2014. This might be a member of an organization, volunteer, staff, management, board member, founder or a contracting body, client, community of interests such as locality or grouping of people who might benefit. Measuring performance using SWOT analysis and balanced scorecard. More than $10 million in Foundation grants supported local and global COVID-19 initiatives. There are two types of stakeholder which is internal stakeholder and external stakeholder. PDF Internal and External Customers - RAIJMR The business operations of Starbucks will also be affected by local and federal laws and regulations. NGOs As per the company's vision, Starbucks . This group involves owners, investors, customers, competitors, employees and suppliers. One important stakeholder of Starbucks is the activist groups. The interests of this stakeholder group are high quality service and products, such as coffee and related beverages. Such sociocultural trends influence consumer perception and purchasing behaviors, as shown in the PESTEL/PESTLE analysis of Starbucks Corporation. It is also recommended that Starbucks Corporation consider pricing strategies that attract more customers. Starbucks has many different stakeholders such as individuals, and institutions (hedge funds and mutual funds). And there are two types of stakeholders, including the primary and seconday stakeholders ( Clarkson, 1995). While scouring some old marine books, something stood out. 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. You may also like reading SWOT analysis of Starbucks. Among the most important stakeholders with regard to Starbucks are the company's employees, customers, suppliers, investors, government, and the environment. Stake: Product/service quality and value, #2 Employees. . How does Starbucks communicate with its stakeholders? of caffeine, over four times the amount of caffeine What Is an Internal Stakeholder? | Bizfluent Stakeholders of McDonald's (Analysis of McDonald's stakeholders) You are free to use it for research and reference purposes in order to write your own paper; however, you PDF Stakeholder Power-interest Matrix and Stakeholder-responsibility Matrix Excellence for Customers, 2. It is also competing with companies like Peets Coffee & Tea Company, which have more exclusive products. The recession resulted in an increase in the operational costs of the company (Bureau of Labor Statistics, 2011). Results are Business weaknesses are identified in this component of the SWOT analysis. The main difference between internal and external stakeholders is that internal stakeholders have more . The division contributed 13 percent of PepsiCos net revenues in 2015. External stakeholders include clients or customers, investors and shareholders, suppliers, government agencies and the wider community They want the company to perform well for a multitude of reasons. Imitability of products, especially beverages. Strategic planning that accounts for the internal and external factors shown in this SWOT analysis can increase Starbucks Coffees success in competing against various coffeehouse firms and other food service businesses, such as Dunkin, McDonalds, Burger King, and Wendys. The variety of these industries has increased over time, as the company develops more products to complement its core coffeehouse business. Diversification makes the effects of market and industry risks on the coffee business more manageable. Stakeholders can be briefly defined as any party who are interested in an organization. 8 Types of Internal Stakeholders and Their Roles Over the past four decades, Starbucks has become the undisputed leader when it comes to the retail, coffee business. Sometimes these interests can conflict. Its major value is in the identification of those business critical factors which provide opportunity for the firm, Savvy Shoppers in a Brave New World. Starbucks has since won the hearts of the Filipinos. This includes your impact on the environment and the quality of life of communities. Starbucks Corporation (Starbucks Coffee Company), examined in this SWOT analysis, positions itself as the biggest coffeehouse chain in the world through innovative strategies that employ business strengths to overcome weaknesses, exploit opportunities, and protect the business against threats and barriers to success in the coffee industry environment. Starbucks. Until very recently, Starbucks has relied on word of mouth and its large store presence as its advertising and promotional and advertising tools (Patterson et al., 2010, p. 45). Advances in technology affect product innovation, product services, customers store experience, and the way organizations are able to interact with other business partners. MGM 4139 STRATEGIC MANAGEMENT CASE STUDY by : Anaseri Zulkifli EX2833 Hafizullah Mohd Amin EX2906 Michelle Lim Li Yoke EX2885 Mohd Osman Mohd Hassan EX2894 Mohd Johan Khair Azmi EX2889 Rashidi Jaffri Jaafar EX2815 2. Starbucks Key Resources Human resources, high-quality coffee farmer centers, product developers, and stores. In some countries like New Zealand, Starbucks gives very low wages to juvenile workers (youth rates). This is because by the time the company ventured into the Australian market, smaller boutique-style coffee shops in the country had already gained popularity with coffee drinkers since they offered personalized and services. There are many more stakeholders that need to be recognized when companies consider their strategic and operational decisions. Technological improvements can enable a company to market its products directly to their target market using emails, text messages, and social network sites as well (Moreno, 2008). It is characterized by multiple, overlapping chains of command and divisions. Internal Stakeholders serves the organisation, but External Stakeholders deals with the company externally. The firm knows that a loyal customer is often a reliable source of revenue for the firm for many years, and hence viable business. Dunkin Donuts Vs. Starbucks. It must abide by the rules and regulations, tax, and other relevant issues very carefully as any breach may be costly for it. In addition, the company should consider diversifying to other food products besides coffee in a bid to cushion its revenue collection during harsh economic conditions. For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders Starbucks performances and business strategies could also affect the general public and the society. Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. The factors included competition, economic factors, and technological factors while the internal challenges included lack of work performance culture among the employees, lack of ingredients in some stores, and diminishing company values. 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. This opportunity draws attention away from the U.S. market, where most of the coffeehouse companys revenues are generated. Starbucks boasts of a wide variety of over 30 coffee products that customers can choose from. Common examples of internal stakeholders in companies are senior management, project sponsors, and project team members. Creating a culture of warmth and belonging, where everyone is welcome. Starbucks must address the interests of numerous governments as stakeholders, considering the companys global presence. Starbucks global expansion and continued dominance in the coffeehouse industry indicates high financial performance. Key Types of Stakeholders & Their Roles - Project-Management.com Its headquarters are in Seattle, Washington. It consistently listens to them to provide them with a sense of connection to the company. Stakeholders Businesses have different types of internal and external stakeholders, with different interests and priorities. For example, it is one of the first companies to offer full healthcare to full-time and part-time employees. So we took inspiration from that and created the logo from there. Aiming at Rivals, Starbucks will offer Free Wi-Fi. Frontiers | How Do Internal and External CSR Affect Employees fourth. Wall Street Journal. These shops provided personalized, individualized and intimate service, something that Starbucks could no longer provide. For example an external OD consultant may take a lot of time to understand the organization where internal OD consultants have a stronger understand being an insider of the organization. Some of the notable new products include Instant via Ready and Tazo Tea Infusions (Patterson et al., 2010, p. 44). Starbucks has indeed the highest share of the coffee shop market in the USA in terms of number of stores; however, it is well behind the market leader Costa Coffee in the UK (Lock, 2022). Starbucks is also affected by the government of a country in which it operates. Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Starbuckss Organizational Structure & Its Characteristics, Starbucks Coffees Stakeholders: A CSR Analysis, Starbuckss Generic Strategy & Intensive Growth Strategies, Starbucks Corporations Organizational Culture & Its Characteristics, Starbucks Five Forces Analysis (Porters Model) & Recommendations, Starbuckss Mission Statement & Vision Statement (An Analysis), Starbucks Operations Management, 10 Decision Areas & Productivity, McDonalds SWOT Analysis & Recommendations, Walt Disney Company SWOT Analysis & Recommendations, Sony Corporations SWOT Analysis & Recommendations, Whole Foods Market SWOT Analysis & Recommendations, Procter & Gamble SWOT Analysis & Recommendations, Burger King SWOT Analysis & Recommendations, Home Depot SWOT Analysis & Recommendations, Porters Five Forces analysis of Starbucks Corporation, Starbucks Corporations marketing mix or 4P, Starbucks Corporations generic competitive strategy and intensive growth strategies, PESTEL/PESTLE analysis of Starbucks Corporation, U.S. Department of Agriculture Economic Research Service Food Service Industry Market Segments, U.S. Department of Commerce International Trade Administration Consumer Goods Industry, Starbucks Corporation (Starbucks Coffee Company). The main interest of this stakeholder group is compensation and a growing demand from Starbucks. Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. These consist of everyone involved in management, marketing, designing, manufacturing, assembly, and general sales. Starbucks Case Study, SWOT, Internal and External Analysis 1. The 4 include 1. External stakeholders are individuals or groups outside an organization who are vested interest in a company's success. The first Starbucks opened in 1971 at Seattle's historic Pike Place Market and went public two decades later in 1992. The report further recommends that Starbucks should consider forming partnerships with local companies in the coffee industry. Copyright by Panmore Institute - All rights reserved. Starbucks can also improve its CSR performance in addressing governments around the world by improving its tax compliance. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. 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. 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. Corporate Governance. A systematic review. Miller, C. C. (2010). They are not employees and do not have any direct financial interest in the profit or loss of the company. The companys CAFE program has led to higher biodiversity and shade quality in certified coffee farms. We will write a custom Case Study on Starbucks Companys External and Internal Analysis specifically for you for only $11.00 $9.35/page. Thus, the firm satisfies this stakeholder groups interests. Walters, D., & Rainbird, M. (2007). Starbucks Company's External and Internal Analysis Case Study Such a move would impact positively on Starbucks business model. Starbucks External Stakeholders - 1295 Words - Internet Public Library It is becoming increasingly important for firms to work closely with competitors (Walters & Rainbird, 2007) and as such, Starbucks should also consider entering into a partnership with fast-food chains in a bid to improve its coffee offer, in addition to fighting stiff competition from such direct competitors as McDonalds. Houston Chonicle, 1. Starbucks's Weaknesses (Internal Strategic Factors) Business weaknesses are identified in this component of the SWOT analysis. Customers are the most important stakeholders of Starbucks. Stakeholders starbucks. Starbucks CSR: Corporate Social Employees 2. How the local competition defeated a global brand: the case of Starbucks. Delivering our very best in all we do, holding ourselves accountable for results. If you're considering conducting a materiality assessment, below we offer seven basic steps that should be a part of your initiative: Identify Internal and External Stakeholders. Difference Between Internal and External Stakeholders Stake: Health, safety, economic development. The company has also had to adjust its product offerings in order to meet the growing demands of the rising number of educated and health conscious consumers. Internal stakeholders are people whose interest in a company comes through a direct relationship, such as employment, ownership, or investment. Internal and external stakeholder analysis - Eddusaver There is two different types of stake holders these are internal and external. Considering that Starbucks coffee is priced at a premium, the fact that baristas and the staff had limited time to engage with customers was proving to be counterproductive to the very premises on which Starbucks was built. These threats are external factors that reduce or limit business performance. Internal and external stakeholder analysis helps you understand where the business is, which stakeholders are important . From there it . Internal stakeholder group External stakeholder group As seen from the Fig. Starbucks impacts its employees in several ways - income, working conditions and benefits. The main external stakeholders of McDonald's include the customers, suppliers, governments, and local communities. 2021. First name. Some companies listed short strategic priorities like "invest in infrastructure" or "international expansion" without elaborating on the meaning of these objectives. In the case of Starbucks, the companys logo still retains the mar maid image that was adopted upon its inception in 1971. Starbucks Corporation, the American multinational headquartered in Seattle, Washington, is the world's largest coffeehouse chain. How Much Caffeine Is In A Grande Iced Cold Brew At Starbucks? Institutional shareholders can influence its both strategic and non-strategic decisions significantly. A mysterious, nautical figure called to them, as sirens do They really loved the look of it and it kind of tied into what they felt Starbucks stood for, Steve said. Another lesson that firms can learn from the failure of Starbucks in the Australian market is that it is always important to keep sight of the principles that made you successful in the first place. It is worth noting that it serves millions of customers every week which attests to an excellent customer retention (Starbucks, 2023). The companys coffee stores are also located in different large chains. They also have a legitimate interest in the business, and are generally grouped into two; the internal and external stakeholders. Are You A 30% Or Greater Disabled Veteran Who Wish To Be Considered Non Competitively, How Do You Take Your Coffee In The Morning, #1 Customers. Password (8+ characters) . Shaoul, J. Starbucks Corporations Organizational Culture & Its Characteristics, Whole Foods Market Stakeholders: A CSR Analysis, Starbucks Coffee PESTEL/PESTLE Analysis & Recommendations, Starbucks Five Forces Analysis (Porters Model) & Recommendations, Harley-Davidsons Stakeholders: A CSR Analysis, Burger Kings Stakeholders: A CSR Analysis, Costco Wholesales Stakeholders: A CSR Analysis, Home Depots Stakeholders: A CSR Analysis, Microsofts Corporate Social Responsibility Strategy & Stakeholders (An Analysis), General Electric Companys (GE) Corporate Social Responsibility (CSR) Strategy and Stakeholders - Analysis, Amazon.com Inc. Stakeholders, Corporate Social Responsibility (An Analysis), Starbuckss Organizational Structure & Its Characteristics, Starbucks SWOT Analysis & Recommendations, Starbuckss Mission Statement & Vision Statement (An Analysis), Starbucks Operations Management, 10 Decision Areas & Productivity, Starbucks organizational culture emphasizes the employees-first attitude, Responsibly Grown and Fair Trade Coffee Starbucks Coffee Company, Stakeholder Analysis & Corporate Social Responsibility (CSR), Starbucks Corporation (Starbucks Coffee Company). Smith, M. D. (1996). If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Stakeholders: Nestle Private Limited Analysis - GraduateWay Rustan Coffee Corporation , a member of the Rustan Group of Companies is the authorized licensee of Starbucks Retail Business in the Philippines. Starbucks, American company that is the largest coffeehouse chain in the world. These are the three main areas where Starbucks can change to boost its corporate social responsibility performance to satisfy stakeholders. Starbucks mission statement is: "To inspire and nurture the human spiritone person, one cup, and one neighborhood at a time". (2011). Starbucks Redefined How We Drink Coffee Its one of the most successful companies in the world, not only in the coffee shop business. Why are customers external stakeholders? New York: Palgrave. The Starbucks Foundation is committed to strengthening humanity by uplifting communities to nonprofit organizations in our hometown of Seattle, and in neighborhoods and coffee- and tea-growing communities around the world. This component of the SWOT analysis model deals with the internal factors that the company can use as strengths to address weaknesses and protect the business against competition. 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. Activists have protested outside its stores for various reasons, including human rights, union issues, and animal cruelty.

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