Starbucks Case Internalanf External Analysis

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Vision and Mission Statements and Strategies

Our vision

To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.

Our mission

To establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

Strategies

Earlier Starbucks strategies revolved around its main objective of providing the best qualities to customers this caused the prices of the product to be higher than other competitors who had the same type of products. But as recession hit the global market they decided to change their strategies with focusing a little on the prices also so that they could match the now budget-conscious people. They changed their strategy especially after they lost their sales due to recession coupled with McDonalds introducing the same products at a significantly cheaper price.

Modified Vision and Mission Statements

Vision

To enrich human spirit with one person, one cup and one neighbourhood at a time.

Mission

To establish Starbucks as the producer of finest coffee in the world while maintaining the highest quality for our customers and maximizing value for our shareholders with being uncompromising on ethical beliefs while we grow.

The vision statement didn’t need a lot of changing but the mission statement was modified to include shareholders who are another important stakeholder in this company. Another thing that was added was the unsaid promise of keeping together with the ethical beliefs and morals and not changing even when they are growing.

External Environment

The following are the external opportunities:

1. Entry into Asian markets.
2. Competition with McDonald became an opportunity for them as it created awareness for the coffee category overall.
3. Co-branding with other food manufacturers.
4. Whole bean sale in supermarkets

The following are the threats that Starbucks faces:

1. There is an economic recession.
2. They were not proactive to McDonald’s low prices of coffee.
3. High competition both locally and in foreign markets.
4. Variation in coffee prices in developing markets.
5. Health consciousness increasing.
6. Cultural and political issues in local and foreign countries.

External Factor Evaluation

Competitive Profile Matrix

Internal Environment

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