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Strengths

What does the organization do well?

Starbucks' profitability has risen to 14% in recent years. It also outperforms its competition with a 24.54 percent ROI and a 29.16 percent ROE. Starbucks is known for its high-quality coffee and friendly service.

Starbucks reinvests money in new sites. Its effective operations and strategic decisions have benefited the company greatly. Starbuck's reward program keeps people hooked on coffee. For every $1, you get 3 stars. Collect 150 stars for a free drink. Rewards members also get mobile payment, pre-order, and free birthday drinks.

An extremely large volume of merchandise is required to support a large volume of commerce, and Starbucks has perfected the art of supply chain management. It sources its coffee beans from a variety of geographical locations around the world, guaranteeing that consumer demand is always met.

What unique resources can the organization draw on?

Its $4 billion brand is the most valuable in the coffeehouse industry. Starbucks' customer service is one of its major features, with precisely blended coffee, premium music, helpful personnel, and a nice atmosphere. Starbucks has implemented gender-neutral restrooms to safeguard the LGBT community from persecution. It's in response to anti-LGBTQ measures that target transgender persons.

Starbucks has developed hundreds of customized beverage options for such a fundamental food item as coffee, many of which are closely associated with the company's overall brand, such as the perennially popular pumpkin spice latte. Consumers can further advertise their allegiance to a firm by purchasing branded merchandise, and the expansion into supermarket goods allowed consumers to bring their favorite mixes to their homes or offices rather than relying simply on a restaurant.

What do other organizations see as strengths?

It has over 20,000 coffeehouses in 60 countries, making it the world's largest coffeehouse network. The company offers a wide range of advantages and a greater salary than competitors. Employees hired between July 2021 and October 2021 had their hourly pay increase by 5%. Starbucks' tenured employees will also see a 6% pay rise.

In the consumer goods industry, Starbucks is one of the most well-known and respected names. Customers are strongly committed to this business, which has practically uncountable stores across the United States with lineups around the corner for the majority of drive-thrust. This has contributed to the chain's long-term viability. In many ways, it was responsible for transforming coffee into a "luxury" product rather than a ubiquitous commodity like tea. Furthermore, it has maintained a strong brand presence through the use of popular items and active public relations campaigns.

Weaknesses

What could the organization improve?

Starbucks' profitability and coffee price are heavily reliant on the price of coffee beans, which is a commodity. Starbucks doesn't have the most unique offerings. This makes copying products easier for competitors. McDonalds McCafe and Dunkin Donuts provide nearly identical items. .

It was criticized for its tax evasion in the UK. Reuters discovered it had not paid tax on £1.3 billion in sales for three years prior to 2012.

Despite its tight association with coffee, the commodity itself is widely seen as a need in many parts of the world, particularly in Asia. Despite the fact that coffee is drunk almost everywhere, there are dozens of large chains and hundreds of smaller restaurants that provide coffee as part of their menu, in addition to consumers purchasing coffee directly from a supermarket.

Where does the organization have fewer resources than others?

Starbucks can't predict the price of this coffee or the company's profitability due to hedge funds and weather. Starbucks provides amazing coffee and customer service at a hefty cost.

Environmentalists and social activists slammed the company's unscrupulous procurement practices They claimed it buys coffee from poor third-world growers. It's also accused of breaking "Fair Coffee Trade" rules.

In addition to being heavy in calories and sugars, several of the drinks sold by Starbucks are also dangerously unhealthy when consumed on a regular basis. Consumers might choose a product that contains fewer additives, but the corporation has built its reputation on creating flavored and sweetened items that are pleasing to the palates of its customers and employees. Providing healthier options and making tweaks to its recipes will be critical in avoiding this issue.

What are other organizations likely to see as weaknesses?

Compared to 3 Starbucks coffee, McCafe premium coffee was cheaper and better assessed. The corporation is constantly criticized for its lack of environmental initiatives, tax avoidance, and mistreatment of some suppliers.

According to a Mashed poll, almost 21% of coffee drinkers despise Starbucks' "Iced Latte." Starbucks introduced it as a Christmas drink. Sadly, the drink was a bummer. Many consumers complained Starbucks' iced latte was excessively sugary and not worth the hefty price.

Starbucks has come under fire for failing to collect and remit product taxes in a number of European nations. This resulted in a tremendous public relations nightmare and had the potential to create long-term damage to the company's brand reputation. While there were no long-term ramifications that damaged the corporation as a whole, other, more serious blunders could have resulted in the company losing considerable social and financial capital.

Opportunities

What opportunities are available to the organization?

What trends could the organization take advantage of?

Starbucks cannot cultivate its own coffee beans and must purchase them from suppliers based in South America, Arabia, or Africa. Starbucks needs to expand its supplier network to assure vital supplies for its Asian operations, minimize reliance on harvests in Africa and South America, and reduce shipping costs. There are several chances for coffeehouses in China, and they can diversify their businesses to increase overall revenue. Developing items based on customer preferences in a certain market is also profitable.

Starbucks already has a significant presence in the United States and is becoming more steady in China with each passing year. Using these triumphs as a blueprint, the company can grow into other varied markets, building on lessons gained and interacting with new communities in order to establish an even stronger global brand name. It may continue to expand by becoming the first or largest player in key markets, building on its impressive track record of success.

How can the organization turn strengths into opportunities?

India, where Starbucks operates a small number of outlets. The company may increase the number of coffeehouses that serve wine and beer, add additional goods, and reach a larger audience. Its products are sold by various stores as well as by its own coffeehouses and franchisees. It should develop additional partnerships and sell its coffee in supermarkets, for example.

Some coffee shops are rapidly expanding their clientele by serving both normal and premium coffee. Starbucks can sell cheaper normal coffee to the middle class while still selling its costly premium coffee.

The majority of the products available at Starbucks are priced very high, which may dissuade some customers from purchasing them and force them to hunt for less expensive alternatives. During the development of new premium-level products, the company might also consider more cost-effective alternatives that could appeal to thriftier or cost-conscious customers, thereby strengthening what should be a basic market sector.

Food delivery services such as GrubHub and Uber Eats have grown in popularity in recent years, particularly following the outbreak of the COVID-19 virus in the United States. Starbucks, in order to take advantage of this expanding consumer demand, might work with companies such as this to transport its products, or it could develop its own in-house delivery service in order to better cater to client tastes.

Threats

What threats could harm the organization?

The chain is heavily reliant on coffee and dairy prices that Starbucks cannot control or anticipate. Starbucks is frequently involved in costly trademark infringement cases. Local cafes might provide reduced prices and better menu options. Starbucks' supply chain is complicated by numerous third-party contractors and stakeholders. Starbucks coffee shops in the Midwest faced shortages in 2019 due to a strike by a key supplier.

Any alterations to the supply chain have the potential to produce substantial problems down the road – failing coffee bean crops, severe weather events, and even employee strikes at third-party providers are examples. Because of these concerns, the corporation is vulnerable to even the smallest deviations anywhere along the supply chain, from the bean's cultivation through its brewing in the restaurant. Starbucks should look for measures to reduce the likelihood of potential deficits wherever possible.

What is the competition doing?

Big coffeehouse chains specialize to avoid competing with Starbucks. Starbucks faces fierce competition in both cases and loses market share. Experts expect the epidemic will continue to change customer behavior and constrain discretionary expenditure in wealthy economies. Also, the restaurant industry's collapse and other macroeconomic issues may impact Starbucks' development plans and operations.

For the general public, the COVID-19 epidemic had a significant impact on their spending and purchasing habits, and some of the consequences will be seen for years to come. Restaurants were obliged to operate with severely limited customer capacity, or possibly close their doors entirely, resulting in significant revenue reductions. Starbucks, like every other firm, will have to deal with the economic impact from the pandemic, and the company will be no different.

What threats to the organization expose weakness?

Starbucks will struggle in these markets. Starbucks may face supply delays due to political, economic, and weather factors. Dietary racism entails enticing BIPOC (Black, Indigenous, and People of Color) communities to buy unhealthy foods by lowering prices. The hoax, according to Switch4Good, effectively called out Starbucks' methods.

Other national and international recessions will have long-term consequences for businesses such as Starbucks, which may suffer as a result of its own self-designed "high-end" brand image. An expensive cup of coffee may be one of the first things to go if consumers decide to forsake some indulgences, such as dining out. Starbucks might diversify its pricing options and provide more affordable options to its customers in order to avoid this type of loss in customer base.

Starbucks has positioned itself for long-term success with a strong brand recognition, innovative product options, and a sound financial foundation, and the company still has room to grow and expand even more in the future. It can maintain its position as a consumer favorite for decades to come by addressing supply chain challenges, identifying ways to keep prices low for its customers, and exploring new channels for sales and development....

References

At least 3 reference is required

1. 1. Starbucks Was A Complete Failure In Australia (Business Insider Australia, 2013)

Starbucks Was A Complete Failure In Australia (businessinsider.com.au)

2. Starbucks in Australia: Where did it go wrong? (ABC News, 2010)

Starbucks in Australia: Where did it go wrong? - ABC News

3. The Australian 2014, New Owners For Starbucks Australia.

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