Strategic Management Analysis of Starbucks Essay

Strategic Management Analysis of Starbucks - Essay ExampleThe scope of this report has been limited to the exploring the strategic fit of the Starbucks in the International segment and the market selected for the purpose is china. The reason for this is Starbucks being declared a success story in chinaware in contrast to different entrants failure (Szabo, 2012). Starbucks world revolved around coffee, in fact premium coffee. Broadly, Starbucks operations can be categorized in three domains that are fall in States (US), International, and Global Consumer Products Group (CPG) (Rein, 2012). Along with premium coffee servings, Starbucks offers teatime beverages and fresh food with large variety in their store (Rein, 2012). Operations (under caller-up owned or licensed store) are under their flagship brand of Starbucks with other portfolio components include TazoTea, Seattles Best Coffee, and Starbucks VIAReady Brew (Rein, 2012). Starbucks entered in China in the year 1998 with its f irst store in Taipei, Taiwan (Starbucks Newsroom, 2012) and currently it holds more than 570 stores in 48 cities (Wang, 2012). Chinese market has been dominated by tea drinking habits and it was an exception considered that Chinese welcome bitter and expensive drink of Starbucks (Szabo, 2012). On contrary to this notion, China has become Starbucks biggest market after US (Szabo, 2012), hence, make scope of the study. EXTERNAL ENVIRONMENT ANALYSIS China has taken driving seat of the worlds economic van. Businesses to achieve the status of being orbiculate take China on the checklist of success foremost. Chinese external environment is discussed below PESTEL ANALYSIS RANKING ( from 1to 5 with 1 rating least and 5 rating best) ENVIRONMENT RANK COMMENT POLITICAL China is politically driven by capital state model but the country has intricate in its recipe the success driving elements of capitalism as well as socialism (The Economists, 2012). The democratic system of China is more flex ible than US and has been providing leadership more adaptable to growing challenges of the world (Li, 2011). More importantly, US-China relations are constantly growing vertically as well as horizontally (U. S. Department of State, 2012). It has been rated 4 out of 5 for overall positive conditions China mainly to support the business environment. Moreover, since the country has managed to transform the power war with extremely power China chances of any further discrepancy in this environmental factor is least expected. ECONOMIC Economically its enough to state that China is everywhere in the air. Though growth momentum has declined and expected to further slowdown, still the prospects are most attractive to big giants like Wal-mart, Siemens, Air France KLM, and Daimler etc (China Daily, 2012). Highest gross domestic product average growth rate among BRIC countries (Global Sherpa, n.d.). Controlled CPI to 2.8% after going high to 5.5% in year 2011 (OECD, 2012)