Strategic management Essay Example | Topics and Well Written Essays - 3000 words - 2

Strategic management - Essay ExampleIt is currently the largest coffee house globally with its current size satisfying a customer base of more than 40 million weekly. It operates 16,635 stores in 50 countries whereby 11,068 are located in the United States. The accompany operated 9,031 stores and 4,776 licensed stores as of 2011 fiscal social class. The company has three operational segments namely the Global Consumer Products Group (CPG), United States (US) and International (Quelch, 2006). Its product lines include beverages such(prenominal) as coffee, soda, juices and Tazo tea, pastries, whole coffee beans and merchandise such as CDs and mugs. Its three largest overseas markets are japan (more than 180 stores), England (more than 370 stores) and 120 stores in both China and Taiwan. Starbucks is currently the fastest growing food chain. It is preparedness to boost earnings by 20% to 25% in the preceding five years and step-up its global storefronts to 40,000. The company attain ed a 14% increase in revenue to $13.3 billion in the fiscal year 2012. The company is optimistic that the revenues will further grow in the fiscal year 2013 at a range of 10% to 13% following the growth in store sales, cutting store openings and advancement in channel development line of reasoning. The US segment includes both company-oriented and licensed stores. The US segment sells coffee and other beverages, whole bean coffee, complementary food and other selected merchandise done stores. Its financial management goals are conservative in that the existing stores pay for the new store installations. To crack customer satisfaction, Starbucks focuses on value chain development, market development and penetration, horizontal integration and concentric and empire diversification. This paper is a strategic analysis of Starbucks Coffee Company with focus on its United States air segment. Market Environment Analysis for Starbucks Coffee Company PESTEL Analysis The PESTEL analysis contains five factors (political, Economic, Social, Technological, Environmental and Legal) that go the external business environment of the company (Appendix 2). The three most crucial factors involveing the US business segment of the company are political, economic and technological. Political/legal The political/legal environment of Starbucks is of blue significance because the company imports all their coffee beans international laws must apply. The high taxation rates in coffee producing countries makes the company hike the prices of their commodities. This implies that any fluctuations in the taxation rules will be passed to the consumer. Increased prices affect the consumption rates of customers. Trade issues will predominantly affect Starbucks when importing or exporting goods. fit to Dlabay, Burrow and Kleindl, (2011), imposition of tariffs leads to losses as well as large income transfers that can become incommensurable with equity. The local elections may also have n egative effects on the business due to the lurch in administration that may alter the business laws. Economic Increase in the international or local interest rates tampers