Environmental Analysis Of Starbucks

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The environment of any organization is composed of both the internal and the external factors. The importance of environmental scanning cannot be overlooked. The purpose of conducting an environmental scan is to determine the development as well as to identify the forecast factors that have a chance of influencing the success of the organization. The phrase environmental scanning denotes the acquisition and application of information concerning the patterns, occurrences, the relations, and the trends with regard to the internal and the external environment of a particular organization. An effective environmental scan plays a significant role in helping the management determine the future strategies that will guide the organization to success. …show more content…

It is paramount to note that threat for one organization could be an opportunity for another organization.
Internal and External Environment
The first step towards an environmental scan is the assessment of the internal environment the scan of the internal environment helps in the identification of the strengths and the weakness that the organization faces. On the other hand, the external environment scan identifies factors outside the control of the company, but they are influential to the success of the business. There are various environmental factors that affect Starbucks. Some of the examples of the internal and the external factors include the competitors, the customers, financiers, suppliers, the laws and regulations, the political factors, economic, and the technological factors. Starbucks has various strengths that enable the company to compete favorably in the market (Lussier, 2009). The strengths of …show more content…

This has been guided by the company’s successful strategies to create value and gain a competitive advantage in the market. Among the company 's strategies is the creation of a strong brand among the customer base (Mishra, 2011). The latter allows the company to impose premium prices on its products. The company has also adopted a diversification strategy whereby it produces a wide range of products such as shoes, gear, clothing, and many other sporting products (Lussier & Kimball, 2013). Notably, this has been a major source of competitive advantage for the company. Additionally, the company 's strong advertisement campaigns and strong global presence are sources of competitive

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