Strategic Management Case Study: Starbucks Coffees

9431 words 38 pages

The aim of this report is to analyse Starbucks Corporation’s business model in Australia. The analytical techniques include external, internal, competitor and SWOT analysis to determine how Starbucks performed in Australian market.

The PEST analysis includes trade practices act which deals with wholesaler, supplier and ensures that trading in the marketplace is fair both for your business and your customers. The Australia Competition and Consumer Commission also illustrates the rules and regulation applying on fair trading and it could effectively avoiding other competitors from conducting unethical behavior.
The industry analysis provides information regarding to Porter’s five force model. In this model, it is to
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Starbucks made the fortune 500 to the Starbucks founder-Howard Schultz, “it would be arrogant to sit here and say that 10 years ago we thought we would be on the Fortune 500. But we dreamed from day one and we dreams big.” Starbucks position itself as the dominant retailer, roaster, and branded its coffee beans and coffee drink in North America; in fact, Starbucks would like to position itself as the most recognized and respected brand in the world.

1.3 Scope of report

The scope of the report would focus on a number of aspects. The external analysis will address on PEST analysis, industry analysis, competitors’ analysis, opportunities and threat. The internal environment will put attention on tangible and intangible resources; capabilities, core competencies, weakness and Porter’s Generic Value Chain including Four Ps, and they are Product, Price, Place and Promotion. Furthermore, Strategic evaluation and Recommendation would be suggested.


Starbucks is found by three academic teachers Jerry Baldwin, Zev Sigel, and Gordon Bowker with coffee aficionados. The first Starbucks coffee shop was founded in Seattle’s touristy Pikes Place Market. In fact, these three coffee aficionados did not start with investing in opening new stores but building a clientele in Seattle to share the best coffee and teas with the public.

Jerry, Zev and Gordon each invested 1,350 and borrowed


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