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Sample Essay on Starbucks Internal Resource Strengths and Weaknesses

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Sample Essay on Starbucks Internal Resource Strengths and Weaknesses

Starbucks is a chain of coffee shops that offers hospitality services to customers. This industry is dynamic in the sense that customers’ tastes and preferences change from time to time. Therefore, a thorough research is necessary to identify the needs and wants of customers (Starbucks hotels).  Starbucks has managed to offer services that are customer oriented hence able to make big strides ahead of their competitors. Some of the strengths, weaknesses, opportunities, and threats are outlined below.

Strength

It has initiated programs, such as $20 million loan program for farmers producing cocoa, coffee, and tea products that ensure the company is in a position to meet the demand for beverages in the market. The Quality issues are taken care of by this program, an action that distinguishes Starbucks’ products from the competitor’s goods and services. In addition, mobile order payment service seeks to improve the efficiency and effectiveness of the operation department where customers pay through a variety of mobile platforms. Customers do not have to carry cash in order to purchase tea on various coffee shops. They use mobile supported applications to make payment.

Weakness

Starbucks’ operating structure inhibits its decision making process in the sense that the top management are the decision makers. This creates inefficiencies in situations where quick decisions are required in the operational sectors (Fellner 24). Before decision makers adopt a formidable decision, the condition may worsen further causing loss of business opportunities as well as the customers. In the end, it results in losses for the business entity. The long chain of suppliers leads to delay in some instances for delivery of raw materials. Where raw materials take time to reach destination, customer wait for long hours, leading to inefficiency.

Opportunity

Due to the growing market economy in the world, Starbucks is faced with external opportunities of increased customers and demand in most of its outlets. Some of these economic opportunities and markets include the Chinese market, Indian market, Japan, and Brazil economies that present good opportunities for investors in hospitality industry.

Threats

Threats include competitors, such as MacDonald who provide substitute goods and services in the hospitality business. They offer customer services that are highly specialized with goods that bring competition to the Starbucks’ products, such as the black coffee.

Distinctive Competencies and Resources RIVN Analysis

Some of the resources that Starbucks possesses that are valuable, rare, inimitable, and non-substitutable include the hotel outlook, product differentiation, and strong supply chain. All Starbucks’ outlets adopt a unique outlet look that is similar to the mother company in terms of features. This helps customers locate the premises at ease. No one is in a position to imitate their mode of structural development and their management structure that topples down from the top management to the bottom levels. Strategic decisions are carried out by the top layer manager who works through a team of dedicated supervisors and workers. They value customers by offering services that adhere to the ethical, environmental, and legal aspects of different communities (Fellner 22). These values make customers to prefer the organization products because of their connection to their daily needs. This is a rare initiative that is not only conserving the environment but also improving the lives of different communities in the world. Its handcrafted sodas introduced into their menu are a non-substitutable products meant for global market. It is a product that is not found anywhere else rather than on the shelves in all its outlets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Fellner, Kim. Wrestling with Starbucks: Conscience, Capital, Cappuccino. New Brunswick: Rutgers UP, 2013. Print.

Starbucks hotels. “Menu.” Starbucks Coffee Company. Starbucks Corporation, 22 Mar. 2015. Web. 22 June 2015. .

 

 

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