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

Strategic Managemet - Essay Example Information obtained from its official website shows that the company is guided by its cornerstone value which is to â€Å"build a company with a soul.† The operations of the company are shaped by its mission statement which is: â€Å"To inspire and nurture the human spirit—one person, one cup, and one neighbourhood at a time.† Broadly speaking, Starbucks strives to be â€Å"a purveyor of fine coffees in the world while maintaining uncompromising principles.† The company seeks to differentiate itself from other competitors in the coffee industry through provision of finest coffees to the customers. In actual fact, it can be observed that the success of the company can be attributed to its differentiation strategy. This report mainly focuses on the US segment since this company is very popular in this country. It operates its own stores as well as licensed stores. The FY11 Annual report states that the US segment of the company contributed about 69 % of the total revenue raised and this is the reason why this paper focuses on analysing the strategic fit of this particular company in the US. Regulations such as North American Free Trade Agreement (NAFTA) however have a bearing on the operations of this company. In order to analyse the macro environment of Starbucks, PESTEL analysis will be utilized while Porter’s five forces model will specifically focus on analysing the microenvironment of the organization. There are various external factors that shape the operations of Starbucks and PESTEL stands for political, economic, social, technological, environmental as well as legal factors that impact the operations of the organization and these characterize its external environment in which it has little control of (Armstrong & Kotler, 2004). Appendix 1 at the end of the report summarises the external environmental factors that affect the operations of