Question

Read about Starbucks. How are internal factors such as SWOT analysis, core competence, Resources and capability analysis are important for the company and provide examples of two strengths and two weaknesses for each factor.

SWOT analysis is a strategic planning technique used to help a person or organization identify strengths, weaknesses, opportunities, and threats related to business competition or project planning.

A core competency can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.

Resources and Capabilities are the sources of competitive advantage and the primary source of profitability for any firm.

Answer 1

SWOT analysis: SWOT analysis can be an essential tool for Starbucks to address its internal strengths and weakness. Moreover, it is an effective way of identifying the external opportunities and threats for Starbucks. Quality and variety are always strengths for Starbucks, while the high price and procurement practice are critical weaknesses of the company. Thus, it must be conducted to analyze the organizational environment.

Core competence: Core competence analysis can be a significant way for Starbucks to differentiate its products and qualities from its competitors. It creates a gap between performance and opportunity. The core competency of Starbucks is high-quality coffee and beverages at al accessible locations with a decent drinking experience.

Resource and capability analysis: Starbucks is one of the leading coffee-making brands of the globe. Well structured quality products, excellent supply chain management, sharp brand image, excellent customer services, and affordability are the capabilities of Starbucks. Significant resources and capabilities of Starbucks are as follows:

· Brand equity

· Global availability

· Consumer loyalty

· Supply chain management

· Quality products

· Customer services

Examples of two strengths of Starbucks are as follows:

· Starbucks has a sharp brand image

· Consistency in maintaining strong financial performance

Examples of two weaknesses of Starbucks are as follows:

· Product price of Starbucks is high and is only available for medium to top financially capable customers

· The company has ethical issues as it was charged for tax avoidance