Planning Assignment Example | Topics and Well Written Essays - 1000 words

Planning - Assignment Example With this concern, this paper intends to discuss about how Starbucks managed to come to its current position with respect to record earnings in the context of a SWOT analysis. Discussion SWOT analysis is a method or a study which is usually adopted by an organization to evaluate its internal strengths along with weaknesses and external opportunities as well as threats (United States Department of Agriculture, n.d.). The following discussion has been made within the circumstance of SWOT analysis of Starbucks which would reveal about how Starbucks has managed to come to its current position with respect to record earnings. Strengths: Strength is usually considered to be the internal factor which helps an organization towards efficiently achieving its expected organizational goals. In comparison to other coffee house chains in the world, Starbucks is pretty much known to almost every one. The company is renowned to serve its customers with quality as well as standardized products which eventually made the company to earn record earnings in this present day context by a certain degree. In terms of strength, it can be viewed that the company has been listed in the 7th position as one of the finest companies to work for in the year 2008. Though it has been viewed that the number of competitors are increasing at a rapid speed, certain aspects like superior brand awareness, attractive financial position and its strategy of expanding into new business are considered to be vital strengths of the company (SlideShare Inc., 2013). Weaknesses: While most people think Starbucks coffee as a luxury good and is ready to pay any price for it, but the increasing cost in its products has been debatable amid several customers. It has been viewed that there is a constant change in the price of its coffee based products. The main weakness of Starbucks can be apparently observed as that its entire business is mainly dependent on its coffee based products. Whereas, it’s one of th e competitors named Dunkin’ Donuts is involved in performing various sorts of businesses. In addition to its increasing cost of the products, it has also been viewed that the company has also lacked in handling international relations in the past. It is worth mentioning that coffee is duly regarded as a substitute product denoting that people are willing to change their preferences, if there lay high increase in the price level of the products (Higbee, Liaw, Ting, Tjho & Ton, n.d.). Opportunities: One of the best opportunities which is helping and would help Starbucks to maintain its leading position in the coffee industry is technology. The company has been viewed to implement new technologies that not only help to enhance its overall performance but also to come to its current position with respect to record earnings through making continuous research and development (R&D). Specially mentioning, acquisition of certain renowned companies such as Seattle’s Best, XM Caf e, and Tazo Tea has also helped Starbucks to expand itself in various parts of the world resulting in strengthening its current position with regard to record earnings by a significant level. Furthermore, acquisitions of certain other companies like Bay Bread and its La Boulange bakery can also be considered as providing major opportunities for Starbucks by a certain degree. The strategy of Starbucks to