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Tuesday, September 27, 2005

Starbucks Case Study Analysis

Internal Environment Strengths Starbucks is one of the fastest growing companies in the US. On the labor an environmental front, Starbucks has a highly focused "coffee mission" - an international ethics development program that not only seeks to improve the quality of the beans, but also worldwide labor conditions for coffee workers. Additionally, Starbucks takes its commitments to its employees very seriously. Therefore, Starbucks was listed as one of the 100 best companies to work for. Starbucks has four primary resources on which it builds its competitive advantage. First, and most prominent, is the intangible resource of its brand image. The Starbucks logo is well recognized and is extremely valuable to the company. In addition, the Starbucks brand is instrumental in the success of the company's partnerships and alliances. The second resource is mainly financial in nature and more specifically related to the company's liquidity rations. Starbucks' liquidity ratios was higher than the industry average (finance.yahoo.com).





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