Starbucks case – internal environment analysis
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2 pages
The organization’s resources, its capabilities and competencies make up the internal environment of the organization.The company shoud have the ability to identifying and determining the competitive power of their resources and capabilities to create compétitive advantage.Business resources are anything and everything that helps a company operate and do business. A firm uses two categories of resources; either tangible or intangible. Tangible resources are conventional resources. They are the easiest to identify and evaluate .In starbucks case tangible ressources are Coffee Beans, cash , computer systems, production equipment (roasting machines), store furniture, store machines, signage, etc...
However, the primary goal of resource analysis is not to value a company’s assets, but to understand their potential for creating competitive advantage.Starbucks try conitnually to employ existing assets more profitable.
Intangible resources are less defines assets as reputation, skills,technology .For a company like starbucks intangible ressources are the critical factors in earning above average returns.
Intangible ressources for stabucks could be:
Human Resource Management, and a high quality service.
Starbucks has a flat organizational structure that allows for rapid communication between senior executives and frontline staff. Furthermore, the company had developed a strong coffee education and an employee loyalty(thanks to higher wage and social advantages).
Howard Schultz, who at the age of 34, became Starbucks' president and CEO. The hard work of this one person, and his ability to instill it in subordinates it’s obviously a factor of starbucks success. He shows an effective leadership witch is necessary .
Real Estate Management; the company have a defined strategy on where they can establish a store ,how it will be designed to match with the concept of the”third place”.
Financial Management – Starbucks owns and operates all of its own retail