Environmental Consciousness of Starbucks: Analysis

Starbucks is positioned in what Data Monitor (2008b) characterizes as the domestic hot drinks market although it also retails a variety of products and accessories that are not directly related to this market segment. Data Monitor (2008b) reported that the hot drinks market in the United States grew by 0.6 percent in 2007, reaching a value of $9,120.5 million. It is expected that by 2012, the domestic market will have a vale of $9,711.4 million, up 6.5 percent over 2007.

The purpose of this analysis is to examine the environment in which Starbucks functions, including the social, cultural, political, technological, and demographic aspects that impact upon the company. Next, a competitive analysis of Starbucks from a microeconomic perspective will be presented, followed by a summary of the organization's current situation and the identification of three to four strategic long-term objectives that should be integrated into a companywide strategic plan.

. . .
witching costs attract newcomers. Substitutes in the form of soft drinks are not a significant threat to the hot drinks market. The market has extended from urban areas into suburban areas and is now being taken up by non-specialist competitors. Buyer power is weakened because consumers are likely to be strongly influenced by brands. Data Monitor (2008b) described Starbucks' financials. In 2007, Starbucks' revenues totaled $9,411.5 million. Net income for that year was $672.6 million with a profit margin of 7.1 percent, total assets of $5,343.9 million and total liabilities of $3,059.8 million. Starbucks has a strong brand image, a wide geographic presence, and until recently, robust financial performance. However, Starbucks' financial performance is highly dependent on its U.S. operating segment. As of the third quarter of 2008, Starbucks recorded a decline in operating and net profit. The higher cost of sales coupled with declining consumer traffic in U.S. stores led the firm to lay off a number of employees and close a substantial number of underperforming stores- about 500 in the U.S. alone; partially responsible for this retrenchment was a recessionary domestic economy (Dransfield, 2008). Stores have also been c
. . .

Some common words found in the essay are:
Data Monitor, Position Industry, Equipment Company, Objectives Based, Retrieved February, VIA ReadyBrew, Starbucks Corporation, Schultz Starbucks, Nevertheless Starbucks, Initially Starbucks, data monitor, dransfield 2008, hot drinks, hot drinks market, drinks market, data monitor 2008b, 20 2009, february 20, monitor 2008b, retrieved february, february 20 2009, retrieved february 20, hot beverage, 2008 starbucks, hot beverage products,
Approximate Word count = 1849
Approximate Pages = 7 (250 words per page)

More Essays on Environmental Consciousness of Starbucks: Analysis