Business Analysis:Review of Operations at Starbucks and Lessons Learnt (Essay Sample)

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Business Analysis: A Review of the Operations at Starbucks and Lessons Learnt
The company settled on for in this analysis is Starbucks, which is a chain of coffee stores founded in the year 1971. Along with being a coffee store, it has expanded its operations over the years and started selling customized drinks, hot and cold ones. As a business, the company recognizes the power of the social world and, for this reason, the importance of being on the web with a strong social media presence.
Evaluated Business Segments
The evaluation process for Starbucks focuses on hiring, employee management, company culture, teamwork, client relationships, business marketing and distribution, financial statistics and operations. From the analysis, it may be deduced that the company has an independent employee management platform, where the selection procedure is based purely on the policies of the organization without outsourcing hiring experts. Given the above mentioned, Starbucks has been in a position to acquire skilled workers, who are dedicated to delivering quality services as per the organization’s expectations.
Regarding the company culture, it is a key ingredient for enhancing a business’ identity and performance. From the evaluation, it is discovered that the clients are more likely to visit an organization that is dedicated to satisfy them. (Haskovo, 23) It is the case of Sturbucks, which enjoys the values of open communication, clear goals, strong objectives, and far-fetched vision.
Furthermore, Starbucks has put in place teamwork policies that have made it possible to manage time and improve on service delivery. At the firm, employees are encouraged to work in groups and support each other to attain the set goals and objectives. All of them, irrespective of their ethnicity or cultural background, have equal rights and privileges. Furthermore, they use the title ‘partner’ while addressing one another, no matter what an individual’s position is, thus narrowing the bureaucracy gap. Co-working also eliminates the difference between the various statuses in the first line. Consequently, everyone feels part of the team since their contributions, suggestions, and complaints are considered as equal.
Business Evaluation and Analysis Methods Used
It is a key requirement for any business to design an evaluation and analysis platform for its operations and financial statistics. It makes it possible for a venture to assess its current position and available opportunities that can help it to grow. With a proper framework in place, the company is able to make better decisions, improve on weakness, maximize on strengths, and, at the same time, deal with any threats accordingly.
On the other hand, business evaluation provides insight into the the financial activities. From the completed evaluations, business’ stability can be determined. Business financial statements are used for the purpose of evaluation as well. In defining the financial standings of Starbucks, evaluation techniques and methods used were employed.
SWOT Analysis
This technique was used to determine Starbucks’ strengths, weaknesses, opportunities, and threats. From the provided proposal, there is an outline of the hiring process used at the company, teamwork, and business culture. The financial statistics are also available.
Strengths. As an organization, Starbucks has invested into policies that encourage an open hiring process. The latter is based on the skill levels, where the best candidate receives the job. With the dedicated team in place, there is excellent service delivery, quality production, and achievement of the set organizational goals. These are some of the strengths that Starbucks boasts of; however, the company has also ventured into customized products, increasing on its customer base, which serves as the backbone for the business.
Weaknesses. Reading on the operations of Starbucks, it is evident that it is a business that is facing a number of challenges despite its celebrated products. Over the years, the company has been struggling with its pricing mechanism. From an expert's point of view, it has a poor price point; whereas some of its products are overpriced, they scare some customers away. Of course, it is a weakness for Starbucks, which is likely to affect its customer base. In addition, the company deals with products that are not unique on the market. Some other coffee stores are offering similar products, even at a cheaper price. It is undeniable that many customers will eventually be attracted to the cheaper alternatives.
Opportunities. As a coffee store, Starbucks is a diverse business. In its culture, there is the emphasis on open communication and diversified operations to reach out to new markets across its borders. There is also room for the introduction of more customized products. Finally, the diverse culture and taskforce are full of expertise skills that can be used to produce tailored goods.
Threats. The threats segment was used to identify some of those that Starbucks faces. From research, it is found out that the company’s main competitor is McDonald’s. The latter has also ventured into the coffee business and now offers some of the products that the former does. It has taken on some customer shares from Starbucks, which is why they both have to engage in a constant fight against each other as to stay in the game.
Net Worth Evaluation Technique
Net Worth Evaluation Technique. To have more insight on the financial standings for Starbucks, the Net worth Evaluation Technique can be used. This is a method eployed to carry out an assessment and provide information on the company’s annual report with the aim of attracting more investors and stakeholders. According to Starbucks’ net worth evaluation in 2017, the business makes net earnings of approximately three billion, something that the investors find attractive.
Market Growth and Potential Evaluation Technique. It is another evaluation technique used to obtaine the market share and potential statistics for Starbucks. Financial analysts are employed in the process to analyze the existing markets and make suggestions based on their findings. For Starbucks, the market share is large and can even be increased more by venturing into other countries with expansive customized products.
Key Findings
From the Starbucks analysis and presentation on its customer base, the financial standings and culture, it becomes clear that it is a business venture with the opportunity to grow beyond the border constraints. Starbucks has a rich customer base, which enjoys a wide variety of customized products, all tailored to meet the customer demands. In its operations culture, the company encourages open communication and diverse taskforce. More so, teamwork is a fundamental ingredient as it promotes increased productivity and cohesion.
Despite its success s