Question

HEINEKEN

1. General Environmental Analysis – Focus on the trends in the seven segments of the general environment and predict which segments you expect to have the most significance to your company in coming years;
2. Industry Analysis – Reference the five forces of competition model to judge the attractiveness of the industry (or segment of the industry) in which your company is competing;
3. Competitor Analysis – Identify competitor's strategies so your company can learn to predict their responses;
4. Internal Analysis – Analyze company's value chain to assess the organization's overall strengths and weaknesses.

Answer 1

General Environmental Analysis- The various factors present in a macro-environment of a company are political, economic, social, technological, ecological and legal factors. Political and economic conditions such as governmental support, bureaucracy, regional integration, growth of developing countries, umemployment rate, purchasing power and labour cost would have most significance in Starbuck's business.

Industry Analysi- Porter's five forces of industry analysis includes competition, threat of substitution, threat of new entry, power of buyers and power of suppliers. Starbucks faces strong competition in the market with strong bargaining power of customers. The suppliers have less power of bargaining, while power of substitutes is strong and that of new entrants is moderate.

Competitor Analysis- Dunkin Donuts and McDonald's are the main competitors of Starbucks. McDonald's is a multinational chain with its wide presence in the international market. It has varied marketing strategies for reaching out to customers, while Dunkin Donuts has made itself recognised as a destination coffee shop.

Internal Analysis- Starbucks has relationships with various trading companies, exporters and suppliers, which represent its primary activities. The operational activities include purchasing, roasting and selling high quality coffee to customers.