COMPANY: Starbucks
External Analysis (5-6 pages)
a) General Assessment of Environment (-2 pages)
Assess the general environment, focusing on ONLY the most relevant three of the following segments for your chosen industry: demographic, sociocultural, political/legal, technological, economic, and global. Explain in detail how certain changes or trends in the segments you analyze had (or may have) impacted your industry.
b) Analyze the industry environment (Porter’s 5 forces analysis) (-3 pages)
• Analyze the industry dynamics and provide a detailed description of the competitive forces inside the industry. Use Porter’s Five Forces model to examine the competitive environment
• Identify the strategic groups in the industry based on the relevant criteria you will choose.
• Your aim should be to answer the following two questions in detail: “How attractive is this industry at the current time; that is, is it possible for incumbent organizations to sustain competitive advantage in this industry? Given the observed trends, what is your assessment of industry attractiveness over the longer term (5 to 10 years from now)?”
You should research and read external reports, analyses, news, and other related material and cite them properly for all the sections of this report.
c) Conclusion (1/2 page)
Write a conclusion based on the external analysis you conducted, addressing the main implications regarding the profitability of the industry. Overall, what are the major opportunities for this industry? What are the major threats? Name 2 for each.
