Strategic Management Essay Example | Topics and Well Written Essays - 3000 words - 27

Strategic Management - Essay Example 87, the company unveiled a five years plan which was aimed at opening more than 125 stores in new areas at a cost of $ 60 million (My Starbucks Idea 2012, par. 7). To attain the required resources to open new outlets, the company introduced an Initial Public Offering in 1992. The success of the offers enabled the Starbuck Company to unveil other very intricate expansion programs. To fit in the contemporary competitive market, the company has continued to come up with strategies that are aimed at expanding its business into other global markets. Currently, the company is one of the most successful coffee industries in global market. Due to economic and technological development, the Europe continent is one of the most competitive coffee markets in the world. This is due to the presence of large coffee industries in the continent. Therefore, for Starbuck Company to prosper in the European continent market, it ought to come up with exceptionally effective market plan (Gulati, 2007, p. 99). The essay below will offer a detailed evaluation and analyses of the Starbucks external markets in Europe. The essay will as well analyse the Starbucks strategic capability as well as the company’s strategic fit analysis. The European economy is in most cases affected by some external factors such as economic recession. The economic recession and other economic factors have over years brought about severe impact in the operation of Starbucks Company. For instance, the 2008 and 2009 global recession increased the operational cost of the company thus lowering its profit margin. On the other hand, the 2008 recession as well played an awfully critical role in reducing the number of the company’s customers. This was due to the facts that, despite of the high cost of the products in the continent, the level of unemployment remained high with very limited wages. Moreover, the Starbucks Company competes at two main levels in the European market, the Italian-style coffee beverage and