Starbucks Business Study
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Institution:
Business Studies
Question 1
In the establishment of a company or corporation, various issues need to be addressed. The main issue is the external environment especially in areas new to the establishment. Many establishments fail to understand the external environment. The main aspect is that the environment keeps on evolving and changing. It becomes more complex as the economic times change. This requires a company to keep monitoring the changes and implementing the necessary strategies to keep up with them. For example, Anheuser-Busch took five years to realize the impact of the microbrewers in the market.
Question 2
When a company fails to understand the external environment, it poses a great problem. This is because understanding the environment ensures the company succeeds. The first importance is the company is able to evaluate competition and implement methods and a unique niche to counteract competition. If a company fails to acknowledge competition then it is vulnerable to reduced market sales especially if the other companies have the same products and services and are offering them at more affordable rates.
Question 3
In the twentieth century, several companies have more advantage in their respective markets owing to the fact that their brand quality is high. One example of such companies is Starbucks. This company believes that their brand is equal to its reputation and name (Chandler, 2013). The main advantage is loyalty from the customers. This is considered strongest competitive advantage. This translates to the customers sticking to the company’s products regardless of the price. Such companies as Wal-Mart also gain great profits thus in the global economy they thrive effortlessly (Chandler, 2013). The aforementioned companies also use their brand quality to control the prices that gives an upper hand in getting great profits.
Question 4
Companies with
high quality brands have a higher likelihood of performing well in the social
media owing to the fact they are already known. The social media provides a
marketing platform for the company and thus investing in such advertisement is
considered a good investment (Chandler,
2013). Despite the fact it takes time for the company to get momentum in such
marketing, it can prove to be quite resourceful. The owner of the company
should repeat the exposure, which is a classic marketing strategy. This ensures
the customers are constantly reminded of the products.
Reference:
Chandler, Stephanie. (2013). Hidden Benefits of Social Media Marketing. Forbes.