Internal Audit
Strengths
1. Starbucks is the third largest chain restaurant in the US based on 2010 sales.
2. World’s largest coffee company with 16,635 stores in 50 countries.
3. Starbucks has locations in 35 cities in China.
4. Plans to open 1500 stores in China by 2015.
5. Able to purchase Starbucks coffee from your phone at 6,500 locations.
6. Signed a deal with Courtesy Products to provide coffee in 500,000 luxury hotel rooms national wide.
7. Recently changed logo design dropping “Starbucks Coffee” to “Starbucks Logo.”
8. Stores are viewed as places to study, meet friends, and relax.
Weaknesses
1. Policy of keeping the tap water running nonstop.
2. Mostly limited to coffee related products.
3. Inventory turnover of 11 vs 20 for the industry average.
4. Forced to close over 600 stores during the economic recession.
5. Do not offer cheaper coffee products for more price sensitive customers.
6. Mission and vision statements are not clear and lack direction.
8. Failure to develop a product to compete with Green Mountain’s Keurig single brew coffee machine.
9. Only 4% of revenues come from ground coffee sold in stores.