Over dependence on Company operated store: A majority of stores are company operated (Starbucks Corporation, 2014) despite the company having several licensed stores. Company operated stores put extra burden on the resources of the company, especially human resources. Starbucks could easily employ a strategy where more stores can be licensed. Even existing company owned stores can give way to licensed stores.
Starbucks is a financially sound organization with huge brand equity and customer loyalty; it uses the best quality of materials in making its food/ beverages. Its stores are aesthetic and easy to reach out to, in the manner that they are well located, easy to access and provide a sense of familiarity to the customer. However, Starbucks depends heavily on its American stores as well as stores that are run by the company itself. Starbucks has been a successful innovator thus far, with its huge resources; it should look to diversify into other segments such as retailing its products, especially in large departmental stores such as Wal-Mart, Tesco or Carrefour. Starbucks should also enter newer markets, as it has the experience of successfully doing so, especially with its current markets reaching their peak. Starbucks current brand image will hold the competition at sea, however they must continue to innovate, expand their menus and incorporate changing customer needs and preferences if they are to remain at the top.
Legal: Starbucks must be watchful regarding any local laws that may exist in the country of operation. For example, Starbucks had been in the news on how little Corporation Tax it paid (BBC, 2012). HM Revenue and Customs (UK) had said that corporation tax is not voluntary in nature is a statutory obligation (BBC, 2012). Starbucks needs to adhere more carefully to local laws, rules and regulations.
In some areas such as economical progression and technological innovation, Starbucks has managed to be quite successful and in some areas, especially environmental; it has broken a few norms and invited criticsm, both by its customers and the administration. Starbucks needs to put more emphasis in valuing the factors that affect its business and take corrective action to set them straight or to take full advantage of situations presented to them.