Using the Information below of Opportunities and threats. , develop an EFE matrix using five (5) opportunities and five (5) threats. Discuss how you developed the EFE matrix and the outcome.

Opportunities:

1. Growing demand for specialty coffee: The demand for specialty coffee is increasing globally, which presents a significant opportunity for coffee retailers like Starbucks. According to research, the global specialty coffee market is expected to grow at a CAGR of 10.4% from 2021 to 2028.
2. Expanding market in Asia-Pacific: The Asia-Pacific region presents a significant opportunity for Starbucks, as coffee consumption in this region is expected to increase significantly in the coming years. The region is also home to a large population of young and affluent consumers who are increasingly seeking premium coffee experiences.
3. Digital technology: With the increasing use of digital technology, Starbucks can leverage mobile ordering and payment platforms to enhance customer experience and increase convenience.
4. Sustainable practices: Consumers are increasingly becoming environmentally conscious, and Starbucks can leverage its sustainable practices to attract and retain customers. The company has made significant efforts to reduce its carbon footprint and use of plastics, which can be a key differentiator for the brand.
5. Growing demand for plant-based products: The growing trend towards plant-based diets presents an opportunity for Starbucks to expand its range of plant-based products, such as non-dairy milk options.

Threats:

1. Intense competition: The coffee industry is highly competitive, and Starbucks faces competition from both established players and new entrants in the market. Competition can put pressure on pricing and reduce market share.
2. Economic factors: Economic factors such as inflation, changes in disposable income, and interest rates can significantly impact the coffee industry. If economic conditions worsen, consumers may reduce their discretionary spending, including spending on coffee.
3. Supply chain disruptions: The coffee industry relies on the supply of coffee beans from regions that are vulnerable to climate change and political instability. Supply chain disruptions can lead to price volatility and impact the quality of coffee.
4. Changing consumer preferences: Changing consumer preferences, such as a shift towards healthier options, can impact Starbucks' sales. Consumers may choose to reduce their consumption of high-calorie coffee drinks and opt for healthier alternatives.
5. Legal and regulatory challenges: Starbucks operates in multiple jurisdictions, and changes in regulations related to labor laws, taxes, and environmental regulations can impact the company's profitability and brand reputation.

Answer rating: 100% (QA)

To develop an External Factor Evaluation EFE matrix using the provided opportunities and threats we first assign weights to each factor based on their ... View the full answer