The SWOT analysis is often used to help managers understand the competitive advantage of their organization. It can also help them to make decisions to support the organization's mission and vision in an ethical manner and help with strategic planning.

Watch the video: Putting Your SWOT to Use which will provide you with what you need to know about SWOT and making it work for your organization's strategic planning.

Review the abbreviated version of the Starbucks 2020 SWOT Analysis on YouTube (Strengths, Weaknesses, Opportunites, Threats).

Considering the video and the Starbucks 2020 SWOT Analysis, answer the following questions:

• Opportunities are to be prioritized in your strategic plan. How would you recommend that Starbucks prioritize Ready to Drink (RTD) coffee products in the U.S.?

• Weaknesses are important and need to be acted on quickly. What would be your first step to act on Starbucks expanding outside the U.S.? Why do you think this would work?

• Threats need to be watched and monitored. Explain how you would plan to monitor weather disasters that could drive up the price of coffee beans?

STARBUCKS CORPORATION SWOT ANALYSIS 2020S W O T STRENGTHS 1. Operating efficiency and strong growth leading to superior financial performance 2019 was one of the best financial years in Starbucks' history Starbucks' consolidated revenue 2013-2019 Starbucks' operating profit margin 2012-2019 16.5 18.7 18.8 19.6 18.5 120 15 15.7 15.4 10.6 11.2 10.4 72 50 14.9 16.4 19.2 21.3 22 4 24.7 26.5 20 13 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019S O T WEAKNESSES 1. Overdependence on revenue from the Americas segment Starbucks' sources of revenue by country U.S. is the most important market for the company, generating at least International 30% US$18.623 billion in sales or more than 70.3% of its U.S. total revenue. 70%S W O T OPPORTUNITIES 1. Expansion of ready-to-drink (RTD) coffee products in the U.S. market RTD coffee growth compared to the growth of the whole liquid beverage market in the U.S. 16.5% . Market for RTD coffees is growing very fast; 12.3% 10.7% (.0% 8.8% Starbucks could expand its 6.2% cold brew coffee or nitro coffee portfolio to attract more 2.2% 2.8% 3.4% 2.1% 2.2% specialty coffee and millennial -0.1% consumers further strengthening its market 2013 2014 2015 2016 2017 2018 position in RTD coffees. -Ready-to-drink Coffee -Whole Beverage MarketS W O T THREATS 1. The price of coffee beans could significantly rise due to major weather disasters The price of coffee beans 2010-2020 Starbucks profit margins are dependent, to some 2.5 extent, on the price of coffee beans, which over the past several years 15 has been very volatile. 2011 2017 2014 2011 2016 3012 2019