Posted: August 4th, 2022

3 Parts


By this point in the course, you have developed an understanding of the relationship between economics and the costs of health care. Furthermore, market trends and demands differ from locality to locality, and it is advantageous for health care administrators to be aware of the particular drivers of demand impacting their facilities. 

Review the SWOT analysis you completed for your organization in MHA/505. Applying your knowledge of economic principles, analyze how economic concepts impact the opportunities or threats facing your organization. 

Write a 1,225- to 1,550-word report of your organization’s SWOT and how economics in your market impact the strategy and future of your organization. Include the following: 

· Summarize the major economic trends in your market. 

· Evaluate whether these trends benefit or harm your organization’s strategic goals. Provide a rationale for your response. 

· Evaluate whether the economy in your market presents opportunities or threats for your organization, or both. Describe them and how they apply to your organization.  

· Examine whether your organization can influence the economics in your area. Explain your perspective.  

Cite any references to support your assignment.   

Format your citations according to APA guidelines. 


Respond to the following in a minimum of 175 words:

Official federal health care policy for the past 40 years has focused on market solutions, underlining the reliance on competition to improve quality and access and reduce costs. Has this economic policy been successful? Why or why not?


I will post my classmates response and questions to part 2 Friday.






23 Version X


SWOT Analysis


What does the organization do well?

Starbucks’ profitability has risen to 14% in recent years. It also outperforms its competition with a 24.54 percent ROI and a 29.16 percent ROE. Starbucks is known for its high-quality coffee and friendly service.

Starbucks reinvests money in new sites. Its effective operations and strategic decisions have benefited the company greatly. Starbuck’s reward program keeps people hooked on coffee. For every $1, you get 3 stars. Collect 150 stars for a free drink. Rewards members also get mobile payment, pre-order, and free birthday drinks.

What unique resources can the organization draw on?

Its $4 billion brand is the most valuable in the coffeehouse industry. Starbucks’ customer service is one of its major features, with precisely blended coffee, premium music, helpful personnel, and a nice atmosphere. Starbucks has implemented gender-neutral restrooms to safeguard the LGBT community from persecution. It’s in response to anti-LGBTQ measures that target transgender persons.

What do other organizations see as strengths?

It has over 20,000 coffeehouses in 60 countries, making it the world’s largest coffeehouse network. The company offers a wide range of advantages and a greater salary than competitors. Employees hired between July 2021 and October 2021 had their hourly pay increase by 5%. Starbucks’ tenured employees will also see a 6% pay rise.


What could the organization improve?

Starbucks’ profitability and coffee price are heavily reliant on the price of coffee beans, which is a commodity. Starbucks doesn’t have the most unique offerings. This makes copying products easier for competitors. McDonalds McCafe and Dunkin Donuts provide nearly identical items. .

It was criticized for its tax evasion in the UK. Reuters discovered it had not paid tax on £1.3 billion in sales for three years prior to 2012.

Where does the organization have fewer resources than others?

Starbucks can’t predict the price of this coffee or the company’s profitability due to hedge funds and weather. Starbucks provides amazing coffee and customer service at a hefty cost.

Environmentalists and social activists slammed the company’s unscrupulous procurement practices They claimed it buys coffee from poor third-world growers. It’s also accused of breaking “Fair Coffee Trade” rules.

What are other organizations likely to see as weaknesses?

Compared to 3 Starbucks coffee, McCafe premium coffee was cheaper and better assessed. The corporation is constantly criticized for its lack of environmental initiatives, tax avoidance, and mistreatment of some suppliers.

According to a Mashed poll, almost 21% of coffee drinkers despise Starbucks’ “Iced Latte.” Starbucks introduced it as a Christmas drink. Sadly, the drink was a bummer. Many consumers complained Starbucks’ iced latte was excessively sugary and not worth the hefty price.


What opportunities are available to the organization?

What trends could the organization take advantage of?

Starbucks cannot cultivate its own coffee beans and must purchase them from suppliers based in South America, Arabia, or Africa. Starbucks needs to expand its supplier network to assure vital supplies for its Asian operations, minimize reliance on harvests in Africa and South America, and reduce shipping costs. There are several chances for coffeehouses in China, and they can diversify their businesses to increase overall revenue. Developing items based on customer preferences in a certain market is also profitable.

How can the organization turn strengths into opportunities?

India, where Starbucks operates a small number of outlets. The company may increase the number of coffeehouses that serve wine and beer, add additional goods, and reach a larger audience. Its products are sold by various stores as well as by its own coffeehouses and franchisees. It should develop additional partnerships and sell its coffee in supermarkets, for example.

Some coffee shops are rapidly expanding their clientele by serving both normal and premium coffee. Starbucks can sell cheaper normal coffee to the middle class while still selling its costly premium coffee.


What threats could harm the organization?

The chain is heavily reliant on coffee and dairy prices that Starbucks cannot control or anticipate. Starbucks is frequently involved in costly trademark infringement cases. Local cafes might provide reduced prices and better menu options. Starbucks’ supply chain is complicated by numerous third-party contractors and stakeholders. Starbucks coffee shops in the Midwest faced shortages in 2019 due to a strike by a key supplier.

What is the competition doing?

Big coffeehouse chains specialize to avoid competing with Starbucks. Starbucks faces fierce competition in both cases and loses market share. Experts expect the epidemic will continue to change customer behavior and constrain discretionary expenditure in wealthy economies. Also, the restaurant industry’s collapse and other macroeconomic issues may impact Starbucks’ development plans and operations.

What threats to the organization expose weakness?

Starbucks will struggle in these markets. Starbucks may face supply delays due to political, economic, and weather factors. Dietary racism entails enticing BIPOC (Black, Indigenous, and People of Color) communities to buy unhealthy foods by lowering prices. The hoax, according to Switch4Good, effectively called out Starbucks’ methods.


At least 3 reference is required

1. 1. Starbucks Was A Complete Failure In Australia (Business Insider Australia, 2013)

Starbucks Was A Complete Failure In Australia (

2. Starbucks in Australia: Where did it go wrong? (ABC News, 2010)

Starbucks in Australia: Where did it go wrong? – ABC News

3. The Australian 2014, New Owners For Starbucks Australia.

Story fn3dxiwe 1226934051588 | The Australian

Summary Analysis

Starbucks is a global coffee shop brand with over 6,000 stores in over 100 countries. Founded in the early 1980s as a modest Seattle coffee shop chain, they grew rapidly in the 1990s. They now own 5,689 cafes in 28 countries. Howard Schultz (Chairman and Chief Global Strategist), Howard Behar (Head of North American Operations), and Orion Smith (Chairman and Chief Operating Officer of Starbucks) make up the H2O executive team (CEO). Despite its phenomenal expansion since going public in 1991, the company has faced various challenges. Its problems had escalated in both the US and worldwide. The company says the baby boomers helped it succeed in the 1990s, but the environment no longer appeals to Generation X, and the younger generation feels out of place in the coffee shop, especially when the coffee seems pricey to them. Starbucks faced three major threats in the US market. One was the oversaturated market (USA).

Due to the limited product variety, the firm may grow slowly, and clients may lose interest, causing them to seek other possibilities. The US and Canada have more concentrated markets. Starbucks started with 17 coffee shops in Seattle 15 years ago and has grown to over 16,000 stores in 44 countries, including over 11,000 in the US and Canada, with only eight states without a Starbucks. Starbucks is based in Seattle. Amazingly, there are currently 4,247 stores across the US and Canada. Seattle has one outlet per 9,400 persons. And the corporate thinks this is the peak of coffee shop saturation. Another risk is client loss due to limited customer selections. In business, corporate strategy refers to an organization’s overall scope and direction, as well as how its various business processes work together to achieve specific goals. Modern business strategies usually emphasize the development of global brands and products. They see this as an opportunity to quickly dominate the local market, increasing overall income and market share (Holmes et al, 2002).

They claim that while it first costs the preceding store money, it ultimately makes more profit than a single store could generate. However, due to market saturation in the US and Canada as well as the present recession, the company has had to close certain locations while increasing the number of outlets in other regions of the world. Previously, Starbucks was only available in eight states. In this case, however, Starbucks should only open new outlets in places where it does not already have a presence. This will prevent the company from stealing market share from the previous retailer and allow it to create a new market niche. Second, Starbuck’s values employee training and appreciation. Baristas and store managers are recruited and trained here, as well as partner awards and training programs. However, real estate, retail design, planning, and 5 building are all linked.

Finally, the “everything matters” approach and uniform assessment help improve retail ambience. Starbucks provides superior customer service, setting them apart from their competition. And qualified employees are essential to accomplish perfection. The way personnel greet and serve clients directly impacts their whole experience. However, maintaining this process is costly. Because Starbucks’ products and services are more expensive than equivalent ones, further price hikes may harm the company’s business. Customer service is considered as one of the most important parts of any firm. These personnel are a company’s most valuable asset. That means providing high-quality products, as well as training and motivating all personnel to give exceptional customer service.

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