To systematically assess Starbucks's competitive capabilities, what should be evaluated?

Evaluating Starbucks's competitive capabilities requires a focus on its resources and functions, as these elements are foundational to understanding how the company operates within its competitive landscape. Resources refer to the tangible and intangible assets that the company possesses—such as brand reputation, coffee sourcing relationships, operational facilities, and skilled employees. Functions encompass the key activities that drive the business, including supply chain management, marketing strategies, customer service, and product development.

By analyzing resources and functions, one can identify strengths and weaknesses within the organization. This analysis helps highlight core competencies that provide a competitive edge, such as high-quality customer experiences, innovative product offerings, and efficient operations. Understanding how these resources and functions work together is crucial for formulating strategies that leverage strengths to outperform competitors.

Other options might provide valuable insights but do not directly focus on the essential components that contribute to competitive capabilities. For example, evaluating the competitive set via a strategy matrix emphasizes the external competitive environment, while sustainability initiatives focus on specific aspects of corporate responsibility, and financial statements provide a glimpse into the company's economic performance without delving deeply into operational capabilities.