The paper “ Impact of Starbucks's Mission, Vision, Forces of Competition and Stakeholders on Its Success” is a dramatic example of the business case study. Starbucks Corporation is the US-based premier roaster and retailer of specialty coffee, operating worldwide. The company’ s mission is “ to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks Coffee Company, n.d. , n. p.). While the company’ s vision is not clearly defined in its annual report, there is provided the company’ s retail objective: “ To be the leading retailer and brand of coffee in each of our target markets by selling the finest quality coffee and related products, and by providing each customer a unique Starbucks Experience” (Starbucks Annual Report 2013, 3).
The long-term strategic objective of the company is based on the striving to maintain Starbucks as one of the most respected and recognized brands in the world (Starbucks Annual Report 2013). Thus, the company has made a huge focus on its key stakeholders – its customers. Starbucks focused on providing superior customer service in well-maintained company-operated stores (Starbucks Annual Report 2013).
Thus, the mission and company’ s strategic objectives have set a clear direction for the company, which helped it to succeed. 2. Analyze the five (5) forces of competition to determine how they impact the company. Porter has defined five forces that shape competition, including the bargaining power of suppliers, the threat of new entrants, the threat of substitute products or services, the bargaining power of suppliers, and rivalry among existing competitors (Porter 2008). Starbucks operates in an industry where the threat of new entrants is high, the threat of substitutes is also high, the bargaining power of suppliers is more benign.
Even though the company operates in a highly competitive industry, it doesn’ t automatically means to be the factor limiting the profitability of the company (Porter 2008). However, relatively low entry barriers impose certain risks to the company, which it should address by investing aggressively in the modernization of its stores and innovating menus (Porter 2008). The suppliers’ bargaining power can be defined as benign, as there are many different suppliers of coffee and the company can switch to another supplier without substantial switching costs.
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