Analysis of Starbucks: Management, Industry, and Strategies

Running head: MANAGEMENT
Management
Name of the Student
Coffee Industry
Starbucks
Name of the University
Author Note
Table of Contents
Introduction:...............................................................................................................................3
State of Industry:........................................................................................................................3
Mission, Vision and Goals of the organization:.........................................................................3
External Environment:...............................................................................................................4
Political:.................................................................................................................................4
Legal:......................................................................................................................................5
Economic:..............................................................................................................................5
Social:.....................................................................................................................................5
Environmental:.......................................................................................................................6
Technological:........................................................................................................................6
Porter’s Five Forces:..................................................................................................................6

1MANAGEMENT
Competitive Rivalry: High.....................................................................................................6
Bargaining Power of the customers: High.............................................................................7
Bargaining power of the Suppliers: Low...............................................................................7
Threat of Substitution: High...................................................................................................7
Threat of New Entries: Moderate...........................................................................................7
SWOT:.......................................................................................................................................8
Strengths:................................................................................................................................8
Weakness:..............................................................................................................................8
Opportunity:...........................................................................................................................9
Threats:...................................................................................................................................9
VRIN:.........................................................................................................................................9
Generic Strategy:......................................................................................................................10
Conclusion:..............................................................................................................................11
References................................................................................................................................12
Appendix:.................................................................................................................................14

2MANAGEMENT
Introduction:
The paper is focused in the elaboration of the business process of a chosen
organization, Starbucks. The paper analyses the dynamics if the industry in which the
mentioned organization operates. In addition to this, the paper includes the vision, mission
and objectives of the organization. Along with that, the paper analyses the external
environment of the organization with a precise application of the Porter’s five forces model.
Apart from this, the paper summarizes the internal factors that affect the business operations
of the organization. In order to identify the internal factors, the paper includes a SWOT and
VRIN analysis. Adding to that, the paper focuses on the application of the generic strategies
from the part of the organization. Apart from this, the paper provides some of the important
recommendations for the improvement of the business operations of the chosen organization.
State of Industry:
The chosen organization operates in the coffee shop industry. The organization is one
of the leading business company of the mentioned industry and is seen to hold a significant
market share in the global coffee shop industry. The organization serves the customers across
the world and has notable amount of dependence on the US markets. In United States, the
chosen company is subjected to a market that has increased their generation of revenue in a
significant manner and that is pretty evident with 11 billion US dollars revenue (Starbucks.in,
2019). The country is seen to have 12529 number of organizations operating in the mentioned
industry and that defines the level of competition that surrounds the chosen organization.
Mission, Vision and Goals of the organization:
The mission statement of the chosen organization is to inspire and nurture the human
spirit and to follow their very own concept of one person, one cup and one neighbourhood at
a time. The mission statement of the organization notably clarifies the business policy of the
chosen organization where they put strong emphasis on providing a better environment for
the customers of the organization. In addition to this, the vision of the company is seen to be
the reflection of the corporate culture of the company where the company intends to develop
itself as the premier purveyor of the finest coffee in the world (Abdel-Basset, Mohamed &
Smarandache, 2018). Along with that, the company is seen to be determined in
uncompromising with the principles that it follow while it grows as the premier organization
in the mentioned industry. The corporate vision of the company is significant in stating the
urge of company in sticking to the principles that they follow along with being subjected to a
rapid growth.
With a precise focus on the mission and the vision statement, the senior level
management of the company is seen to develop their objectives for the achievement of the
desired growth (Berman, 2016). The company has the objective of providing the best quality
coffee to the customers of them along with the experience of pleasant environment which has
the potential to attract the customers in a significant manner. With the effective
implementation of the objectives, the company is able to increase their profit in a significant
manner and that is pretty evident with the generation of 22.387 billion US dollars as the
revenue.
External Environment:
Political:
The political impact on the business conduction of the chosen organization is seen to
be significantly limited. The company is seen to face limited impact of the political parties of