Strategic Management at Starbucks

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Introduction Starbucks Coffee Company, founded in 1971 as a humble coffee shop in Seattle’s Pike Place Market, has since grown into a dominant multinational corporation operating in 37 countries and serving over 40 million customers every week. At the end of fiscal 2005 Starbucks owned and operated nearly 5,700 coffeehouses around the world and licensed an additional 3,200 locations, generating $780 million in profit on revenues of $6.4 billion. The firm has employed a multitude of well-focused strategies in order to capture the bulk of its growing market and remain on top of the competition. Mission “The mission of Starbucks is to establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow” Vision To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Current Position The current international situation for Starbucks seems to be an emerging part of their business. Overall, the aim of becoming a worldwide global brand seems to be working in favor of the company and is helping it to attract the attention of many major companies who would like to share a partnership. This is all positive news for the company because it provides a strong basis for future development of international markets, which one of the leading specialty coffee retailers in the world. Market environment Analysis Task environment Porter`s five forces analysis [pic] Threat of new Entrants The threat of new entrants into the coffee industry is an average force. This is based on negligible switching costs for consumers to purchase new product or lower priced product from competitors and easy access to pre-existing distribution channels and suppliers, with very little regulation, act to strengthen the forces

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