Uop Mgt/598 Essay

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

Bargaining Power of Buyers: The bargaining power of buyers is high in the department store retail industry. The volume of buyers is high, and buyers are very price sensitive in this industry. The products are not highly differentiated, and there are numerous stores that offer the same, or similar, products, giving buyers the opportunity to search for the lowest prices and information. The industry has substitutes available in the form of specialty, differentiated products and stores. This increases the power of buyers,

Threat of New Entrants - The easier it is for new companies to enter the industry, the more cutthroat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include:

Starbucks' mission is a reason for the company's existence. With the unique style of combining both, our vision and mission statement is "to inspire and nurture the human spirit - one person, one cup and one neighborhood at a time." (Starbucks.com) To align with this mission statement, our new division's mission statement is to " bring the best quality coffee and convenience to our customers on the go, one machine at the time" This mission statement reflected the company value and beliefs to show our costumers that we care, it will also guide our employees on understand and establish what the company truly does. A good mission statement inspires employees and provides a focus and direction for strategic planning. While mission statements vary from organization to organization and represent the distinctness of each one, they all share similar components. (Mission and Vision Statements, 2010) The new division's mission statements include descriptions of Starbucks' target market, the geographic domain, and concern for survival, growth, and profitability.

Bargaining Power of Buyers — Low to Moderate. If the buyer does not want a product, they can easily just change to another product in that segment. And as competitions in these markets begin to rise, many companies may be forced to compete with lower prices in the industry.

According to Barney and Hesterly, “new competitors are firms that have either recently started operating in an industry or that threaten to begin operations in an industry soon.” (Barney & Hesterly, 2014). Those competitors are motivated to enter into the industry

“ to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. ("Starbucks Company Profile", 2017)

Buyer Bargaining Power: The competitive pressure associated with buyer bargaining power is moderate for the following reasons:

The bargaining power of buyers can force the supply companies to lower the prices. In a market in which buyers have the power,

Starbucks' success has led to a potential threat caused a lot of cottage brand market entry. They experience intense competition and loses market share because local coffee house can change suited menu for its guests and they also can offer much lower price.

Considering the elements of a mission statement, which include clarity, conciseness and simplicity, there is no doubt that Starbucks’ Mission statement, as outlined in appendices 1, is commendable to some level. The mission statement need to state clearly who Starbucks is and what they normally do. In Starbucks’ mission statement, the “who” part is not clear, but what they do or intend to do is well stated. This helps state the values they cherish most as an organization and why they value such values. As a guiding ideology, a mission statement ought to be brief. Though debatable, Starbucks’ mission is considerably long

Starbucks Coffee Company is a worldwide conglomerate. Their specialty is coffee. In addition to working as global leader of coffee distribution, Starbucks is also trying to be a global leader in responsibility. They want to show and teach the world that positive thinking, conflict resolution, and giving back to the community are things that people and companies should strive to do. Their quest is to inspire people. “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” ("Starbucks,” n.d.).

The bargaining power of buyers: Buyers have more control over an industry than one might think. They want lower prices, higher quality, and more services and this makes the competitors play against each other. The profitability suffers as each competitor tries to make their product or service better (Dess, p. 54). McDonald’s has a $1.00 menu as does Burger King and Wendy’s. Each time I go into either of them there is a better item added to the $1.00 menu. For instance, McDonald’s has the scrumptious Double Cheeseburger and Wendy’s has the

While their mission is all about their customer, the Starbucks vision shows how they want to be the premier purveyor which they already achieved for being the largest coffee and coffehouse in the world. Thus, the firm effectively addresses their vision statement.

Starbucks public mission statement is “to inspire and nurture the human spirit¬ one person, one cup and one neighborhood at a time” (Mission Statement). This mission statement reveals characteristics of a culture of servant leadership. To inspire and nurture the human spirit are core attributes of servant leadership. Doing this one person, one cup, and one neighborhood at a time highlights the relational nature of the company.