*** Use the contents of the 2 files available in the ‘Business Plan’ Module in Canvas (Starbucks_Part 1 and Starbucks_Part 2), PLUS the contents of the videos in the YouTube Playlist for Starbucks, and all the practical knowledge you have been exposed to in our course, to answer the questions below **
“We have never been in the coffee business. We are in the people’s business serving coffee”. (a) What does this quote mean? (b) Give 3 examples of its application to different companies in different industries. (c) Explain if you agree, or disagree, and give reasons for it. (d) How does this quote relate to the company’s vision (“To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time”)?
Porter’s Five Forces Analysis of the Retail Coffee and Snacks Industry comprehends (a) the threat of new entrants, (b) the threat of substitutes, (c) the bargaining power of buyers, (d) the bargaining power of suppliers, and, (e) the intensity of competitive rivalry. (2.1) How do you believe Starbucks is impacted by those five forces? (2.2) How the impact of each of those five forces on a small coffee shop in Santa Monica (California) differs from the impact on Starbucks? (2.3) If you were a strategist working for the small coffee shop in Santa Monica, what would your specific recommendations for action would be, in order to reverse the impact of those forces, and make the small shop enjoy an impact similar to those felt by Starbucks? (2.4) What type of strategies Starbucks could adopt to eliminate, or minimize, competition from all small coffee shops (explain reasons for your recommendations)?