Oliver, KrystieTopic StatementTopic Statement Analysis of the.docx

Oliver, Krystie
Topic Statement
Topic Statement: Analysis of the Competitive Environment of
Starbucks, within the Specialty Eateries Industry, using Porter’s
Five Force’s
Starbucks was established in 1986, as a specialty coffee shop.
As of July 1, 2012, it has established 17,651 stores total, all
over the world. Starbucks can be found in multiple industries,
such as Fast Food Restaurant, Coffee and Snack, and Specialty
Coffee industry. My research paper will analyze the competitive
environment of Starbucks, within the Specialty Coffee Industry.
During my research I will also analyze their competitors.
Starbucks competitors used to be other specialty coffee shops,
like Caribou Coffee, Dunkin Donuts and local coffee shops. But
the expansion of McDonald's McCafe has brought a different
level of competition as customers look for ways to save money.
Work Resources
Specialty coffee industry analysis; accessed 6 Oct 2012
http://meangreen.hubpages.com/hub/Specialty-coffee-industry-
analysis
Starbucks Company Timeline; accessed 6 Oct 2012
http://assets.starbucks.com/assets/e56b2a6b08244aaab0632dc6a
c25ad0d.pdf
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Full Text
Economic geography refers to the study of distribution, location
and the organization in space of all economic activities
globally. It is a subfield of geography but can
however also be considered as a part of the study of economics.
The subject of economic geography covers several fields such
as international trade, agglomeration,
transportation as well as urban economics.
Economic geography has undergone several changes that
have led to its differentiation onto the various topics that it is
divided into. The dynamic nature of
economic geography can be viewed from a historical
perspective and a postmodern perspective. From the historical
approach, economic geography comprises

commercial geography, environmental determinism, areal
differentiation, spatial organization as well as location theory.
On the other hand, the post-modern approach
is classified as either behavioral or dialectical. The behavioral
postmodern approach to economic geography includes
phenomenology, which studies the key events
that affect economic geography as well as the structural
behaviors that influence economic geography. The dialectical
approach involves radical humanism as well as
a Marxist view of the study.
The study of economic geography also considers the
economic systems and organizations that exist in the society.
These include the competing mindsets that exist
in the economy. There are three mindsets that are considered
which include; a conservative mindset that seeks to retain the
status quo, the liberal mindset that can
work with whatever is there at present and finally, theradical
mindset that proposes and suggests radical changes. Socio-
political systems also form a major economic
system. This is by considering the capitalistic economies, mixed
economic systems, command systems, traditional economies as
well as organizational and market
negotiated systems.
There are several modes that are used in defining economic
geography such as the nature of facts, which considers the
factual evidence of economic geography.

The models used in the study include positive or descriptive
model and the normative or prescriptive model. Furthermore,
the idea of nomothetism and idiographism
form part of the models of economic geography. According to
the philosopher Wilhelm Windelband, Nomothetic refers to the
tendency of generalization in which an
effort is placed in an attempt to generally explain and define
laws that describe phenomena that is objective. Idiographic on
the other hand specifies the meaning and
derives laws for subjective phenomena.Additionally, the
Hartshorne-Schaefer debate makes a fundamental contribution
to the field of economic geography. Schaefer
proposed that scientific techniques should be implemented in
studying spatial laws. He also critiqued the Hartshorne method
and philosophy that was propagated
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through the Hartshonian orthodoxy.
In its contextual form, economic geography includes the
study of population, re. The population refers to the number of
people living in a particular geographical

location at a particular time. The re that are utilized by this
population could either be to increase the production of food or
to create other food that would ensure the
survival and continuity of the population. However, there are
other non-renewable re that once utilized cannot be reverted
back to their previous form and have to be
used with caution. This leads to the polarized scarcity debate.
This pitted the pessimists against the optimists.
On the human rational, the decision processes. Decision making
can occur at several levels each with its own models and
characteristics such as decision making at
the individual level, corporate decision making as well as
decision making based on the government’s directive.
The primary sector in economic geography is the
agricultural sector which is a primary sector. The primary
sectors of production include; mining, forestry. The
agricultural sector forms a fundamental area of study in
economic geography. To begin with, there are several aspects of
agriculture that can be studied. The
agricultural sector is defined by several characteristics which
include the number of production units, the multiplicity of the
products, the biological nature of
production, self-sufficing production and the nature of the
decisions made based on the location. Agriculture, being a
fundamental sector of study for economic
geography has a severe impact on the economy of many
countries, Canada forms an important case study. Agriculture

has even penetrated into modern societies and
it is imperative that a proper location process is carried to
determine the suitable agricultural areas. The von Thunen model
connected the theory of rent to spatial
economics and demonstrated that there is little importance in
the patterns formed by how land is used but more on the
approach that is analytical. This perspective by
von Thunen led to the various perspectives on the model; the
intensity theory and the crop theory.
Re and resource management also forms a part of the
primary sectors considered in economic geography. A resource
refers to a form of supply that can be
profitably and beneficially harnessed.Natural re form the
beneficial supplies that occur without the influence of humans.
Re are classified as either renewable or
non-renewable. Renewable re are those that are constantly
replace after utilization. However, the non-renewable re are
those which are completely exhausted and not
naturally replaced or regenerated.Cowboy and spaceship
economics are used to determine the economic value of the
agricultural locations.
Finally, industrial location forms the secondary sector.
This is further grouped into industrial and manufacturing
geography. There are several types of industries
which include; construction and utility industries and tools and
measurement industries. The location of these industries is
determined by such primary factors as raw

materials, energy re availability of labor, facilities of
transportation as well as the location of the markets for the
produced goods. The secondary factors are; the
physical location, policies enforced by the government, the
taxes as well as personal considerations. There are theories
which have been forwarded to suggest the
placement of locations for manufacturing. These include; the
least cost theories, Weber’s Theory of Least cost location and
theories that emphasize demand.
Oliver, Krystie
List of at least 10 References
REFERENCES
CBS/AP. (2012, March 8). New Starbucks product threatens
competition. Retrieved October 2012, from CBSNews.com:
http://www.cbsnews.com/8301-505143_162-57393839/new-
starbucks-product-threatens-competition/
Hsu, R. (2012, March 18). Starbucks Set Up to Roast the
Competition. Retrieved October 2012, from Investorplace.com:
http://investorplace.com/2012/03/142116-agu-bidu-lvs-sprd-
sbux/
Kiesling, L. (2012, August 2012). Starbucks' energy efficiency
competition. Retrieved October 2012, from
Knowledgeproblem.com:
http://knowledgeproblem.com/2012/08/16/starbucks-energy-
efficiency-competition/
Treleaven, S. (2012, July 9). Starbucks goes Global. Retrieved
October 2012, from Businesswithoutborders.com:
http://www.businesswithoutborders.com/industries/retail/starbuc
ks-goes-glocal/
Unknown. (2012, May 21). Fortune 500 Starbucks. Retrieved
October 2012, from money.cnn.com:

http://money.cnn.com/magazines/fortune/fortune500/2012/snaps
hots/10567.html
Unknown. (2012, October 6). Starbucks Assets: Retrieved
January 2013 Retrieved from Starbucks.com:
http://assets.starbucks.com/assets/e56b2a6b08244aaab0632dc6a
c25ad0d.pdf
Unknown. (2012, October 9). SBUX Competitors. Retrieved
January 2013 from Finance.Yahoo.com:
http://finance.yahoo.com/q/co?s=SBUX+Competitors
Unknown. (2012, October). Starbucks Company Information.
Retrieved January 2013, from Forbes.com:
http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.js
p?tkr=SBUX
King, Michelle (2013, February) Brand Keys Ranks Dunkin'
Donuts Number One In Coffee Customer Loyalty and Packaged
Coffee Customer Loyalty, Retrieved February 2013, from:
http://finance.yahoo.com/news/brand-keys-ranks-dunkin-donuts-
150000446.html
Glover, Katherine (2008, December) McDonald’s ‘McCafe’
Picks up Steam, Challenging Starbucks. Retrieved February
2013, from: http://www.cbsnews.com/8301-505123_162-
33140320/mcdonalds-mccafe-picks-up-steam-challenging-
starbucks/
Unknown (Unknown) Caribou Coffee Company Information.
Retrieved February 2013, from:
http://www.cariboucoffee.com/page/1/company-info.jsp
Page 1
RESEARCH PAPER
ATHENA MIKLOS, PROFESSOR

Business decision-taking is guided by national and global
economic conditions, political and
social events and resolutions, and the global competitive
environment. Firms charge employees with
the responsibility of examining this competitive environment to
help them make important strategic
decisions. The impact of these decisions is undeniable.
Therefore, it is critical that business students
become aware of news and world events that create changes in a
firm's competitive environment and
affect its future. This knowledge allows you to take control of
your future, careers, and better prepares
you for management roles in a global economy.
In pursuit of this goal, you are required to research then submit
a term paper during the 13th
week of classes (see course schedule for firm due dates.) This
paper is based on the global competitive
environment that impacts businesses within a specified industry.
A list of approved industries can be
found at http://www.businesswithoutborders.com/. Keep in
mind that each industry identified at this
site contains subsets. You will submit a topic statement for the
paper which includes a brief description
of your selected industry, and your expected outcomes during
the 4th week of classes (see course
schedule for firm due dates.) A list of at least 10 references
must be submitted during the 7th week of
classes and an outline during the 9th week of classes (see course
schedule for firm due dates.) For each
assignment not submitted 10 points will be subtracted from the
final term paper before it is graded.
Therefore, it is possible for you to lose up to 30 points from the
term paper before it is submitted.

You may watch any news on T.V. except local network news for
ideas concerning major
industries. Acceptable news programs include, but are not
limited to, comprehensive reports on CNN,
Fox News, The News Hour, the Nightly Business Report, or
BBC World News. The last three programs
are aired on public television five days each week. You may
also watch other news programs found on
public television. Public television is an excellent source when
trying to identify relevant issues. You
may want to keep a journal of these programs highlighting the
major events of the day. This may help
you when writing the research paper. The nightly Business
Report is an excellent source.
You will submit a typewritten term paper that discusses the
global competitive environment of
an industry and its potential affect on firms within that industry.
You must keep a personal copy of the
term paper. Therefore, make sure you can access two copies,
one for me and one for you. The term
paper must consist of no more than 15 typewritten pages and
must include a cover page, a running
head, a summary, and a list of at least 10 references. Make sure
that your internet references are valid
and viable.
Use the format presented in the Publication Manual of the
American Psychological Association
(APA). Copies of this are available in the library. I will post
instructions for accessing NoodleTools to
help you with developing the proper format for your reference
page. It is not necessary to purchase a
copy. You must, however, examine the manual for specifics.
FOLLOW THE FORMAT VERY CAREFULLY.
A TOTAL OF TEN (10) POINTS MAY BE SUBTRACTED FOR

NOT USING THE APA FORMAT. The specific
due date appears on the Tentative Schedule of Assignments
attached to this syllabus.
The final typewritten paper should include a running head,
headers, and headings as indicated
in the posted outline. See the APA manual for information
regarding running heads, headers, and
headings.
You must reference approved magazines and newspapers. The
Wall Street Journal, the
Economist the New York Post, the Washington Times, the
Washington Post, and the New York Times are
recommended references as well as
http://www.businesswithoutborders.com/. Make sure that your
references are diverse. If you use one of the Posts, you must
use one of the Times. This will keep you
from a skewed perspective of what is happening.
http://www.businesswithoutborders.com/
http://www.businesswithoutborders.com/
Porter's five forces model
Michael E Porter's five forces of competitive position model
and diagrams
Michael Porter's famous Five Forces of Competitive Position
model provides a simple
perspective for assessing and analyzing the competitive strength
and position of a corporation
or business organization. A free Five Forces diagram in
MSWord is available here. (Porter's Five

Forces diagram pdf here.)
American Michael Porter was born in 1947. After initially
graduating in aeronautical
engineering, Porter achieved an economics doctorate at
Harvard, where he was subsequently
awarded university professorship, a position he continues to
fulfil at Harvard Business School.
His research group is based at the Harvard Business School, and
separately he co-founded with
Mark Kramer the Foundation Strategy Group, 'a mission-driven
social enterprise, dedicated to
advancing the practice of philanthropy and corporate social
investment, through consulting to
foundations and corporations'. This is a prime example of
someone operating at a self-
actualization level if ever there was one.
After his earlier work on corporate strategy Porter extended the
application of his ideas and
theories to international economies and the competitive
positioning of nations, as featured in
his later books. In fact in 1985 Porter was appointed to
President Ronald Reagan's Commission
on Industrial Competitiveness, which marked the widening of
his perspective to national
economies. By the 1990's Porter had established a reputation as
a strategy guru on the
international speaking circuit second only to Tom Peters, and
was among the world's highest
earning academics.
Porter's first book Competitive Strategy (1980), which he wrote
in his thirties, became an
international best seller, and is considered by many to be a
seminal and definitive work on

corporate strategy. The book, which has been published in
nineteen languages and re-printed
approaching sixty times, changed the way business leaders
thought and remains a guide of
choice for strategic managers the world over.
Aside from his innovative thinking, Porter has a special ability
to represent complex concepts in
relatively easily accessible formats, notably his Five Forces
model, in which market factors can
be analyzed so as to make a strategic assessment of the
competitive position of a given supplier
in a given market. The five forces that Porter suggests drive
competition are:
Porter's five forces
1. Existing competitive rivalry between suppliers
2. Threat of new market entrants
3. Bargaining power of buyers
http://www.businessballs.com/freematerialsinword/porter%27sfi
veforcesdiagram.doc
http://www.businessballs.com/portersfiveforcesdiagram.pdf
http://www.businessballs.com/maslow.htm
http://www.businessballs.com/maslow.htm
4. Power of suppliers
5. Threat of substitute products (including technology change)
Typically this five forces model is shown as a series of five
boxes in a cross formation, item 1
being central. (Pdf diagram here, MSWord diagram here.)

Porter's Five Forces model can be used to good analytical effect
alongside other models such as
the SWOT and PEST analysis tools.
Porter's Five Forces model provides suggested points under
each main heading, by which you
can develop a broad and sophisticated analysis of competitive
position, as might be used when
creating strategy, plans, or making investment decisions about a
business or organization.
Porter is also known for his simple identification of five
generic descriptions of industries:
1. Fragmented (eg, shoe repairs, gift shops)
2. Emerging (eg, space travel)
3. Mature (eg, automotive)
4. Declining (eg, solid fuels)
5. Global (eg, micro-processors)
And Porter is also particularly recognized for his competitive
'diamond' model, used for
assessing relative competitive strength of nations, and by
implication their industries:
1. Factor Conditions: production factors required for a given
industry, eg., skilled labour,
logistics and infrastructure.
2. Demand Conditions: extent and nature of demand within the
nation concerned for the
product or service.
3. Related Industries: the existence, extent and international
competitive strength of
other industries in the nation concerned that support or assist

the industry in question.
4. Corporate Strategy, Structure and Rivalry: the conditions in
the home market that
affect how corporations are created, managed and grown; the
idea being that firms that
have to fight hard in their home market are more likely to be
able to succeed in
international markets.
Michael Porter's key books:
Competitive Strategy: Techniques for Analyzing Industries and
Competitors, 1980
Competitive Advantage: Creating and Sustaining Superior
Performance, 1985
Competition in Global Industries, 1986
The Competitive Advantage of Nations, 1990
http://www.businessballs.com/freematerialsinword/porter%27sfi
veforcesdiagram.doc
http://www.businessballs.com/swotanalysisfreetemplate.htm
http://www.businessballs.com/pestanalysisfreetemplate.htmPort
er's five forces modelMichael E Porter's five forces of
competitive position model and diagramsPorter's five forces

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