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[Surname]
26and
continuous
effort of
creating new

customers
and markets.
This is a
result of
thecompetitio
n between
and among
business

organisations.
Thus,
organisations
mustconform
to this
condition by
implementing
strategic

change within
the
organisation.
Organisations
change and
they also
compete
against other

organisations
for thesame
resources,
competencies
and
customers
(Drejer 2002).
Business

organisations
must change
to stay alive
and remain in
the business
(Abrahamson
2000).
Everyorganis

ation must
accept this
reality even if
they seem to
be the leader
in the
particular ind
ustry they are

engaged in.
For instance,
Starbucks
have been
the industry
leader inthe
specialty
coffee for

more than a
decade now.
However, the
reality is that
Starbucksis
not the only
organisation
in this

industry and
there are
other
organisations
thatcompete
with the
company for
the same

market and
resources,
and there are
still
otherswho
are willing to
enter the fray
and compete

against
Starbucks
and the
others who
arealready in
the specialty
coffee
sector.Strateg

ic change is
therefore
necessary for
Starbucks to
maintain its
leadershipin
the specialty
coffee

industry. The
change
needed would
be for the
long term
with
astrategic
perspective

and not only

for a shortterm period.
In order to do
this,
thecompany
may need to
reform or

revise its
current
practices and
business
models
andrealign its
resources to
what is

needed by
the market.
The change
process is, in
itsactuality, a
series of
phases that
usually

require a
considerable
length of time
(Kotter 2007).
Strategic
change
requires
effective

leadership.
Good
management
of change
willrequire
the
formulation of
strategies

that
recognise the
needs of
those who
implementthe
change,
wherein the
leader makes

clear the
objectives
and goals of
the change
tothe staff
and the latter
will work with
the former in

making the
change
successful
[Surname]
27(Humphrie
s & Senden
2000).

Through this
method,
strategic
change will
be
effectivelyim
plemented
and the

strategic
objectives will
be
achieved.How
ever,
implementing
strategic
change will

not be easy,
especially in
a largeand
established
organisation
such as
Starbucks. A
globally

diverse
company
likeStarbucks
can
experience
difficulties in
implementing
changes to its

establishedbu
siness
practices.
Leaders of
companies
such as the
case in study
can face

adilemma or
dilemmas in
handling
strategic
organisationa
l changes.
Differences
aboundamon

g individuals
and groups
within the
organisation.
These
differences
can be
abarrier to

the
successful
implementati
on of
organisationa
l changes.
Hence,
managers

or leaders of
Starbucks
must be
skilful in
dealing with
this situation
and they
must also

beskilful in
dealing with
differences
within the
organisation
(Davidson
2003). The
leadersof

such
organisation
must win the
approval of
their
members to
the
proposedorga

nisational
transformatio
n (Duck
1993). But
before going
any further,
let us
firstmake an

analysis of
the internal
and external
conditions
affecting
Starbucks
today
usingPorters

Five Forces
Model and
the SWOT
analysis
framework.Po
rter Five
Forces
AnalysisUsing

the Porter
Five Forces
model, we
shall analyse
the
competitivee
nvironment
that is

surrounding
the company
today in order
to formulate
strategies
toundertake
changes in
the Starbucks

business
model.
Michael
Porter
(1998b)
states,Every
industry has
an underlying

structure, or
a set of
fundamental
economic
andtechnical
characteristic
s, that give
rise to these

competitive
forces (p.
23). These
forcesare
industry
competition/ri
valry, threat
of new

entrants,
threat of
substitute
products,barg
aining power
of suppliers
and
bargaining

power of
buyers. These
five forces
shape
[Surname] 28