...Starbucks – Going global fast case study Prashansa Sunuwar King’s College affiliated with Westcliff University BUS 367 The Necessities of International Marketing and Culture Dr. Thien-Huong T. Ninh March 20, 2016 Abstract This paper addresses the various factors and risks that a company has to face while going global. This report is based on the case study focused on Starbucks. It answers various questions regarding issues that an international company like Starbucks has to face. The answers incorporate the elements that are both controllable and uncontrollable when a business is going global. The sources of risks that Starbucks is facing and what can be done to eliminate the risk are provided. Also, there are few suggestions regarding what Starbucks can do to improve profitability in Japan. Starbucks – Going Global Fast Case Fifteen years ago, Starbucks had 17 coffee shops in Seattle. Now, it has 19,000 outlets in 58 countries. According to the official website of Starbucks, Starbucks serves a wide variety of hot and cold drinks including espressos, cappuccinos, and even pastries and other delectable treats. Starbucks has become a meeting place for people. People go to Starbucks to chat, meet up, and even for meetings and rejuvenation. The success of Starbucks grew after Howard Schultz purchased Starbucks on 1981 and introduced Italian coffeehouse tradition in the United States in 1983. After Starbucks went public, the sales have increased by an average of 20 percent annually...
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...Potential solutions………………….…………………….…… .. 3 * Critique Starbucks overall corporate Strategy ..…… 4 * Starbucks improve profitability in Bangladesh………4 * Recommendation and conclusion……………………………………….…………………… 5 * Reference…………………………………………..……………….. 5 Abstract Global market is immensely accumulative now a days, with the vigorous effects of globalization which effecting firms of all breeds to expand the business across the borders. This report is generally bases on the answers to the provided case study of Starbucks growth story and its international expansion plans. Starbucks being the producers of one of finest coffee and premium drink beverages manages its major markets within USA and abroad. The report will accumulate Starbucks potential strategic options with substantial vision of the management to expand business internationally while understanding the escalating aspects of ethical and cultural values which Starbucks owns as an influential organization. Introduction This report is ultimately based on critical analysis and evaluation of the case study provided for one the leading coffee and Beverages Company. With the expanding international business and continued globalization policy of Starbucks, this report will help to comprehend the various International market strategies and options, ethical and cultural values and anticipated problems with the ongoing international expansions of Starbucks Company Identify the controllable and uncontrollable elements: ...
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...QUESTIONS FOR CASE STUDY ASSIGNMENT STRATEGIC EXCELLENCE Licensed for use by the students of the Executive MBA Program, The Icfai University. Not to be reproduced. QUESTIONS FOR CASE STUDY ASSIGNMENT STRATEGIC EXCELLENCE ANSWER THE QUESTIONS FOR ANY TEN CASE STUDIES Questions for 18 case studies are given below. Each case study assignment has 2 questions. Students are required to answer questions for any 10 case studies (20 answers). Students are advised to submit answers for all 10 cases in one go, for results to be adjudged in one instance. 01. McDonald’s in the United Kingdom a. When McDonald’s entered the UK market in 1974, it initially failed to attract British customers and reported losses. However, as of 2009, the UK was one of the most promising markets for McDonald’s. Many factors were responsible for this change in situation. First, identify the subset of factors that could be attributed to the organization’s strategies. Next, tabulate that subset of factors along with the associated strategies for each factor. Finally, classify these strategies into originally intended and subsequently emergent strategies. b. As of 2009, McDonald’s faced many challenges in the UK. In your opinion, what strategies should McDonald’s adopt at the corporate, business, and functional levels to continue its growth trend in the UK? Give reasons for your answer. 02. Emerging Markets Strategy: Nokia Life Tools for Rural Markets a. Business strategy is often compared...
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...Introduction………………………………………………………….…….... 3 2.0 Starbucks……………………………………….….……………….…….. …4 2.1 Starbucks and farmer loans………………….….…………………..……. 6 2.2 Starbucks Share Planet…………………………..…………………..….... 7 2.3 Reducing Energy Use……………………………..…………………..…. .8 2.4 Reducing Water Use……………………………….…………………..… 9 2.5 Recycling……………………………………………..………………..... 10 2.6 Starbucks and Competitors……………………………………………… 11 3.0 Conclusion………………………………………………..….....………….. 12 4.0 References………………………….…………………....…………….. 13 Appendix……………………………….…………………..……………… 15 1.0 Introduction Google image, Healthy people,2010 :http://www.healthypeople.gov/document/html/volume1/08environmental.htm Nowadays we are facing with environmental and ecological problems which lead us to such effect like air pollution, acid rain, ozone depletion, smog, water pollution, overpopulation, animal extinctions and forest destruction. But people are so blind that they do not want to see how they are destroying our Earth and they do not even try to change themselves; they think that for each problem there is specific organization which will solve it or government whose responsibility is to protect their own nations. Very sad to say, that most of population are taking our “home nature” for granted. They want to consume and never contribute, so here is a base of problem that is why many people suffering from global warming which lead climate change...
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...IBUS 480A & IBUS 581A. GLOBAL BUSINESS RISK MANAGEMENT Spring 2015 MW 4:45-6:10 pm Room: AA 370 4 credits Office Hours: Wednesday 1:00 – 2:00 pm or by appointment Office: AA-264 Secretary: Bernie Cencetti Office: AA-361 Telephone: (607) 777-2674 Email: bbobal@binghamton.edu Course Objectives In an increasingly globalizing world, more and more companies are going abroad to pursue their major business objectives. What are the risks encountered by MNCs in their international business operations? How to evaluate, approach and manage these risks? This course aims to provide a general understanding of the field of global risk analysis and management. More specifically, you will learn about the development of the risk assessment industry and the major approaches to risk assessment. You will also get acquainted with the various types of risk that international businesses face in their operations abroad, and the major strategies for risk mitigation and management. We will pay special attention to political risks (asset expropriation, contract repudiation, legal and regulatory risks), 1 societal risks (activism of international non-governmental organizations, reputation and public image issues), and everyday risks (corruption). Through a combination of readings, lectures, guest speakers, case discussions and risk assessment projects you will develop practical skills in evaluating and assessing risk, and will learn how to approach and manage risk on a global scale. Background...
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...Chapter 9 Assignment: Starbucks vs. McDonald’s Strategies | 1. How does Starbucks enter foreign markets? Do you agree with its rapid growth strategy? (Consider what has happened to the number of stores and locations during the last few years in answering this question). Consider where Starbucks is located, and markets that will be advantageous to Starbucks in the future in answering this question. Discuss how Starbucks entry approach is different/similar from strategies that McDonald’s uses to enter foreign markets. Are both companies currently competing head-to-head in certain markets? Explain. Be specific in your explanation and consider recent press releases and information from annual reports in responding to these questions. (9 points) Starbucks expands into global markets through joint ventures. A joint venture is, “an agreement under which two or more partners own or control a business” (Luthans & Doh, 2012 p. 625). Two businesses partners come together to pursue the same goal and opportunity. Starbucks entered a joint venture with Tata Global Beverages to begin opening and operating Starbucks cafes throughout India. An article titled Strategies for Researching Global Markets says, “In the U.S. close to two-thirds of Starbucks cafes are owned by Starbucks while outside the U.S. about two-thirds of their stores are partnerships” (Virginia’s Community Colleges, p. 1). We agree that Starbucks rapid growth strategy to join international joint ventures is...
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...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...
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...Business Research for entry of Global Specialty Coffee Chains in Indian Market Submitted to Dr. Arun Abraham Elias BRM RESEARCH PROPOSAL by Abhishek Rehan PGP16/301 Email id: abhishekr16@iimk.ac.in 2/28/2013 CONTENTS ABSTRACT……………………………………………………………………………………….3 INTRODUCTION………………………………………………………………………………...4 PROBLEM STRUCTURING…………………………………………………………………….5 STAKEHOLDER MAP…………………………………………………………………………..7 LITERATURE REVIEW…………………………………………………………………………8 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS………………………………...10 PROPOSED METHODOLOGY AND METHODS…………………………….………………11 SIGNIFICANCE OF STUDY…………………………………………………….……………..12 LIMITATIONS OF STUDY…………………………………………………………………….13 REFERENCE…………………………………………………………………………………….14 2 ABSTRACT India has witnessed a rapid social and cultural transformation in the past decade, mostly due to substantial western influence in every sphere of life. Coffee not only evolved from a mere commodity to a competing brand across companies, but there also has been a significant shift in its consumption pattern. Consumption of coffee at a coffee chain has grown at a rapid pace and has almost outgrown the consumption in our living rooms. Global giants like Barista and Costa Coffee have opened up retail outlets in India, though the café market is mostly dominated by Café Coffee Day in India. Through this research, I would try to evaluate the industry attractiveness of a new global coffee chain trying to enter Indian market and set up outlets here. In order...
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... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...
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...Administration Starbucks with Corporate Social Responsibility (CSR) “How Starbucks succeeds in a business world with CSR” 15 Credits Master Thesis (FEAD 01) Thesis Advisor: Bo Enquist Co-reviewer Lars Haglund The Authors: Sornchai Harnrungchalotorn Yaowalak Phayonlerd Karlstads universitet 651 88 Karlstad Tfn 054-700 10 00 Fax 054-700 14 60 Information@kau.se www.kau.se ACKNOWLEDGEMENT Acknowledgements Our thanks go first and foremost to our supervisor, Bo Enquist for his insight support and constructive criticisms during our writing of this thesis. Moreover, we would like to thank Samuel Petros S. for recommending the books and the way to conduct this thesis. We also want to thank the librarian at university for helping us to find the books to run this thesis. Page 2 of 41 ABSTRACT In the today‟s business world, there are many strategies being used to run businesses. In the recent past, the topic of Corporate Social Responsibility (CSR) has grown rapidly. People are starting to demand that companies take their social responsibility seriously. Many companies have started to engage in CSR as a strategy in order to gain benefits that can give them an added advantage over their competitors. There have been increasing numbers of companies engaged in CSR to run their businesses. Nowadays corporate social responsibility (CSR) can drive companies to succeed in business by increasing sales volume and brand awareness. We decided to choose Starbucks Company as...
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...About | Contact | Jobs | [pic] • Lesson Store • Buy Video • Exercise Store • Powerpoint [pic][pic] Marketing Teacher: Home / The Marketing Environment The Marketing Environment [pic][pic][pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic]The Marketing Environment What is the marketing environment? The marketing environment surrounds and impacts upon the organization. There are three key perspectives on the marketing environment, namely the 'macro-environment,' the 'micro-environment' and the 'internal environment'. [pic][pic][pic][pic][pic] The micro-environment This environment influences the organization directly. It includes suppliers that deal directly or indirectly, consumers and customers, and other local stakeholders. Micro tends to suggest small, but this can be misleading. In this context, micro describes the relationship between firms and the driving forces that control this relationship. It is a more local relationship, and the firm may exercise a degree of influence. The macro-environment This includes all factors that can influence and organization, but that are out of their direct control. A company does not generally influence any laws (although it is accepted that they could lobby or be part of a trade organization). It is continuously changing, and the company needs to be flexible to adapt. There may be aggressive competition and rivalry in a market. Globalization means that there is always the threat of substitute...
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...Increasing spend per visit by consumer-driven N.P.D | Focus | A niche market strategy is not suitable; focus is on mass market & intense penetration with diversification of products/services | Cost Leadership | Low prices is not congruent to the Brand Values of Starbuck’s - Premium price for high quality products & customer service/experience | Fig 3. Porter’s 5 Forces - Market Attractiveness – 60% of consumers have not altered coffee habits in recession Competitive Rivalry Mature & Fierce * Branded coffee shops focus on premiumisation & quality of services - Barista expertise to emphasise their ‘added value’ * Independents have flexibility and are as present as Branded * Market dominated by a Large Global companies: Starbucks, Costa, Caffe Nero, Caffe Ritazza and a large number of independents * Non-specialists – McDonalds - attracting new customers through coffee moments – top coffee seller in the UK & Greggs – a low-cost alternative | Bargaining Power of Suppliers * Strong ethical ‘Fairtrade’ stance...
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...External Analysis of Starbucks 1 RUNNING HEAD: STARBUCKS External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management MGMT 4340 Dr. Nwabueze March 3, 2011 External Analysis of Starbucks 2 Contents 1.0.0. Executive Summary ...................................................................................................................... 5 2.0.0. Company History ................................................................................................................................ 8 2.1.0. Background ....................................................................................................................................... 12 Table 1: Starbucks Revenue Trends 2005-2010 ..................................................................................... 12 2.2.0. Purpose of This Study ....................................................................................................................... 14 3.0.0. External Analysis .............................................................................................................................. 15 Diagram 1: The Components of a Coffee Firm’s Macroenvironment .................................................... 16 3.1.0. General Environmental Analysis ...................................................................................................... 16 3.1.1. Demographic Segment ...................................................................
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...INTERNATIONAL MARKETING Case Study Report How Starbucks Corp. should improve its business Syndicate Group Number 1 24/08/2007 The following group assignment report was prepared for a business unit at Macquarie University, Sydney. The information given does not need to be correct. The suggestions given and conclusions drawn remain (as the whole report in itself does, too) the intellectual property of the authors. Do not use this report for plagiarism. Do not copy this report. Do not print this report. Do not hand this report in as your own! Authors and Copyright: Tanya Shahi Jorge Omar Martin Aufschläger Timo Schmerling Stefan Gassner tanyashahi@gmail.com canogeorge@hotmail.com martinaufschlaeger@gmail.com timo_schmerling@web.de mail@stefan-gassner.de 2 Case Study Report: Starbucks Corp. Table of Contents Table of Contents ....................................................................................................... 2 1. Introduction ............................................................................................................. 3 1.1 Company Profile ................................................................................................ 3 1.2 Case Summary.................................................................................................. 3 1.3 Current Situation .................................................................................................
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... Case ey McGrath h Who goe es to Starbu ucks? Coffe ee lovers, right? But is it just coffe ee lovers in general, or r is a specific portion of t the populat tion signific cantly more e attracted to the atmo osphere Starbuck ks exudes? Is going to Starbucks a ritual‐like e compulsio on for some e people in n our post‐mo odern era? I I wanted to know the a answers to these questions. In this report, I analyze the brandin ng choices of the most t famous co offee shop in the world d. After rea ading and analyzing the q quotes featu ured on the e back of St tarbuckʹs to o‐go cups (ʺThe Way I See Itʺ quote es), which a are submitt ted by custo omers and s selected by y Starbucks, , I argue tha at Starbuck ksʹ subtle branding tec chniques en ncourage a specific life estyle for th heir target market. Overview Skylar, a wealthy British student at Harvard, approaches Will, an Irish‐American janitor from South Boston, hands him a slip of paper, and says, “There’s my number. So maybe we can go out for coffee sometime.” Taking her number, Will replies coyly, “All right, yeah, or maybe we can just get together and eat a bunch of caramels.” “What do you mean?” Skylar asks. “Well, when you think about it, it’s as arbitrary as drinking coffee.” ~Good Will Hunting It doesn’t really matter where in the world you go these days, because you can probably still get your grande non‐fat latte at Starbucks as if you had never left home at all...
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