...“The global economic interdependence of today’s world is not a totally one-sided system” (Crapo, 2013). When you buy a tall coffee at Starbucks these days chances are you are drinking coffee from Guatemala. The Central American country is the top provider of coffee to the U.S. coffee chain. Coffee farmers need to account for the changes brought on by the ever changing global market. Globalization has had a profound effect on the coffee industry both directly and indirectly. One of the main effects of globalization on the coffee market has been the impact on prices since the 1970’s. The price of coffee peaked around the late 1960’s at $3.00 per pound. Due to increased globalization, prices have dropped because of an increase in production not only in South America but worldwide. Even though there has been an increase in demand, it has been met with overproduction, which has driven down prices. Another result is that farmers have formed cooperatives and begun to farm the abandoned land for themselves. These cooperatives are struggling against the massive production of Brazil and Vietnam, and are having trouble selling their beans. The impact trickles down even further, the children of the farmers are being pulled out of school so that they can work in the fields with their parents. This is necessary to make ends meet. Even those with their own fields cannot make a living off of the price that the Guatemalan growers are getting from the middlemen. This is another problem;...
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...Organizational Resources Paper Randall Maurer MGT/330 Donald Driscoll Sep 23, 2013 Coffee retail production is a multi-billion dollar industry. America leads the world in coffee-consumption, consuming over 2 million pounds of coffee per year. Companies have come and gone but power houses like Folgers and Maxwell House have maintained the top shelf with American consumers, until the 1990’s. Starbucks, founded by Jerry Baldwin, Gordon Bowker, and Zev Sieg, initially started in the early 1970’s as an importer of the world’s finest coffee in a little coffee house located in Pike Place Market Seattle, Washington. Portraying a vision of ”To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”,"Starbucks" (2013). The little known coffee bean importer globalized the Starbuck chain and has since developed into one of the world’s most renowned coffee bean retailer. In this paper we will look at organizational resources focusing in on physical assets as well as the application of technology in the company and how effective and efficient Starbucks utilizes them. Organizational Structure Starbucks recently publicly announced restructuring the company due to globalization demands, and has adapted to a divisional organizational structure. The company pre 2011 executed operations via two separated entities; Starbucks US and Starbucks Coffee International (SCI), with the reorganization it will now be operating three divisions; China and Asia Pacific...
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...Is Globalization ultimately positive or negative, or somewhere in between? I believe that globalization is somewhere in between positive and negative. One thing is for sure, globalization has been going on since the beginning of time and will never cease to exist. The effects of globalization can range all across the spectrum from someone in your family losing their job to outsourcing, to improving the working conditions and benefits for a worker in China or India. Some positive aspects of globalization follow. One positive effect is that as more money is invested in developing countries, the chance for the people in those countries to profit and improve their standard of living increases. Also, developing countries are able to benefit from current technology without undergoing the growing pains associated with the development of these technologies. Governments are able to better work together towards common goals now that there is an advantage in cooperation, an improved ability to interact and coordinate, and a global awareness of issues. Global competition encourages creativity and innovation and keeps prices for products in check. There is better access to foreign culture in the form of movies, music, food, etc. Globalization promotes human rights. Nobody seems to want to purchase clothing that was made in a sweat shop somewhere by slave labor. Globalization could reduce the chances of countries going to war with one another. A country...
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...Question- Critically analyse the relevance and utility of globalization for the international hospitality industry. In the recent years hospitality industry over the years has expanded their business all around the world. Big hotel chains such as Marriott’s and Accor group are opening their hotels in developing countries such as India, Singapore etc. The process of globalization has played a major role in expanding their profits and laying their business across their own boundaries. Majority countries, around the world have been trying to promote globalization through eliminating barriers and reducing taxes. However, there are various methods through which companies are trying to expand such as licensing, Exporting, joint venture and etc. Globalization has both the positive and negative effects, but over here we will be focusing more on the utility and positive side of the globalization. Globalization in hotel industry helps in giving exposure to various cultures. In the 21st century, with the increase in level of incomes for people in the developing countries, it has been seen that people are visiting the developed countries and they are trying to adopt western culture. The level of tourism has increased and people especially from the Asian counties are visiting developed countries such as US and Australia. They are now becoming more familiar with their culture and their food and are also adapting the same thing in their own country (Lee 2009). People from countries such...
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...[pic] ASSIGNMENT SUBMISSION FORM Treat this as the first page of your assignment Course Name: Competitive Strategy Assignment Title: Project – Globalization Problems faced by Starbucks – Focus on Europe (Let us not waste paper, please continue writing your assignment from below) Table of Contents Executive Summary 3 Industry structure – Porter five forces analysis 4 Company background 5 Globalization strategy [1995-2008] 9 Performance in EMEA 11 Findings and analysis 13 References 27 Executive Summary This study is focused on Starbucks, the world’s largest coffeehouse company. The company has the knack of finding the magic formula for every aspect – be it customer satisfaction, innovative marketing or smart partnerships. Given the brilliant performance that Starbucks found in the US, success should have been a foregone conclusion in other geographies as well. Despite all the positives, it could not replicate the same degree of success in Europe as it enjoyed in the US. This study has analyzed the factors which might be held accountable. The aggressive policy of opening stores worldwide to achieve inimitability of its business model, loss of control over the cost of operations, the stock market’s notional correlation of success with number of stores, over-reliance on Seattle management causing a lack of decentralization of key decision-making power...
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...pair of khaki pants. She brews and drinks a cup of coffee and eats a banana before heading off to work which involves meeting with other business professionals and making business transactions as well. Each of these products followed a complex process from a different part of the world to take its place in this woman’s morning routine. Simply put, the sweater and the khakis for all we know could have been manufactured somewhere in Australia, knitted and sewn (as in the khakis) into a pattern by an Italian designer. The coffee beans used to make coffee maybe grew on a plant in the high mountains of Kenya. In essence, a lot of the things we do in our modern society are connected to various places outside our current place of residence. Over the past centuries, many instances of advancement have been observed. These instances of progression due to technological improvement have increased interaction and connectivity among people all over the world. From black and white TVs and cameras to coloured ones, from hand-woven fans to electrical fans, from smoke signals and couriers to phones, telephones and the internet as means of communication, from cowries to minted paper currencies in trade. It becomes indisputable that the common saying “The world is now a global place” is well established on our planet. In as much as Globalization has induced pros on the society, it has also stemmed cons as well. Globalization has had a great effect on a lot of important areas of daily living some...
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...and Capstone) Date: Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation that has sprung up exponentially as a global entity, Starbucks has gone above and beyond to adapt its operations to the needs of the specific countries...
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...been brewing and selling specialty coffee, espresso based drinks, and other novelty items since there conception in 1971. CEO and President, Howard Shultz, has been leading and driving Starbucks to be the world’s best coffeehouse since he joined the company in 1982 as a director of retail and marketing. After becoming CEO in 1987, Shultz has driven Starbucks to be a tycoon in the specialty coffee industry with a large competitive advantage. Some of the problems that face Starbucks are their limited product line, highly priced menu, and speed of service. Also Starbucks had expanded globally an in the United States over the past years but has been forced to close down a large number of stores due to the lack of demand for specialty coffee in certain places. Companies like Dunkin Donuts and McDonalds also offer a larger variety of food at a lot cheaper of a price compared to Starbucks. All of these factors together can be harmful to the future of Starbucks if nothing is done about it. Starbucks has time and the power to take this information and implement successful strategies to reverse these paths they are heading down. First by implementing a value menu Starbucks can gain back the people that do not want to spend too much money on their morning cup of coffee. McDonalds stated “4 dollars for a cup of coffee is dumb” and many people have catered to that idea and have been choosing the less expensive cup of coffee over the premium coffee that Starbucks offers. Also, Starbucks...
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...Starbucks is a public company. that operates a chain of stores that sells high-quality coffee. Its typical company-owned store has a pleasant, coffee-house atmosphere complete with couches and Wi-Fi and is known for being a place to meet and gather. Starbucks licenses its stores to other business, not to individuals. For example, in the US Starbucks licenses stores to Host International, Inc. an Autogrill group (my employer), is a concessions company found in airports around the world, in operating travel malls on the East Coast and Canada, and doing business various malls throughout the U.S. Many of our establishments provide the standard Starbucks atmospheres; others just have a counter to sell coffee and pastries. Starbuck’s stores account for about 90% of Starbuck’s revenue. Global expansion is essential to Starbucks, just as it is to other successful companies. In 2003, Starbucks opened in foreign markets. But, the company encountered problems. Internally the problems arose within the company’s international business model, and externally the problems arose in the form of overseas competition. “Starbucks quickly learned that tactics that had worked to establish the market in the domestic market were not favorable in international expansion” (Yunker, 2006). Starbucks also encountered issues with rival coffee shops copying the Starbucks’ business practices (i.e., the Starbucks name, and even the Starbucks company logo). In turn, the company had to utilize intellectual...
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...business Shangri-La Hotels: strategy for regional growth Cemex: strategy for globalization P&G and Unilever in China (or India) Walls icecream’s (owned by Unilever) growth in Asia Nestle’s growth in emerging markets Globalization strategy of Whirlpool Whirlpool and GE’s strategies in appliances in Asia Walmart’s globalization; experiences in Latin America, Asia, Europe Carrefour: successes and failures in globalization Mittal’s growth in steel industry; industry consolidation AES growing in electricity generation industry; globalization; industry restructuring Consolidation in the electric utility industry in the US Consolidation in the aluminum industry Consolidation in the automotive industry: Fiat+Chrysler, Daimler + Chrysler, Renault + Nissan Alliances in the international airline industry New airlines in Europe, such as Ryanair, Easy Jet, Go, Virgin Express Lenovo (China) in PC and Internet Haier (China) in appliances Ebay’s acquisition of Skype Chipotle’s growth: past, present and future Disney’s acquisition of Lucasfilm Inditex and fast fashion industry Paypal and mobile payment industry Schneider Electric’s acquisition of Invensys Online instant video industry Growth and decline of Blackberry Globalization of McDonald’s Intel and vertical integration Microsoft’s acquisition of Nokia Uniqlo Big tobacco, growth strategy for Reynolds American Green Mountain Coffee Yahoo’s search for growth Avis’ acquisition of Zipcar Apple and Samsung in...
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...Name: Course: Tutor: Date: International Management The Oil Industry The world is changing with the changes brought about by the emerging technologies. Business environment has totally changed due to globalization. Firms are operating in a highly unpredictable environment. It is difficult to determine what the future market would bring. Firms are left guessing what the emerging technologies would bring in the future market. This has forced firms trying to develop mechanisms through which the market forces can be managed in a way that would ensure a successful operation. The oil industry is one of the leading industries in the world. Business has been very good globally. This product is consumed in all parts of the world. The product has experienced a consistent increase in the international prices for the last twenty years. All industries in any given country depend on oil for the operations. The price of oil would have an impact on all other sector of the economy. This has seen this product considered very precious. The countries that produce oil have formed an organization that would help protect this industry in the world. OPEC (Organization of Petroleum Exporting Countries) was formed as a way of ensuring that oil-producing country got maximum benefit from this product. This has made business environment for this product very favorable. This organization protects the rights of all member states in the international market. This has helped stabilize the international...
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...Globalization and its impact on Indian Economy: Developments and Challenges Globalization (or globalization) describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. Globalization as a spatial integration in the sphere of social relations when he said “Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice – versa.” Globalization generally means integrating economy of our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall growth of the economy. It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others. It was only after the LPG policy i.e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors...
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...EFFECTS OF GLOBALIZATION NEGATIVE Globalization has various aspects which affect the world in different ways such as: It gives access to products which are not readily available, to various countries, for example coffee from Kenya to the UK and Netherlands, thus giving developing countries an opportunity to produce and sell goods that in return are able to make a better living. This is, however, debatable. Wealthier countries which purchase these goods make production and trade rules that developing countries must follow. This reduces fair chances in the world market place, meaning developing and some developed countries are losing out and not making as much profit as they probably could. Increased prosperity has gone hand in hand with mass poverty. Already obscene inequalities between rich and poor are widening. (Watkins, 2002) Developed countries outsource many manufacturing jobs that were previously done by their citizens to developing countries like India and China, because labor is significantly cheaper. Outsourcing refers to obtaining goods by contract from outside sources. This is a lose-lose situation, as the people in these developed countries lose out on jobs, while those in developing countries are ridiculously underpaid for their labor, giving rise to the issue of human rights. Working conditions in these working areas are poor, salaries for the workers barely covering their cost of living. Despite outsourcing of industries providing jobs to people in third world...
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...networks, and many more. * Why consider going international? * To increase overall customer base * To offset seasonal fluctuations in local markets * To minimize risk of losing market share to clients who themselves use internet to find goods\ services in overseas markets * To offset increasing costs of doing business at home * To gain prestige with customers at home * Why STARBUCKS? In a globalized world where every company has the opportunity to explore the world in search of other profitable markets, there are different challenges and opportunities faced. I would like to explain this by focusing on Starbucks, one of the world’s leading coffee chains. Starbucks has come a long way from a coffee bean retailer to one of the world’s most recognized coffee houses. All throughout the years, Starbucks have expanded both domestically and internationally. In this answer, I would like to explain about the process of internationalization that Starbucks employed and continues to employ. The aim is to analyze the strategies of Starbucks in entering new markets and expanding internationally. For this answer, instead of choosing an...
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...Brazil : embracing globalization This case is about Brazil's development strategy since World War II and about the change of the economic model following the debt crisis of the 1980s. In 2000, Brazilian officials were pondering whether to go for regional integration (Mercosur) or globalization to ensure the country's economic prosperity and development. Import-substitution strategy After the Great Depression of the 1930s, Brazil followed an import substitution strategy which consisted of massive government investment, targeting of key industries, and protection against competition with high tariffs walls. 1. Positive effects of this policy : the Brazilian economy experienced rapid growth and considerable diversification. From 1950 to 1961, the average annual rate of growth of the gross domestic product exceeded 7 percent. Industry was the engine of growth. It had an average annual growth rate of over 9 percent between 1950 and 1961, compared with 4.5 percent for agriculture. Traditional industries, such as textiles, food products, and clothing, declined, while the transport equipment, machinery, electric equipment and appliances, and chemical industries expanded. 2. Negative effects of this policy : substantial increase in imports, especially of inputs and machinery, and the foreign-exchange policies of the period resulted in inadequate export growth. A large influx of foreign capital in the 1950s resulted in a large foreign debt. Between 1981 and 2000 :...
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