Starbucks Going Global Fast - 965 Words

Summary Case: Starbucks ï€ ­Ã¯â‚¬  Going Global Fast A historical perspective of Starbucks revealed that the company began in 1971 with three individuals having like passion for fine coffees and exotic teas. English teacher Jerry Baldwin, History teacher Zev Siegel, and writer Gordon Bowker collectively combined their thoughts and resources and opened a store called Starbucks Coffee, Tea, and Spice in a marketplace in Seattle. They selected the name Starbucks in honor of Starbuck, a character in Herman Melville’s book, â€Å"Moby Dick†. A two-tailed mermaid, encircled by the words Starbucks, is used as the company’s logo. The company grew from 17 coffee shops in Seattle to over 16,000 outlets in 50 countries. It is reported that their sales†¦show more content†¦The Uncontrollable elements vary from country to country. In Japan, Starbucks had to deal with the existing competition among rival shops in that country. They also had to face any economical recession facing the Japanese and make decisions based on the government’s sanctions and regulations. In France, the generosity of the labor force and the political and legal temperature were the uncontrollable obstacles facing Starbucks. In Italy however, their product mix was an area that Starbuck struggled with. The Italian’s included food items with their coffee and thus had a competitive edge over Starbucks. Starbucks, a solo product would have to adjust its product to withstand the competition in Italy. In Vienna, culture was the uncontrollable element Starbucks had to encounter. It seemed that the youth in Vienna wer e attracted to new things and thus, it opened up the market for Starbucks. Question #2 What are the major sources of risk facing the Company? Discuss potential solutions. Three major sources of risk facing Starbuck can be identified as follows: 1. Market Saturation in its domestic markets. 2. Losing present and future customers (Generation X not captured) 3. SRC and Ethnocentrism global markets. Potential solutions: Starbucks needs to design a Strategic plan focusing on more international and global marketing relationships. This would reduce market saturation allowing management to have some more time toShow MoreRelatedStarbucks-Going Global Fast1353 Words   |  6 PagesCASE: Starbucks- Going Global Fast Summery Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now own 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well seasoned management team popularly known as H2O, because of Howard Schultz (Chairman and Chief Global Strategist), Howard Behar ( Head of North American Operations)Read MoreStarbucks: Going Global Fast1735 Words   |  7 Pagesâ€Å"Starbucks - Going Global Fast.† I. Saturation of Home market and existence of Foreign Untapped markets Starbucks is a well respected brand of coffee that is known globally. As they dominate the market in United States, they have realized the potential growth in overseas markets and open its doors to going global. However, competing internationally is not easy for every company that’s why Starbucks has encountered certain challenges and issues as it enters foreign markets and grows globallyRead MoreStarbucks Going Global Fast3760 Words   |  16 PagesThe Starbucks coffee shop on Sixth Avenue and Pine Street in downtown Seattle sits serene and orderly, as unremarkable as any other in the chain bought 15 years ago by entrepreneur Howard Schultz. A little less than three years ago, however, the quiet store-front made front pages around the world. During the World Trade Organization talks in November, 1999, protesters flooded Seattle’s streets, and among their targets was Starbucks, a symbol, to them, of free-market capitalism run amok, Read MoreStarbucks- Going Global Fast1903 Words   |  8 PagesCase Starbucks – Going Global Fast 1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. As internationally operating company, Starbucks is familiar with entering new markets. As seen in the case, a foreign market entry always involves as well uncontrollable as controllable elements. The controllable aspects are: †¢ promotion †¢ price †¢ product †¢ channels of distribution Read MoreStarbucks: Going Global Fast925 Words   |  4 Pages1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Controllable In Italy: Price (Italian coffee bars prosper by serving food as well as coffee, an area where starbucks still struggles. Also Italian coffee is cheaper than US java say, Italian purists, much better. Americans pay about 1.5 for an espresso, on the other hand northern Italy the price is 67 cents, in the south just 55 cents. Uncontrollable In Japan: Competition amongRead MoreStarbucks - Going Global Fast (case study)1418 Words   |  6 Pages Starbucks - Going Global Fast (case study) I. Summary Starbucks is an American worldwide coffee company based in Seattle, Washington. It was founded on March130, 1971. Actually, it is considered as the largest coffee shop chain in the world with total stores of 17,651(as of July 1, 2012, official company’s website) locally and internationally. Starbucks stores are serving both hot and cold beverage, snacks, pastries, sandwiches and other non-coffee products. Different mugs in term of shape, sizeRead MoreEssay on Starbucks Case - Going Global Fast1029 Words   |  5 PagesQuestion 1: Identify the controllable and uncontrollable elements that Starbucks has encountered in entering the global market. The case discusses multiple international markets that Starbucks had entered. Japan, France, Italy, Austria, and the Middle East were mentioned. Starting with the Japanese market, the elements that faced Starbucks there were uncontrollable. The first element was the fierce competition in the Japanese market that already existed, and the fact that Japan’s economy hadRead MoreCase 1-1 Starbucks---Going Global Fast Essay831 Words   |  4 PagesCASE 1-1 Starbucks---Going Global Fast 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Ans. I think the controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbucks name and image connect with millions of consumers around the globe. Internally, Starbucks is able to make adjustments to fitRead MoreCase 1-1 Starbucks - Going Global Fast1102 Words   |  5 PagesIdentify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. The controllable elements in the global market are the product, price, place, and promotion. Starbucks is using their products as promotion as high quality. Starbucks is known to have a sweeter taste than the average beverages served at a coffee shop. Starbucks has done research on places they want to reach out to overseas. Starbucks has done studies overseas in Japan, Italy, Spain, GermanyRead MoreCase Study1124 Words   |  5 Pagesï » ¿ Case A-7: Starbucks—Going Global Fast Description of challenges The major challenges facing the decision maker, Schultz, include the following: the challenge of the fast saturating U.S. market (Going Global Fast, n.d, p. 2). According to analysts, in two year time, Starbucks will have saturated the U.S. market. This will lead to stagnation or slow growth in sales and reduce the effect of increased sales per new stores opened. For instance, in Seattle, Starbucks has a cafà © to serve every 9400 people;