Nam me: __ ____ ____ ____ ____ _ Inta Num r: __ ____ ake N mber ____ _ Date e:
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2011
©ESLSCA A – Strategic c Manageme ent & Busines ss Policies ‐ 2 2011 – Ramy y Khodeir
Strateg gic Manag gement Mid‐Term Examination – th of July 2011 – 16 1
Please re ead through the followin ng case and f follow the gu uideline ques stion to help p you answer r the following case study y, you will ne eed to access s the internet for informa ation about t the external environm ment related d to the case e and examin ne the compa any informat tion
STARBUCKS COF FFEE COM MPANY: TH INDIA DILEMM HE AN MA
Starbuck in 2006 w ks was world’s largest coffe retailer w ee with over 11,000 s stores in 36 countries an over 10,0 nd 000 employee es. With 7,600 s stores in t the U.S., management was focu m t using on internatio onal expansio as Starbu on ucks’ primary growth opp y portunity. Through its Starbucks Internation division, the company pursued nal t y onal expans sion for th hree reasons: (1) to prevent internatio competito from get ors tting a head start, (2) to build upon growing o n desire for western bra ands, and (3) to take adv vantage of high coffee ption rates in other countr ries. Starbuck entered bo Japan ks oth consump and China during the 1990s. Jap pan soon beca ame the seco ond most e y. profitable market for the company Starbucks became the leader in specialty coffee in Ch hina. These successes pr rompted man nagement to consid der expansion into India in 2002. Pro n oblems in Japan then caused m management to postpone a move into India. In 2 t e o 2004, Starbucks officials visited India, but due , to a lack of local partners, again postponed entry. By mid k d-2006, Star rbuck once more targeted India as m d the next expansion