Preview

Starbucks Corporation: Competing in a Global market

Good Essays
Open Document
Open Document
1222 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Corporation: Competing in a Global market
Problem:The problem is anti-globalization which makes more difficult for Starbucks to enter in new markets.

Symptoms:1. Protests from anti-globalization activists.

2. If those activists have enough media power it leads to international scandals sometimes even involvement of celebrities (who also might be activists of anti-globalization). And finally the worst situation for Starbucks:3. They receive push-backs in new markets.

That is why Starbucks needs to establish some systematic method or decision process which would work equally around the world by helping to say: "To open new shop in certain place or not!?"Alternatives:I. To try to solve problems with anti-globalization activists.

+/- If Starbucks could solve this worldwide conflict they would go in the history, but by my mind it is impossible to speak with those people by continuing to go globally. It is in what they believe and they will not change their mind.

II. To work with the media of regions they want to go in.

Everybody knows that big power is in hands of people who have "good relationships" with the biggest media. Starbucks has to use it:•Maybe they has to involve in requirements for their next foreign partners that they need to be in good relations with mass media (like biggest newspapers and TV channels):+ They could overpower anti-globalization activists.

+ They could make better PR of themselves.

- Then it could start some media wars, because they can not be sure that some of media companies also are not anti-globalists.

- It could be quite a hard for Starbucks to find such a partner with the required contacts.

III. To promote loudly and more active that they have very friendly Environmental Mission Statement. Spend money that this message would go globally.

+ Nowadays, when there is so much pollution and foodstuffs becomes modified Starbucks should make global marketing campaign where they would tell everybody that how their work is to: "instilling environmental responsibility as a

You May Also Find These Documents Helpful

  • Powerful Essays

    Uop Mgt/598

    • 2158 Words
    • 9 Pages

    Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013). The company’s values include quality, passion, fully engaging customers, humanity and enjoyment of life, setting the standard for being good neighbors, and accountability (Starbucks, 2013). Starbucks currently sets the standard in one market sector: whole bean coffee distribution within the United States. However, as Team A consultants identified, the company jeopardizes its frontrunner industry position by not expanding. Team A consultants discussed two primary expansion opportunities, specifically expansion of the company’s product portfolio and expansion of the company’s primary product, coffee, into foreign markets. Although both expansion options provide great competitive advantage for Starbucks, expansion into strategic foreign markets provides the most opportunity for competitive advantage and is most aligned with the company’s values as it enables the company to set standards in new industry sectors and broaden the neighborhoods in which it serves.…

    • 2158 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    * Zack Higbee, Chen yee Liaw, Calvin Ting, Kelvin Tjho, Michelle Ton. (2008). the future of Starbucks. Available: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf. Last accessed 29 September 20 11.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth…

    • 653 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Multinational Corporations “MNC” such as Starbucks, are important factors in the processes of globalization. National and local governments often compete against one another to attract the type of company’s facilities, with the hopes of increased tax revenue, employment, social and economic stability. In order to compete, the country’s political powers push toward their goals of developing the economies of developing countries, providing there is a market for the company, and to also provide other employment for companies working as vendors and suppliers.…

    • 1203 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Starbucks Corporation has become one of the top producers of speciality food corporations in the world. With that said,…

    • 384 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Starbucks Industry Case

    • 2421 Words
    • 10 Pages

    On the other hand, it would be difficult for potential new competitors to enter the coffee industry and compete on Starbucks’ level. The Starbucks brand is well-known and many barriers may preclude entrants from reaching similar worldwide success. Although few substantial ongoing costs would deter new entrants, entering the coffee industry and contending on a large scale with Starbucks would necessitate a large capital investment.…

    • 2421 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Regulatory Agencies

    • 483 Words
    • 2 Pages

    Starbucks operates in over 50 countries worldwide. With this Starbucks must look at all types of regulatory bodies for financial reasons, making sure their guidelines are met both at home and abroad. Starbucks has gone out of its way to rely on and help out their farmers abroad. From Tokyo to Seattle the Starbucks brand is one that is symbolic of a successful business. The success of Starbucks has been built on international partnerships as the business aspect of bringing in coffee beans from businesses that share the same values of Starbucks. There has to be a marriage of the companies in order to do business. Financially this affects Starbucks in that if a company they do business with does something wrong or acts unethically it falls back on the Starbucks brand.…

    • 483 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Starbucks Global Issues

    • 2987 Words
    • 12 Pages

    The purpose of this report is to center around a major organisation – Starbucks Coffee Company and to carry out a depth investigation into its position in global market and issues related to it.…

    • 2987 Words
    • 12 Pages
    Best Essays
  • Satisfactory Essays

    3. ContentsI. Overview Starbucks -MilestonesII. PESTLE-Analysis • General Information • P – Political Issues • E – Economical Issues • S – Social Issues • T – Technological Issues • E – Environmental Issues • L – Legal IssuesIII. Conclusion…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    In summation, throughout “The Tell-Tale Heart” Poe personifies the narrator’s guilt as such a thing that slowly deteriorates the mind and opens a door to moral insanity. Between the lines of this Gothic tale Poe uses the continuous beating heart as a symbol for the narrator’s inescapable and eternal guilt. Once the narrator awakened the old man, the beating heart grew to such a volume that he had no choice but to kill him. However after committing the senseless crime the beating heart prevailed causing the narrator to go mad. Consequently, the sound forces the narrator to give himself up to the police because the guilt grew so strong that he could no longer bear for it to be on his conscience. The overall moral of this story certainly teaches…

    • 295 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Starbucks has, as part of its CSR report, information about Environmental stewardship: Community involvement and Ethical Sourcing. In terms of community giving, Starbucks thrives both locally and abroad, including provisionfinancial support after the Tsunami in 2010. Starbucks also has developed ethical standards for supporting farmers and employment opportunities. Politically, Starbucks also strives to participate in global human rights issues and to be transparent in its political contributions. (Starbucks Website).…

    • 716 Words
    • 3 Pages
    Good Essays
  • Good Essays

    As a result of Starbucks closely following their objectives, the company has installed a list of principles that further outline the company 's willingness to make sure that its affect on the environment is as positive as possible. These principles are stated as (starbucks.com):…

    • 984 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    By now, most Americans must have heard or be familiar with a chain of coffeehouses, named Starbucks. Established in 1971 as a local coffee bean roaster and retailer, Starbucks has expanded rapidly. By successfully adopting Italian coffee culture into a variety of beverages such as brewed coffee, espresso, teas, Frappuccinos and related products such as music CDs, pastries or ice creams, the Seattle-based company has reported USD 7.9 billion in revenue with 22 percent annual growth (Starbucks, 2006) . Operating 13,168 stores in 41 countries, Starbucks has, inarguably, become one of the largest and most recognizable coffeehouses all over the world (Harrison & Enz, 2005). Meanwhile, the company still targets for operating 30,000 stores worldwide in long-term growth (ibid.). Among numbers of destinations, China is Starbucks’ next target. Opening its first store in 1999, Starbucks is running 540 stores in China, including Taiwan, Hong Kong and Macau (ibid). Although China currently accounted for less than 10 percent of Starbucks’ USD 7.9 billions global sales in 2006, Starbucks’ CEO Howard Schultz believes that the country will soon become the firm’s largest market outside North America (Asia Pulse, 2006). EuroMonitor (2004) showed that Starbucks’ unit sales have jumped dramatically by 814 percent between 1999 and 2003. Despite of its market attractiveness, China can also be a pitfall for any organization. Eight years after opening, Kraft, a multi national food company has been forced to close its dairy-making business. Similarly, Whirlpool has reported to have lost £26 million since its investment to China (Jobber, 2007). Commonly quoted reasons for failure are the inability to cope with diversity, changes or differences in culture, local law, regulations or in other words, failing to adapt to the external marketing environment. Thus, the purpose of this study is to evaluate the influences of the current external environment on Starbucks’ marketing management…

    • 3308 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Starbucks operates more than 15,800 stores internationally and employs roughly 140,000 employees. It increase expansion makes it complex to handle the operations. The effect of the forces on the complexity of the Starbucks’s environment is the Starbucks imports its coffee beans from around the world, therefore emphasizes the importance of political stability of other countries to Starbucks. Political stability of coffee-supplying countries, as well as the relationship between coffee producing countries and the United States is very important to the company. Labor dispute, war or terrorism can greatly affect the relationship between Starbucks and its coffee suppliers, and this will adversely complicate Starbucks operation. Supply and price can be affected by political conditions of the producing countries. Legal forces such as changes in import laws would greatly influence numerous areas of production for Starbucks. The cost to import increases or the process is made more complex, the result to those could ultimately be a change in price, and this would affect the consumption level of Starbucks coffee. Another forces cause complexity in Starbucks environment is competitor. Starbucks expanding into the global empire, so, the competition is not just in the one area but in a global. This is not easy to control and fight with competitors.…

    • 822 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Due to its global dominance it has created a powerful brand image around the world it has evoked strong emotions in people’s mind so much that it leads to street protests. Starbucks has a store at every corner in some parts of U.S…

    • 308 Words
    • 2 Pages
    Satisfactory Essays