Starbucks entering Italy
Table of Contents
1. Introduction. 2
2. Starbucks Corporation. 2
2.1 History of Starbucks. 2
2.2 Strategy of Starbucks. 3
2.3 Starbucks’ international expansion. 3
3. The Italian Environment. 5
3.1 General information. 5
3.2 Trade barriers. 6
3.3 Political and legal environment. 6
3.4 Social considerations. 8
4. The Italian Culture. 8
4.1 Anglo cultural cluster versus Latin European cultural cluster. 8
4.2 Hofstede’s five cultural dimensions: United States versus Italy. 11
4.3 The Italian coffee culture. 12
5. An investigation towards the appropriate mode of entry. 13
5.1 Environmental factors. 15
5.2 Transition specific factors. 16
5.3 Global strategic considerations. 17
5.4 Entry modes and recommendation. 18
6. Conclusion. 19
7. References. 20
8. Appendix. 22
8.1 Appendix A: Starbucks’ Mission Statement. 22
8.2 Appendix B: Findings from the GLOBE Research Project. 24
8.3 Appendix C: Hofstede’s five cultural dimensions. 26
1. Introduction.
Starbucks Corporation is a global coffee and coffeehouse chain based in Seattle. Washington, United States. Starbucks sells coffee, handcrafted beverages, merchandise, fresh food and consumer products. It is the largest coffeehouse company worldwide, with about 16.700 stores (8850 company-operated and 7856 licensed) in more than 55 countries. However, the striking fact is that Starbucks has not expanded into the Italian market yet, whereas Italy can be seen as the coffee-lover nation number one. This is especially interesting given that Starbucks has been fairly successful in other major European countries, such as the United Kingdom, Spain, Germany and even Switzerland. Therefore the main purpose of this report is to analyze the
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