Starbucks Forbidden City Essay

The Starbucks outlets in Beijing’s Forbidden City and the Insadong district of Seoul should not be closed for a variety of reasons. First, the success of these outlets is a step closer in achieving Starbucks long-term goal of 30,000 stores both internationally and domestically. Second, the company has achieved a competitive analysis in determining that their best move was to open up in a market that was still developing such as the Asian market and the Chinese Market, rather than a more developed coffee market like that of the European market. Third, Starbucks has developed a strong corporate strategy. Lastly, Interdependence vs. Interdependence in Conflict Resolution is a concept seen in the aspect of Starbucks vs. Chinese and Korean culture.
Planning and Decision making:
“On average, companies with plans have larger profits and grow much faster than companies without plans” (MGMT pg. 89) Starbucks developed a plan in the hopes of achieving a long-term goal of opening a total of 30,000 stores both internationally and domestically. With opening the outlets in Beijing’s Forbidden City
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