Starbucks - Going Global Fast
Starbucks – Going Global Fast
Question 1:
Controllable:
1) Promotion. I think that spending only 1% of revenue on advertisement is a bit too little and Starbucks should definitely spend more.
2) Product. In Italy for instance food is popular in cafes. To open shops and be successful in Italy Starbucks should have more differentiated products.
3) Price. Again in Italy price for coffee is a bit less than Starbucks proposes. The only way is to make the price less.
Uncontrollable:
1) Starbucks tries to control competition for instance paying for rent twice as much, so competitors cannot get a place or renting empty space. Even though it seems to be controllable, customers can be unsatisfied because of that and also businesses can practice same strategy. It also can lead to bad reputation (it is not nice to do so)
2) Starbucks wants to enter French market. The main problem is strict regulations and labor benefits. Considering some problems with working hours and salary that Starbucks had it would be hard to work in France.
3) Italians know which coffee to drink. Considering this Italian coffee culture and the amount of competitors in Italy it will be very difficult for Starbucks to be famous there.
4) Cultural challenge is the main problem for Starbucks to be global. Every country needs to be treated differently. If in US people got used to very sweet coffee, in Japan they did not.
Question 2:
Potential risks:
1) In my opinion potential risk is connected with dissatisfaction of employees. If Starbucks will not change its policies, salaries, working hours it will have problems with personnel. Potential solution could be identifying gaps connected with employees and try to make everyone happy. Increase the salary if needed, make the environment for employees friendlier, so they will stay and enjoy their work.
2) Another risk is attracting next generation customers. Younger customers feel uncomfortable already, because almost
Question 1:
Controllable:
1) Promotion. I think that spending only 1% of revenue on advertisement is a bit too little and Starbucks should definitely spend more.
2) Product. In Italy for instance food is popular in cafes. To open shops and be successful in Italy Starbucks should have more differentiated products.
3) Price. Again in Italy price for coffee is a bit less than Starbucks proposes. The only way is to make the price less.
Uncontrollable:
1) Starbucks tries to control competition for instance paying for rent twice as much, so competitors cannot get a place or renting empty space. Even though it seems to be controllable, customers can be unsatisfied because of that and also businesses can practice same strategy. It also can lead to bad reputation (it is not nice to do so)
2) Starbucks wants to enter French market. The main problem is strict regulations and labor benefits. Considering some problems with working hours and salary that Starbucks had it would be hard to work in France.
3) Italians know which coffee to drink. Considering this Italian coffee culture and the amount of competitors in Italy it will be very difficult for Starbucks to be famous there.
4) Cultural challenge is the main problem for Starbucks to be global. Every country needs to be treated differently. If in US people got used to very sweet coffee, in Japan they did not.
Question 2:
Potential risks:
1) In my opinion potential risk is connected with dissatisfaction of employees. If Starbucks will not change its policies, salaries, working hours it will have problems with personnel. Potential solution could be identifying gaps connected with employees and try to make everyone happy. Increase the salary if needed, make the environment for employees friendlier, so they will stay and enjoy their work.
2) Another risk is attracting next generation customers. Younger customers feel uncomfortable already, because almost