Starbucks India Case
Starbucks Case
"We built the Starbucks brand first with our people, not with consumer- the opposite approach from that of the crackers and cereal companies."
Howard Schultz Starbucks Chairman& Visionary
This case is about Starbuks international Expansion in Indian market * Corporate Governance
Corporate governance: the relationship among the board of directors, top management and shareholders in determining the direction and performance of the corporation
As part of the Starbucks mission they are committed to maintaining uncompromising principles while they grow.
In this regard, Starbucks Board of Directors has adopted governance principles, committee charters and policies to lead Starbucks governance practices.
Currently, Starbucks board has 11 directors, a substantial majority of whom meet all of the independence requirements of NASDAQ® and the U.S. Securities and Exchange Commission.
Of the nine members of Starbucks board, one is Latino, two are African American (one of which is female), and one other female also serves on the board. Starbucks president and CEO Howard Schultz chair the board.
PEST Analysis
Political-Legal Forces * Moderate stability of Government polices * Red Tape Risks: India 's red tape is the worst in Asia (Hong Kong 's political and Economic Risk Consultancy PERC, June 2010)
* Corruption Risks: According to published Corruption Perception Index (CPI) 2010 by Transparency International, India was ranked 87th of 178 countries with a score of 3.3. Compared with CPI 2009 with 3.5 (rank 84th), it indicates that corruption in India is worsening * Regulation / Law Risks: Even though the Indian market has been liberalized, some industries maintain approval requirements to foreign investment. For example, foreign investment proposals in 34 high-priority industrial sectors cannot exceed 51% as directed by the Indian government. * After the 2008 financial crisis, Indian government increased
"We built the Starbucks brand first with our people, not with consumer- the opposite approach from that of the crackers and cereal companies."
Howard Schultz Starbucks Chairman& Visionary
This case is about Starbuks international Expansion in Indian market * Corporate Governance
Corporate governance: the relationship among the board of directors, top management and shareholders in determining the direction and performance of the corporation
As part of the Starbucks mission they are committed to maintaining uncompromising principles while they grow.
In this regard, Starbucks Board of Directors has adopted governance principles, committee charters and policies to lead Starbucks governance practices.
Currently, Starbucks board has 11 directors, a substantial majority of whom meet all of the independence requirements of NASDAQ® and the U.S. Securities and Exchange Commission.
Of the nine members of Starbucks board, one is Latino, two are African American (one of which is female), and one other female also serves on the board. Starbucks president and CEO Howard Schultz chair the board.
PEST Analysis
Political-Legal Forces * Moderate stability of Government polices * Red Tape Risks: India 's red tape is the worst in Asia (Hong Kong 's political and Economic Risk Consultancy PERC, June 2010)
* Corruption Risks: According to published Corruption Perception Index (CPI) 2010 by Transparency International, India was ranked 87th of 178 countries with a score of 3.3. Compared with CPI 2009 with 3.5 (rank 84th), it indicates that corruption in India is worsening * Regulation / Law Risks: Even though the Indian market has been liberalized, some industries maintain approval requirements to foreign investment. For example, foreign investment proposals in 34 high-priority industrial sectors cannot exceed 51% as directed by the Indian government. * After the 2008 financial crisis, Indian government increased