Starbucks Internationalisation
2-pages Executive Memo
Recommendations regarding Starbucks ' Future Internationalization
“A 16 years Internationalization Strategy which led reaching one third of the world 's countries and two thirds of earth 's entire population .”
March 2012
Consultant : Cyril-André LESAGE
Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the Internet. Second part will focus on a quantitative approach, based on pure data analysis, to try to provide some hints about where Starbucks could expand. This part was made with public available data (WorldBank, OECD, ICO), and shall miss some real data from Starbucks, such as exact list of countries, entry modes and market/strategic analysis about the countries. Qualitative Study Over the 24 regions of the world, Starbucks has stores in 18 of them. If we get rid of the African continent, in which Starbucks exist in only 2 of its 6 regions, 2 regions are then only missing : Central Asia (all -stan countries), that can be explained by political problems and market opportunities, and Southern Europe, which will be covered in the quantitative part. That allows Starbucks to exist in 31.55% of the world 's countries, reaching then 72.52% of the earth 's population. Annex 1 shows the number of new countries reached per year, with the Return On Asset. If we get rid of the economic crisis, it shows that Starbucks needs to expand in 2 to 3 new countries per year, as reaching too many countries seems to have a bad impact on ROA, as maybe investments are too important for a single year. If we take a closer look at the number of stores
Recommendations regarding Starbucks ' Future Internationalization
“A 16 years Internationalization Strategy which led reaching one third of the world 's countries and two thirds of earth 's entire population .”
March 2012
Consultant : Cyril-André LESAGE
Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the Internet. Second part will focus on a quantitative approach, based on pure data analysis, to try to provide some hints about where Starbucks could expand. This part was made with public available data (WorldBank, OECD, ICO), and shall miss some real data from Starbucks, such as exact list of countries, entry modes and market/strategic analysis about the countries. Qualitative Study Over the 24 regions of the world, Starbucks has stores in 18 of them. If we get rid of the African continent, in which Starbucks exist in only 2 of its 6 regions, 2 regions are then only missing : Central Asia (all -stan countries), that can be explained by political problems and market opportunities, and Southern Europe, which will be covered in the quantitative part. That allows Starbucks to exist in 31.55% of the world 's countries, reaching then 72.52% of the earth 's population. Annex 1 shows the number of new countries reached per year, with the Return On Asset. If we get rid of the economic crisis, it shows that Starbucks needs to expand in 2 to 3 new countries per year, as reaching too many countries seems to have a bad impact on ROA, as maybe investments are too important for a single year. If we take a closer look at the number of stores