case study
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
Ans. I think the controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbuck's name and image connect with millions of consumers around the globe. Internally, Starbuck's is able to make adjustments to fit a county's cultural tastes and expectations regarding their product, it's price, where it is available and how it is marketed. Starbuck's is also able to take part in market research to be sure their product has the right fit for each of its international locations.
According to the company's website, they maintain a high level of success internationally by choosing international partners who share their values and commitment to bringing the Starbuck's experience to customers worldwide. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, and corporate objectives.
Some elements that are almost impossible to control by Starbucks management include: •
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•
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Sovereign risks - governments of foreign countries may change their fiscal and monetary policies affecting the operations of Starbucks.
The Prices of coffee in world commodity markets - prices may be affected for example by natural disasters like droughts.
Changes in customers' disposable income - for example due to economic downturns.
Fluctuations in world currency rates.
2. What are the major sources of risk facing the company and discuss potential solutions. Ans. I think Starbucks considers that the upper limit of coffee shop saturation. Another risk is losing customers, because fewer options are available for the customer. And third risk is less but not the least the young generation feels comfortable. Global expansion poses huge
Ans. I think the controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbuck's name and image connect with millions of consumers around the globe. Internally, Starbuck's is able to make adjustments to fit a county's cultural tastes and expectations regarding their product, it's price, where it is available and how it is marketed. Starbuck's is also able to take part in market research to be sure their product has the right fit for each of its international locations.
According to the company's website, they maintain a high level of success internationally by choosing international partners who share their values and commitment to bringing the Starbuck's experience to customers worldwide. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, and corporate objectives.
Some elements that are almost impossible to control by Starbucks management include: •
•
•
•
Sovereign risks - governments of foreign countries may change their fiscal and monetary policies affecting the operations of Starbucks.
The Prices of coffee in world commodity markets - prices may be affected for example by natural disasters like droughts.
Changes in customers' disposable income - for example due to economic downturns.
Fluctuations in world currency rates.
2. What are the major sources of risk facing the company and discuss potential solutions. Ans. I think Starbucks considers that the upper limit of coffee shop saturation. Another risk is losing customers, because fewer options are available for the customer. And third risk is less but not the least the young generation feels comfortable. Global expansion poses huge