Entry Modes of Starbucks

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School of Sustainable Development of Society and Technology
Master Thesis Course - International Business and Entrepreneurship EFO 705/ MIMA

Entry Modes of Starbucks

Tutor: Leif Linnskog Authors: Beatriz Santamaría (841007-p008) Shuang Ni (831206-p446) Date: 3 June 2008 Group number: 2023

Summary

Date: Level:

3 June 2008 Master Thesis in Business and Administration- International Business and Entrepreneurship Entry Modes of Starbucks

Title: Authors:

Beatriz Santamaria (841007-p008) Cuenca, 3 3A 19005 Guadalajara (SPAIN) +34 64621633 Date of birth: 1984-10-07 E-mail: Bea5031@msn.com Shuang Ni (831206-p446) Vasagatan 40 722 15 Västerås +46 73 584 27 66 Date of birth: 1983-12-06 E-mail: sophia_nishuang@hotmail.com

Tutor: Topic:

Leif Linnskog When an MNC seeks to enter a foreign country, it must choose the most appropriate entry mode for that specific market, such as exporting, licensing, a turnkey project, franchising, joint ventures or wholly-owned subsidiaries. There are many factors which affect the choice of entry modes. Influential factors contributing to the entry mode decision can have different degrees of impact for each particular country. As a consequence, an MNC has to use different entry modes in order to adapt to the specific situations it faces in its international expansion strategy.

Research Problem: Our research problem is to find the answer to two specific research questions while investigating in a particular MNC: Starbucks. The relevant questions are: (1.) What factors affected Starbucks’ entry mode decisions? (2.) Which entry mode strategies did Starbucks use foreign markets and why? Method: We collected data through a qualitative method. We regarded that a qualitative research method would provide us the necessary data to understand entry mode decisions. We collected data through literature, books, journals, and Internet resources. We have decided to focus our qualitative research on exploring Starbucks’ entry mode decision in some specific markets. In particular, we have concentrated on Spain, New Zealand and the United Kingdom.

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Conclusions:

The choice of entry mode is a critical decision made by MNCs. The choice is influenced by several factors; we have divided these into internal and external factors. We have found both groups are important in the decisions made by Starbucks. However, the degree of influence is different in each case. Moreover, it is possible that some influential factors in the choice of entry mode can differ by case. Finally, we have found external factors have been critical in affecting Starbucks’ choice of entry modes. Starbucks has sought to adapt to those external factors and local needs and requirements by using different entry modes. entry modes, Starbucks, external factors, internal factors, Spain, New Zealand, United Kingdom, licensing, joint-venture, wholly-owned subsidiaries

Keywords:

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Acknowledgements
I would like to thank my tutor Leif Linnskog, who devoted his time and energy for our thesis from the first seminar until now. Furthermore I want to thank those groups in each seminar section who gave us a lot of critical comments and useful suggestions. Last but not least, I am thankful to my lovely thesis partner Bea, who invested almost all her time in the library for our thesis. Her understanding, knowledge of thesis writing, and her smart and easygoing personal characteristics always impress me. Therefore I wish to thank her most for all her cooperation and help in completing our thesis. I would like to extend my appreciation to my family, who has supported me throughout this year of Master’s study. I would also like to thank my Daniel, who is always on my side and gives me help. Especially, he helped us to modify the whole thesis’ English sentence by sentence and gave us a lot of useful comments. Moreover, I would like to thank my great friends Linda, Pat, Wang Qi, Marina and all the others with whom I have shared...
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