Ifas and Efas for Starbucks in India

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P Please po ost your answers s in the s same she eet  T This is a t take hom me exam mination.   D Delivery should b be on or before July 16th 2011 

Nam me:   __ ____ ____ ____ ____ _ Inta Num r:  __ ____ ake N mber ____ _ Date   e:   

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2011

©ESLSCA A – Strategic c Manageme ent & Busines ss Policies ‐ 2 2011 – Ramy y Khodeir  

 

 

 

Strateg gic Manag gement  Mid‐Term Examination – th of July 2011 – 16 1  Please re ead through the followin ng case and f follow the gu uideline ques stion to help p you answer r the  following case study y, you will ne eed to access s the internet for informa ation about t the external  environm ment related d to the case e and examin ne the compa any informat tion  

STARBUCKS COF FFEE COM MPANY: TH INDIA DILEMM HE AN MA
Starbuck in 2006 w ks was world’s largest coffe retailer w ee with over 11,000 s stores in 36 countries an over 10,0 nd 000 employee es. With 7,600 s stores in t the U.S., management was focu m t using on internatio onal expansio as Starbu on ucks’ primary growth opp y portunity. Through its Starbucks Internation division, the company pursued nal t y onal expans sion for th hree reasons: (1) to prevent internatio competito from get ors tting a head start, (2) to build upon growing o n desire for western bra ands, and (3) to take adv vantage of high coffee ption rates in other countr ries. Starbuck entered bo Japan ks oth consump and China during the 1990s. Jap pan soon beca ame the seco ond most e y. profitable market for the company Starbucks became the leader in specialty coffee in Ch hina. These successes pr rompted man nagement to consid der expansion into India in 2002. Pro n oblems in Japan then caused m management to postpone a move into India. In 2 t e o 2004, Starbucks officials visited India, but due , to a lack of local partners, again postponed entry. By mid k d-2006, Star rbuck once more targeted India as m d the next expansion opportunity. Howard Sch t o hultz, founder of the company, stated that “We ar equally r re excited a about two oth major ma her arkets we intend to enter during 2007 – India and Russia.” After dis scussing Starbucks’ histo ory of successful growth both at home and inte ernationally, the case focuses on India as a potential m market for the coffee retailer. The cas presents information o India’s e se on t e Profiles are provided for v various existing coffee societal environment and on India’s beverage industry. P ains in India. The key is . ssue in the ca ase revolves around the question: Ar circumstan re nces right shop cha for Starb bucks to ente India? er Guiding Questions: you are not supposed to answer thes questions only, your an g : t o se nswer should cover all d the topic agreed wit cs thin the past 5 lectures. 1. 2. 3. 4. 5. 6. Prepare a ful analysis for this case us ll r sing the appropriate analy ysis tools What are the strengths and weakness of Starbucks’ International? e ses What are the opportunitie and threat facing Star e es ts rbucks’? What are the strategic factors facing Starbucks’. e S Does Starbuc cks’ a distinc ctive compete ency? If ‘yes’, does it fit t the Indian ma arket. What are the keys to success in Starb e bucks’ operating in India?

 Che out the appendices at the end of this do eck s ocument

©ESLSCA A – Strategic c Manageme ent & Busines ss Policies ‐ 2 2011 – Ramy y Khodeir  

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