Preview

Ifas and Efas for Starbucks in India

Satisfactory Essays
Open Document
Open Document
3664 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ifas and Efas for Starbucks in India
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:

_ ____ _ ____ ____

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

You May Also Find These Documents Helpful

  • Powerful Essays

    Uop Mgt/598

    • 2158 Words
    • 9 Pages

    Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013). The company’s values include quality, passion, fully engaging customers, humanity and enjoyment of life, setting the standard for being good neighbors, and accountability (Starbucks, 2013). Starbucks currently sets the standard in one market sector: whole bean coffee distribution within the United States. However, as Team A consultants identified, the company jeopardizes its frontrunner industry position by not expanding. Team A consultants discussed two primary expansion opportunities, specifically expansion of the company’s product portfolio and expansion of the company’s primary product, coffee, into foreign markets. Although both expansion options provide great competitive advantage for Starbucks, expansion into strategic foreign markets provides the most opportunity for competitive advantage and is most aligned with the company’s values as it enables the company to set standards in new industry sectors and broaden the neighborhoods in which it serves.…

    • 2158 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Bus620 Week 5

    • 898 Words
    • 4 Pages

    Starbucks has built a reputation of being the best coffee has to offer. From starting out as a small market coffee store to becoming a top of the market coffee distributor, Starbucks has built a reputation that may be hard to take down. Entering into the Italian market could be a very risky move since it is the country that is considered by some to be the coffee originator. Starbucks entering the Italian market is considered to be a reputational risk and one that they may be able to afford but will bring some challenges. This paper will discuss some of those challenges along with determining if there is a strategic advantage to entering the Italian market as well as explaining how it’s competitors marketing strategies influence Starbuck’s entry into the Italian market. This paper will also discuss whether Starbucks should consider entering Italy at all.…

    • 898 Words
    • 4 Pages
    Good Essays
  • Best Essays

    .1. Introduction1.1 Distinctive Growth Tale of Starbucks 1.2 Strategic Deportment1.3 Starbuck as a Global Corporation 1.4 Impact on the international economy…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth…

    • 653 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The module is delivered on Fridays between 12.00 –16.00. The hours between 09.00 and 11.00 are to be used as private study time, addressing issues relating to this module.…

    • 4232 Words
    • 17 Pages
    Satisfactory Essays
  • Better Essays

    Bus 401 Mod 2 Case

    • 880 Words
    • 4 Pages

    The purpose of this paper is to write an essay about Starbucks global expansion strategy with a focus on China. Starbucks first went international in 1996 in Tokyo Japan; today there are over three thousand coffeehouses in thirty-seven different countries. “The number one priority of our company in terms of new growth is China,” said Howard Schultz, chairman of the coffee chain. “The US company has two hundred and nine stores across eighteen mainland Chinese cities, about one hundred and twenty of which lie in the capital or around Shanghai” Andrew Yeh wrote. Compared to the six hundred coffee shops in Japan Starbucks is behind in growth for China. With China’s emerging economy and booming population it is a no-brainer that a rapid expansion into China would be a great business opportunity.…

    • 880 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Starbucks vs Dunkin Donuts

    • 4779 Words
    • 16 Pages

    This study gives a brief review of the U.S. and international coffee shop industry. The coffee industry includes 20,000 stores with combined revenue of $11 billion. Approximately 20 million people work in the coffee industry worldwide. The coffee industry is very concentrated at the top and fragmented at the bottom with the top 50 companies taking up to 70% of the sales. Starbucks lead the way with over 16,680 stores worldwide; and there are some other competitors following them very close.…

    • 4779 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    In short order, Starbucks Corporation has become a premier purveyor of coffee and related beverages along with selected merchandise and has acquired almost universal domestic brand name recognition (MacArthur, 2001). Currently, Starbucks is engaged in a number of activities designed to expand its presence in the new global beverage market. Starbucks' growth strategy thus far has tended to emphasize positioning its stores in high traffic areas, including mini-stores located in hotels, upscale grocery stores, shopping mall food courts, and other ventures which are not free-standing (Kim, 2000).…

    • 423 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Starbucks Global Issues

    • 2987 Words
    • 12 Pages

    The purpose of this report is to center around a major organisation – Starbucks Coffee Company and to carry out a depth investigation into its position in global market and issues related to it.…

    • 2987 Words
    • 12 Pages
    Best Essays
  • Good Essays

    In 1995, Starbucks opened its first coffee house internationally in Tokyo, Japan (Starbucks, 2008). Successful partnership allowed the company its footing inside foreign country. The large population and high disposable income from the consumers is what initially drawn the company and its executives to Japanese market. In adapting Japanese culture, extensive researches motivated Starbucks in changing their business model by catering to 40 year old businessmen and provide a smoking environment to enjoy their coffee. The Japanese locations included U.S. menus which the founder of the international segment for Starbucks ignored the advice stated previously. The complication of working in the East and West was understood by a Starbucks business partner, Sazaby. Japans’ attraction towards the kinds of products contributed to the understanding of the global market and leading Starbucks a success (Japan External Trade Organization, 2006).…

    • 819 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Starbucks Case Study

    • 809 Words
    • 4 Pages

    Having worldwide recognition assisted in sales in some countries, has its advantages and disadvantages to Starbucks’ global expansion. The China market, for instance, is of great importance to Starbucks. Chinese customers, who traditionally drink tea, don’t seem to mind paying a relatively higher price for coffee. By drinking Starbucks coffee, customers in China feel it enables them to relate to a Western lifestyle. They want to live like those in the developed countries, and to them, drinking a cup of coffee that people in the U.S also drink helps them to fulfill that dream. Holding those white paper cups with the green logo on them gives them the illusion that they live better than those who don’t drink Starbucks. In my opinion, Starbucks should do reasonably well in India. The Indian economy is growing, and with its billion-plus population, there’s plenty of room for Starbucks. Another factor accounting for why Starbucks would do well in India is the country’s growing taste for coffee. If more people like coffee, the number of customers will increase. Europe, on the other hand, has had the complete opposite outcome with Starbucks. Because Europe is going though so many financial troubles, Starbucks isn’t doing as well as intended, causing a fall in coffee sales.…

    • 809 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    struggled with and offered a new and exciting brand to younger customers. However, the 50%…

    • 442 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The case discusses multiple international markets that Starbucks had entered. Japan, France, Italy, Austria, and the Middle East were mentioned. Starting with the Japanese market, the elements that faced Starbucks there were uncontrollable. The first element was the fierce competition in the Japanese market that already existed, and the fact that Japan’s economy had suffered a blow which resulted in an economic depression.…

    • 1037 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Starbucks, the ubiquitous coffee retailer earned high profit and is forecasted to grow. The resources and capabilities that have provided Starbuck distinctive competencies are its unique business model of making the store as a third place between home and work, its ability to own its own stores throughout the world, a strong brand name, decision making based on the ideas provided by employees, for which Starbuck started selling experience through selling ‘third place’, superior customer services, hiring and training process for employees, progressive compensation policy even to the part time employees like stock option plan grants and medical benefits which was unique in the industry, retaining its customer at higher rate. Starbucks’ these distinctive competencies helped it to differentiate its products from those of rivals and thus achieve higher profitability.…

    • 1675 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    Write your Centre number, candidate number and name on all the work you hand in.…

    • 1434 Words
    • 6 Pages
    Satisfactory Essays

Related Topics