People's Republic of China and Cultural Factors Starbucks

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Western Nevada Community College|
STARBUCKS CASE STUDY|
|
Joseph L McGowan
Western Nevada CollegeMarketingStephen Theriault|
10/24/2012|

Abstract
Many of the same environmental factors, such as cultural factors, that operate in the domestic market also exist internationally. Discuss the key cultural factors Starbucks had to consider as it expanded to China. Discuss the key political and legal factors Starbucks had to consider in the Chinese market place. What are the risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies? What demographic factors were important for Starbucks to understand in China? What were the demographics they decided to target? What was the initial global-market strategy Starbucks employed to enter China? Discuss the advantage and disadvantage to this early strategy. How has strategy changed since then and why?

Starbucks had to consider many environmental and cultural differences when they decided to move expand to China back in 1999 (Daily, 2009). Most of the populations were tea drinkers and many still are, but with the ever changing times many have taken on the coffee and it has become a way of showing how modern one is. Take into consideration the amount of living space China has, since 1978 The Chinese have implemented the “one Child rule” The Chinese government refers to it family planning policy. It restricts married, urban couples to having only one child (Wikipedia, 2012). With that Starbucks created the “Third Place” which gave the people a place to hang out and get together with family other than home because living space was so small (Mu, 2009). Political and legal factors are always an issue especially when dealing with business overseas. In the start back in 1999 in Beijing Starbucks had to find local partners who understood the business in a Communist Country. Being a Communist is a theory or system of...
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