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Starbucks Case

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  • September 2012
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THE GLOBALIZATION OF STARBUCKS
1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? The original idea for the Starbucks format came from the 1980´s when the company´s director if marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience, the idea was to sell the company´s own premium roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products in a tastefully designed coffeehouse setting. The focus was to sell a “third place experience”. Starbucks is an important lesson for international business, because good ideas can be found everywhere, we just have to be open to a different experiences, different cultures and different business, a lot of good things from other cultures can be the key to succeed in a different market, not just because of the globalization parameter that shows us the world is getting similar in a lot of aspects, and people tend to like the same things, but there are still huge cultural differences that can take place and turn into a benefit at the time to sell a new product or introduce a new concept to a new market. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? Companies go international for a variety of reasons, but the goal is typically company growth or expansion. Whether a company hires international employees or searches for new markets abroad, an international strategy can help diversify and expand a business, and is creating value for its shareholders because introducing new products internationally can expand a company's customer base, sales and revenue, and plus will give them internationally recognition and prestige. 3. Why do you think Starbucks decided to enter the Japanese market via a joint...

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