- Cultural distance: During the expansion abroad Starbucks had to deal with several cultural differences. For example, Japanese and Chinese consumers used to drink tea and did not have a coffee drinking culture. Furthermore, Starbucks had to deal with the association with the expansion of the American culture. - Administrative (or institutional ) distance: Starbucks had to deal with, for example; the differences in law and were therefore involved in different law-suits. -Geographic distance: The geographic distance has affected the path of the international expansion and has affected the choice of cities within the host countries. -Economic distance: Starbucks had to deal with the certain/different level of wealth due to the fact that for some costumers inn countries the Starbucks coffee in comparatively expensive.
To reduce the cultural distances , Starbucks has conducted extensive research in each country using groups and quantitative analysis, to evaluate local cultural sensitivities and preferences. Starbucks tried to adapt as much as possible to the foreign markets to reduce the appearance of cultural imperialism. For example, Starbucks expanded into Europe with a low-key profile, humble and subdued way. To reduce the economic distances, Starbucks expanded primarily into developed countries. It has focused on major cities first. In addition, to reduce criticism, Starbucks has established a policy of paying premium prices from local framers who use environmentally friendly techniques. Furthermore, Starbucks partnered with local businesses to reduce its foreignness.
No. First of all there are a lot of cultural differences between Starbucks and china and Japan. Therefore, there is a big cultural distance. Secondly, there will be an administrative (or institutional) distance. Due to the fact that the countries have different law systems. The difference of the law systems between America and Canada will be smaller than the...