Starbucks Case - Going Global Fast

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Question 1: Identify the controllable and uncontrollable elements that Starbucks has encountered in entering the global market.

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. Moving on to the next market, which is France. The elements were also uncontrollable because the policies and regulations in the French republic were extremely sophisticated and biased towards the Labour Unions. Going south towards Italy, which is one of those countries that coffee-drinking is embedded in its culture. Starbucks’ Italian mission was faced by a controllable element, which is Starbucks’ own pricing strategy. In a country where the average Italian is used to paying 65cents (North), and 55cents (South) for a cup of espresso, Starbucks offered their espresso for a $1.5. Also, the fact that Italian coffee houses offer food along with their coffee made it even harder for Starbucks. When Starbucks decided to enter the ‘Imperial City’, which is known around the planet as a centre of Western sophistication, Vienna proved to be culturally adaptable to the fact that an American Coffee Shop such as Starbucks to enter it. Young Austrians were enthusiastic about the ‘new’, and rushed into Starbucks stores for a cup of coffee. That was an uncontrollable element. Lastly, the troubled Middle East, where Starbucks have branches in Lebanon, Kuwait, Saudi Arabia, United Arab Emirates, and so forth. Schultz nearly caused an uproar when he took a biased stand against Palestinians. That was a controllable element, which Schultz himself have corrected.

Question 2: What are the major sources of risk facing the...
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