Preview

Strategic Issues Facing Starbuck's Entry Into India

Best Essays
Open Document
Open Document
3457 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Strategic Issues Facing Starbuck's Entry Into India
Abstract
The Global Coffee Bean Company (GCB) decided that the Indian Hot Drinks Industry did not represent an attractive market. Following a recent announcement by Starbucks that they intend to enter the market we were commissioned to perform an initial analysis into the likelihood of Starbucks success. This report concludes that Starbucks initiative is sufficiently interesting to warrant a full scale investigation into whether GCB should also enter the Indian market.
Introduction
This report is divided into a number of sections: * Analysis * Conclusions * Recommendations
In the analysis section we look at a number of aspects affecting the likely success of Starbucks and GCB. These aspects are: * An identification of the strategic issues facing Starbucks as a company * A PESTLE analysis of trends in India * A 5 Forces analysis of the Indian Hot Drinks Industry * An analysis of the consistency of the Starbucks decision with their existing strategy * An examination of the pressures facing the Starbucks/Tata alliance over the next 10 years
In the conclusions we consider the likely success of the Starbucks initiative and whether it could be replicated by GCB.
Analysis
The strategic issues facing Starbucks
Porter (Porter, 1996) sees strategy as being about making choices about what you do, whereas operations is about doing those things better.
Strategic issues are developments inside or outside an organisation likely to have an important impact on its ability to meet or determine its purposes and objectives.
Starbucks mission statement can be summarised as creating shareholder value by serving ethically sourced, great tasting coffee in welcoming stores (Starbucks, 2012).
Starbucks’ does not always live up to its aspirations but the stated objectives represent a good basis for analysis. We have conducted a brief analysis of recent publicly available data and consider the following to be the main strategic issues affecting



References: ANSOFF, I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124 BMI (2012) clasislaw (2012) India Across Borders [online] http://www.clasislaw.com/uploads/Files/Across%20Borders_India%20Ed%20Feb%202012.pdf (Accessed 18 July 2012) CRABTREE, J., FONTANELLA-KHAN, J P.F. (2012), India 's retail reform: Prada is not Walmart The Economist [online] http://www.economist.com/blogs/schumpeter/2012/01/indias-retail-reform (Accessed 18 July 2012) PORTER, M.E

You May Also Find These Documents Helpful

  • Good Essays

    Dunne, D. (2004). The Starbucks Brand, Rotman School of Management Case Series. Ontario: University of Toronto.…

    • 405 Words
    • 2 Pages
    Good 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
  • 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
  • Best Essays

    * Zack Higbee, Chen yee Liaw, Calvin Ting, Kelvin Tjho, Michelle Ton. (2008). the future of Starbucks. Available: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf. Last accessed 29 September 20 11.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Starbuck's Strategy

    • 1931 Words
    • 8 Pages

    Goldstien, E. B. (2006). Sensation and Perception (7th ed.). New York: Wadsworth. Government of the Northwest Territories Management Competency Model. (2012).…

    • 1931 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    Tui Mkt 501 Module 1 Slp

    • 2251 Words
    • 10 Pages

    This Module 1 SLP will be the first part of an in-depth market analysis. The company I have chosen is Starbucks Coffee Company. The first Starbucks opened in 1971 at Pike Place market in Seattle, WA. Eleven years later, Howard Schultz was hired by the company to be the director of retail operations and marketing. The first Starbucks with the current coffee house look and feel was opened in 1984 in downtown Seattle. The Starbucks headquarters is still located in Seattle, WA. Currently, Starbucks is relying on retail expansion, product innovation, and service innovation to achieve this long-term goal once set by current chairman Howard Schultz: “The idea was to create a chain of coffeehouses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would be separate from home or work, a place that would mean different things to different people.”…

    • 2251 Words
    • 10 Pages
    Best Essays
  • Good Essays

    In order for Starbucks to even understand growth, they will need to identify their weaknesses as well as implement different strategies to address the weaknesses that were identified. Starbucks needs to consider a value discipline, generic strategy, and grand strategy to remain competitive in today’s economy. The following paper will discuss strategies recommended as well as provide examples of how combining different strategies can increase their profitability and achieve growth.…

    • 855 Words
    • 4 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
  • Best Essays

    Starbucks is the world’s largest coffeehouse corporation with over 16000 outlets, operating in more than 50 countries. The company has constantly been on an expansion move and focuses on entering many new markets with its growth potential. In line with this expansion strategy this report advocates and focuses on entering a new market in India.…

    • 2881 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Starbucks Rebranding Study

    • 3687 Words
    • 15 Pages

    Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. The first Starbucks location outside North America opened in Tokyo, Japan, in 1996. Starbucks entered the U.K. market in 1998 with the $83 million acquisition of the then 60-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. In April 2003, Starbucks completed the purchase of Seattle's Best Coffee and Torrefazione Italia from AFC Enterprises, bringing the total number of Starbucks-operated…

    • 3687 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Business Problem

    • 4725 Words
    • 19 Pages

    References: Bhatnagar, P. (2004, Nov. 1). Starbucks: A passage to India. Retrieved January 11, 2008 from http://money.cnn.com/2004/10/28 news/fortune500/starbucks_india/index.htm…

    • 4725 Words
    • 19 Pages
    Powerful Essays
  • Better Essays

    Starbucks

    • 2749 Words
    • 11 Pages

    【Abstract】This paper will start from the controllable and uncontrollable elements that Starbucks faces in its global marketing and expansion. These elements are unavoidable that any multinational companies should deeply consider when entering the other countries and occupying the new market shares, Starbucks is no exception. In the second part of this paper, the analysis of its risks and the pros and cons of its corporate strategy will be discussed and the outcome can give many lessons for Starbucks’ further development, especially in Japan, which this paper will talk about in the last part. Through this case study, this paper tries to show the proper marketing strategies of Starbucks and aims to give a good example for other multinational companies.…

    • 2749 Words
    • 11 Pages
    Better Essays
  • Satisfactory Essays

    Background of Starbucks

    • 290 Words
    • 2 Pages

    Starbucks uses joint venture as an entry mode into India. Working hands in hands with Tata Coffee Limited (originated in India), both companies share the risks and the achievement…

    • 290 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Coffee and New Tap App

    • 3313 Words
    • 14 Pages

    Seaford, B. C., Culp, R. C., & Brooks, B. W. (2012). STARBUCKS: MAINTAINING A CLEAR POSITION. (). Arden: Jordan Whitney Enterprises, Inc. Retrieved from…

    • 3313 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    References: * Anon., 2012. Starbucks Strategy [Online]. Global: Starbucks. Retrieved from: http://www.scribd.com/doc/56004428/Starbucks-Strategy [Accessed 24th June 2012].…

    • 5851 Words
    • 24 Pages
    Powerful Essays