Starbucks Corporation: Competing in a Global Market
MAN 4764 Written Case Assignment
Starbucks Corporation: Competing in a Global Market
1. What factors in the global environment provide opportunities or threats for Starbucks? How do Starbuck’s strengths and weaknesses match up to its opportunities and threats?
Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks themselves, as is normally the case in North America.
Starbuck’s strengths of capital, dedication to expansion, flexibility (ability to reorganize as may be required by varying cultures), and strategy of brand name recognition (the primary driving force of their expansion success) matches extremely well with their opportunities overseas. As opportunities permit, Starbuck’s strength of capital will allow timely/quick construction efforts for preparing operation facilities in their overseas markets. Also, their prior dedication to expansion, flexibility, and brand name strategy all directly corresponds with their opportunities of further expansions, and achieving their goal of becoming the most respected brand worldwide.
Starbuck’s weakness of competing against itself (opening too many stores in particular locations /blanketing an area) greatly increases the likelihood of encounters or protests from oversea antiglobalization groups/protestants. Also, Starbuck’s weakness of competing against itself would mean even greater losses of returns overseas if it doesn’t undergo evaluative adjustments.
2. Describe Starbuck’s functional-level, business-level, and global strategies. How are these related?
Starbuck’s functional-level strategy,
Starbucks Corporation: Competing in a Global Market
1. What factors in the global environment provide opportunities or threats for Starbucks? How do Starbuck’s strengths and weaknesses match up to its opportunities and threats?
Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks themselves, as is normally the case in North America.
Starbuck’s strengths of capital, dedication to expansion, flexibility (ability to reorganize as may be required by varying cultures), and strategy of brand name recognition (the primary driving force of their expansion success) matches extremely well with their opportunities overseas. As opportunities permit, Starbuck’s strength of capital will allow timely/quick construction efforts for preparing operation facilities in their overseas markets. Also, their prior dedication to expansion, flexibility, and brand name strategy all directly corresponds with their opportunities of further expansions, and achieving their goal of becoming the most respected brand worldwide.
Starbuck’s weakness of competing against itself (opening too many stores in particular locations /blanketing an area) greatly increases the likelihood of encounters or protests from oversea antiglobalization groups/protestants. Also, Starbuck’s weakness of competing against itself would mean even greater losses of returns overseas if it doesn’t undergo evaluative adjustments.
2. Describe Starbuck’s functional-level, business-level, and global strategies. How are these related?
Starbuck’s functional-level strategy,