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Starbucks Entering Italy

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Starbucks Entering Italy
Consulting Report:
Starbucks entering Italy

Table of Contents

1. Introduction. 2

2. Starbucks Corporation. 2
2.1 History of Starbucks. 2
2.2 Strategy of Starbucks. 3
2.3 Starbucks’ international expansion. 3

3. The Italian Environment. 5
3.1 General information. 5
3.2 Trade barriers. 6
3.3 Political and legal environment. 6
3.4 Social considerations. 8

4. The Italian Culture. 8
4.1 Anglo cultural cluster versus Latin European cultural cluster. 8
4.2 Hofstede’s five cultural dimensions: United States versus Italy. 11
4.3 The Italian coffee culture. 12

5. An investigation towards the appropriate mode of entry. 13
5.1 Environmental factors. 15
5.2 Transition specific factors. 16
5.3 Global strategic considerations. 17
5.4 Entry modes and recommendation. 18

6. Conclusion. 19

7. References. 20

8. Appendix. 22
8.1 Appendix A: Starbucks’ Mission Statement. 22
8.2 Appendix B: Findings from the GLOBE Research Project. 24
8.3 Appendix C: Hofstede’s five cultural dimensions. 26

1. Introduction.
Starbucks Corporation is a global coffee and coffeehouse chain based in Seattle. Washington, United States. Starbucks sells coffee, handcrafted beverages, merchandise, fresh food and consumer products. It is the largest coffeehouse company worldwide, with about 16.700 stores (8850 company-operated and 7856 licensed) in more than 55 countries. However, the striking fact is that Starbucks has not expanded into the Italian market yet, whereas Italy can be seen as the coffee-lover nation number one. This is especially interesting given that Starbucks has been fairly successful in other major European countries, such as the United Kingdom, Spain, Germany and even Switzerland. Therefore the main purpose of this report is to analyze the



References: Ashkanasy, N. M., Trevor-Roberts, E. And Earnshaw, L. (2002). The Anglo Cluster: legacy of the British empire. Journal of World Business 37(1) 28-39. BBC News (2010). Italian government announces corruption crackdown. Retrieved on May 23 2010, from the World Wide Web: http://news.bbc.co.uk/2/hi/europe/8527593.stm Calvet, A Central Intelligence Agency (2010). The World Factbook – Italy. Retrieved on May 22 2010, from the World Wide Web: https://www.cia.gov/library/publications/the-world-factbook/geos/it.html Encyclopedia of the Nations (2010) Encyclopedia of the Nations (2010). Italy – International trade. Retrieved on May 23 2010, from the World Wide Web: http://www.nationsencyclopedia.com/economies/Europe/Italy- INTERNATIONAL-TRADE.html Freedom House (2010) Grove, C. N. (2005). Worldwide Differences in Business Values and Practices: Overview of GLOBE Research Findings. Retrieved May 23, 2010, from the World Wide Web: http://www.grovewell.com/pub-GLOBE-dimensions.html Harrigan, Kathryn R Itim International (2009). Geert HofstedeTM Cultural Dimensions. Retrieved May 24, 2010, from the World Wide Web: http://www.geert-hofstede.com/hofstede_dimensions.php Javidan, M., P.W Jesuino, J. C. (2002). Latin Europe cluster: from South to North. Journal of World Business 37(1) 81- 89 Kim, W Kim, W. Chan, Peter Hwang & W.P. Burgers. (1989). Global diversification strategy and corporate profit performance. Strategic Management Journal, January-February10 : 45-57. Kotha & Glassman (2003). Starbucks Corporation: Competing in a Global Market. Retrieved on May 24 2010, from the World Wide Web: http://pdfcast.org/pdf/starbucks-corporation-competing-in-a-global-market Kwintessential(2010). Italian Coffee, Brands, Cups, Tables. Retrieved May 24, 2010, from the World Wide Web: http://www.kwintessential.co.uk/articles/article/Italy/Italian-Coffee/1237 Marshall, L Nonaka, I. (1994). 'A dynamic theory of organizational knowledge creation ', Organization Science 5(1): 14-37. Starbucks Corporation (2010) Starbucks Corporation (2010). mission statement. Retrieved on May 24 2010, from the World Wide Web:http://www.starbucks.com/about-us/company-information/mission-statement Thompson, A http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html Transparency International (2009) Watson, Craig M. (1982). Counter-competition abroad to protect home markets. Harvard Business Review, January-February65 : 40-42 Zaheer, S Source: (Grove, 2005) Table 2: Outcome of the GLOBE Research for the Anglo cluster.

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