Preview

Starbucks Forbidden City Essay

Good Essays
Open Document
Open Document
653 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Forbidden City Essay
The Starbucks outlets in Beijing’s Forbidden City and the Insadong district of Seoul should not be closed for a variety of reasons. First, the success of these outlets is a step closer in achieving Starbucks long-term goal of 30,000 stores both internationally and domestically. Second, the company has achieved a competitive analysis in determining that their best move was to open up in a market that was still developing such as the Asian market and the Chinese Market, rather than a more developed coffee market like that of the European market. Third, Starbucks has developed a strong corporate strategy. Lastly, Interdependence vs. Interdependence in Conflict Resolution is a concept seen in the aspect of Starbucks vs. Chinese and Korean culture.
Planning and Decision making:
“On average, companies with plans have larger profits and grow much faster than companies without plans” (MGMT pg. 89) Starbucks developed a plan in the hopes of achieving a long-term goal of opening a total of 30,000 stores both internationally and domestically. With opening the outlets in Beijing’s Forbidden City
…show more content…
This analysis Starbucks achieved allowed for them to quickly jump from Japan to other Asian countries, and most notably China, where its presence has been doubling on a yearly basis. Along with doubling the number of stores in these locations, Starbucks also doubled the number of stores in Korea over a two-year period due to a rise in demand. With the rise in demand it is clear that Starbucks should continue opening new stores in these areas, rather than pursuing growth

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Starbucks Case Analysis

    • 414 Words
    • 2 Pages

    Starbucks, as a world’s leading coffee-drinking retailer, provide “standardized” coffee drink and coffee related products as well as homelike experience to its customers. It has 15,700 locations globally and set its expansion goal to 40,000 stores worldwide while this goal has been delayed since the expansion targets for recent years have not been reached. At the same time, due to the intense global expansion, net revenue and earnings increase accordingly yet the profit growth has reduced and stock price decreased as well as customer visit declined due to losing exclusivity. The strategic issue in this case is whether Starbucks should focus on global expansion continually or on fixing the profitability.…

    • 414 Words
    • 2 Pages
    Satisfactory 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

    Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty beverage chain and the menu is relatively small. Starbucks has more than 1,000 retail locations in the Asia-Pacific area, and over a hundred in Europe, Middle East, and Africa. This paper will outline on a high-level the international business practices of Starbucks Corporation, and identify both learnings and successes the company has picked up along the way to becoming a world-wide, globally recognized brand.…

    • 2214 Words
    • 9 Pages
    Best Essays
  • Best Essays

    Everyday, people in the world go to Starbucks’s coffee shop to take their cup of coffee. Despite the overpriced a cup of coffee, people still enjoy their coffee every day across the world. Simply, Starbucks offered the unique space and taste for consumers with a professional assists from their helpful employees in any problem or trouble in a friendly way. People believe in Starbucks for what it represents symbol that comes with the quality of each product they serve. Although, there are numerous competitors which they are similar to Starbucks’s business, its strategy and structure bring to it the success and eventually it becomes the good model to follow, due to its national and global success.…

    • 1841 Words
    • 8 Pages
    Best Essays
  • Satisfactory Essays

    Starbucks believes that conducting business ethically and striving to do the right thing are vital to the success of the company. Starbucks closed more than 200 coffee shops in the U.S because they felt that the business in China had not felt the impact of the global economic slowdown and that they might eventually rival with the United States. While they closed unprofitable stores in the U.S., Starbucks has also downsized its plan for the number of international stores from 900 to 700 for fiscal year 2009. Two-thirds of the stores are expected to be licensed, which usually involves less cost to operate than self-owned stores. Starbucks remains highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and they work hard to continue to earn the trust and respect of their customers every day.Some of the decision factors that Starbucks assesses when attempting to market globally with different countries would be; how they choose partners. This factor is very critical to maintaining the success rate that the company enjoys. Shared values, strategic fit, good leadership and a strong track record are among the most important qualities that they look for when choosing partners. The most pressing decision factor for Starbucks in opening a coffee shop in China is that the "Chinese are mainly tea drinkers and are unfamiliar with coffee. China offers an immense market potential for Starbucks, since it constitutes one-fifth of the world population. Starbucks opened its first store on the Chinese mainland in 1999 and now has more than 350 outlets in 26 cities. It has become one of the, if not the, most popular coffee brands among Chinese white-collar workers. Starbucks buys coffee beans from China and roast in the U.S. and…

    • 612 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Starbucks has evidently focused as most of all multinationals in both long term and short term strategies. Their long term strategies, which are the most important factor for this essay, are from my point a view a very important factor as they are a very well worldwide known company. As based on research, Starbucks was opened for the first time in Seattle, Washington in 1971 by three partners: English teacher Jerry Baldwin, History teacher Zev Siegel and writer Gordon Bowker. Their strategy had improved after an Entrepreneur Howard Schultz joined in 1982 after a trip to Milan, where he understood why and how coffee can be sold, however his idea was rejected. None of the less, after a few years Howard Schultz idea was implemented and made the business grow larger and larger despite the negativity received at the beginning.…

    • 650 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Price Analyst in Marketing

    • 1763 Words
    • 8 Pages

    According to Starbucks performance in global market during the last a few years, and the current global tough economic situation, it suggests that Starbucks should really focus on how to maintain the current exist stores more sustainable in profitability and environment friendly instead of rapidly increasing growth as to reach 40000 stores target. First, according to the case of “Starbucks-A paragon of Growth and Employee Benefits Faces Storm Clouds “ study, we found Starbucks has closed almost 7100 stores in USA market because of economic clash. It also mentioned that the raising of strong competition of MCD, who provide much cheaper price of coffee. The heavy pricing completion from competitor and slowing economic drives Starbucks’ market fluctuation. Moreover, the article also stated that since financial crisis, it has result Starbucks’s market stock price dropped 50% of its value in 2008, which is not a positive sign of a company. Nevertheless, it does have better performance in some Asian countries, especially in china; it has experience rapid expansion even though during the world economic downturn, Starbuck Case Study reports. From all these facts, we conclude that Starbucks should (1) lower the cost of operation fee to provide a more competitive price of coffee to gain and maintain the market;(2) start to prepare and adjust a strategy to maintain domestic market and global more sustainable and avoid closing more stores to lose revenue and company’s resources ; (3) if the company looking for expansion, Starbucks should reposition its focus to Asian developing countries because these countries relative have high potential to grow than developed nationals. I believe Starbuck should follow above three primary goals to maintain company currently owned number of stores to keep long term sustainability for the company instead of reach the goal of opening 40000 stores.…

    • 1763 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Functions of Management

    • 2091 Words
    • 9 Pages

    Kuhl, J. (2003, January, 2003). Tempest in a coffeepot: Starbucks invades the world- Culture and Reviews- reaction to globalization of Starbucks coffeehouses. Retrieved April 22, 2008, from http://findarticles.com/p/articles/mi_m1568/is_8_34/ai_95541089…

    • 2091 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The Original Store Expansion Strategy: In 1992 and 1993 Starbucks developed a three-year geographic expansion strategy that targeted areas with favorable demographic profiles, that could be serviced and supported by the company's operations infrastructure. A large city was selected to serve as a focal point for each targeted region. Starbucks professional teams were strategically positioned at these focal points to supervise opening of another 20 stores in each city in the first two years. Following focal point successes additional stores were opened in smaller surrounding areas. Zone Vice presidents with extensive experience in chain-store retailing were in charge of expansion process locally. In 1995, new stores generated an average of $700,000 in revenue in their first year, far more than the average of $427,000 in 1990. Success could be assigned partially to growing reputation of the brand, and successful identification of top retailing sites for stores. b) Details of International Expansion:…

    • 388 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the Internet. Second part will focus on a quantitative approach, based on pure data analysis, to try to provide some hints about where Starbucks could expand. This part was made with public available data (WorldBank, OECD, ICO), and shall miss some real data from Starbucks, such as exact list of countries, entry modes and market/strategic analysis about the countries. Qualitative Study Over the 24 regions of the world, Starbucks has stores in 18 of them. If we get rid of the African continent, in which Starbucks exist in only 2 of its 6 regions, 2 regions are then only missing : Central Asia (all -stan countries), that can be explained by political problems and market opportunities, and Southern Europe, which will be covered in the quantitative part. That allows Starbucks to exist in 31.55% of the world 's countries, reaching then 72.52% of the earth 's population. Annex 1 shows the number of new countries reached per year, with the Return On Asset. If we get rid of the economic crisis, it shows that Starbucks needs to expand in 2 to 3 new countries per year, as reaching too many countries seems to have a bad impact on ROA, as maybe investments are too important for a single year. If we take a closer look at the number of stores…

    • 2571 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    With an extraordinary growth rate in store openings and success in maintaining the profitability of current operations, Starbucks has established its ability to grow progressively and sensibly. Although short term margins have tightened as a result of this antagonistic expansion, its long term growth projections shows potential growth in retail locations, steady sales growth at existing locations, and a continuously mounting product line that differentiate it from the competition and keep its customers coming back.…

    • 2051 Words
    • 7 Pages
    Best Essays
  • Satisfactory Essays

    sqad

    • 519 Words
    • 2 Pages

    pWeaknesses The fast grow of retail chain stores can decline its service level. The efficiency of the organizational structure is not enough. Management team from the United States is not familiar to HKs economic and legal environment, it still needs time to adapt to the localization. The supply chain management is another weakness. Challenge is not only reflected in the efficiency and accuracy of the cluster management and professional level, but also the integrated pressure from the original market. Besides is the adjustment of local culture. How to solve the collision between American culture and Hong Kong How to strengthen the values of Starbucks Opportunities First is the opportunity brought by globalization.Increasing global population flow has promoted to become an international chain brand . Other soft drinks company innovation or other a new taste of coffee drinks. By the sale of carefully selected CD customer and provide digital music downloads as a profit growth point. Building partnerships with other international company will be extended to the field of international.…

    • 519 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The potential for ongoing growth in China is important for Starbucks. Currently there are more than…

    • 514 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Starbuck

    • 6405 Words
    • 23 Pages

    1. INTRODUCTION Starbucks Coffee International, a subsidiary of Starbucks Coffee Company, recently celebrated its first step into southern China by opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong s Maxim Group, who together opened 32 Starbucks in Hong Kong between 2000 and 2002. Starbucks success in Asia has surprised many people. But the executives at Starbucks have been surprising critics for many years. How did a small coffee company from Seattle with…

    • 6405 Words
    • 23 Pages
    Powerful Essays
  • Powerful Essays

    “The rapid and over expansion plan of Starbucks store-owned outlets to capture the maximum market share has lead to many problems”…

    • 1530 Words
    • 7 Pages
    Powerful Essays