De Wit and Meyer (1998) refer to market tendency towards homogeneous variety and tighter international linkages as globalization. The need for global strategy is outlined by the fact that companies are subject to global forces and consumer demands. As a consequence, firms are faced with a challenge of modifying their existent strategies to gain and sustain their competitive advantage in a rapidly changing environment. A well-designed global strategy can help a firm to gain a competitive advantage, that as identified by Sumantra Ghoshal of INSEAD can arise from Efficiency, Strategy, Risk, Learning and Reputation (Appendix1). Therefore, to create a successful global strategy, managers first must understand the nature of global industries and the dynamics of global competition.
I would like to proceed with my analyses of the global market place, with examination the young but already well recognized brand world wide – Starbucks. In my research I will explore on changes in the product, operations, and strategies at Starbucks influenced by the changes in the global marketplace. Due to word limitation on the essay, please refer to Appendixes for more detailed information.
"There is untapped potential to grow our company internationally," Schultz said.
Starbucks is publicly traded -- shares are widely held
150 million shares have been authorized, of which 59.6% are on the market.
Howard Schultz, 42, is the founder of the Company and has been chairman of the board and chief executive officer since its start in 1987. The Company originated with eleven Seattle stores and less than one hundred employees. Since them the company has grown to a half billion-dollar company serving millions of cups of coffee per week in one thousand stores throughout the country, and in 17 countries internationally. Schultz believes his company will succeed well into the twenty-first century. He states, "One of the things that you can 't
References: 3. de Wit, Bob & Meyer, Ron (1998), Strategy: Process, Content, Context, International Thomson Publishing Company,London 4 Heading: The Seattle Times, Today 's Top Stories: Howard Schultz 's book tells how he put the steam under Starbucks Date of document: October 17, 1997 Title: "Launching Starbucks in Japan" date of document: July 29, 1996 Title: "Starbucks plans expansion into Hawaii" Date of document: August 6, 1996 Title: "Starbucks plans 500 stores in Asia by 2003" Date of document: September 18, 1998 Title: "Starbucks marches into China" date of document: January 11, 1999 Title: "Starbucks Coffee Company Opens First Store in Kuwait" company press release date of document: February 9, 1999 Date of document: October 16, 1997 URL: http://www.cdf.org/issue/starbucks.html Date of document: October 16, 1997 URL: http://www.cdf.org/issue/starbucks.html