Starbucks Global Strategy

Good Essays
Starbucks global strategy

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

You May Also Find These Documents Helpful

  • Satisfactory Essays

    This case is mainly discussing about the history of the company Starbucks and how it went from being a small coffee shop in Seattle to expanding not only domestically but globally. It is now one of the largest chains of coffee and one of the fastest growing brands. It has expanded globally very quickly to many different countries including Japan which in this article it discusses about the competition that they face because they have others copying their products.…

    • 426 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Starbucks Strategy

    • 2803 Words
    • 12 Pages

    An internationally recognized brand with over 16,800 locations worldwide and is valued at $5.23 Billion as of 2005 (source: cafemakers.com/brand_recognition.html) Prepared by Florence L [Fashion Marketing Critic]…

    • 2803 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    * Robert Gibson. (2007). Starbucks Corporation: How to Improve the Current Marketing Strategy. Available: www.plu.edu. Last accessed 29 September 2011.…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Howard Schultz

    • 518 Words
    • 2 Pages

    Howard Schultz joins Starbucks in 1982. While on a business trip in Italy, he visits Milan’s famous espresso bars. Impressed with their popularity and culture, he sees their potential in Seattle. He’s right – after trying lattes and mochas, Seattle quickly becomes coffee-crazy.But back in Seattle, the Starbucks owners resisted Schultz's plans to serve coffee in the stores, saying they didn't want to get into the restaurant business. Frustrated, Schultz quit and started his own coffee-bar business, called Il Giornale. It was successful, and a year later Schultz bought Starbucks for $3.8 million.…

    • 518 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Starbucks Brand Identity

    • 1937 Words
    • 8 Pages

    Founded in the streets of Seattle, Washington during the 1970’s. Howard Schultz certainly never anticipated creating a brand that has become the largest coffeehouse company in the world. Starbucks has dominated the world with its aromatic and fine quality coffee beans. It is not just a mere coffee house, it is a brand, a lifestyle, a culture and most evidently, it is an iconic figure, an identity. (Koehn 2002)…

    • 1937 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
  • Powerful Essays

    Howard Shultz

    • 1157 Words
    • 5 Pages

    According to Kim Fellner in the book Wrestling with Starbucks: Conscience, Capital, Cappuccino, Howard Schultz, the founder and CEOof Starbucks cafes is the reason why the company had “a very good year in 2003...with a net sales of $ 4.1 billion (almost twice what it had earned in 2000 when it yielded $265 million” (16). The reason for the successful longevity of Starbucks Cafes is due to Howard Schultz’s leadership that is an example of the collaborative style that incorporates a social view.…

    • 1157 Words
    • 5 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
  • Good Essays

    The Starbucks Experience

    • 3560 Words
    • 15 Pages

    Michelli was granted unlimited access to the inside workings of Starbucks. In case you didn't know, Starbucks is the biggest chain of coffee shops in the world. There are now more than 11,000 outlets in 37 countries--five new ones start pouring coffee every day. Howard Schultz, the founder, began in Seattle, Washington in 1971 with one shop. If you'd invested $10,000 when stock was first offered in 1992, you'd now have $650,000. Starbucks is regularly voted one of the best run companies. Starbucks has changed coffee culture from dullsville 50 cent mugs of murky brew to $4.00 specialties like "quad, two-pump vanilla, one-and-one-quarter sugar-free hazelnut, ristretto latte, half soy, half nonfat, extra hot, with whip." Staff at Starbucks are real friendly taking dough out of your pocket, and customers love the custom treatment. Who would've thought? Even Howard Schultz was surprised. His second big idea had been to open another shop in Portland.…

    • 3560 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Essay on Starbucks Coffee

    • 2052 Words
    • 9 Pages

    In 1982, entrepreneur and current chairman, Howard Schultz, joined the company. When Schultz joined the company, he wanted to change the company’s focus away from in home coffee production and coffee bean retailing, to also include selling coffee drinks. Schultz wanted to create an Italian espresso bar atmosphere to the Starbucks Company. Siegel, Baldwin, and Bowker didn’t like the idea, but in 1984 Schultz convinced the “founders of Starbucks to test the coffee bar concept in a new location in downtown Seattle”. In 1985, Schultz decided to leave the company and start his own Italian espresso inspired company called Il Giornale. In 1987, Schultz got backing from local investors and purchased Starbucks. Shultz then changed the name Starbucks to Starbucks Corporation.…

    • 2052 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Is Starbucks ' Mission (vision, goals, objectives) aligned with its strategies? Analyze Starbucks based on the strategic process outline and write a five page paper answering the preceding question.…

    • 1846 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Employment and Starbucks

    • 4469 Words
    • 18 Pages

    In 1971, three coffee fanatics – Gerald Baldwin, Gordon Bowker and Ziev Siegel founded Starbucks in Seattle, Washington (Moon & Quelch, 2006). Howard Schultz, who is now the CEO, joined the marketing team. He made a trip to Italy and became obsessed with the idea of how people were drinking coffee in the cafes. A few years later Howard Schultz bought Starbucks from the three founders and started to expand the coffee brand. Starbucks is the leader in the coffee industry and is one of the most recognized brands in the world. Now let us take a deeper look into the Starbucks organization.…

    • 4469 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    The Rise of Starbucks

    • 1962 Words
    • 8 Pages

    It was then in the early 1980’s that he was introduced to the company, Starbucks Coffee and Tea. Starbucks’s original was modest but full of character. Schultz was immediately impressed by its charm. Importantly, he thought the coffee was wonderful (Schultz 108). He then had dinner with a friend, Jerry Baldwin owner of Starbucks and his partner, Gordon Bowker. Schultz tried to persuade Baldwin to hire him as an employee, even though it did not seem to be a logical career move. But for Schultz Starbucks held an inexplicable attraction. He soon found many reasons to get back to Seattle and visit (108).…

    • 1962 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks: Failure Abroad

    • 6380 Words
    • 26 Pages

    In 1971 the first Starbucks store was opened in Seattle’s Pica Place Market by Jerry Baldwin, an English teacher, Zev Siegel, a history teacher and the writer Gordon Bowker (www.mhhe.com). In 1982 Howard Schultz joined the company as a director of retail operations and marketing. He saw potential in Starbucks and started to build up a coffee house culture in Seattle. In 1984 Starbucks enlarged its product mix, adding coffee specialities like different kinds of Café Lattes and espresso beverages. In 1985 Howard Schultz left the company and set up his own…

    • 6380 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    The Starbucks story began in 1971 in Seattle’s Pike Place Market, selling high-quality dark-roasted coffee in small batches. The bean roaster and retail store was originally started by three partners, Jerry Baldwin, Zev Siegel, and Gordon Bowker. The three later sold the company to Howard Schultz in 1987. Howard Schultz had a strategy and a vision for the company that established its as one of the major corporate success stories of the late 20th century. The vision of founder Howard Schultz was inspired by Italian coffee bars/beverage retailer. Having experienced the espresso and coffeehouse culture of Italy, he envisioned developing and evolving a similar coffeehouse culture in the United States. He wanted to build a environment a brand that would create relationships. Our Starbucks Mission Statement: “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, Our Heritage). Starbucks believes that communicating culture, values, and best practices through its people and being connected to community and the environment will insure a successful organizational culture.…

    • 774 Words
    • 4 Pages
    Good Essays

Related Topics