Starbucks International Operations

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Assignment: Unit 3Independent Project
Date Submitted: October 20, 2006
Course (include the section number: MTG485-0604A-13 Global Strategic Management
Dr. Mernoush Banton
Statement of Academic Integrity:
I certify that:
1. I prepared this document specifically for this class;
2. I am the author of this document;
3. I am fully disclosing and giving proper credit to any outside assistance received in its preparation;
4. I cited sources of information (e.g., data, ideas, charts, etc.) and used this material to support this document.

Case Study 5: Starbucks ' International Operations

1. World wide operations of Starbucks

Starbucks created a very interesting and ultimately profitable concept to the United States when Schultz bought the company in 1987. He decided that he needed to introduce corner coffee bars such as the ones found overseas. When he visited Italy he had discovered they had these on almost every corner and decided to implement the same strategy. With the excellent reviews and blanketing of stores throughout the United States, Schultz decided to expand his business overseas. As he expanded his business, he discovered just how well entrenched his competitors were in the global market and the differences in ethnic values and beliefs. Some of these he had to conform with by building one where the women were separated from the men. The company has an excellent management team. Their training and development of employees is also of high quality. Employees are very satisfied with training and compensation. Starbucks entered international markets by using a three-pronged strategy which deemed itself to work very well. There was a joint venture to open Starbucks in Japan. They incorporated the same policy and principles world wide in all of their stores.

2. SWOT Analysis

External Factors Weight Rating Weighted Score Comments
Opportunities
New global strategy plan 0.2 2.5 0.5 New strategies needed



References: Gilmore, G.J (2004) American Forces Press Service News Archives, retrieved on October 20, 2006 from http://www.defenselink.mil/Utility/PrintItem.aspx?print=http://www.defenselink.mil/news/Nov2004/n11092004_2004110908.html Wheelen, T.L. & Hunger, J.D., (2006) Strategic management and business policy. Upper Saddle River, NJ. Prentice Hall.

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