dimensions of distance in the international expansion of Starbucks. Maarten de Graaf‚ s1861263 Tom Breteler‚ s2022117 Group 12 13-10-2010 Introduction to International Business Ms. Wilhelm 1. What are the four dimensions of ‘distance’ in Starbuck’s international expansion? The four dimensions are culture‚ administrative‚ geographic and economic distance. 2. How did Starbucks reduce the ‘distance’ vis à vis host countries? Starbucks used many tactics to reduce its distance from foreign
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The second element of the CAGE analysis is the administrative distance between two countries. In this case we will be discussing the administrative distance between Germany and the United States. First of all Germany and United Stated do not belong to a common trade block. Although lately rumors occurred of the European Union and United Stated creating a free trade area called the Transatlantic Free Trade Area (TAFTA) or Transatlantic Trade and Investment Partnership (TTIP). However it seems highly
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Cultural Distance Assignment IIB 1. What is the formula developed by Kogut and Singh in 1988 in the Journal of International Business Studies (JIBS)? Explain the formula in your own words. CDj is the cultural distance between the host country (j) and the home country (in this case Germany). It is calculated with a summation of 4 different variables indicating different cultural dimensions. These are uncertainty avoidance‚ power distance‚ individualism/collectivism and masculinity/femininity
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Starbucks Failure in Australia Introduction There are a number of different reasons why Starbucks failed in Australia and will be spoken of in more detail over the course of the report. Since World War II‚ Australians have developed a taste for coffee that many of the European migrants that moved to Australia brought with them. Starbucks first began in 1971 its main goal was to offer a coffee experience that no other coffee shop has done before. As stated in the case study‚ Starbucks
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by Kogut and Singh in 1988 in the Journal of International Business Studies (JIBS)? Explain the formula in your own words. 〖CD〗_j=∑_(i=1)^4▒{ (I_ij-I_iDE )^2/V_i}/4 CDj is the cultural distance between the host country and the home country (in this case Germany). The I’s are the scores on the ith cultural dimensions from Hofstede‚ so in this case the four scores for PD‚ UAV‚ IND and MAS. Vi is the variance of the score of this dimensions. The variances for all dimensions can be calculated
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Introduction The purpose of this paper is to connect and apply economic theories and concepts to real–life situations in the competitive market. Specifically‚ the paper will examine a CBC News article‚ ‘Starbucks Gives Its Prices a Jolt’ from 2006‚ which states Starbucks coffees and whole beans prices are increasing by 1.9% and 3.9%‚ respectively. Why is the price of a cup of Starbucks coffee rising? The CBC News article quotes the Starbucks spokeswoman who explains‚ “the company decided to charge
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think the modeling of an entire culture on just four traits can be misleading at times as certain cultural aspects may be missed in the grouping of individualist. Australia scored quiet low (36) on power distance because individuals in societies may not be equal. This expresses the attitude of the cultures towards these in equalities amongst all of us. Hofstede. G. (n.d) states that‚ “Power Distance is defined as the extent to which the less powerful members of institutions and organizations within
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The CAGE Distance Framework and Its Importance for Foreign Direct Investment Tereza Dvořáková‚ V00837032 Due date: November 20‚ 2014 For: Erik Schindler Course: Business English and Communication (COM 206b) Executive Summary When expanding to a foreign country‚ the company needs to analyze the business environment in the foreign country. One of the best tools‚ how to recognize differences between domestic and foreign country is the CAGE distance framework. In the report‚ I firstly define
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individual and unique identities. In 2006‚ more than 50% of people living in Australia were migrants or had a parent who had migrated to Australia (ABS‚ 2006‚ p. 46). This demonstrates the prevalence of cultural diversity in the population which extends into Australian schools. Diversity has many faces‚ incorporating differences in culture‚ sexuality‚ gender identity‚ socio-economic status‚ life experience‚ geographical location‚ spoken language and dialect. Risks associated with social inequality
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Contents Introduction about culture 3 Cultural Diversity 3 Cultural Communication 4 The Nature of Culture 5 Different Country Different Culture 5 Facts of Australia‚ Saudi Arabia‚ Egypt‚ Germany‚ Mexico 5 Society and Cultural Difference 8 Business Meeting Difference 11 Gift Giving Difference 12 Dining Difference 14 Dress Difference 15 Business Cards Difference 16 Conclusion 17 References 18 Introduction about Culture The word "culture"
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