Advantages Of Globalization Strategy For Friend Z Coffeehouse

Dutch Bros. Coffee objectives are to generate a steady stream of revenue through the business to Consumer (B2C) coffee services industry. The goal is achieved by maintaining a low cost to develop & maintain their business through small franchise establishments that service a massive volume of customers.

With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.

* The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk.

An important factor in any business is the branding of that business. A company such as New Belgium Brewery, which obtains a strong slogan, uses their brand to gain new customers. In any grocery store, there is more than likely a New Belgium Brewery product on their shelves. New Belgium is an employee based company that allows their employees to be themselves. Also, the founders of New Belgium teaches their employees to work for them with passion and not just for a paycheck (Goodman, 2015). New Belgium Brewery has to create a strategy to keep the same branding when it decides to take its business globally. However, for them to accomplish this, New Belgium Brewery will have to keep its employees passionate about working for them. Also, New Belgium will have to advertise their brands of beers to their targeted buyers. To reach more people all over the world, New Belgium Brewery has created websites to allow its customers to interact with their brands (Ferrell & Hartline, 2014). Also, New Belgium can think about building a brewery overseas to gain more customers in different countries.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

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

Four million people worldwide make their daily stop at Starbucks in the desperate need for a coffee fix, just don’t forget to ask them to hold the side of exploitation, modern slavery and deforestation.

If the product is not doing good in the home country, why we should try to go global? May be some boss may think the foreign country will be adopting the product better compare to the home country, and I think this is wrong. The Product is the company’s core.

The success of Friend-Z 's, a regional based coffee house in the United States, is in its tenth year of business. The small business venture, which began as a cooperative college project, has grown into one of the best coffee houses on the college scene. Friend-Z 's success has sparked the interest of its partners to take their small business to the next level by expanding into the global market. Competing globally would allow Friend-Z 's Coffee House to take advantage of a larger customer base, opportunity to be a stronger competitor, and thrive in diverse environments. Friend-Z 's international business will increase their client base with every new opening. They are not restricted by location or tied a region with failing economics. Therefore, opening Friend-Z 's to the option of an online market. Friend-Z 's will be able to rise as a stronger competitor in the coffee market, especially in countries with fewer competitors. The presentation of the coffee house will be crucial for becoming comparable or communicating its uniqueness. Friend-Z 's existence in the global market opens up their business worldwide. This business move releases dependency on the local or regional market in the United States, reduces growth restraints, and allows movement from potential economic unrest. The advantages of Friend-Z 's beginning a global business are promising, but it would be wise to consider the possible negative factors before going global.

• Looks at big picture: It helps Starbucks has consistent brand image around the world.

1. According to the text, there are three levels that political risk encompasses. And they are firm specific, country specific and global specific risks. Starbucks is considered a thriving global enterprise. Although Starbucks has successfully entered, penetrated, and saturated many global markets, not all attempts have been successful. Starting in 1996, Starbucks has hastily moved into 41 countries fruitfully. However, Starbucks had to pull out of Israel market after opening only 6 stores. According to our research (Richey, Brenda, July 2006), the following will describe Starbucks unsuccessful venture into Israel; the four main contributors to Starbucks failure in Israel: politics,

Starbucks has a reputation for new product development and creativity. But new ideas can not come so often and even if they do they may not be on target. Moreover, almost the ¾ of their shops are located in the U.S. which means they are depended too much on one country. They need to spread into another group of countries in order to spread the business risk. Also organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise.

Increase Sales: - if a business succeeds in the US, going international will likely improve the overall revenue. Approximately 96% of the world’s population lives outside of the United State and 90% of the world’s population do not speak English, that suggest that customer is global and if a business has to look beyond the end of the domestic market, you have real upside potentials

Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.

A. The company has the opportunity to expand its global operations. Some new markets for coffee such as India and the Pacific Rim nations are beginning to emerge.