Challenges And Issues Of International Management

2625 Words Sep 14th, 2014 11 Pages
This essay intends on analysing the way in which Starbucks attempted to enter the Australian market place through international management stratagies. International management is the practice of managing business operations in more than one country. International Management professionals are familiar with the language, culture, economic and political environment, and business practices of countries in which multinational firms actively trade and invest. In a world of globalisation, becoming a multi national corporation is almost necessary to succeed as Globalization is reshaping our modes of thinking and ways of behaving and fostering cultural change in societies Fang (2009) .First this essay will discuss the challenges and issues of international management that Starbucks encountered when trying to globalise. Secondly this essay will look at the factors that have led to Starbucks encountering such issues of international management. Thirdly this essay will discuss the strategies that multinational corporations can adapt to deal with the problems they may experience. The main issues that this essay will discuss are the cultural differences between Australian and American markets in which Starbucks had to deal with, Starbucks failure to create brand value, the communication differences and the strategies and entry modes that Starbucks used along with their business strategy.

When Starbucks decided to enter the Australian market place it experienced many challenges as it did…
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