Challenges in the External Environment of Starbucks

3117 Words Apr 21st, 2013 13 Pages
Choose an international business that interests you. Identify challenges in its business environment that are of current strategic importance. How, in your opinion, should the international business you have chosen respond to those challenges?

An international business, often referred to as an MNE (Multinational Enterprise) is one which has a wide-reaching approach and will operate in more than one country. Recognisable international businesses include the likes of McDonald’s, Apple and BP. Although these colossal businesses operate overseas and therefore have vast markets, it doesn’t go to say that they don’t face similar problems to localised businesses operating in smaller market segments. The best way to analyse an international
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The recession has been in the back of most people’s mind, since many countries have seen time and time again, their economy dropping back into it. This has in turn, in the most common case resulted in a smaller exposable income. On the whole with salaries taking cuts, the price of products has not followed this trend. This results in people buying the absolute necessitates, leaving out the luxuries. Furthermore, technology has improved over the years, meaning that consumers can now buy their own coffee machines and instant coffee saving them money in the long run. This could be a concern for Starbucks as; strategic change may need to be implemented to overcome the consumers lost due the economic climate and an increase in technological levels in recent years.
Starbucks, having sourced coffee beans from continents such as, Africa, Asia and South America have in the past faced environmental problems with their inventory. Although this is out of their hands, these regions are notorious for their natural hazards affecting the amount of beans they can get in at any one point. In a report by the Guardian newspaper (2011) it was said by the sustainability manager Jim
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