Globalization of Starbucks

The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey contains one matrix/rating scale question ( Appendix I, Question 5) based on how important qualities are when choosing a coffee shop. Lastly, there were two demographic questions. The demographic questions are for a general understanding on consumers behavior based on age group and gender. For an overview of the survey, see appendix I.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Starbucks will be the first come in your mind when you want to have a cup of coffee. Don’t you feel curious about why is Starbucks so successful? This report explains how Starbucks take advantage in consumer purchase decision making process, how does Starbucks attract customer, how does Starbucks segment its market and new trends in society affect purchasing process.

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.

Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the

Starbucks Corporation opens its first shop in 1971 with just narrow storefront. It offers some of the world’s finest fresh-roasted whole bean coffees. The name, Starbucks, evoked the romance of high seas and the seafaring tradition of the early coffee traders. Starbucks does not only offer coffees, but also a selection of premium teas, fine pastries and other delectable treats to please the taste buds of customers. It provide a full and rewarding coffeehouse experiences. Starbucks make sure everything they do is through the lens of humanity, from their commitment to highest quality coffee in the world, to the way they engage with their customers and communities to do business responsibly (Starbucks, 2015).

It seemed to me that Starbucks had become a craze overnight. All of a sudden, everywhere I turned someone was carrying a cup embellished with the famed green siren. The first Starbucks opened in Seattle, Washington in 1971 as a small store that served mostly coffee and tea. In the year 2000, the company had grown to more than 3,000 cafés. By 2014, the company had more than 20,000 stores open within 67 countries worldwide. In the United States, not only can you buy Starbucks products from local store or gas stations, but in some places, there are Starbucks cafes as close as across the street from one another. It is impossible to ignore the extraordinary success of the Starbucks Coffee Company. It has become a part of modern pop culture with frequent references in television, movies, and especially in social media. Although there is a strong stereotypical image of what an average Starbucks customer looks and behaves like, the community of people who visit the café is very diverse.

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 first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Starbucks used many tactics to reduce its distance from foreign markets. Firstly, Starbucks conducted extensive research in each country. They used focus groups, and quantitative analysis, to evaluate local cultural sensitivities and preferences. But it also used specific local adaptations. For

Starbucks is an American company who try to expend its business to other country around the world. However, each country owned and has an identity, a history, and culture. This requires to Starbucks to analyze the current market and adapt his offers according to the needs and mores (usages).

Globalization is the process of interaction and integration between the people, companies, and the governments of different nations. Coffee is the second largest commodity in the world. Globalization has had an immense impact on various goods none being as big as its impact on the coffee industry. In the 1970 coffee beans went for three dollars a pound, but since that 1970 it has gradually decreased due to the increase in the production of coffee. Even though demand has increased, it was met with over production. Which in 2000 coffee prices reached a historic low, impacting farmers all around the world. This crisis came from very poor quality Vietnamese coffee flooding the market, causing the balance between supply and demand to be dramatically altered. The poor quality coffee beans forced Arabica farmers to lower their prices. In the long run this caused a lower quality in coffee beans, lower customer expectation, and low interest in coffee. Most importantly families of Coffee growers saw their incomes diminish to half what is was or worst. Farmer families struggled to have enough money to live on, some families decided to give up on growing Coffee beans and other gave up on farming completely. The Coffee bean industry still hasn’t recovered from these events, and it’s estimated that the industry has lost hundreds of millions of dollars in revenues due to low production.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.

Following its success in the United States, Starbucks ventured overseas and quickly became a globalization icon. With its rapid globalization strategy, Starbucks expanded from about 5000 stores to an estimated 15,000 stores in 2000 (Groth, 2011). By mid-2000s, Starbucks’ supply chain faced many issues, resulting with challenges of having to fulfill expansion strategies yet minimizing escalating operation expenses. By 2008, Starbucks’ stocks fell by 42% (Schultz, 2011). The rapid expansion took a toll on the sales growth and stretched the limits of the existing supply chain, which then rippled down to erode the customer-valued ‘Starbucks experience’ (Gibbons, 2011).

Factors in the global environment provide both opportunities and strengths for Starbucks. Opportunities such as increased revenues, further expansions, and achieving their goal of becoming the most respected brand worldwide. Starbucks also faced threats. These threats include dealing with growing antiglobalization overseas and their huge risk of less return on each overseas store, this deriving from overseas operations being run by local partners instead of Starbucks