INTRODUCTION Starbucks portray a number of issues that may affect the company’s’ growth in the near

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INTRODUCTION Starbucks portray a number of issues that may affect the company’s’ growth in the near future. To clearly understand these issues, they will be analysed in order to understand and create recommendations to assist in the growth of a successfully company. STRATEGIC ISSUES INTERNALISATION Starbucks’ strives on expanding its name and reputation globally. It has opened outlets internationally, but with poor management and understanding of its global market, expectations were not achieved and resulted in outlet closures. Stores closures of most of Australia’s outlets and some US outlets resulted in “almost 6,000 job losses; n addition 700 positions were cute in corporate and support positions”. (Grant, 2012) THE STARBUCK’S…show more content…
The union has allowed Starbucks to become aware of employees complaints and provides the opportunity for Starbucks’ and employees to come together to some form of agreement. Unsatisfied employees can reflect upon the quality of products provided, therefore impacting the company on a much larger scale. ANALYSIS & EVALUATION INTERNALISATION Starbucks itself already has an existing international market, but observations and findings have shown that the international market is clouded by Starbucks’ home market in America. Cateora & Graham (2007) noted that Starbucks shows to be attaining “the upper limit of coffee shop saturation.” Findings prove so, by showing the number of outlets Starbucks has, as opposed to that of competitors in the year 2011. Figure 1. (Grant, 2012) Starbucks (2007) released information stating that it retains more than 3,000 outlets internationally; this accounting for a total of 25% of it’s stores. Despite some of Starbuck’s successful international business growth, 2008 marked the year Schultz regained position as CEO and went ahead announcing the closure of the majority of Starbucks stores in Australia. This was a result of existing competition within Australia. As Grant (2012) stated “the withdrawal from Australia was a consequence of a highly sophisticated coffee market developed and educated by Italian, Southern European, and the Middle Eastern Immigrants.” Europe/Middle East/ Africa also had the lowest total of

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