Marketing Strategy Of A Business At Home N America And The New Ceo Mia Foster

Starbuck 's has become a staple of American culture and for the most part, if you are in your 20 's, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so "wake up and smell the coffee"! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz 's vision and mission statement is shared by everyone in the company!An excerpt from the London Financial Times published in February 2006 states the following in regards to Starbucks entering the Chinese market; "Mr Schultz said the company was

Steven Wang, a fluently bilingual American-born Chinese, jointed Carvel Asia Limited in September 1997. After spending three months, he moved to Beijing with a priority mandate to increase Beijing Carvel‘s sales, particularly in the ice-cream cakes category. But he quickly discovered, “this was going to be difficult because there is an amazing lack of information upon which to base any decisions”. Then he relied on his own observations, feedback from Beijing Carvel customers and sales staff, and information gleaned from business magazines and public reports to help him make his decisions. Finally he found that:-

The first choice of business is the franchise. In a franchise, legal binding agreement is entered into between two firms, the franchisor (the product or service owner) and the franchisee (the firm to market the product or service in a particular location). The franchisee pays a certain sum of money for the right to market this product” (Rubin, 1978, p.224). The franchising is more prevalent in the restaurant industry (Hoffman & Preble, 2003). The two distinct features of this business type include; first, in order to notable service components should

The first KFC was opened in Tiananmen Square, China 1987; it struggled as western food was unknown to the east. This was still a very conservative nation, not prepared for the “Fast Food” takeover. The restaurant did pretty well, but grew slowly. The Harvard business review, stated that “in 1992 the Chinese government granted foreign companies greater access to markets, KFC China’s managers gradually developed the blueprint that would transform the chain.” (Yums' China, 2017) Although they have done well for themselves they struggled, as growth was steady but slow and their customer base was shrinking. “In November 2016 Yum China Holdings, Inc. became a licensee of Yum brands in Mainland China; they have exclusive rights to KFC.” (Yums' China, 2017) Yum controls approximately 7,300 restaurants and more than 400,000 employees in more than 1, 100 cities. YUMS generated over $8bln in sales in 2015.

The company’s main objective is to introduce ‘; Beyond the bean’’ to the Canadian market in London Ontario on the Richmond road and open up a café for mainly students, to get together and serve as a recreational center. This will be possible through the café and/or by having a variety of board games for the public. The initial approach will be to gain a market share for leveling out the playing field and being a root competitor for similar types of businesses. In the external and internal analysis you will be able to find all the necessary information that will provide you with a generous overview of the company’s

Despite Yum! brands huge success in china, there have been a lot of risks and threats in entering the local market. In respect to that its critical to mention the oppositionof the local population in perceiving fast food industry and especially western culture entering their own market.

The final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the company's market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This followed the acquisition of greater knowledge about Chinese business culture through outlets in Taiwan. The company initially used a licensing agreement to enter the Chinese market (Starbucks, 2010).

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.

The main issue of Levendary café ,is that the after the death of Howard Leventhal which was a private firm saw a rapid change with new CEO, Mia Foster which marked new challenges for the company. Mr. Chen’s, transformation and changes made in the china branch of the café were of significant problems for the Levendary café management, and were against their ethical values. Levendary café was concerned about the domestic business being tapping out moreover, Mia Foster’s lack of experience in the domestic market. In addition, Levendary café management was worried about balancing “standardization” and “localization” in the Chinese markets.

All the stores of The Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason

Threat: Louis Chen, the VP in charge of Chinese business, is ruining the brand of Levendary Café. Customers come from all over the world. When they visit the store in China, they can tell that there is something wrong with the decoration and menu in the Chinese store. It will destroy the company’s reputation if they notice that the menu is totally different from what it is in the United States. There are Pizza Hut, Starbucks and other competitive American brands, which are growing steadily and widely. They will split the market share from Levendary Café.

In scope, all three of Mia Foster’s issues are interconnected. To tackle each individually will suffice the next issue starting with Louis Chen and the China operations. If she were to review Levendary Café’s foundation, along with the Board and COO – Lucian Leclerc, they will be reminded that they are known for their willingness for taking risks – especially those that helped evolve its concept over time. What may have worked in Levendary Café #1 in the US 32 years ago may not work in

Through a joint venture franchising structure with fairly rigorous contractual stipulations Michel’s central administration were able to expand the business to China “on a shoestring” while still maintaining “arms length control” of how the Chinese business was run. The licensee and joint venture partner bore the financial risks, while risks of damage to the brand that a failed venture would cause were deemed negligible due to China being so far away from the Australian market.

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.

Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School.