Should Starbucks Open a Store in Havana?

883 Words3 Pages
The management issue at hand is the question "Should Starbucks open a store in Havana?" The management issue here is foreign market entry. There are a number of methods to execute foreign market entry greenfield subsidiaries, joint ventures and licensing among them, but the more important immediate decision is whether the company should. For this exercise, it will be assumed that the company will partner with a Spanish hotel chain that has a major hospitality presence in the country, and will make the arrangements using its Canadian subsidiary, similar to how Coca-Cola uses its Mexican subsidiary to operate in Cuba. There are a number of players involved. The first is Starbucks, both the head office in the US and the head office in Canada. The Spanish partner is also an important player. The US government and Cuban government are both relevant players in the external environment given the legal issues that may arise from Helms-Burton and other laws prohibited American companies from doing business in Cuba 她r not (Jackson, 1997). There is a significant amount of information needed to help make the decision. The first is the estimated demand. Entering any new market requires an investment, and it is important to know whether that investment is going to pay off. Most locals could not afford Starbucks, but millions of tourists visit the island every year, most of them from countries where Starbucks already has an established brand. The second major piece of information is

More about Should Starbucks Open a Store in Havana?

Open Document