Starbucks Corporation

1716 Words7 Pages
Starbucks Corporation
By Oybek Salimov

Outline
Introduction…………………………………………………………………………………3
1. Background of the company…………………………………………………………..4 2. Starbucks’s expansion.………………………………………………………………..4 3. Risks associated with expansion………………………………………………………6 4. Capital structure of the company………………………………………...……………7
Conclusion…………………………………………………………………………………… 9
Reference ……………………………………………………………………………………10
Appendix …………………………………………………………………………………… 11

Introduction Globalization greatly influenced businesses to expand worldwide. Cross boarder communications let people all around the world to exchange demand on services and products. Besides, countries opened boards to foreign investments. New type of business
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(K.Subharda, 2006). Final strategic imperative was achieving competitive advantage of countries. In order to keep high demand for coffee and availability of high quality coffee beans the company began a Preferred Supplier program in 2001 to attract environmentally friendly farmers and reward for their high quality coffee beans.
Joint ventures, licensing and wholly owned subsidiaries are modes that Starbuck chose to enter international markets. Table below shows countries the company moved in and types of mode it used in years 1996 to 2002. (K.Subharda, 2006)
Table 1: Starbucks International presence Country | Type of Entry | Name of the Partner | Year | Canada | Wholly-owned subsidiary | Starbucks Coffee Canada | 1996 | Japan | Joint Venture | Sazaby Inc. | 1996 | Malaysia | Licensee | Berajaya Group bhd | 1998 | New Zealand | Licensee | Restaurant Brands | 1998 | Taiwan | Joint Venture | President Coffee Corp. | 1998 | Kuwait | Licensee | Alshaya | 1999 | Philippines | Licensee | Rustan’s Coffee Corp. | 2000 | Australia | Joint Venture | Markus Hofer | 2000 | Israel | Joint Venture | Delek Corporation** | 2001 | Austria | Licensee | Bon Appetit Group** | 2001 | Switzerland | Licensee | Bon Appetit Group** | 2001 | Germany | Joint Venture | Karstadt Qualle

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