Starbucks International Operations

1258 Words Nov 4th, 2006 6 Pages
Assignment: Unit 3Independent Project
Date Submitted: October 20, 2006
Course (include the section number: MTG485-0604A-13 Global Strategic Management
Dr. Mernoush Banton
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I certify that:
1. I prepared this document specifically for this class;
2. I am the author of this document;
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Case Study 5: Starbucks ' International Operations

1. World wide operations of Starbucks

Starbucks created a very interesting and ultimately profitable concept to the United States
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Their relationship with their employees and distributors is good. They need more work on the outspokenness of company management, high cost structure, competition overseas, public opinion and joint venture and licensing using the stop-gap plan.

3. Competitive advantage and/or disadvantages of Starbucks
The main advantage that Starbucks has over other companies in the industry is that they are able to retain their financial stability. They can take their resources and use them to retrench their global strategy. It is imperative they stay solvent to keep afloat and expand in more areas. The European market is the one they should concentrate on now and bring it to its full potential. They will be able to get a stronger more loyal customer base in this way. They need to develop a stronger strategic plan because the market is different in Europe than in the states. Starbucks will be able to move forward after this evaluation process and be more effective in all areas of management. 4. Starbucks Value Chain Starbucks value chain entails their strengths. The employees are loyal to the company which helps keep their customer base because they can keep their cost lower, and from word of mouth. The principles of the management team are focused. Their training methods require personnel to be trained in a centralized location, therefore there is no employee that is not trained in the correct procedures. The
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