Starbucks Internationalisation

2565 Words11 Pages
2-pages Executive Memo

Recommendations regarding Starbucks ' Future Internationalization

“A 16 years Internationalization Strategy which led reaching one third of the world 's countries and two thirds of earth 's entire population .”

March 2012

Consultant : Cyril-André LESAGE

Introduction This short memo 's goal is to provide some strategic advices regarding the future of Starbucks ' internationalization. The following analysis will be divided in two main parts. First part will focus on a qualitative approach based mostly on “Resuming internationalization at Starbucks” from Richard Ivey School of Business, annual reports, several articles found mainly on Starbucks ' news internet site, and a few other readings found on the
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This will also solve two main criticism made about Starbucks : a too fast growth and a cannibalizing turnover in closely located stores. But still, Starbucks needs to work on its image which decreased over time, and on product quality, because without a good image, expanding is less effective and efficient. And finally, since the company is no more limited to a coffee-shop company, it can use its new products as a new internationalization product, with new strategies as context changes. Quantitative Study This study is based on a ranking of countries based on several different data. Each country if first ranked based on : (1) Its Human Development Index, (2) Its GNI per Capita (PPP), (3) Its Urban population with number of tourists added, (4) Its coffee consumption (per capita * total population), and (5) Its coffee trade balance (Imports-Exports). These 5 data allow to create a single index that allows to rank countries based on their development, money available, potential consumers and market. The trade balance is used to show the ease of importing coffee in a country and therefore do not care about main exporters. Once ranked, 3 data have been added : Presence of Starbucks, OECD Country risk and IDA index. End ranking is provided in Annex 4. Among the top 40 countries

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