Starbucks in China

4347 Words Apr 30th, 2013 18 Pages
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College of Business

MGT6503: Comparative Management: Asian Perspectives
Dr. Jixia (Jane) Yang

Study of Starbucks ' case in China

Student ID:

52775337

52326355

50417599

50376619

Summary:

In Iceberg Model of Culture, the difference of the people come from varieties countries is not only their behaviors, but also their attitudes, assumptions, values, beliefs which cannot be seen easily. The difference can influence almost every aspect of natives ' living. That is the reason why some good management styles didn 't have much work in other regions. So comparative management is really useful to analyze the extent to which management principles are applicable from one country to
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But it is not the native enterprise after all, so there are several culture problems are waiting for being solved.

Firstly, even though Starbucks has explored the Chinese coffee market and attracted many long-term customers, it is far away from enough. As you may know, the tea-drinking culture has been lasted over several thousand years. Moreover, there are a lot of products about tea in high-class, mid-class and low-class market. It is hard for Starbucks to enter the China market. As a result, Starbucks targeted the middle class market, especially the young people. In details, this kind of people contains some students, overseas returnees, foreigners, and white-collar employees. Due to the narrow range of customers, Starbucks limited herself to become more popular in China. Besides, the Chinese traditional tea drinking culture affects Starbucks expansion. Since China has 56 nations and huge size of land, there are different drinking styles in China. For example, the people in the north of China prefer to drink tea using bowl and drink fast, while the people from south are keen on drinking Gongfu tea and drink slowly. That’s why it is difficult for Starbucks to attract all kind of people by only one business model. Additionally, some researches show that tea is more suitable for the physical conditions of the oriental people. It is showed that the culture problem is still a big challenge for Starbucks developing Chinese market further.

In Chinese

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