The Pros And Cons Of Starbucks

It also requires more of an investment and commitment by the international company which creates a higher risk. There is also the down side of having difficulty managing local resources.

Coffee brews under a drip of scalding water, beans grind in the gears of a metal mechanism set atop the bar, and the chatter of patrons syncs with the sound of steaming milk in each Starbucks cafe chain. Like most cafes, the aroma of Arabica overwhelms all others, natural light shines in through the windows to touch the wooden tables, and the murmurs of conversations can be heard throughout the edifice. However, whereas the plebeian palate that feigns good taste finds pleasure in drinking coffee in its most basic form so that the true flavors of the drink might be relished, the rising youth of our post-modern society realize that coffee is best prepared when the taste of the bean is overwhelmed by various artificial flavors and sugars—undoubtedly cancerous but utterly unimportant. These developing connoisseurs of high society, with all their charm and intelligence, make it clear that Starbucks is the only cafe from which anyone who is anyone must buy one’s coffee. Starbucks, truly a place for the cultural and coffee elite, consistently attracts three intriguingly eccentric and completely loyal customers of both sharp wit and fine intellect: the female Women’s Studies major, the flagrant homosexual male, and the out-of-place conservative.

Starbucks is globally known for not only their coffee but for the numerous amounts of stores and locations. The first Starbucks opened in 1971 in Seattle Washington’s Pikes Place Market. While small, the store had great flow of customers for their rich and fresh coffee flavors. One of those customers was Howard Shultz who enjoyed his experience very much. He liked it so much he came back in August of 1987 and purchased the store. Through the end the year he had opened up another sixteen locations on the west coast. In 1991 Starbucks opened their first licensed airport store at Seattle’s Sea-Tac International Airport. By the end of 1991 there were close to 116 stores in the United States. By 1998 Starbucks expanded their brand domestically through

This license is important because it demonstrates that the broker or advisor has a firm grasp on the rules and regulations related to securities and

Starbucks positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.

It facilitates easy access to credit: Limited liability permits firms to isolate different lines of business for the purpose of obtaining credit. This allows companies to extend their business gambles to other legal forms largely other companies in different degrees and forms through share buyouts or incorporation of subsidiaries.

Possible legal difficulties as a company with majority foreign stake may have difficulty setting up its own manufacturing operations in a highly regulated market.

Any organization expanding its operations internationally faces a number of political factors including: Government and tax guidelines, employment regulations, environmental regulations, trade and tariff regulations and limitations, as well as other factors.

A total weighted score at 2.67 for Starbucks points to an average but good internal standing in the Internal Factor Evaluation. The first strength of Starbucks is its diverse and inclusive workforce that allows this corporation to cater to a wider market reflecting today’s current demographics. This key strength has put Starbucks as a well-recognized brand among this young and diverse market. According to the Starbucks website, their workforce has led the way in diversity, 65% of U.S. employees are women; 40% are minorities (Our Aspirations). Due to globalization, many companies seek a strong diverse workforce, which allows them to adapt to the fast changing environment around the globe. The weight of .15 was given because of its

This gives US operated businesses immediate resources for effective innovation and the opportunity to advance in terms of technology

A license under intellectual property commonly has several component parts beyond the grant itself, including a term, territory, renewal provisions, and other limitations deemed vital to the licensor.

Authority to own or use something is the meaning given to the noun license. According to Anand and Khanna (2000), licensing is essential method of technology transfer between firms and is commonly found between inter-firm contractual agreements. The agreement gives the licensee permission to utilize property subjected to specific terms and condition. In return, the licensor gets financial remuneration either by a guaranteed fee or royalty on percentage of sales.

An important advantage of licensing foreign firms is that the firm avoids (most of) the inherent disadvantages of establishing and managing its own foreign operations, as we discussed above. On the other side there are advantages to keeping the use of the firm-specific advantages within (internal to) the enterprise. Internalization advantages are the advantages of using an asset within the firm rather than finding other firms that will buy, rent, or license the asset. Inter¬nalization advantages exist because there are drawbacks to using the market for many firm-specific advantages, particularly intangible assets like technology, brand names, marketing techniques, and management practices.

Greater control Lower costs of supplying host country Avoid import quotas Greater opportunity to adapt product to the local markets Better local image of the product

The advantages in exporting strategies are low capital requirements, economies of scale in utilizing production capacity, no distribution risk and no direct investment risk. The disadvantages for this strategies is maintaining relative cost advantages of home based production, transportation and shipping costs, exchange rate risks, tariff/import duties and loss channel control The advantages in licensing and franchising strategies are low resource requirements, income from royalties and franchising fees and rapid expansion into many markets. The disadvantages for these strategies are maintaining control of proprietary know-how, loss of operational and quality control and adapting to local markets tastes and expectations. Acquisition strategies can give benefits in term of high level of control, quick largescale market entry, avoid entry barriers and access to acquired firm’s skills while the disadvantages are costs of acquisition is too high, complexity of acquisitions process and integration of the firms structures, cultures, operations, and personnel A Greenfield venture is a subsidiary business