GLOBAL AGRO BUSINESS

Global Agro-Food Business in Emerging Markets [Name of the Student]

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Executive Summary

Expansion of Starbucks is not about all is well. The firm had gone through a vast expansion. There is a need for redesigning the strategies for global operations with reduce and stable price factors for its products.

The products are unique so the most important point is to maintain their brand image with exceptional services. The company has diversification in terms of products and services like other than coffee houses, music stores are also symbol of its success.

However, the company has to modify its business portfolio by increasing diversification to reduce the risk. Expansions in emerging economies like South Africa are also an opportunity along with challenges.

The firm has to study the strategic analysis of South Africa and then take the decision for entering in a business. The most appropriate mode of entry is the joint venture with other firms like Nestlé or utilising any other local partner dealing in beverages in South Africa is a good option for doing business in the region for Starbucks.

Tables of Contents

Executive Summary1

Global Expansion of Agro-Food Systems3

Company Profile: Starbucks 4

Global Expansion of Starbucks6

Global Expansion of Starbucks in South Africa8

Strategic Analyses of South Africa 8

PEST Analysis of South Africa9

SWOT Analysis for South Africa11

PEST Analysis of Starbucks13

SWOT Analysis for Starbucks15

South Africa: A Place for Investment Regarding Agro-Food Processing17

International Operations of Starbucks17

Recommendations for Starbucks Doing Business in South Africa18

Conclusion19

References20

Global Expansion of Agro-Food Systems

Globalisation and technology has also restructured the agriculture food industry. Two dimensions have been indentified in this regard. One is the product differentiation and formation of multi product chains as per the demand of innovation and food oriented concepts. The leading food industry companies have significantly responded to this first dimension through a set of strategies ranging from product specification and development to innovations for establishing competitions among the agro-food companies. The second dimension is not met accordingly since; this is not associated with food innovations. Therefore, biotechnological and other scientific knowledge is not enough to support the global demand of food supply; rather it sustains the retailer's role. This second aspect of agro-food systems reveals dangers and doubts for traditional food businesses (Wilkinson 2002, p. 329).

New developments in the agro-food industry are opening the opportunities for small and medium enterprises in Asia and Africa for their global expansions. Furthermore, these regions can act as collaborators for promoting the agro-food business in potential market segments within the regions and round the globe. The promotion strategies are of two types that can be identified by the market analyses. The first part of the strategy is that these regions have the ability to promote the established as well as the new product. The second type of strategy includes the enhancement of relationships in terms of agro-food business to facilitate the international linkages between the two countries involving in this business (Regnier 2009, pp. 227-245).

Research in the agro-food area shows that around the ...