Applied Business Research and Statistics - Graduate Level

Applied Business Research and Statistics

Scenario

Starbucks, one of the main coffee chains in the world, was began in 1971 in Seattle, USA. It is observed as the pioneer of the coffee culture in the US along with in lots of other countries. Earlier, Starbucks dealt just in coffee beans plus equipment. It was only in the 1980s, with Howard Schultz taking charge as the marketing chief as well as later as CEO that the company ventured into building coffee houses. In 1995, the company began its international expansion by entering Japan, followed by lots of other countries in the later years. It entered China about the mid-1990s with a allocation business.

Now we are interested to know is it a good decision for Starbucks to make a full-fledged entry in China.

Discussion

De Wit and Meyer (1998) refer to market tendency towards homogeneous variety and tighter international linkages as globalization. The need for global strategy outlined in the fact that companies are subject to global forces and consumer demand. Consequently, companies are faced with the modification of existing strategies to get and keep its competitive edge in the rapidly changing environment. Well-designed global strategy can help a firm gain a competitive advantage that in certain Sumantra Ghoshal of INSEAD can arise as a result of efficiency, strategy, risk, training and reputation(www.mhhe.com).

Therefore, to create a successful global strategy, managers need to understand first the global nature of the industry and the dynamics of global competition. I would like to continue with my analysis on the world market, the study of young but already well-recognized brand in the world - Starbucks. In my research, I study the changes in product, operations and strategies at Starbucks under the influence of changes in the global market. Corporation Starbucks "There is untapped potential for growth of our company at the international level," said Schultz. Headquarters: Seattle, Washington www.starbucks.com property: Starbucks is publicly traded - shares are widely distributed 150 million shares were authorized, of which 59,6% are in the market. History: Howard Schultz, 42, is the founder and was chairman and chief executive officer since its inception in 1987. The business was established in 11 stores in Seattle, and less than 100 employees. From them the company has grown to half a billion dollars of the company serving millions of cups of coffee per week in 1000 stores across the country, and in 17 countries at the international level(selectmetrix.com).

Schultz believes his company succeed in the 21st century. He says: "One of the things that you can not measure the balance or financial statements of the soul Starbucks". The company has approximately 39 federal trademark registrations in the United States. They have about 44 additional applications pending in the U.S. The company currently owns one patent in the U.S. for coffee on the water system and has several patent applications pending. Starbucks is proud to be a "good citizen" at the local level and in various coffee-producing ...