STRATEGY OF INTERNATIONAL BUSINESS

Strategy of International Business



Strategy of International Business

Introduction

International business is defined as the business transactions that take place across national borders. This definition includes both; small and large companies that export or import quantity from one country or from around the world. In simple words, international business can be defined as the trade of goods and services among individuals and businesses in different countries (Buckley, 2005. pp.11-16). An entity, such as a multinational corporation, or international business company that engages in business among different countries. Distinctions often made among the different types of international firms, and these distinctions help in understanding the strategy of the firm. This also helps in differentiating the financial, administrative, marketing, human resource, or operations decisions of the international firms. Any international business typically has the same business activities, business culture, and business environment throughout the world. Some of them might change due to the political or any major issue in any country.

International Business Environment

The environment of international business is different from the domestic business. The reason is that it located in different countries, and each country has its unique environment. The economic environment differs from country to country. Each market classified according to the environment of that country. Markets can be free-market economy or it can be mixed economy. All business has to work according to the environment of the country (Allen, D. 2004, pp. 16-25).

Environment of the international business can also differ according to the political situation of the country. There are different types of political systems such as one -party democracies, multi-party democracies, constitutional monarchies and dictatorships (military and non-military). Governments also changes with the time, which affects the international business a bit. The government business responsibilities differ from country to country (Wilkinson.2004, 216-231). So the main international business environment is alike throughout but just has few changes according to the environment of the country. Hence only some of the environment differs from country to country.

Company Overview - Starbucks Cooperation

Starbucks Corporation is a company that deals in coffee retail with an approximate 16,850 coffee shops spread in 40 countries. Its stores specialize in offering drinks, food coffee and tea as well as roasted beans. In the US, the company runs shops that are owned while other shops are spread in airports and shopping centers owned as franchises constituting 8,000 of their units.

The company culture is guided by various principles including quality and customer satisfaction. Moreover, the company is guided by a mission statement that encompasses the goals and objectives of the company besides the strategies of attaining them. The mission statement entails a goal to become the best coffee stores in the world through observation of various guidelines including appreciating diversity, social responsibility and suitable work environment. The company is also geared towards customer satisfaction profitability and excellence in service and product delivery.

Global Expansion Strategy

The company also developed a strategy for expansion that saw it target various geographical regions that were suitable to their goals and ...