Globalization of Starbucks Case Study Example | Topics and Well Written Essays - 750 words

Globalization of Starbucks - Case Study Examplenot only would the shop serve coffee, but also sell pastries, cakes and tea in an environment that provides a memorable experience. This transformation of the Italian coffee experience to the Starbucks of America tells us that ideas can be use across borders to strengthen the foundations of outside(a) business. If an Italian idea can appeal so strongly to an American, the same experience can very well indeed touch the lives of millions of coffee consumers in Asia, Africa or Australia. 2. What legion Starbucks to start expanding internationally? How is the familiarity creating value for its shareholders by pursuing an international expansion strategy? Starbucks achieved phenomenal success in the United States of America, with over seven hundred stores all across the country by the year 1995. Being a country that is home to multitudes of multiethnic crowds all over the world, the success of Starbucks in America was an indication that t he Starbucks experience was enjoyed by all, regardless of race, gender or ethnicity. This became the encouragement for Starbucks to imperil into the international market. By spreading its operations globally, the company is not only minimizing risk, but also maximizing profits, twain of which add increased value for the shareholders of the company (Rappaport). Additionally, dealing in the global market adds the value attach to dealing with foreign exchange, which implicitly results in a stronger portfolio for the individual who chooses to invest in a multinational company. 3. Why do you think Starbucks decided to enter the Nippvirtuosose market via a joint venture with a Japanese company? What lesson can you draw from this? It was through penetrating the Japanese market that Starbucks make out on its first venture in to the international arena. Though confident of its success indoors America, the company could not be entirely sure of a similar success in early(a) parts of th e world. To reduce the risks of a prospective failure, Starbucks chose to commit to a joint partnership, in which the local Japanese retailer, Sazaby Inc., would share both the profits and losses of the joint venture. This was a wise and long sighted stride on part of Starbucks, which showed that the prospect of loss should never be underestimated in the world of business. Apart from the fiscal aspect involved in making such a decision, the social and cultural aspects involved moldiness also be taken into consideration. As an American company setting up business in Japan, Starbucks chose to hire Japanese employees working in its outlets, thus reducing a sense of alienation in the coffee experience Starbucks wished to sell. 4. Is Starbucks a force for globalization? Explain your answer. Starbucks has indeed proved itself to be one of the pioneers in the world of modern international commerce. Beginning with a humble start in Seattle, the companys rise to success is inspiring to say the least. The success of Starbucks has taken the route of globalization to cook this stage, and today, the word Starbucks has become symbolically synonymous to a laid back coffee experience in a uniquely relaxing ambiance. This is indeed one of the many effects of globalization, where a good or service can mean the same thing, regardless of their ethnic or geographic origin. On the other(a) hand, the downside of globalization has also followed Starbucks, often in the form of international competitors, who duplicate the Starbucks coffee experience and can it to