Cultural Management
Starbucks wants to enter South Africa, the "Rainbow Nation," and learn about doing business in Africa for future expansion across the continent. It has the conditions for success, but critical will be managing a multicultural team of employees in every store. There are 11 major languages in South Africa, highlighting the diversity of the country, and it has also become a magnet for immigrants from other African countries as well. Starbucks needs to implement programs such as employee groups in charge of multicultural initiatives and it should track the demographics of its workforce to ensure that they are diverse. Management teams should also be diverse. The company should have a multicultural management training program as one of its major controls.
Situation Analysis
The corporation to be discussed in this paper is Starbucks, and they wish to enter the South African market. Starbucks operates in dozens of countries worldwide. Its largest markets remain in the West -- the U.S., UK and Canada -- and Asia, where it has a large presence in many countries. The major growth initiatives right now are in China and India, but Starbucks is seeking large new markets and believes South Africa has strong potential. Another carrot for the company is that it feels that South Africa can be a base of operations and a learning ground for other African countries as well. In other words, Starbucks hopes to learn about the cultural aspects of doing business in Africa from a fairly easy African culture and apply that knowledge to an eventual expansion across the continent. This paper will discuss both the company context and country context of such a strategy.
Corporate & SWOT Analysis
Starbucks changed ownership and began expanding in 1986 and went international almost right away -- the company's 10th store was in Vancouver. Since that time, Starbucks engaged in a period of rapid growth domestically through the 1990s to the mid-2000s before a brief period of contraction. Many foreign markets were entered during this time....
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