Evaluate the impact of globalization and management across borders
After its retrenchment in the U.S., Starbucks is still considering expanding its operations China. "Despite its long presence in the Chinese market -- Starbucks opened its first shop in Beijing in 1999 -- the Seattle coffee giant only has 376 stores on the China mainland, compared with 878 in Japan" (Sanchanta 2011). Starbucks has tried to learn from some of its mistakes domestically in the U.S., such as its super-saturation of certain marketplaces, while incorporating many of the successful lessons of its other ventures, such as its ability to tailor product offerings to local needs. "Cracking the code in China for any company is not an easy task -- there will be a number of winners and lots of losers of people who go there and rush to judgment and don't succeed…The thing I am most interested in when I go to China is whether or not local Chinese are buying Starbucks coffee and sitting in our stores," said Howard Schulz (Sanchanta 2011).. Schultz has been striving to learn more and more about Chinese preferences, so that when Starbucks does expand into China, it becomes the premium coffee shop that shapes the palates of the Chinese marketplace.
Managing across borders requires the organization to brand its product and/or service in a unified fashion yet respond to demographic and economic developments and trends. For example, to compete in Japan, Starbucks has had to slash its prices, as local competitors offer a cheaper product that is drawing consumers away. Only through careful monitoring...
However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the
The company also has an interest in hiring internally. Staffing is a challenge for Starbucks, however, because of the company's growth rate and the need to maintain high standards of customer service (Weber, 2005). This is why the company emphasizes training to the extent it does, because training and enculturation is needed to support the staffing policy. Employee Training and Development Starbucks has an extensive training program in order to ensure
SBUX Starbucks is a quick service restaurant that focuses on coffee and snacks. The company operates globally, with over 18,000 stores, roughly 55% of which are company-owned and the rest are franchised. Over 10,000 of these stores in are in the United States. Starbucks earned $14.89 billion in revenue in the last fiscal year (2013 Starbucks Annual Report). Starbucks employees are known as associates. In total, there are 191,000 associates (full-time
Leadership Comparing Characteristics of Leaders and Managers The term leader and manager is often used in an interchangeable manner and it is likely that at some point most leaders have undertaken a management role. However, when looking at leaders and managers there are some distinct differences. These can be considered in terms of their characteristics and the way these characteristics manifest. A common theme in much literature is the way in which
Starbucks' Strategy Key elements of success in Starbucks' organizational culture Today Starbucks Corporation has become a leading retailer, coffee brand and roaster all over the world. It has more than 12,000 licensed and company-operated locations in Europe, North America, Middle East, Latin America as well as Asia Pacific. The products that are offered by Starbucks along with their coffee are today being sold in many airports, hotels, grocery stores, universities and many
STARBUCK'S STRATEGY AND INTERNAL INITIATIVES FOR PROFITABLE GROWTH Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth Strengths Weaknesses Opportunities Threats Michael Porter's 5 Forces Model Industry Competition Threat of New Entrants Buyer's Bargaining Power Bargaining Power of Suppliers Formulate Strategic Marketing Improve Standing of Stock Market Starbuck's Strategy and Internal Initiatives to Return to Profitable Growth As Starbucks was expanding, another emphasis was set on hiring talented leadership in managing the huge momentum
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