Being interested in economics, I have always viewed international activities of multinational corporations as an appropriate topic for research. Recently I read an article about the increased consumption of coffee throughout the world. I was surprised by the fact that people spend a relatively big part of their income on espresso beverages sold by specific coffee house chains because of the social status associated with their products. According to Starbucks Corporation Fiscal 2013 Annual Report, the consolidated revenues of the company amounted to a record $14.9 billion.
Howard Schultz, chairman and CEO of Starbucks, states that one of the rationales behind the global expansion of the company is to popularize the “Starbucks experience”. The
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According to advocates of this idea, global brands are Trojan horses used by multinational corporations to destroy cultural identities (qtd. in Arsel and Thompson 632).“The Starbucks Brandscape and Consumers’ (anticorporate) Experiences of Glocalization”byCraig J. Thompson and Zeynep Arsel puts the premium on the process of “glocalization” (qtd. in Arsel and Thompson 631) as a more accurate description of the amalgamation of international companies and local cultures. The coalescence produces a range of local meanings of global brands (qtd. in Arsel and Thompson 631).Arsel and Thompson advance the theory of “hegemonic brandscape” (Arsel and Thompson 632) to entirely analyze the effects of glocalization. They consider two types of coffee shop consumption at a local level and examine the structural facets of the Starbucks brandscape. The article elucidates anticorporate identifications enacted in the monopolistic brandscape by “oppositional localists” and “café flaneurs” (Arsel and Thompson 632).Arsel and Thompson underscore some limitations of their analysis stimulating additional investigation of certain aspects of their work. For this reason, I intend to investigate additional ways in which coffee shops may be encountered as they are not surely restricted to café flaneurship and opposional localism. Moreover, the research should differentiate between the attitude of loyal Starbucks customers towards hegemonic brandscape and that of local coffee shop patrons because the perception of the company is casually connected with the cultural
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
Part A. The primary externals influences to Starbucks PESTEL describes a framework of macro-environmental factors used in the environmental factors component of strategic management. PESTEL analysis includes some several factors: political, economic, social, technological, legal and environmental factors. This report analyzes the factors which have main impact on Starbucks. 1.
Ethical issue in Starbucks Starbucks, an American coffeehouse chain based in Seattle, Washington, is the world largest coffee retailer chain in the world having more than 21,000 stores in 65 countries (Starbucks website, n.d.). In United States, Starbucks owned 12,973 stores (Starbucks Company Statistics, 2014), which is more than 73% of the market shares of the United States coffeehouse industry. Hence, Starbucks possesses monopoly power in the specialty coffee market. Enjoying monopoly position, Starbucks plan to completely dominate the market by eliminating competition. Starbucks engages in a range of anti-competitive activities.
Starbucks is known for its delicious fresh brewed coffee and its dedication to employees, customers and communities. Starbucks is one of the largest companies in USA and it is based in Washington. The company keeps its customers on their toes with new products and loyal customer deals. Every year the company is introducing something new and interesting. This strategy and approach keeps the company on the top and customers coming back for more.
STARBUCKS SINGAPORE 1.0 INTRODUCTION Originated in United States (US), Starbucks selected Singapore as the third international market to expand its business in 1996. It offers all-embracing products of coffee, handcrafted beverages, light food, merchandise and consumer products as well as an exclusive Starbucks experience to the customers. Starbucks Singapore prides itself on the 100th store expansion in 2014 (Priscilla, 2014). The company is staying ahead in the Singapore coffee chain industry, yet it is facing numerous emerging challenges in the global competitive environment.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.