Starbucks International Assignment

Answer1:

Howard Schultz, marketing director of Starbuck, came up with is his Italian coffeehouse experience, he use his experience to experiment Starbucks coffeehouse format. His strategy was to “sell the company’s own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting.”

Their strategy became success and they motivated to expand business internationally for..

 Increasing the brand value internationally

 Earning more profit

 Gaining new market share

 Getting international benefit This thing indicates that international business is important. The lesson for international business is given below.

 International business is important for getting international benefit.

 International business helps company to increase brand value.

 A unique idea of a brand is most helpful in international market Answer2:

Culture played a dominant role in Starbucks foreign operation starting from choosing location to entry mode to change market offering.

Every country has own culture. So, Starbucks had to use different strategy in different culture.

As example,

 When Starbuck wanted to do business in Japan they had to manage to identify certain cultural shifts. They made them difference from another company of Japan by being clean, smoke-free, family-friendly, and well lit.

 Starbuck has kept customer’s name instead of signature service when writing down customer’s order as a result of the Japanese highly valuing their privacy.

 Starbucks has also started limited-time seasonal drinks such as the Sakura Frappuccino to express the Japanese love of tradition and national

Having familiar name is very helpful to get customers attraction which can be ensured by joint venture. As an example “many young people are willing to break with any traditions of visiting tea houses or Japan’s previously existing coffeehouses with the latter and famous American brand Starbucks.

 To share the cost and risk: Joint venture has allowed Starbucks to minimize their cost and risk and make riskless profit. Example: Starbucks established joint venture with Sazaby Inc. where each company held a 50 percent stake in the venture” Which means Starbucks can reduce 50% cost and risk beside with 50% benefit.

 To get another companies experience: Joint venture helped Starbucks to expose information and experience of Sazaby Inc. Example, “Starbucks transferred some employees to the Japanese operation”

The lesson can we draw from that is given below.

 Doing business via joint venture to make huge profit

 Knowing the limitation of doing business in international market

 Culture is important factor for international business

 Doing business via joint venture is more successful in foreign land.

Answer4: From the case we know that Starbucks doing business with joint ventures in foreign land which helps them to

 Save cost

 Minimize