...INDIVIDUAL ASSIGNMENT Topic: Analyze a culture-specific case study in which a coffee brand (of your choice) in the US, Europe, or Asia has been successfully built. Coffee is big business. The world’s love for coffee has formed some of the most popular globe’s food and drink businesses . Starbucks is one of the most famous chain of coffee shops in the world, mainly making bussiness in selling special coffee beans and other various kinds of coffee or tea beverage. Through out several decades of development, Starbucks is now a global Starbucks logo brand and presents in 64 countries and territories, as of March 2015. Among those regions, Asia is one of the biggest markets that Starbucks has built up its coffee brand sucessfully. (Source: http://Wikipedia.com/Starbucks) One of the big questions is what are the factors that makes Starbucks become an successful global coffee leader. Well, there are a lot of factors. However, in my point of view, the most important thing that makes them to be successful is they are able to adapt and localize if it’s required. According to Hofstede’s national culture theory, Starbucks perfectly suits the cultural characteristics of the host country’s customer. The following paragraphs shall analyze how Starbucks succeeds in Asia, especially aiming to specific countries in that region. Firstly, China is one of two biggest countries having a massive polulation about 1.4 billion in Asia that has Hofstede’s cultural dimension...
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...French Accent - How to Turn Customer Satisfaction into Profits and Growth by Vincent Grimaldi de Puget January 13, 2003 There are reasons to believe that the cause of the backlash against capitalism-as-we-know-it is deeper than the robber baron scandals that have occupied the front pages in recent months. There is growing evidence that we are witnessing a shift away from blind consumerism, and marketers can do something to smooth the transition. The bottom-line pressure of always delivering more earnings – more than the previous quarter and year – can lead to misallocation of resources in the long term. Seeking to grow is fundamentally a good objective if the underlying economics can support it -- meaning productivity improvements and technological breakthroughs -- and if the expectations of customers, as human beings, keep being satisfied. Unfortunately, it is not always the case. In some markets, such as the US and the UK, the pharmacy, restaurant, and video store businesses, for instance, have largely consolidated from mom-and-pop shops to large standardized chains. Economically, consolidation seems to make sense since it initially brought customers a broader choice at lower prices thanks to economies of scale; and sometimes a predictably good customer experience, e.g., McDonald's and Burger King, Barnes & Noble and Borders, and Starbucks. Too often, however, consolidation meant that unmotivated, low-wage workers replaced devoted shop-owners; ignorance replaced knowledge...
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...Project Name | Kahula Coffee Grand Opening | Project Number | | Project Team | Breanna Khanbalinov | Prioritization | | Owner(s) | | Start Date: | July 19, 2015 | Scheduled Completion Date: | August 25, 2015 | Mission/ Purpose | Kahula Coffee is a Hawaiian coffee shop that expects the grand opening to have an island feel and welcoming vibe. Kahule Coffee focuses on keeping its customers relaxed as they purchase their coffee. The purpose of the grand opening is to show the community that they are open for business and have a wide variety of tasty coffees. | | ProjectDescription and Project Product | This project is going to assist the owners of Kaluha Coffee in having a spectacular grand opening. Kaluha Coffee shop owners are expecting to have party decorations that relate to Hawaii. The project would entail creating a schedule, determining the types of activities customers would have available, ensuring that Kaluha Coffee has sample stations, etc. | | Objectives | The objective of this project is to prepare a grand opening for Kaluha Coffee and in doing so maintain the budget of six thousand dollars, create the desire for at least seventy people to attend, and ensure that the presentation of product is in the theme of Kaluha Coffee. | | Business Need | This project is a great opportunity to generate revenue and expand our business in the area. This coffee shop is located in a new business oriented area to which many new local shops are beginning...
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...up a brand new image in coffee market which didn’t appear ever in Hong Kong. Generally, most of people think that “drinking coffee” is for refresh your mind, common drinking in executive and business world. Now, we create our brand to sell our coffee with Fresh, Young & Vitality image to attract customers who are teenagers. We believe that there are still many room for develop this age of consumers. Teenagers are our mainly target customers, our shop outlook will setup as what teenagers like. So, we will take Japanese retail shop - Muji as a foundational reference, our coffee shops will be setup in open and simple style. Moreover, we will make comfortable and relax atmosphere around the shop that will attract more people willing to come-in. 30 outlets in different locations – easy for customers to reach and enhance the impression to all people about our brand. As customers are the key factor to success in business, our employees will take an important role as they need to deal with customers directly. So, employees are the most valuable asset of our company. They will influence our sales, quality, image and profit direct or indirectly. Therefore, employee selection is very important. Each employee must with similar working experience and fulfill our basic requirements. Also, employees should with friendly, polite, helpful and proactive characters. Any hired person will have 2 weeks training in order to get used to our coffee culture and basic operational...
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...Huoming Su/MBA 671/CW#1 Starbuck Strategy Industry/Competitive Environment Industry Environment Coffee industry is a highly competitive industry. Almost every restaurant and all supermarkets provide coffee at any time. And also a more convenient and cheaper way to get a cup of coffee is brew it at home. But Starbucks is difference by offering higher quality coffee, which also charges higher than its competitors. Although its price is much higher, Starbucks also has a strong brand loyalty; it has been able to consistently make sure they are butter than other cafes. Starbucks also has to compete against home coffee producers such as Nestlé’s and the K-Cup system. With high concentrations of competition, Starbucks still the largest and most successful coffee company in the world due to them provides high quality products, and high brand loyalty. Starbucks has an offer from both ends of the spectrum range of coffee flavors to differentiate themselves from their competitors. This allows them to create a unique taste, which can only be found at Starbucks. Starbucks also offers baked goods, sandwiches, with such a wide variety of characteristics of goods available for sale Starbucks to stand out from the competition. For the industry trends of Starbucks, to keep the leading position in the coffee industry, they can keep increase the number of their stores in America, and also they can increase the size of the store, provide more seats to their customer that can make sure...
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...CAFÉ COFFEE DAY—EXPANDING HORIZONS: ABSTRACT: * In June 2010, Cafe Coffee Day, the largest organized retail cafe chain in India, was conferred with the title of the Most Admired F&B Retailer of the Year. In July 2010, CCD had a national network of over 950 outlets functioning in every nook and corner of the country. * The cafe chain continued its leadership as an iconic retail brands whose dynamism and popularity won it respect and admiration from both consumers and rivals. After phenomenal success in India and revolutionizing specialty coffee culture, CCD undertook international expansion plans and tried to popularize its specialty coffee worldwide. * With an ambition to rank among the top three cafe chains in the world by 2018, the company nourished plans to establish new cafes across Middle East, Eastern Europe, Eurasia, Egypt and South East Asia. At the same time CCD was also eyeing for foreign acquisitions. * In mid-2010, it acquired a Czech Republic based cafe chain Cafe Emporio as part of its broad acquisition plans. Initially providing a brief analysis of the Indian coffee industry, the case attempts at initiating a debate that whether Cafe Coffee Day should continue to expand its operations globally or not. * Whether the strategies it followed in India could be successful in international markets or it might have to face stiff competition from global coffee chains remain to be seen. Finally, whether it could cope up with the challenges that...
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...Behavior Organizational Communication and Behavior Starbucks Mission Statement At Starbucks coffee company the mission is to nurture and inspire the human spirit-one person, one cup, and one neighborhood at a time. Starbucks coffee company is a multinational organization and emphasizes on always brewing the freshest coffee around. Starbucks core values are to always comply with the law and practice ethical standards. Culture of Starbucks Starbucks welcomes a diversity of people and customer’s. Starbucks create an awesome work environment and treats people with respect and dignity. They are committed to serving the best quality, and most responsibly grown coffee, to help create a better future for are growers. At Starbucks people are known as partners, not employees because it is not just a job it is a passion. Here at Starbucks we embrace diversity to help create a place where people can just be themselves. Customers of Starbucks connect with one another through laugher and fun even if it is just for a few minutes. It starts with a great cup of coffee, but their work goes beyond that. Really it’s about human connection and enjoyment. Each store is part of a community and they take being part of the community serious. Espoused Values Starbucks coffee is and will always be about quality and a sense of belonging. They are passionate about ethically sourcing the finest coffee beans, roasting them with great care and to help improve the lives of the people who grow them...
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...Starbucks Coffee Company Teaching Note Overview The Starbucks Coffee Company case offers students an opportunity to explore the tradeoffs between a successful business strategy (in this case, its focus on the purchase of the highest quality coffee, which is at the heart of this business) and the company’s interest in maintaining and enhancing its reputation as a socially responsible company. The case focuses on the CEO, Orin Smith and his decision whether to purchase and offer fair trade coffee after being pressured by the Global Exchange, an NGO responsible in the 1990s for Nike’s difficulties in relation to unfair labor practices in developing nations. Questions to Begin the Case Discussion Students can approach this complicated case from many different angles, so questions should be tailored to the individual needs of the course you are teaching. Possible successful approaches include the following: 1. Focus on the factors in the environment affecting Starbuck’s decision. This allows you to explore comparison between Nike in the 1990s and Starbucks today. The company faces the risk of overexposure because of its incredible rate of growth. And, like WalMart, the company has been seen as a destroyer of smaller main street type businesses. It also represents American culture in distant lands in the same way that McDonalds did in the 1970s and 1980s. Its interest in presenting itself as a socially responsible company also makes it an easy target for antagonists like the Global...
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...Summary: Operational effectiveness is representative of outperforming competitors on similar activities such as product development or product delivery. It is beneficial to better allocate the resources and capabilities as well as to maintain the competitive advantages to achieve more profits. While operational effectiveness is not equal to strategy and the drawback of being imitated by rivals will threaten the companies’ best practices. Therefore to keep the sustainable competitive advantage companies should apply strategic positioning principles by retaining the most valuable and distinctive aspect of the company. There are three disciplines of strategic positioning: 1. Being different: Establish differences among competitors, which indicates the company either performs similar business activities differently or performs different activities to enhance the value perception to its customers. The sources of strategic positions range on the basis of variety need or access. 2. Making trade-offs: Strategic positions always attract rivals to imitate the success and reposition themselves to gain more benefits. Trade-offs are needed to preserve sustainability because by cutting down what the company could offer, it prevents competitors from copying the value or position because this will undermine the rivals’ core values. 3. Creating fit: Fit means to link and reinforce each activity to each other. Rivals could not easily to find a match when several activates mutually affect each...
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...problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004). Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market expanding, for example, the culture conflict between Starbucks coffee culture and Chinese tea culture. Firstly, let’s talk about the SWOT analysis. Strength comes first. Like it tells in the article, China now has a rapid developmental...
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...Starbucks in Cambodia Introduction Globalization, a process of international integration from the interchange of world views, products, ideas and cultures which can benefit all countries that embrace international trade. With the right strategy to involve in international trade, a country can successfully grow economically, as well as socially. Cambodia is a country located at the central of Southeast Asia, with population of over 14.8 million people. With an open investment policy, Cambodia offers opportunities for creative entrepreneurs and dynamic businesses. It is evident through her rapid development and strong, positive growth over the last 15 years. It provides opportunities for foreign investment. In this paper, we will discuss the global coffee company-Starbucks Corporation and its potential expansion into Cambodian market. Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. They provide unique tasting products and have improvised the recipe of traditional coffee according to modern tastes. While Starbucks was very successful in its domestic market, the leaders of the company sees the potential of foreign markets and planned to expand its business to foreign countries through globalization in order to fully utilize the potential that the company had. In 2003, Starbucks...
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...Starbucks More Than Just Coffee COM/530 Communications for Accountants November 5, 2012 Dr Ed Wirth When Starbucks first opened in 1971 their goal was to make the world better with coffee. Starbucks reflects this in their mission statement, “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” ("Mission Statement Starbucks Coffee Company", n.d.) Every day by Starbucks strives to live up to this statement through the principles of the company. Starbucks considers their employees as partners in the company. They also pride themselves in their ethics and diversity and insist the companies they do business with to share the same ethics principle. Starbucks takes pride as an asset to any neighborhood they build in. They recently implemented an environmental mission statement that says that Starbucks will make every effort “to buy, sell, and use environmentally friendly products.” ("Mission Statement Starbucks Coffee Company", n.d.) This fits right in with the environmental worries society has today. To ensure Starbucks leaders are carrying out their espoused values they have a Mission Review Committee. Partners have a right to have...
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...elements that Starbucks has encountered in entering global markets. Solution: Controllable elements The controllable elements that Starbucks has encountered in its entry to global markets are: a) Strong competition The international coffee market is a very competitive market. There are increasing numbers of competitors, such as full service restaurants and other coffee shops, entering the growing specialist coffee market in recent years. ... should set up a plant in Asia which would cut down operating costs, thereby cutting down the prices and getting an edge over its competitors. b) Starbucks should expand its international market operations, so that they do not depend as much on the US market. c) Starbucks should customize to local needs (wherever required) and not only follow its traditional culture as not all countries would accept the American Culture. In my opinion, if the above three pronged growth strategy is followed, it would go a long way in improving Starbucks’ profitability in Japan. Starbucks Going Global Fast There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to...
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...powerhouse and is perhaps the most recognizable coffee company in existence. In order to achieve this status and maintain it as well as the company has it is no surprise that the emphasis from within is always on quality. Starbucks starts this commitment to quality with the raw materials of their products and the company also has well-outlined corporate governance materials to help form the structure on which the company is organized. It is impressive how orderly the structure at Starbucks, starting with its founders and board of directors. This structure and commitment seems to be communicated well within the Starbucks culture considering the company’s sustained dominance in its industry. One interesting detail of the Starbucks mission statement posted on their webpage is how brief and direct the message is in general. I feel this is a positive because the message from the core of the company is easy to understand and sounds very logical in principle which is appealing to potential employees and investors. A primary emphasis that is prevalent throughout the mission statement is unity and a family-like culture that Starbucks wants to generate. This family is not just to include the board of directors, suppliers, manufactures and other employees but is extended to the customers and communities of each location. The company even goes as far to call any stakeholder in the organization a “partner” only furthering the family culture ("Our Starbucks Mission Statement", 2013) . ...
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...Harvard Business Review Case: Starbucks Harvard Business Review Case: Starbucks This case study will review how Starbucks is doing financially, examine marketing segmentation and life style changes impacting Starbucks based on the Harvard Business Review case information, and what Hambrick strategy elements Starbucks should focus on most for improvement. “Starbucks’ brand strategy was best captured by its live coffee mantra, a phrase that reflected the importance the company attached to keeping the national coffee culture alive. From a retail perspective, this meant creating an experience around the consumption of coffee, an experience that people could weave into the fabric of their everyday lives” (Moon & Quelch, 2006). Starbucks is the largest coffeehouse company in the world. Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, juices, various food products, as well as beverage-making equipment and accessories. In addition, it licenses the rights to produce and distribute Starbucks branded products, as well as licenses its trademarks through licensed stores, grocery, and national foodservice accounts. Over the last ten years, with the exception of 2008-2009, Starbucks has had at least 9 percent + revenue increases from year to year (revenue spreadsheet attached). In...
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