Starbucks Case Study

Starbucks Case Study

Case 1-1 Starbucks- Going Global Fast
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
Answer: The controllable factors that I believe Starbucks has encountered entering the global market are similar to the controllable factors they have encountered in their domestic market.   The controllable factors are product, price, place, and promotion. Starbucks has millions of consumers around the globe and is able to adjust to fit the different tastes and expectations of different cultures based on their products, prices, places Starbucks is available and how Starbucks markets themselves. The marketing research group of Starbucks also can evaluate to make sure the products they are providing to different countries and cultures is the right fit for them. When it comes to the uncontrollable elements that Starbucks has encountered entering the global markets, I can think of three factors. The first major factor for Starbucks is the prices of coffee in the world commodity markets. The price of coffee may be affected for example by a drought, just like corn if there is a drought the price of corn goes up. A factor that Starbucks also can’t control is the customers’ income. When the economy is doing bad then people spend less which means people would possibly buy less Starbucks then. The last factor that Starbucks has no control over is the variation in world currency rates. For example, based on (finance.yahoo.com) 1 US dollar is equal to 0.75 Euro right now.
2. What are the major sources of risk facing the company? Discuss potential solutions.
Answer: I believe a risk is losing customers, because few options are available for the customer or they are unsatisfied with the service. Another risk is that the young generations usually don’t drink coffee as much as older generations. The last risk is they make less money abroad because most of them are operated with local partners. When it comes to the risk of...

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