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Starbucks Management Problems

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Submitted By mekky68
Words 662
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Question One:
Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets?
Controllable Elements:
1- Product Starbucks is providing a lot of products as coffees , Tea , Beverages, deserts
2- Price the prices for the Coffee for example in Starbucks is still expensive for a portion of the targeted customers which lead them to go to local competitors.
3- Promotion Starbucks is mainly relying in the promotions on the word of mouth and the power of the name in the market, and only 1% of the revenue is used for advertising the new flavors and coffee drinks.
4- Channel of Distribution Starbucks is already having a very big global channel of distributions as they are having more than 16000 Outlet in more than 50 Countries
5- Research the company also have developed by doing some researches about the market and the customer needs which helped increasing the profitability as in Japan when they added to the menu the smaller sandwiches and the less sweet deserts , and also adding some stores having the drive thru service.

Uncontrollable Elements:
1- Competitive Structure local competitors who are already culturally familiar and also global competitors as McDonald’s as they are starting to also be in the global markets with their Mc Cafe which is one of the biggest competitors for the company
2- Economic Climate Economic conditions differ from one country to another which is very important to carefully research it, and to know the range of the local prices of the competitors.
3- Political/Legal Forces this part is about different rules and regulations for the countries as Starbucks is mainly relying on the low wages employers and for example in France there is a strict rules regarding this. This is important to study this issues and how it can affect the marketing plan.

Question Two:
What are the major

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