Starbuck International Operations
Overview The case explains why Starbucks had to expand outside the US and the entry strategies it adopted in international markets, and discusses the various risks faced by Starbucks and the effect of these risks in its revenues in international markets.
Problem Major Problem
The major problem of the case was the not so well planned international operations of Starbucks compared to its US operations and the entry strategies it adopted in international markets.
Minor Problem
The minor problems were:
The pricing of the products offered. The high level of prices of the products of Starbucks is generally caused by too expensive cost of production that causes suffering to its customers.
The operation problems encountered by the business due to lack of a trained workforce.
The inappropriate and unsuitable real state/location for its store.
Objectives
To solve the problems of this case study.
To recommend advices and solutions regarding the problems encountered of this business.
Facts
*Alternative Course of A*ction
To study and think carefully about the decision of entering international markets.
To go for a supplier of cheaper items needed in the operation that would enable the business to lower the prices of its products and make it affordable and attract those middle as well as low profile consumers.
To hire trained applicants to ensure the smooth flow of daily business activities.
To plan and find the appropriate and customer accessible location of the business.
Recommendation
“To study and think carefully about the decision of entering international markets.”
According to the details given in this case, Starbucks success was due to its profitable domestic operations. The business is doing fine and continuously rising to its success until it enters the international markets. It was reported that