...Case- Starbucks : Going global Fast 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. There are controllable and uncontrollable elements that Starbucks has encountered global markets , where controllable elements refers to the ability of strabucks to overcome the problem and solve it , whereas uncontrollable elements refers to current situation in the market and how they can adapt to it. The case discusses multiple international markets that Starbucks had entered. Japan, France, Italy, Austria, and the Middle East were mentioned. Starting with the Japanese market, the elements that faced Starbucks there were uncontrollable. The first element was the fierce competition in the Japanese market that already existed, and the fact that Japan’s economy had suffered a blow which resulted in an economic depression. Moving on to the next market, which is France. The elements were also uncontrollable because the policies and regulations in the French republic were extremely sophisticated and biased towards the Labour Unions. Going south towards Italy, which is one of those countries that coffee-drinking is embedded in its culture. Starbucks’ Italian mission was faced by a controllable element, which is Starbucks’ own pricing strategy. In a country where the average Italian is used to paying 65cents (North), and 55cents (South) for a cup of espresso, Starbucks offered their espresso for a $1.5. Also, the fact...
Words: 1007 - Pages: 5
...Case 1-1: Starbucks Going Global Fast Andrew Perry MRKT 4343 Global Marketing Professor Douglas Gatton 10 February, 2015 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Nearly every element that Starbucks has encountered can be controlled in some degree or another. One of the somewhat controllable elements that Starbucks has faced is a resistance in breaking into the already occupied markets. In many places across Europe, well respected coffee chains have already been established and have a decently loyal consumer base. Given the incredible quality of Starbucks’ coffee, a simple price-war could generate new customers quickly. From then, a continued positive reputation will be established for the company and Starbucks’ market share will grow. Once a decently sized market share has been established, Starbucks can then begin to gradually increase their prices, while offering incentives along the way. Before too long, Starbucks have the potential to become a dominate force in Europe which still maintaining high margins through premium pricing. Another obstacle facing them is the skepticism that they use materials that are harmful to the environment, such as Styrofoam. This is of course untrue, but all that matters is what the customers believe. They can overcome this through a marketing campaign designed to clear the air. Also, Starbucks faces sensitive political issues in the Middle East that they will...
Words: 891 - Pages: 4
...Starbucks: Going Global Fast Ronnie Deaver MKG400 International and Multi-Cultural Marketing Colorado State University – Global Campus Dr. Michael E. Ricco June 19, 2016 Starbucks: Going Global Fast Starbucks is a fast growing and well known US based company focused on penetrating international markets. When entering a new market, there are always associated risks, problems, controllable/uncontrollable elements, and process optimizations. Below is a discussion on the factors contributing to Starbucks expansion into international markets such as Japan. Controllable Elements For any company expanding to a new market, there is a plethora of controllable and uncontrollable elements to consider; some new and some similar to those faced in domestic markets. Interestingly, the controllable factors that Starbucks encountered when entering the global market were similar to those faced in their domestic market; product, price, place and promotion. The Starbuck’s brand name and image connect with millions of customers globally. Starbucks can control and adjust its product to meet the cultural needs and expectations of a market; including price, availability, and their marketing strategy. Using appropriate market research, Starbucks can pre-emptively make certain that their product is the right fit for each of its international locations. According to Starbucks (n.d.), they maintain a high level of success internationally by working with international partners who understand...
Words: 1225 - Pages: 5
...Executive Summary and Company Summary The name of our organization would be Fun and Games Café. We are going to position ourselves as the only company in Melaka that provides café and also entertainment facilities under one roof. Entertainment facilities that would be provided by us include snooker table, pool table, foosball, arcade games and a mini theater. In fact, there are many reasons for our company to be established. We can say that we do not have a direct competitor but an indirect competitor. This is because in Melaka, there is no other outlet that has this combination of the two concepts together. They either have café by itself or entertainment outlet by itself. The potential for our target market to be attracted is also very high. This is because our target market consists mainly on students surrounding the area especially from Multimedia University and also residents around or within 3 kilometers radius from our Fun and Games Café outlet. As we know the lifestyle of people nowadays they tend to like to enjoy and relax more. Other reasons they can hang out at our place includes social and releases tension. Our start up cost would be RM 121, 600 which a large percentage of it would be borrowed from Public Bank. The estimated break even point would be 2.86 years, though; this could be shorten if the market situation is good and provided we put more initiative and hard work. The sales are expected to grow 40%. We must target a net profit of 14% at least and hold...
Words: 4594 - Pages: 19
...Summary Starbucks is one of the largest chains of coffee shops in the world, started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now owns 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well seasoned management team popularly known as H2O, because of Howard Schultz (Chairman and Chief Global Strategist), Howard Behar ( Head of North American Operations), and Orion Smith (CEO). Although, the company has expanded enormously, since it went public in 1991 but has also encountered a number of problems. The problem it faced had it mounted in home and abroad. The company had its success through the baby boomers in the 90s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them. The Starbucks did not have much competition like Mc Donald’s and the likes in the initial days but now they have competitors such as Tully’s coffee shop. They also had problems of employees’discontentment. The expensive and aggressive marketing strategy has given Starbucks market dominancy. They earn $181.2 million in the year 2000, sales were still growing but it started growing in a decreasing rate, because their aggressive strategy and attitude towards competitors not only they grew rivalry with local business people but they lost customer. It was difficult for...
Words: 1330 - Pages: 6
...CASE 1-1 Starbucks---Going Global Fast 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Ans. I think the controllable factors that Starbucks has encountered entering the global market are similar to those in their domestic market. These factors include product, price, place and promotion. The Starbuck's name and image connect with millions of consumers around the globe. Internally, Starbuck's is able to make adjustments to fit a county's cultural tastes and expectations regarding their product, it's price, where it is available and how it is marketed. Starbuck's is also able to take part in market research to be sure their product has the right fit for each of its international locations. According to the company's website, they maintain a high level of success internationally by choosing international partners who share their values and commitment to bringing the Starbuck's experience to customers worldwide. The controllable elements can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, and corporate objectives. Some elements that are almost impossible to control by Starbucks management include: • Sovereign risks - governments of foreign countries may change their fiscal and monetary policies affecting the operations of Starbucks. • The Prices of coffee in world commodity markets - prices may be affected for example...
Words: 295 - Pages: 2
...Case 1-1 Starbucks – Going Global Fast Sept. 23, 2012 Question#1 - Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. The controllable elements of marketing decisions for Starbucks include product, price, promotions, distribution and research. The uncontrollable elements of marketing decisions facing Starbucks include competition, politics, laws, consumer behaviors and level of technology. (Philip Cateora, 2010) Starbucks is one of the largest chains of coffee shops in the world. The Starbucks name and image connect with millions of consumers around the globe. Up until recently, it was one of the top fastest-growing brands in annual BusinessWeek surveys of the top 100 global brands. Starbucks grew from 17 coffee shops in Seattle 15 years ago to over 16,000 outlets in 50 countries. (Philip Cateora, International Marketing, 2010) Starbucks dominates the segment as it spreads its stores into more and more markets and moves its brand into supermarkets, offices, hotels, airports, and other venues. (Business, 2001) Starbucks has managed to remain nearly debt free by relying on mystique and word of mouth, whether here or overseas, the company saves a bundle on marketing costs. Starbucks spends just $30 million annually on advertising, or roughly 1 percent of revenues, usually just for new flavors of coffee drinks in the summer and product launches, such as its new in-store Web service. Most consumer companies their...
Words: 1349 - Pages: 6
...uncontrollable elements that Starbucks has encountered in entering global market As far as controllable elements go Product, Price and Promotion are the main factors encountered when entering a global market. For instance, Starbucks offers a variety of products that are not related to coffee in Italy, as Starbucks charges customers 1.5$ for a coffee in the USA in Italy the price is 67 cents. A major controllable element is also the channel of distribution that they have, being the biggest coffeshop worldwide they have approximately 20,891 stores proving that it is indeed a controllable element. When speaking about uncontrollable elements Starbucks has several barriers to overcome. In a foreign environment Competitive, Economic, Cultural and Political/Legal forces all play a role in the uncontrollable area of Starbucks’ expansion. To begin competitive forces such as in the UK Starbucks has faced imitators who are trying to acquire themselves more market share, whereas in Japan the Starbucks local rivals offer a similar product though competition is not limited to only these two countries. The economic conditions vary throughout different countries; thus Starbucks must arrange different strategies in accordance with each’s countries economic condition. 2. What are the major sources of risk facing the company and discuss potential solutions? -The US market is being saturated meaning that the market is flooding with these product i.e : Starbucks coffee. A solution to this...
Words: 847 - Pages: 4
...elements that Starbucks has encountered in entering global markets. The controllable elements in the global market are the product, price, place, and promotion. Starbucks is using their products as promotion as high quality. Starbucks is known to have a sweeter taste than the average beverages served at a coffee shop. Starbucks has done research on places they want to reach out to overseas. Starbucks has done studies overseas in Japan, Italy, Spain, Germany, Mexico, and Puerto Rico. For each location, they had to do studies and factor in what their target market is and what they will be doing in those countries. Some problems Starbucks faced were their product. One thing the local coffee shops had over Starbucks is that they served food with their drinks. The uncontrollable elements in the global market are the social factors, legal matters, government, and competitors. As we all know, Starbucks is all over the globe in almost every country. By doing this, they had to face local coffee shops, competitors, and people that were loyal to the local shops. Everyone knows what Starbucks is and what they do, and even so, they had a hard time gaining new customers. There are many regulations and laws they had to face because every country is different and has different regulations and laws that are to be enforced. 2. What are the major sources of risk facing the company? Discuss potential solutions. Global expansion is a huge risk for Starbucks. Starbucks does not generate...
Words: 1088 - Pages: 5
...首都文化创意产业国际核心竞争力问题研究 【摘要】文化创意产业（Cultural and Creative Industries）在国民经济发展中具有战略意义。本项目在前人研究的基础上，对首都文化创意产业国际核心竞争力进行研究界定。通过设计首都文化创意产业的国际核心竞争力评价指标体系，并与纽约、伦敦进行对比，发现该产业存在的问题，分析产生问题的原因，并提出切实可行的意见，以达到提高首都文化创意产业核心竞争力的目的。 【关键词】首都文化创意产业 国际核心竞争力 评价体系 问题 建议 引言 文化创意产业（Cultural and Creative Industries），是一种在经济全球化背景下产生的以创造力为核心的新兴产业，强调一种主体文化或文化因素依靠个人（团队）通过技术、创意和产业化的方式开发、营销知识产权的行业，北京市将提高首都文化创意竞争力纳入十二五发展规划。 首都文化创意产业自发展之初至今，始终处于高速发展的增长阶段，这也是其核心竞争力所在。但是在国际范围内，与其他文化创意产业发达国家相比，首都文化创业产业存在发展起点低，发展过程中存在“泡沫化”现象，创新能力不足，无法及时满足市场需求等问题。我们在总结前人对于首都文化创意产业国际核心竞争力问题研究的基础上，采用理论分析和实证研究结合的方法，对首都文化创意产业国际核心竞争力进行深入研究。 首都文化创意产业国际核心竞争力及其指标 1997年5月，英国政府为调整产业结构和解决就业问题，首相布莱尔提议并推动成立了创意产业特别工作小组，提出把创意产业作为振兴英国经济的重要手段,1998年英国政府出台了《英国创意产业路径文件》，明确提出了“创意产业”的概念。之后，将文化创意产业界定为：源自个人创意、技巧及才华，通过知识产权的开发和运用，具有创造财富和就业潜力的行业。2006 年12 月，北京市统计局、国家统计局北京调查总队联合制定发布《北京市文化创意产业分类标准》，将文化创意产业定义为“是以创作、创造、创新为根本手段，以文化内容和创意成果为核心价值，以知识产权实现或消费为交易特征，为社会公众提供文化体验的具有内在联系的行业集群”。 核心竞争力是一种相对于竞争对手的优势竞争能力；是一种竞争对手在短期内几乎无法模仿的独具能力；是一种处于核心地位的能力；是一种长期积淀而形成的，并长期起作用的能力。文化创意产业的核心竞争力是指一国在特定经营环境中所形成的具有整体性的、对文化创意产业的发展具有核心和支配地位的、具有自我完善能力的、其他产业难以模仿的优势竞争能力。在国际化的推动下，核心竞争力在国际范围内形成了国际核心竞争力。国际核心竞争力是指产业在国际化竞争中所体现的核心竞争力，也就是在全球化推动下，一个国家的某一产业若需要在国际上站稳脚跟所必须的竞争能力。国际核心竞争力横向上包括某国家的某产品与国际上其他国家相同种类产品的竞争，纵向上包括某国家的某产品在国际市场上的销售情况。 文化创意产业国际核心竞争力是文化创意产业在国际竞争中对其发展具有核心和指导作用的优势竞争能力，也就是可以使其具有竞争优势的能力。因此，可以将国际文化创意产业核心竞争力理解为: 一个国家或区域文化创意产业在其发展过程中，通过长期学习、创造、积累与整合而形成的一种独特的、不易为竞争对手所模仿或取代的，在文化创意产业资源以及产业体系、战略、政策、制度和创新机制等方面的国际性的综合优势。 对于文化创意产业国际核心竞争力这一复杂的系统，简单的把它分解为各个指标逐个分析显然是不够的，...
Words: 1327 - Pages: 6
...uncontrollable elements that Starbucks has encountered in entering global markets. In Japan Starbucks had to deal with uncontrollable elements such as competition among the rival shops, as well as an economic depression. Controllable element in Italy: Price (Italian coffee bars prosper by serving food as well as coffee, an area where starbucks still struggles. Also Italian coffee is cheaper than US coffee. Americans pay about 1.5 for an espresso, on the other hand northern Italy the price is 67 cents, in the south just 55 cents. [ (Starbucks Going Global Fast Case 1.1, 2013) ] 2. What are the major sources of risk facing the company? Discuss potential solutions. Starbucks grew from 17 coffee shops in Seattle 15 years ago to over 19,000 outlets in 58 countries. In Seattle there is outlet for every 9,400 people. And the company considers that the upper limit of coffee shop saturation. The company faces an ominously hostile reception from its future consumers, the twenty- or thirty-somethings. They don’t feel wanted in a place that sells designer coffee at $3 a cup. Potential Solutions: The Market saturation can be overcome by focusing on international or global marketing. Figure out a new strategy to market to the newer generations. Possibly focusing on the product that they are selling by improving the quality of the coffee so that the price of 3 dollars or more fits what they are serving. 3. Critique Starbucks’ overall corporate strategy. Starbucks believes that they...
Words: 473 - Pages: 2
...STARBUCKS Global Communication’s main focus was to cut costs to return profitability and to introduce new products and services. Many companies are going through the same situation as Global Communication is going through. One useful example of similar incident would be Starbucks. Starbucks is a fast growing profitable organization in which it earns $600 million in 2004 (Horovitz, 2009). Like Global Communication, Starbucks have competitors and Starbucks’ biggest competitors are McDonald’s and other fast-food companies. McDonald’s sell cheap food and beverage, especially when they introduced the new McCafe coffee bar. The economy is not doing well for the past few years and people have shift their buying habits from Starbucks luxury coffees into fast-food lower-priced coffees, lattes, and cappuccinos. After 2008 first-quarter results reflected a 10% drop, CEO of Starbucks, Howard Schultz, announced that Starbucks plan to cut jobs, close stores, slow growth all over the world (Horovitz, 2009). Starbucks plan to open 140 new stores in United States when they usually open 200 stores a year. Starbucks also plan to open 170 new stores globally when the number should be 270 (Austin Business Journal, 2009). Starbucks is making a smart move by lowering their target goal. The corporation went through a financial analysis quarterly and noticed the drops of profits. Something needs to be done so they put a push into it by downsizing stores and employees. Global Communication...
Words: 939 - Pages: 4
...CASE 1 – 1 Starbucks - Going Global Fast ------------------------------------------------- ------------------------------------------------- Didem Akdemir ------------------------------------------------- Mignon Pemberton ------------------------------------------------- Yunella Webb ------------------------------------------------- ------------------------------------------------- 2 IBMS Feb11 Table of Contents 1. Summary 2 2. Questions 4 3. Sources 6 1. Summary Starbucks’ success Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now own 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well-seasoned management team popularly known as H2O, because of Howard Schultz (Chairman and Chief Global Strategist), Howard Behar ( Head of North American Operations), and Orion Smith (CEO). This year (2002) it had about 1200 and it was still in the early stages of its plan to colonize the world. Problem Although, the company has expanded enormously, since it went public in 1991, this growth can not last much longer. New profits in the saturated home market are difficult to make. Although, there are still 8 states with no Starbucks stores in the U.S. One outlet for every 9400 people is the norm according to Starbucks and this has not been reached yet. The company admits that while...
Words: 1634 - Pages: 7
...Starbucks – Going global fast case study Prashansa Sunuwar King’s College affiliated with Westcliff University BUS 367 The Necessities of International Marketing and Culture Dr. Thien-Huong T. Ninh March 20, 2016 Abstract This paper addresses the various factors and risks that a company has to face while going global. This report is based on the case study focused on Starbucks. It answers various questions regarding issues that an international company like Starbucks has to face. The answers incorporate the elements that are both controllable and uncontrollable when a business is going global. The sources of risks that Starbucks is facing and what can be done to eliminate the risk are provided. Also, there are few suggestions regarding what Starbucks can do to improve profitability in Japan. Starbucks – Going Global Fast Case Fifteen years ago, Starbucks had 17 coffee shops in Seattle. Now, it has 19,000 outlets in 58 countries. According to the official website of Starbucks, Starbucks serves a wide variety of hot and cold drinks including espressos, cappuccinos, and even pastries and other delectable treats. Starbucks has become a meeting place for people. People go to Starbucks to chat, meet up, and even for meetings and rejuvenation. The success of Starbucks grew after Howard Schultz purchased Starbucks on 1981 and introduced Italian coffeehouse tradition in the United States in 1983. After Starbucks went public, the sales have increased by an average of 20 percent annually...
Words: 2430 - Pages: 10
...Global Market and Emerging Markets Instructor: Barıs Erman Depecik Assignment 1: Discussion Write Ups Reha Cetintemel, Ahmet Berkay Bork, Mehmet Selahi Sisikoglu Section 2, Team 5. Assignment 1 Case Study 1: Global Portfolio Planning and Market Interconnectedness On some geographic regions,it is still better to adhering to allocating resources on a country-by-country basis, since some countries did not experience the rapid change and dynamism in terms of competition. So, in order to not waste time and resources, some countries do not require thorough research. Also, it is important to realize that, customers in proximate countries show similar motives, attitudes among a brand, product line etc. Therefore, companies can rely on this similarity, which will ease their process while they decide to enter or improve their status on these markets. Sometimes, a single approach for multiple countries might be enough. However, firms might need to alter their marketing strategy, even they operate on similar markets. They should not take it granted that the same strategy will work for different markets, as we have seen some examples that some of the strategies fail even the difference between markets are so small. One way or another, they might have to make small changes, in order to adapt their strategy for a given market. Case Study 2: Starbucks: Going Global Fast Starbucks is one of the famous worldwide brands. Admirely i read the case about starbucks and its aggressive...
Words: 738 - Pages: 3
