...Globalization Starbucks is a global company. Globalization affects the four functions of management in many ways. Being that it is a global company there must be more use of the functions. It must be done on a larger scale than with a smaller company. The different sites have to communicate on the plans of action. It could affect the functions negatively , in that there are so many sites that need to be considered when planning. It could be hard to get all of the management team onboard at the same time., Technology Starbucks has always been on top of it in regards to technology. They are one of the first coffee places to offer free wi-fi. They are known for being an upscale coffee spot. This is where technology comes into play. Starbucks has to be on top of the technology scene being that they are a worldwide company. The functions can be affected by this fact. For the company to stay as successful as it is, they need to stay up to date with the latest technology. If it has the most up to date technology then it can interact with the stores with efficiency. Innovation Innovation parallels with technology. If the management team at starbucks is trying to get more innovative. They need to make sure they have younger management teams. The younger generations are able to think “outside of the box”. The younger generation is more up to date on the new technologies that are coming out. They have graduated recently so they know what the younger people are interested in. This...
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...Globalization and Starbucks Globalization has impacted almost every organization currently in operation. Even when organizations choose to limit their activities and operations to a specific geographical region, globalization becomes part of operations as new technologies bring international attention and customers to the company. In the end, few organizations are able to escape the impact of globalization. Given the importance of globalization on the organization, there is a clear impetus to consider how this reality will impact business operations in both the short and the long-term. Using this as a basis for investigation, this research considers the impact the globalization is having on the Starbucks organization. Through a careful consideration of how globalization has impacted this organization, it will be possible to provide salient policy recommendations for change that will improve operations in the organization. Starbucks-An Overview In order to begin this investigation, it is first helpful to consider a review of the Starbucks organization and critical issues currently impacting its development. Reviewing this history of this organization, Lyons (2005) reports that Starbucks originated in Seattle, Washington as a premium coffee retailer. In an effort to foster the success of the organization, leaders chose an aggressive business model that would allow them to permeate and saturate local markets. The business model used by the organization was novel, prompting...
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...Globalization of Starbucks September 2, 2013 University of Phoenix Globalization of Starbucks Globalization, what does it actually mean? Globalization : the act or process of globalizing : the state of being globalized; especially : the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets(www.merriam-webster.com, 2013). Many companies, large and small are crossing the lines of safety and comfort of traditional business and are expanding their brands and businesses across the globe. This new process is exciting, insightful, life changing and disruptive all at once. Starbucks has been one of the leaders on the forefront of globalization. Starbucks started out as a simple small coffeehouse on Seattle’s Pike Place Market in 1971. Initially, Starbucks was just a single storefront that was roasting whole bean and ground coffee as well as tea and spices. In 2006, this global empire delivered the corporation net revenue of $7.8 billion – a figure over three times the size of Liberia’s GDP (www.newint.org, 2007). The difference began with their mission, to provide the best cup of coffee all while inspiring and nurturing the human spirit, one person, one cup and one neighborhood at a time (www.globalassets.starbucks.com, 2012). This mission would change the lives and cultures of so many to come. The coffee buyers of Starbucks had the premonition that great coffee...
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...External Factors Introduction To be successful organizations rely on the four functions of management: plan, organize, lead, and control. However, implementing these functions is not easy when other factors come into play. External and internal factors such as, globalization, technology, innovation, diversity and ethics all affect the four functions of management. If an organization wants to be successful they must adapt to these different factors. One company that has been able to do so is Starbucks Corporation. The adaptation and utilization of these many different internal and external factors has helped to make the company very successful. Globalization Globalization is the integration and exchange of worldwide cultures and resources. “Corporations operate worldwide, transcending national borders” (Bateman, & Snell, (2011), pp. 4). Advancement technology has led to advances of transportation and telecommunication, and these advances have led to connections and interactions between people that may not have encountered each other. Globalization has also led to an increase of available resources to companies around the world. When it come to the four functions of management and how globalization affects them, an organization must plan a companies goals and mission according to whether or not they want to globalize, export or import, then they must organize their company and departments to help implement the plan, next they must be able to lead their employees...
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...networks, and many more. * Why consider going international? * To increase overall customer base * To offset seasonal fluctuations in local markets * To minimize risk of losing market share to clients who themselves use internet to find goods\ services in overseas markets * To offset increasing costs of doing business at home * To gain prestige with customers at home * Why STARBUCKS? In a globalized world where every company has the opportunity to explore the world in search of other profitable markets, there are different challenges and opportunities faced. I would like to explain this by focusing on Starbucks, one of the world’s leading coffee chains. Starbucks has come a long way from a coffee bean retailer to one of the world’s most recognized coffee houses. All throughout the years, Starbucks have expanded both domestically and internationally. In this answer, I would like to explain about the process of internationalization that Starbucks employed and continues to employ. The aim is to analyze the strategies of Starbucks in entering new markets and expanding internationally. For this answer, instead of choosing an...
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...The Globalization of Starbucks Thirty years ago, Starbucks was a single store in Seattle’s Pike Place Market selling premium-roasted coffee. Today it is a global roaster and retailer of coffee with some 17,000 stores, 40% of which are in 50 countries outside the United States. Starbucks set out on its current course in the 1980s when the company’s director of marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz, who later became CEO, persuaded the company’s owners to experiment with the coffeehouse format – and the Starbucks experience was born. The strategy was to sell the company’s own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. From the outset, the company focused on selling a “third place” experience, rather than just the coffee. The formula led to spectacular success in the US, where Starbucks went from obscurity to one of the best-known brands in the country with over 137,000 employees and $10.7 billion in annual revenues. Thanks to Starbucks, coffee stores became places for relaxation, chatting with friends, reading the newspaper, holding business meetings, or (more recently) browsing the Web. In 1995, with 700 stores across the US, Starbucks began exploring foreign opportunities. The first target market was Japan. The company established a joint...
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...One: Globalization of Starbucks 1. The original idea came out when the company’s director of marketing, Howard Schultz came back from a trip to Italy enchanted with the Italian coffee house experience. A lesson can be drawn that we should always pay attention to what is happening around us. If we take others’ essences and discard the dregs, our own business will be successful sooner or later. 2. Starbucks start expanding internationally because its Starbucks format led to spectacular success in the United States, and it became one of the best-known brands in the country in a decade. In 1997, with 700 stores across the United States, Starbucks began exploring foreign opportunities. I think Starbucks’s strategy is a very smart action. Starbucks has created the successful “Starbucks experience”, so it will indeed become more successful after international expansion. This will not only attract more investors, but also bring Starbucks and its shareholders lots of benefit. 3. I think joint venture would reduce the cost and win reputation when Starbucks enter a foreign market. As a big local retailer, Sazaby Inc. already had constant customer group, it naturally led its customers to try the new Starbuck coffee. It saved advertising and promotion expenses. In addition, by jointing venture, Starbucks would naturally win good reputation in the beginning, so more customers would trust it and try to taste it. 4. Yes, I think Starbucks is definitely a force for globalization. It is...
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...Globalization International Business Samantha Oberbeck January 29, 2016 Starbucks is a globally recognized coffee company that has locations all over the world. The one part that is missing from the company is a delivery service. In order to take this to the international market, it is important to have an understanding about the pros and cons of doing so, as well as a general knowledge of international expansion. Coffee is a drink enjoyed by most people, whether at home, work, on the road, in the hotel, etc. Premium coffee, like Starbucks, is worth paying for. As of 2012, “Starbucks reported having 5,500 coffee shop locations outside the United States” (Sbdcnet.org, 2016). Their first international coffee house was opened in Tokyo, Japan in 1996. Starbucks now has more than 21,000 stores in over 65 countries. “China is the coffee chain’s number one growth market” (Ball, Geringer, McNett & Minor, 2013, p. 7). In 2015 Starbucks added the “Mobile Order & Pay” option, which just further drives the opportunity to have coffee delivered to you. For consumers, a delivery service is perfect. For the coffee companies attempting the new services, it is much more complicated. Motives for American companies to enter the foreign market are to increase profits and sales and the wants to protect those profits and sales from being destroyed by their competitors. Because Starbucks is the leading coffee company in the world, the company has the advantage in profits and sales...
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...Introduction When we talk about the largest coffeehouse company, the first thing that comes to your mind is Starbucks. Starbucks Corporation was launched in 1971, it corporation is based in Seattle, Washington and has more than 16,000 outlets all over the world. Starbucks always believe that serving the best coffee is there aim, there coffee beans are grown under highest quality standards and sourced using ethical practices. Starbucks s not only limited to selling coffee but also sells verity of products, viz. coffee (more than 30 blends and single origin premium coffees), handcrafted beverages (Frappuccino, smoothies, Tazo tea, fresh brewed coffee), Merchandise (coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts), Fresh Food (Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups) and Consumer Products (coffee and tea, ready to drink products and ice-creams). They also carry other brands under their trademark Starbucks Coffee, Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange and Torrefazione Italia Coffee (Starbucks, 2012). Impact of Globalization and Technology The corporation I researched was Starbucks. Starbucks is a worldwide corporation that operates in around 62 countries around the world. Just like every other corporation that has sprung up exponentially as a global entity, Starbucks has gone above and beyond to adapt its operations to the needs of the specific countries. Provision of local...
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...Byung-il Min D301 9:00-10:15 The Globalization of Starbucks Case Discussion Question 1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? -First of all, Starbucks’s strategy was to provide their own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products. When they spread to Japan coffee market, they used Japan’s local retailer, Sazaby Inc. Even Starbucks joined with Japan Venture Company, they didn’t lose their own coffee shop style. Finally they could get the success in the Japan market. In the international business, companies who want to invest to other country have to research and get a lot of information because they don’t know about foreign rules and regulations of business. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? -Starbucks expects the foreign opportunities. At the 1990’s, Asia didn’t have any coffee shop markets. Moreover, coffee culture is not friendly to Asian. Someone thought Starbucks’s adventure doesn’t achieve. However, Starbucks used the “Starbucks experience” in North America, which coffee stores became places for relaxation, chatting with friends, reading the newspapers, holding business meeting, or browsing the web. This experience smashes to Asian...
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...Skyline University Collage Case 1-1 - Starbucks International Marketing class – Dr. Shivakumar Alaeddin Khader Answers to the case study questions: 1. In Its journey to the top of international success in coffee stores, Starbucks has faced a lot of controllable and uncontrollable challenges. Starbucks started in Seattle in the United States where the people there love coffee and have a lot of coffee shops to visit. That was the first uncontrollable challenge facing the company as it started in nearly saturated environment with lots of competition. When operating in international market they need to operate through local partner who will cut from their profit so that they will keep only 20 to 50 percent of the profit. Expansion to international market poses with huge risks. While spreading out they have faced cultural challenges. Below picture shows the protesters against the globalization attaching Starbucks as they see it as a symbol for the free market international company and represents the globalization. For the controllable challenges that Starbucks have faced, the company growth largely in the United States as they have participated themselves of saturating the market of coffee shops as their crowding of so many stores so close to each other has become a national joke. Such as the headline in the Onion (a satirical publication): “A New Starbucks opens in restroom of existing Starbucks”. Opening so many stores near to each other will cut...
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...ASSIGNMENT BRIEF (I) Task One : Brief note on McDonalds McDonalds is one of the world’s leading fast food franchisee. They mainly concentrate on burgers with occasional additions with to suit the host country. They have designed meals targeted at adults to toddlers so as to reach wider range of audience. They operate in more then 119 countries and serve around 52 million customers per day which makes it a global brand. Globalization of McDonalds Globalization is the interlocking of different countries in the world in a political, economic, social and technological sense. People around the globe are more connected to each other than ever before. Information and money is exchanged at an alarming rate. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more common compared to earlier times. International communication is commonplace. This phenomenon has been titled "globalization." McDonalds Restaurants: Number by Region 1991 & 1996 Table [pic] Graph by Benjamin Holt, August 1999 Source: Human Development Report 1998 (www. global policy.org) The graph gives an example of how Mcdonalds have opened branches in various locations in such a short span of five years. Mcdonalds is a brand in itself and there hardly will be anyone who is not aware of their existence. The burger is an American food but Mcdonalds have gone to prove that it is accepted by 52 million people and is...
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...industry. America leads the world in coffee-consumption, consuming over 2 million pounds of coffee per year. Companies have come and gone but power houses like Folgers and Maxwell House have maintained the top shelf with American consumers, until the 1990’s. Starbucks, founded by Jerry Baldwin, Gordon Bowker, and Zev Sieg, initially started in the early 1970’s as an importer of the world’s finest coffee in a little coffee house located in Pike Place Market Seattle, Washington. Portraying a vision of ”To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”,"Starbucks" (2013). The little known coffee bean importer globalized the Starbuck chain and has since developed into one of the world’s most renowned coffee bean retailer. In this paper we will look at organizational resources focusing in on physical assets as well as the application of technology in the company and how effective and efficient Starbucks utilizes them. Organizational Structure Starbucks recently publicly announced restructuring the company due to globalization demands, and has adapted to a divisional organizational structure. The company pre 2011 executed operations via two separated entities; Starbucks US and Starbucks Coffee International (SCI), with the reorganization it will now be operating three divisions; China and Asia Pacific, Americas; and EMEA (Europe, Middle-East, and Africa). Each of these divisions will have a President to oversee the company operated retail...
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...Starbucks is a public company. that operates a chain of stores that sells high-quality coffee. Its typical company-owned store has a pleasant, coffee-house atmosphere complete with couches and Wi-Fi and is known for being a place to meet and gather. Starbucks licenses its stores to other business, not to individuals. For example, in the US Starbucks licenses stores to Host International, Inc. an Autogrill group (my employer), is a concessions company found in airports around the world, in operating travel malls on the East Coast and Canada, and doing business various malls throughout the U.S. Many of our establishments provide the standard Starbucks atmospheres; others just have a counter to sell coffee and pastries. Starbuck’s stores account for about 90% of Starbuck’s revenue. Global expansion is essential to Starbucks, just as it is to other successful companies. In 2003, Starbucks opened in foreign markets. But, the company encountered problems. Internally the problems arose within the company’s international business model, and externally the problems arose in the form of overseas competition. “Starbucks quickly learned that tactics that had worked to establish the market in the domestic market were not favorable in international expansion” (Yunker, 2006). Starbucks also encountered issues with rival coffee shops copying the Starbucks’ business practices (i.e., the Starbucks name, and even the Starbucks company logo). In turn, the company had to utilize intellectual...
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...Globalization may be defined as the integration of the world's people, firms and government. In the modern context, globalization is usually the result of closer ties in international trade, known as bilateral trade agreements. The WTO and NAFTA are two examples of such bilateral trade agreements. With such agreements, cross-country investment increases. This increase in investment is aided by the increase in information technology and communications, which has undergone a significant advancement over the last two decades with the rise of the Internet and mobile telephony. Expanded Markets From the business perspective, one effect of globalization is that of expanded markets. This means that a business that had previously only sold its goods domestically can start selling products to other countries. One example of expanded markets includes the auto industry. Before the fall of the Berlin Wall, those living in countries under the influence of communism only had access to cars that were produced domestically or in other communist markets. This was due to trade barriers with the West. When communism fell, Western economies, that is, countries that were not under communist influence, were able to expand their markets to former communist countries. This in turn increased their profit potential. Related Reading: How to Prepare Your Company for Globalization Cheaper Resources Another consequence of bilateral trade agreements is the access to cheaper resources. Until the start of...
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