Premium Essay

Why Starbucks Failed in Israel

In: Business and Management

Submitted By dinicolastefano
Words 6270
Pages 26
Cand.soc /MSc in social Science
Leadership and Strategy in Service Management

03/05/2015

Stefano Di Nicola
CPR 081190-3523
Tomás Vaz De Carvalho
CPR 190491-4025

Leadership and strategic Management
Mini-Project
Why Starbucks failed in Israel?
COPENHAGEN BUSINESS SCHOOL 2015
Program: Cand.soc Service Management

N° of pages: 14
N° of characters: 30,946
Hand-in the 03/05/2015

1

Cand.soc /MSc in social Science
Leadership and Strategy in Service Management

03/05/2015

2

Cand.soc /MSc in social Science
Leadership and Strategy in Service Management

03/05/2015

TABLE OF CONTENTS

1.

Introduction ...................................................................................................... 4
1.1.
1.2.

2.

Problem Statement ................................................................................................ 5
Methodology .......................................................................................................... 5

Analysis ............................................................................................................. 6
2.1.

Cultural Analysis .................................................................................................... 6

2.1.1.

Introduction to Hoftede’s 5 Cultural Typologies Framework ..................................... 6

2.1.2.

Israeli culture vs. United States culture............................................................................ 7

2.1.3.

Cultural analysis - Conclusion ........................................................................................... 8

2.2.

Market Analysis ..................................................................................................... 9

2.2.1.
2.2.2.

Introduction to the S.W.O.T. Framework

Similar Documents

Premium Essay

Influence of Consumer Behavior on Business

...business Starbucks Corporation, based on Seattle, is the world’s largest coffeehouse with 20891 stores in 62 countries. (Starbucks- Annual report, 2012). From the very beginning, till 1971, Starbucks has been relentlessly trying to satiate customers thirst for high quality coffee with the touch of friendliness in its environment. Starbucks mission statement “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go further and invest in Bangladesh. And tried to analyze consumers’ behavior of Bangladesh and show its macro and micro factors’ influences over Starbucks present marketing practices. Starbucks SWOT analysis “SWOT analysis pursues and integrated approach that includes key variables from company and environment. The objective is the confrontation of the company’s internal strengths and its weaknesses, as well as, company-external business opportunities and threats in order to generate possible strategic options.” (Bohm, 2009, p.1) The SWOT analysis of Starbucks can be illustrated...

Words: 3571 - Pages: 15

Premium Essay

Starbucks

...challenges facing Starbucks in 2010 Motives of Starbucks’ internationalization Exploring internationalization motives of Starbucks represented by a number of factors, including proactive and reactive factors, provides a better understanding of the reasons for the company’s decision to expand to foreign markets. Proactive motives are related to the firm’s motivation to take advantage of new market opportunities. While reactive motives represent that the firm responds to environmental changes and pressures in its domestic market or in foreign markets and adjusts the activities over time. (Hollensen 2011; Czinkota et al. 2009) Seeking growth and exploring new market opportunities are major proactive motives of Starbucks’ internationalization. Moreover, decision-makers are likely to explore first those overseas market opportunities perceived as having some similarity with the opportunities in their home market. At a later stage of internationalization Starbucks strived to make use of economies of scale which enabled the company to rise more rapidly on the learning curve and reduce production costs. (ibid) Major reactive motive for initial stage of Starbucks’ internationalization is represented by physical and psychological closeness to Canada that was the first foreign market for the company. Another reactive motive of Starbucks’ international expansion is saturation of the domestic market. The case study mentions that Starbucks expanded to foreign...

Words: 7138 - Pages: 29

Premium Essay

Starbucks

...Globalization PART ONE Planet Starbucks T hirty 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 more than 7,600 retail stores, some 2,000 of which are to be found in 34 countries outside the United States. Starbucks Corporation 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 basic strategy was to sell the company’s own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company also stressed providing superior customer service. Reasoning that motivated employees provide the best customer service, Starbucks executives devoted much attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. In 1995, with almost 700 stores across the United States, Starbucks began exploring foreign opportunities...

Words: 24447 - Pages: 98

Premium Essay

Habit

...acid-free paper Illustrations by Anton Ioukhnovets www.atrandom.com 2 4 6 8 9 7 5 3 1 First Edition Book design by Liz Cosgrove Duhi_9781400069286_2p_all_r1.j.indd iv 10/17/11 12:01 PM To Oliver, John Harry, John and Doris, and, everlastingly, to Liz Duhi_9781400069286_2p_all_r1.j.indd v 10/17/11 12:01 PM Duhi_9781400069286_2p_all_r1.j.indd vi 10/17/11 12:01 PM CONTENTS PROLOGUE The Habit Cure GGG xi PA R T O N E The Habits of Individuals 1. THE HABIT LOOP How Habits Work 3 31 60 2. THE CRAVING BRAIN How to Create New Habits 3. THE GOLDEN RULE OF HABIT CHANGE Why Transformation Occurs GGG PA R T T W O The Habits of Successful Organizations 4. KEYSTONE HABITS, OR THE BALLAD OF PAUL O’NEILL Which Habits Matter Most 97 Duhi_9781400069286_2p_all_r1.j.indd vii 10/17/11 12:01 PM viii G Contents 5. STARBUCKS AND THE HABIT OF SUCCESS When Willpower...

Words: 124310 - Pages: 498

Free Essay

Nihilism

...Nihilism!!! What is Nihilism? A common (but misleading) description of nihilism is the 'belief in nothing'. Instead, a far more useful one would substitute 'faith' for 'belief' where faith is defined as the "firm belief in something for which there is no proof." A universal definition of nihilism could then well be the rejection of that which requires faith for salvation or actualization and would span to include anything from theology to secular ideology. Within nihilism faith and similar values are discarded because they've no absolute, objective substance, they are invalid serving only as yet another exploitable lie never producing any strategically beneficial outcome. Faith is an imperative hazard to group and individual because it compels suspension of reason, critical analysis and common sense. Faith is "don't let those pesky facts get in the way of our political plan or our mystically ordained path to heaven"; faith is "do what I tell you because I said so". All things that can't be disproved need faith, utopia needs faith, idealism needs faith, and spiritual salvation needs faith. Fuck faith. The second element nihilism rejects is the belief in final purpose, that the universe is built upon non-random events and that everything is structured towards an eventual conclusive revelation. This is called teleology and it's the fatal flaw plaguing the whole rainbow of false solutions from Marxism to Buddhism and everything in between. Teleology compels obedience towards the...

Words: 28720 - Pages: 115

Premium Essay

Strategy Case Studies

...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...

Words: 71150 - Pages: 285

Premium Essay

Cornalcornalcornal

...Contemporary Developments in Business and Management Kenneth Fee The University of Sunderland © 2013 The University of Sunderland First published September 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without permission of the copyright owner. While every effort has been made to ensure that references to websites are correct at time of going to press, the world wide web is a constantly changing environment and the University of Sunderland cannot accept any responsibility for any changes to addresses. The University of Sunderland acknowledges product, service and company names referred to in this publication, many of which are trade names, service marks, trademarks or registered trademarks. All materials internally quality assessed by the University of Sunderland and reviewed by academics external to the University. Instructional design and publishing project management by Wordhouse Ltd, Reading, UK. Contents Introduction vii Unit 1 The contemporary world of business and management Introduction 1.1 1.2 The global business environment The importance of developments in the global environment Case Study 1.3 Organisational decision making and performance vii 1 3 10 14 17 19 19 20 Self-assessment questions Feedback on self-assessment questions Summary Unit 2 Globalisation Introduction 2...

Words: 84990 - Pages: 340

Premium Essay

Daraa

...USA $25.95 CANADA $27.95 • W h y do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin? • Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught? • W h y do we splurge on a lavish meal but cut coupons to save 25 cents on a can of soup? • W h y do we go back for second helpings at the unlimited buffet, even when our stomachs are already full? • And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar? hen it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we? In a series o f illuminating, often surprising experi­ ments, M I T behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with ground­ breaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities. N o t only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predict­ able—making us predictably irrational...

Words: 95122 - Pages: 381

Premium Essay

Human Resource Management

...host-country performance appraisals. objective Discuss the staffing process for individuals working internationally. objective Explain how labor relations differ around the world. PART 6 Expanding Human Resources Management Horizons 639 Managing Human Resources, 14e, Bohlander/Snell - © 2007 Thomson South-Western 640 PART 6 Expanding Human Resources Management Horizons W hen you pick up a newspaper or turn on the TV, you’ll notice that stories are constantly being told about companies competing globally. These stories might include mergers of U.S. and international companies, such as Daimler-Benz and Chrysler a few years ago. Or they might highlight companies expanding into other markets, such as Starbucks in Asia or Wal-Mart in Mexico. Or the stories might focus on international companies gaining dominance here in the United States, such as Sony or Toyota. “No matter what kind business you run, no matter what size you are, you’re suddenly competing against companies you’ve never heard of all around the world that make a very similar widget or provide a very similar...

Words: 24258 - Pages: 98

Premium Essay

Terrorism

...Terrorism came from the word of ‘terror’ which mean to horror and to fear. There is no specific definition about the meaning of terrorism. This is because the field that related inside terrorism is very wide and there are over 100 definitions of ‘terrorism’ according to studies. Terrorism have been existed for many years as a global phenomenon, but only in few decades ago that it has been getting stronger and to influence our daily lives with any costs. In our report, we will explain more details about the relationship of terrorism and transportation. Transportation has always been a target or method for terrorism to transfer their message to the public. While transportation keeps economic moving, nationally and globally, business relies on transport and transport systems at every level no matter transferring goods, transporting customers or staff commuting. From jet airliners to mass transit buses and rail terminals, vehicles and transport facilities are all-too familiar targets of terrorist attacks in all country and abroad. The impact of large-scale disruption of transport infrastructures can be critical for national and global business because transport systems have long been viewed as targets for terrorists groups worldwide. Also we will elaborate more on how terrorism can be spread or being use through the four methods of transportation like rail, road, aviation and maritime. For the incident strikes on the World Trade Center (WTC) in New York on September 11, 2001,...

Words: 13246 - Pages: 53

Free Essay

Marketer

...serving him. He is doing us a favor by giving us an opportunity to do so. CUSTOMER PSYCHOLOGY……HOW IMPORTANT FOR A MARKETER TO STUDY????? Companies use marketing to promote and sell their products or services, and consumer behavior is how consumers act and respond in the retail environment. In order for a company to create a strong marketing campaign, it is important to understand how and to what the consumer will respond. This relationship between marketing and consumer behavior involves studies, focus groups, psychological analyses and other methods of studying the market for a particular product or service. Understanding consumer behavior is critical for marketing any product or service successfully. When a company can understand why people buy what they buy and the reasons behind their decisions as consumers, the company can create a marketing campaign that specifically addresses those elements of the purchasing decision. Not all products appeal to all people; the key for...

Words: 57171 - Pages: 229

Free Essay

Startupworld Berlin

...Gadowski, Joel Kaczmarek and 85 other great minds. „ BerlIn has the most potentIal of all CItIes In europe“ peteR tHIeL * Peter Thiel, Former CEO of PayPal, first investor of Facebook and partner of the venture capital firm, Founders Fund. ENJOY BERLIN VALLEY! HUNDERT IS A PROJECT FROM BERLINVALLEY.COM DAILY NEWS FROM THE BERLIN ONLINE SCENE WHAT A gREAT FAMILY: HIRE! WE MODEL: JENNIFER IRMLER (WWW.MODEL-FABRIk.COM) PHOTO: MAx THRELFALL (WWW.THRELFALL-gOERS.DE) MAkEUP: BIANCA BENSCH (FACEBOOk.COM/BENSCHBIANCA) OUTFIT WITH FRIENDLY SUPPORT FROM PEPE JEANS (NEUE SCHöNHAUSER STRASSE) WE ARE LOOkINg FOR COOL INTERNS AND EDITORS, MALE OR FEMALE. CAREER CHANgERS WELCOMED. APPLY WITH 100 WORDS OR LESS AT PIMPMYFUTURE@WHY-BERLIN.COM the hundert Register now, and receive every issue by mail for free! introduCtion Klaus Wowereit KlauS WoWereit haS been the governing mayor of berlin Since 2001, and the longeSt Serving head of government in office of any german State. Governing Mayor of Berlin Hundert Continues as a series! We are very excited about the response that “Hundert – insight on the Online Capital Berlin” has received. Therefore, we have decided to continue “Hundert” as a series. In the coming year we will present new issues such as, “Hundert: Online entrepreneurs speak about their biggest mistakes”, “Hundert: Startups that you should know”, and “Hundert: Online marketing experts explain the way to web success”. Every issue of the...

Words: 44714 - Pages: 179

Premium Essay

Leadership

...Fourth Edition Reframing Organizations Artistry, Choice, and Leadership LEE G. BOLMAN TERRENCE E. DEAL B est- se l l i n g a u t h o rs of LEADING WITH SOUL FOURTH EDITION Reframing Organizations Artistry, Choice, and Leadership Lee G. Bolman • Terrence E. Deal Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved. Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741—www.josseybass.com No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-6468600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-7486011, fax 201-748-6008, or online at www.wiley.com/go/permissions. Credits are on page 528. Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read. Limit of Liability/Disclaimer...

Words: 193447 - Pages: 774

Premium Essay

Tech

...Technology Ventures From Idea to Enterprise is p r bite ohi d. se The pre na limi ry p s age are p are rep d fo r s ent tud s of D ho r. T ma Any s. yer sB oth e e r us se The pre na limi ry p s age are p are rep d fo r s ent tud s of D ho r. T ma Any s. yer sB oth e e r us is p r bite ohi d. Technology Ventures From Idea to Enterprise d. Thomas H. Byers Stanford University se The pre na limi ry p s age are p a Richard C. Dorf . Thom f Dr University of California, Davis so t den stu r d fo Andrew J. Nelson are rep University of Oregon Any s. yer sB oth e e r us is p r bite ohi TECHNOLOGY VENTURES: FROM IDEA TO ENTERPRISE, THIRD EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright @ 2001 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2008 and 2005. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the...

Words: 60653 - Pages: 243

Premium Essay

Essential of Strategic Management

...An Integrated Approach to Strategy Running Case Featuring Wal-Mart Wal-Mart’s Competitive Advantage (Chapter 1) ● Working Conditions at Wal-Mart (Chapter 2) ● Wal-Mart’s Bargaining Power over Suppliers (Chapter 3) ● Human Resource Strategy and Productivity at Wal-Mart (Chapter 4) ● How Wal-Mart Became a Cost Leader (Chapter 5) ● Wal-Mart’s Global Expansion (Chapter 6) ● WalMart Internally Ventures a New Kind of Retail Store (Chapter 8) ● Sam Walton’s Approach to Implementing Wal-Mart’s Strategy (Chapter 9) Strategy in Action Features A Strategic Shift at Microsoft (Chapter 1) ● The Agency Problem at Tyco (Chapter 2) ● Circumventing Entry Barriers into the Soft Drink Industry (Chapter 3) ● Learning Effects in Cardiac Surgery (Chapter 4) ● How to Make Money in the Vacuum Tube Business (Chapter 5) ● The Evolution of Strategy at Procter & Gamble (Chapter 6) ● Diversification at 3M: Leveraging Technology (Chapter 7) ● News Corp’s Successful Acquisition Strategy (Chapter 8) ● How to Flatten and Decentralize Structure (Chapter 9) Practicing Strategic Management Application-based activities intended to get your students thinking beyond the book. Small-Group Exercises Short experiential exercises that ask students to coordinate and collaborate on group work focused on an aspect of strategic management. Exploring the Web Internet exercises that require students to explore company websites and answer chapter-related questions. Designing a Planning System (Chapter 1) Evaluating...

Words: 223966 - Pages: 896