Starbucks Balanced Scorecard
Increase diversity and international scope of operations
Measure: Number of international stores opened
Target: Increase Starbucks' presence in the developing world in high-profit areas such as China and India
Action: Open new stores in China and India
Improve communication between company and customers
Measure: Increase in sales internationally as well as abroad
Target: Turn developing world nations into coffee-drinking cultures
Action: Modify Starbucks brand positioning in target developing world nations
Create a 'third place' (home away from home) for customers
Measure: Increase in sales of goods and services specifically tailored for home nations
Target: Improve Starbucks design to facilitate consumption and increase foot traffic
Action: Increase in sales at high-priority companies
Starbucks: Meeting balanced scorecard objectives
Starbucks is now an international company and has had to reconfigure its focus to build demand in high-priority countries, given that demand is now becoming supersaturated in the United States. Since the 1990s, it has established a presence in Europe, Asia, and around the world. China and India are identified as particularly desirable areas in which to expand. "The potential for ongoing growth in China is important for Starbucks. Currently...
Tea-drinking India's booming cafe culture indicates that Starbucks should pursue a first-mover approach to gain a foothold before domestic competitors outflank the rise of potential rivals. "Starbucks may have been the catalyst for this cultural shift, even from afar through pop culture. But competition for coffee drinkers is already stiff. Home-grown companies have exploded over the last decade, offering a Starbucks-like experience. Indian coffee company Cafe Coffee Day now has over 1,200 stores in almost 200 cities. Foreign competitors, like Italy's Lavazza, already have opened stores" (Hannon 2012).
In general, Starbucks' approach to international expansion has been founded upon communication, or adapting the Starbucks experience to local tastes and preferences. For example, Starbucks offers different menu items at various international locations based upon demographic research such as a wider array of teas in India and China and also more savory foods, given the focus on eating 'meals' at Starbucks in these countries vs. just snacks. In China, "Starbucks has also become the go-to place to enjoy a slow meal without spending a fortune. The fast food chains or the local Chinese restaurants can be excessively crowded" (How Starbucks got it right in China, 2013, Trefis Team). In India, there is a wider array…
