Starbucks Balanced Scorecard Increase Diversity and International

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 there are more than 3,000 stores in China, and it is one of the fastest growing countries for the [Starbucks] Company" (Loeb 2013). 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 of vegetarian options and no pork or beef is served, in deference to local Muslim and Hindu dietary restrictions. There is also a merging Indian flavors with traditional Starbucks pastries like calzones and Panini. One popular flavor, for example is tikka Panini (Bahree & Stancati 2012). In China, Starbucks tried to "capitalize on the tea-drinking culture of Chinese consumers by introducing beverages using popular local ingredients such as green tea. This strategy has effectively turned potential obstacles into Starbucks' favor. Chinese consumers quickly developed a taste for Starbucks' coffee, which was essential to Starbucks' success in China" (Wang 2013). There has been a 'crossover' effect as tea-drinkers have begun to experiment more with coffee after Starbucks made them feel more welcome. By stressing the idea of Starbucks as a gathering place rather than as purely a coffee culture, Starbucks has increased its universal appeal without diluting its brand identity.