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These firms need to be compelled to expand more rapidly and Starbucks should be willing to provide financial and logistical assistance if necessary.
The firm should double the pace of new store openings in Japan, China and the United Arab Emirates. They should also investigate other large markets, such as India. India has many of the same market characteristics of China. It has a large middle class in the hundreds of millions. India's cities are densely packed, necessitating the need for a "third place." The nation's middle class looks to the West for cultural guidance, as do the Japanese. And while India is a tea-drinking nation, so are China and Japan. Thus, Starbucks has the experience now with respect to finding ways to attract tea-drinkers to its coffee shops.
Lastly, Starbucks should not ignore the domestic market to expand more aggressively into Asian markets. The domestic market, however, offers less potential in the future than do the Asian...
Thus, Starbucks should divert resources from opening stores in North American (900 new stores have closed or will close quickly) towards opportunities in Asia.
Works Cited
Linn, Allison. (2008). Starbucks to Close 600 Stores in the U.S. MSNBC. Retrieved February 28, 2009 at http://www.msnbc.msn.com/id/25482250/
McCall, Todd. (2009). Starbucks Store Closing List Not Released, but 300 Stores on Chopping Block. Associated Content. Retrieved February 28, 2009 at http://www.associatedcontent.com/article/1429221/starbucks_store_closing_list_not_released.html?cat=3
No author. (2009). Starbucks' Green Tea Success with Japanese Consumers Leads to Worldwide Opportunity. JETRO. Retrieved February 28, 2009 at http://www.jetro.org/content/353/limit/1/limitstart/0
No author. (2006). Starbucks Soars in China. Asia Times. Retrieved February 28, 2009 at http://www.atimes.com/atimes/China_Business/HF15Cb06.html
Works Cited
Linn, Allison. (2008). Starbucks to Close 600 Stores in the U.S. MSNBC. Retrieved February 28, 2009 at http://www.msnbc.msn.com/id/25482250/
McCall, Todd. (2009). Starbucks Store Closing List Not Released, but 300 Stores on Chopping Block. Associated Content. Retrieved February 28, 2009 at http://www.associatedcontent.com/article/1429221/starbucks_store_closing_list_not_released.html?cat=3
No author. (2009). Starbucks' Green Tea Success with Japanese Consumers Leads to Worldwide Opportunity. JETRO. Retrieved February 28, 2009 at http://www.jetro.org/content/353/limit/1/limitstart/0
No author. (2006). Starbucks Soars in China. Asia Times. Retrieved February 28, 2009 at http://www.atimes.com/atimes/China_Business/HF15Cb06.html
The class text (on page 338) describes that a big part of this is giving promising employees tasks and assignments that stretch their boundaries and horizons as this helps them grow and, as mentioned before, incentivizes them to do more (Thompson, 2012). Conclusion In short, Starbucks has had its challenges and has things it needs to address. The stock crashing in 2008/2009 was not a good time but it was absolutely
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally. Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their
STARBUCK'S CASE ANALYSIS: STARBUCKS Starbucks Case Analysis Starbucks Case Analysis Situation Analysis Suppliers Competitors New Entrants Strengths Weaknesses Opportunities Threats Strategic fit Many individuals all over the world walk into Starbucks daily for their cup of coffee, but it is more than the costly coffee that brings individuals in day after day to the shops across the globe. Starbucks offers a high-energy atmosphere and helpful employees who help clients in any issue or question they might have with the coffee or service. People
The remaining conference paying attention on reenergizing the collecting employees. 3. Do you think that Starbucks has grown rapidly because of its ethical and social responsibility activities or because it provides products and an environment that customers want? To understand how Starbucks takes care of customers and the role of that management in its achievement, we need to look at the history and growth of Starbucks as a corporation. The first
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor Relations, 2011). Starbucks was also able to manage costs of closing locations
Starbucks and Peet's have similar gross margins. Dunkin' Brands has a much better gross margin at 78.9%, while McDonalds has a lower gross margin at 39.6%. Starbucks' gross margin might put it in the middle of the pack for quick service, but it is still a healthy margin. The company is profitable, something most of the firms in the industry are. Interesting, Dunkin is the least profitable of these