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Case Study: Starbucks-Going Global Fast
Pages 3 (753 words)
There are various uncontrollable elements in the environment that may have been experienced by Starbucks when they entered the global arena. These uncontrollable factors include changes in cultural, political as well as economic spheres of foreign nations. …
For example, if the company decides to operate in the region of France then it will have to work in compliance with the generous benefits offered to the employees of the region, and they will even have to consider the arcane regulation. Similarly it will have to compete with the coffee outlets that are already operating in international markets such as Italy where outlets offer food along with coffee, and this is one area where the organization is still struggling.
The controllable factors that might be experienced by the organization due to its global operation include the price of the product. The company sells coffee at high prices, and if they operate in international regions such as Italy, they will have to control their prices keeping in mind the prices of coffee in these regions. The company can not only rely on its offering of coffee, it will have to expand its menu to attract individuals in different regions.
Three issues that the organization experienced in its host nation of the USA include the saturation of the markets, the loss of customers, and the cooperation with local organizations. Starbucks spread all over the USA at a very fast pace, and within a small period of time it was all over the USA, and, thus, they are experiencing saturation in the USA. The number of outlets providing coffee increased which resulted in an increase of competition for Starbucks. Lastly, the company cannot operate in an independent manner in other nations and needs to get into a partnership with local companies. The organization can solve the issue of saturation by expanding in different markets, and they can elevate the quality of their offerings by keeping the employees satisfied. ...
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