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International Marketing-Core Assessment - Term Paper Example

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International Marketing-Core Assessment

The reduction of the outlet performance due to overcrowding is evident is some parts of the US while in other towns it does not exist making the process complex because of reduced performance of the outlets. In fact, the creation of many outlets in an area reduced the incomes of the outlets by sharing the market among the outlets. The faster rate of growth was affected by the global financial crisis which affected the buying power of the consumers. The development of a strong brand presence and image improved its market share. The green and white package makes Starbucks product identification simple and attractive (Allen, 2010, p. 56). Some customers in the survey of the product indicated their purchase is based on package and not the contents. The provision of diverse range of beverage products offered a platform for growth and expansion. Consequently, the performance of the outlets has increased over the last decade making Starbucks the fastest growing brand in the market. The analysis of the company will cover issues of emerging markets, growth strategies, and regional economic and political integration. Likewise, the issues of culture in business performance will be addressed in the process to establish the best possible expansion criteria or process to be employed by the company. The use of expansion strategies such as mergers, acquisition, franchising and exporting will be evaluated to offer recommendations for change and development. Emerging markets After the global financial crisis experienced in 2007 to 2009, changes have been instituted in the financial and banking sectors. The revenue collection of the club was affected by the crisis resulting in the change of taxation. Increase in tax results, in reduction of profit margins of the company. The change in economic growth affects the performance of all the business firms regardless of the specialization. The financial crisis witnessed in the past two years led to closure and withdrawal of companies from initially entered markets. The financial crisis brought the need for financial regulation. Higher Interest rates affect the performance of the company by deterring investments. Economic change can have adverse change in the performance of any business. Inflation leads to increase in higher wages due to increased living standards (Shaw, 2011, p. 67). Strong currency conversion affects exportation of products. In the next three years, the company will face the entire economic factor at varying degree. The most significant one is the increasing inflation which leads to rising of the wage level thus increasing the production costs of the company. Despite the negative effect of inflation, it is worth mentioning that the financial report provided indicates, there will be an increase in the living standard resulting, in the increase in purchasing power of the population. The organization has a strategic review and planning will be able to benefit from the focused improvement in the national earnings. The strategic direction chosen by the management will facilitate growth because it takes into consideration the issues that can negatively affect the business performance. The global market is an external factor affecting the business. Yips global strategy frame work deals with the evaluation of the potential market and constraints of the global market. The frame work developed by Yip includes the analysis of position and resources of the ...Show more


Starbucks and Internationalization Name: Instructor: Course: Date: Introduction Starbucks has managed to change its operation and increased its penetration to the international markets. Several market opportunity exist in the international market that could be exploited by the restaurant firm and develop the necessary expansion strategies of the company…
Author : olen08
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