Starbucks Case - Going Global Fast Essay

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Question 1: Identify the controllable and uncontrollable elements that Starbucks has encountered in entering the global market.

The case discusses multiple international markets that Starbucks had entered. Japan, France, Italy, Austria, and the Middle East were mentioned. Starting with the Japanese market, the elements that faced Starbucks there were uncontrollable. The first element was the fierce competition in the Japanese market that already existed, and the fact that Japan’s economy had suffered a blow which resulted in an economic depression. Moving on to the next market, which is France. The elements were also uncontrollable because the policies and regulations in the French republic were extremely sophisticated and biased …show more content…
Starbucks have a lot of stores all over the world, but when it comes to the United States, there are 8 states with no Starbucks stores in them, which I believe that must be changed. Furthermore, the strategy of “invading” cities with stores is not the best, because it has backfired in couple of occasions (when customers grew tired of the lack of substitutes, and the unfair elimination of competition). Funny enough, Starbucks advertise for ‘Fair Trade’ but does not really follow the simple rules of fair trade in their business actions. They should not monopolize cities, and push small competitors out as that will only result in the distortion of their brand, and the loss of large segments of the market. Also, the treatment of the employees must be revised and refined, since the baristas are the true face of Starbucks to the rest of the world. Customers do not meet Howard Schultz every time they step in a Starbucks shop, but they are welcomed and served by the baristas, so keeping those happy, does miracles to changing the atmosphere of the shops. Lastly, I must emphasize on the point that the actions of the face of Starbucks, Howard Schulz, are sometimes disastrous. I remember a time where there was a huge media outrage against Starbucks in the Muslim world. Business and religious affiliations/political stands should stay separated. They do not mix, Mr. Schultz!

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