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Q. Do u agree with star bucks international expansion ?Should the company continue its aggressive expansion plans?

Are there markets where star bucks cannot expand?

1998 star bucks opened 26 stores in Japan, 11 in Singapore, 6 in Taiwan , 5 in Philippines and 1 in Thailand. Starbucks specialty stores in Malaysia new Zealand and china. 2001 Switzerland and Austria. Europe-Spain, Germany and Greece. By 2006 Star bucks was in 37 countries including Argentina , Peru , Brazil , turkey , Japan , Mexico , Jordan , India and the Bahamas. Further international expansion to Middle East and Pacific Rim. Listed by Hong Kong stock exchange. Inroads to Asian commerce. By 2006 200 shops in China and Hong Kong and 150 in Taiwan.

Yes the Company should continue with aggressive expansion plans. CEO Howard Schultz had his sights on international market. He took the title of Chief Global Strategist - enabled him to focus on overseas growth and Brand development. He estimated that the global market for star bucks was over 15000 stores and he was certain that star bucks would continue to enjoy success in Asia as it did in North America. By 2003 there were 1532 overseas stores .

Challenges: 2005 Japan strung out. Israel cafes shut down due to recession. Lower cost rivals in London. Germany , Frankfurt , Berlin were saturated by star bucks like coffee bars. Starbucks bought Seattle Coffee Company and many stores running at loss just to expand.

Continued growth
Schultz plan: Goal was to have 6500 locations in Asia , china. Aggressive goals for Europe , the Middle East , Africa with 6000 stores. He also planned to have 1500 stores in Latin America and 1000 in Canada. the most recognized and respected brand in the world .

2004 -2005 added stores in France , Cyprus , Jordan , Ireland and the Bahamas. To differentiate from competition, developed Coffee master certification Program.(black apron). As CEO James Donald said .we are not in coffee business,serving people; we are in people business ,serving coffee.. Global Star bucks had to find the right balance in people values and sales driven values.

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