Starbucks International Operations

Presented by: Nomin Click to edit Master subtitle style Josie Elaine

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Agenda

Summary Elaine Question 1-Elaine Competitor Analysis-Nomin Question 2-Nomin Question 3- Josie Conclusion-Josie

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Summary
A

new concept in 1987 by Schultz. reasons of Starbucks success. of entry into international markets. in international operations.

The

Mode

Problems

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Question 1
Six

ways to enter a foreign market:

Exporting, Turnkey Projects, Licensing, Franchising, Joint Ventures, and Wholly Owned Subsidiaries.
Starbuckss The

Three-Pronged Strategy

Advantages of Starbucks Strategy

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Competitor Analysis
Three

Main Competitors:

Nestle.
McDonalds

Dunkin Donuts.

Nestle

is famous for instant coffee. is the largest fast-food enterprise

McDonalds Dunkin

Donuts is an international donut and

coffee retailer.
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Question 2
Starbucks

faced with problems because of

No Smoking rules
In

Europe, Starbucks faced stiff competition offered a segregated section for

with local retailers.

Starbucks

ladies

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Question 2
A

young generation would attracted to Asia, Starbucks offered curry puffs and venture is a acceptable to Starbucks.

Starbucks.
In

meat buns.
Joint

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Risk in Starbucks International Operations Political Risk

-Howard Schultz, alleged closeness to the

Jewish Community Arab countries boycott of American goods.

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Operational Risk
In

Europe:

-Uncertified Coffee Beans -Unqualified Trained Workforce -Unsuitable Real State (Locations) -Unreached Joint Ventures& Licensing Agreement

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Country Risk
Stiff

Competition from Local Players:

In England, Overprice In Germany, Competitors Stole its Strategies In France, Traditional Strong French Coffee, and No Smoking Principle

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Strategic Risk
Japan, Young Rapid

the largest overseas market people lose their interests Expansion: Store eats Store

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Recommendations
Short-Term -Cost Cutting Policy -Close Loss-Making Stores -Strengthen Local Specialty

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Recommendations
Long-Term Rethink Focus

its entry strategy

on pricing volatile political risk and complex

Caution

business environment

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Thanks for your attention!

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