In terms of International Corporate-Level Strategy, Starbucks currently applys the transnational strategy

that looks for coordinated characteristics of both multi-domestic and worldwide procedures for the
reason of being able to at the same time emphasize local responsiveness and global integration (Hitt,
2020, pp. 267).

Initially, in order to meet the growing demand for high-quality coffee globally, Starbucks used digital
technology to ensure that its supply chain operated at maximum efficiency at all times. Starbucks has
also smartly applied technology to create platforms that help them maintain and expand their network
with customers like My Starbucks Idea, My Starbucks Signature, and more. Not only that, with its
expansion into emerging markets, it also leveraged the brand through a series of networks to sell
Starbucks coffee. To maintain the quality of its products, it forged a good relationship with the suppliers
and called them partners of the company (Hitt, 2020, pp. C-192). These integrated networks allowed the
company to manage its connections with customers, suppliers, partners, and other parties more
efficiently rather than using arm’s-length transactions.

Thanks to the networks that have been developed, Starbucks got a tool to help both its global strategy
and multi-domestic strategy. Speaking of global strategy, Starbucks internationalizes its brand through
“Licensing”. Starbucks CEO Howard Schultz wrote in his 1997 book, “Pour Your Heart into It,” why he
avoids franchising: he wants to maintain a “fanatical” level of control over his locations. “To me,
franchisees are middlemen who would stand between us and our customer,” Schultz wrote. “If we had
franchised, Starbucks would have lost the common culture that made us strong. We teach baristas not
only how to handle the coffee properly but also how to impart to customers our passion for our
products. They understand the vision and value system of the company, which is seldom the case when
someone else’s employees are serving Starbucks coffee (Scooter's Coffee Franchise, 2021). That,
however, does not mean that the brand forgets to meet the diversified customer’s preferences all over
the world. Starbucks makes the multi-domestic strategy a point to carry out extensive research on the
history, culture, and the locals’ taste preferences before it decides to collaborate with coffee companies
available locally. Their market research is done before they start to build their stores in the target
location. Starbucks formulates its menu to fit the needs of the locals (without compromising their
signature brand) (Day Translations, 2021). To be specific, in tea-loving China, Starbucks offers an
extensive menu of tea-based drinks featuring regional ingredients, along with variations on popular
coffee drinks. An example would be Red Bean Green Tea Frappuccino, which is included in China
licensees’ menu as a drink that transforms the green tea sipped all across China into a creamy, iced
frappuccino and adds a scoop of sweetened red bean kernels on top (Jacobs, 2020).

The path of integration has not always been flat since Starbucks faced its own challenges in some
countries and even failed. To cite an instance, Starbucks restricted its Vietnamese menu mostly to the
usual flat whites and lattes when there is a huge demand in the market for traditional Vietnamese coffee
that Starbucks is failing to fill. This is also the case of McDonald's as the company enters Vietnam's
market. Still, this is just a small odd besides many other successes that Starbucks achieved so far. It
would not be too big a deal, as long as the brand can maintain its global effort and most importantly, the
culture of continuously innovating.

Reference
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). In Strategic management: Competitiveness et
globalization, concepts and cases (13th ed.). Essay, Cengage.

Scooter's Coffee Franchise. (2021, May 7). Starbucks franchise: Why you can't franchise a
Starbucks.

Day Translations. (2021, October 19). How starbucks adapts to other cultures. Day Translations
Blog.

Jacobs, C. (2020, September 18). What is Starbucks like around the world? The Spruce Eats.