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Essay / Research Paper Abstract
This 4 page paper discusses some of the issues surrounding Starbucks’ entry into the international marketplace. Bibliography lists 5 sources.
Page Count:
4 pages (~225 words per page)
File: D0_HVSBIntl.rtf
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Unformatted sample text from the term paper:
Starbucks activities outside the U.S. Discussion Overseas activities are concentrated on the opening of new stores in various markets, much as the company does domestically. Starbucks experienced a slowdown in
domestic sales in 2007, which was "disappointing and unacceptable" (Schultz, 2008). To address these losses, Starbucks shook up its management structure, closed underperforming locations and backed off on its plans
to open hundreds, if not thousands, of new shops each year (Schultz, 2008). However, despite problems at home, it appears that Starbucks overseas sales are strong, and although it is
not going to open as many stores in other countries as it planned, it remains committed to its overseas ventures (Schultz, 2008). Its overseas activities, as noted, are much as
they are in the U.S.: the company opens a store that sells coffee and other drinks, accessories, limited food items, and sometimes music CDs and similar items. But operating overseas
is tricky, and Starbucks is smart enough to know it. Starbucks entered the overseas markets using a "three-pronged strategy: joint ventures, licensing, and wholly owned subsidiaries" (Subhadra and Dutta, 2003).
Before moving into a new country, Starbucks studies the market conditions, then partners with a local concern; it also tests markets its products before opening the new stores (Subhadra and
Dutta, 2003). If the test marketing is successful, Starbucks hires locals to staff the store, but trains them for 13 weeks in Seattle, insuring that the coffee is made the
same way around the world (Subhadra and Dutta, 2003). Starbucks also has a "no smoking" rule that it enforces in all its stores, no matter where they are located; this
was predicted to cause problems in countries with heavy-smoking populations, but this has not been the case (Subhadra and Dutta, 2003). Starbucks also makes an effort to adhere to local
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