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International Business Strategy: Starbucks

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International Business Strategy: Starbucks
MGT 3140
International Business Strategy
Group Report (Starbucks) Date of Submission: 18-Feb-2011

FINAL YEAR REPORT (MIDDLESEX UNIVERSITY)

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Contents

CHAPTER 1–EXECUTIVE SUMMARY
This report aims to evaluate Starbucks’ past and present performance in order to most importantly stipulate the future position of this largely successful company. Being that the company’s objective centers around expansion, this report tries to identify a likely attractive target country (India) for such plans. The analysis uses SWOT, PESTEL, Industry Based View, Market Entry Mode and other similar evaluative tools to reach an understandable and valid conclusion that India provides varied opportunities for expansion that can be exploited by Starbucks.
CHAPTER 2–COMPANY PROFILE
The current mission statement of Starbucks is “to inspire and nurture the human spirit by one person, one cup and one neighbourhood at a time” (Starbucks.com).

The first Starbucks store was opened in Seattle on March 30th 1971 by three partners and the name of the store originated from the novel Moby Dick. The firm believes in supplying and serving the best coffee possible by using the highest standards of quality whilst adhering to ethical trading and responsible growing practices at the same time. In 1987 the first stores were opened outside of Seattle, in Vancouver and Chicago and in the subsequent years stores followed the expansion were much more extensive across North America.

Starbucks sells a variety of products which include high-quality whole bean coffees along with fresh rich-brewed coffees, Italian-style espresso beverages and cold blended beverages, a collection of complementary food items and also a selection of premium teas and beverage-related accessories and equipment (starbucks.com).

There are conflicting reports on the overall market


References: Iwata (2006) Owner of small coffee shop takes on java titan Starbucks [Online]. Available from: http://www.usatoday.com/money/industries/food/2006-12-20-starbucks-usat_x.htm [Accessed 1st Febuary2011] Reynolds, J Jagger (2008) Starbucks profits dive by 97% [Online].Available from: http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article5127267.ece[Accessed 23rd January 2011] Linn (2008) Starbucks to close 600 stores in the U.S Facebook.com (2011) Press room logo [Online].Available from: http://www.facebook.com/press/info.php?statistics [Accessed 16th December2010] Weber (2011) Preserving the Starbucks Counter Culture [Online] Perera, L. C. J. Et. Al. (2009) Case study: Starbucks- adding value to brand equity through an innovative brand image. Journal of the Academy of Business & Economics. [Online] (9) p 174-185 Available from: www.ebscohost.com [Accessed 22 January]. The New York Times (1999) McDonald 's Corp. Betting That Coffee Is Britain 's Cup of Tea [Online]. Available from: http://www.nytimes.com/1999/03/28/world/mcdonald-s-corp-betting-that-coffee-is-britain-s-cup-of-tea.html [Accessed: 10th January 2011]. Economy Watch (2011) Traiding groups and country groups [Online]. Available from: http://www.economywatch.com/country-grouping/ [Accessed: 10th January 2011]. Duda, James, Mackwani, Munoz, Volk (2007) Starbucks Corporation building a sustainable supply chain [Online] Clark (2011) Starbucks joins Nike and Apple in the big league of no-name logos [Online]. Available from: http://www.guardian.co.uk/business/2011/jan/09/starbucks-new-logo-no-name [Accessed: 22th January 2011]. Starbucks (2011) Recycling & Reducing Waste [Online]. Available from: http://www.starbucks.com/responsibility/environment/recycling [Accessed: 22th January 2011]. Starbucks (2011) Tackling Climate Change [Online]. Available from: http://www.starbucks.com/responsibility/environment/climate-change [Accessed: 22th January 2011]. Kramer (2007) After Long Dispute, a Russian Starbucks [Online]. Available from; http://www.nytimes.com/2007/09/07/business/worldbusiness/07sbux.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1296419036-urxfcuOvOMaoQFddv+zjrg. [Accessed: 22th January 2011]. Karolefski (2002) Conquering new grounds [Online]. Available from: http://www.brandchannel.com/features_effect.asp?fa_id=78 [Accessed: 22th January 2011]. Yi, Z. (2010) International Business Strategy, 3rd ed., UK: McGraw-Hill Custom Publishing. Trevino (2010) Starbucks Outlines Blueprint for Multi-Channel Growth. [Online]. Available from: http://starbucks.tekgroup.com/article_display.cfm?article_id=476 [Accessed: 2nd January 2011] Fawkes (2011) Beyond the New Starbucks Logo: Interview with Mike Peck, the Senior Design Manager. [Online]. Available from: http://www.psfk.com/2011/01/starbucks-new-logo.html [Acceessed 10th January 2011] Kowitt (2009) For Mr United Nations Conference on Trade and Development (UNCTAD) (2010), World Investment Prospects Survey 2010-2012 [Online]. Available from: http://www.unctad.org/en/docs//diaeia20104_en.pdf [Accessed 27th January 2011]. India: Steel Frame of Indian Bureaucratic System Needs Revamping (2010), Mathaba [Online]. Available from: http://www.mathaba.net/news/?x=623624 [Accessed 17th January 2011] David, R
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