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Starbucks’ International Operations

Starbucks’ International Operations. Presented by: Nomin Josie Elaine . Agenda. Summary –Elaine Question 1-Elaine Competitor Analysis-Nomin Question 2-Nomin Question 3- Josie Conclusion-Josie. Summary. A new concept in 1987 by Schultz.

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Starbucks’ International Operations

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  1. Starbucks’ International Operations Presented by: Nomin Josie Elaine

  2. Agenda • Summary –Elaine • Question 1-Elaine • Competitor Analysis-Nomin • Question 2-Nomin • Question 3- Josie • Conclusion-Josie

  3. Summary • A new concept in 1987 by Schultz. • The reasons of Starbucks’ success. • Mode of entry into international markets. • Problems in international operations.

  4. Question 1 • Six ways to enter a foreign market: Exporting, Turnkey Projects, Licensing, Franchising, Joint Ventures, and Wholly Owned Subsidiaries. • Starbucks’s Three-Pronged Strategy • The Advantages of Starbucks’ Strategy

  5. Competitor Analysis • Three Main Competitors: • Nestle. • McDonalds • Dunkin Donuts. • Nestle is famous for instant coffee. • McDonalds is the largest fast-food enterprise • Dunkin Donuts is an international donut and coffee retailer.

  6. Question 2 • Starbucks faced with problems because of “No Smoking” rules • In Europe, Starbucks faced stiff competition with local retailers. • Starbucks offered a segregated section for ladies

  7. Question 2 • A young generation would attracted to Starbucks. • In Asia, Starbucks offered curry puffs and meat buns. • Joint venture is a acceptable to Starbucks.

  8. Risk in Starbucks’ InternationalOperations • Political Risk -Howard Schultz, alleged closeness to the Jewish Community Arab countries’ boycott of American goods.

  9. Operational Risk • In Europe: • -Uncertified Coffee Beans • -Unqualified Trained Workforce • -Unsuitable Real State (Locations) • -Unreached Joint Ventures& Licensing Agreement

  10. Country Risk • Stiff Competition from Local Players: • In England, Overprice • In Germany, Competitors “Stole” it’s Strategies • In France, “Traditional Strong French Coffee, and “No Smoking” Principle

  11. Strategic Risk • Japan, the largest overseas market • Young people lose their interests • Rapid Expansion: Store eats Store

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

  13. Recommendations • Long-Term • Rethink its entry strategy • Focus on pricing • Caution volatile political risk and complex business environment

  14. Thanks for your attention!

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