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Starbucks Entry Modes in Europe

BUS 417 INTERNATIONAL BUSINESS Section 4. Starbucks Entry Modes in Europe. Group B: 073037 Wong Yiu Pong, Daniel 073040 Ng Wai Chuen, William 073047 Kwok Tsz Ching , Doris 073048 Yuen Siu Ming, Hanson 073054 Wong Ho Yuen, Danny 073061 Wong Ka Hin , Nicole. Starbucks in Europe.

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Starbucks Entry Modes in Europe

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  1. BUS 417 • INTERNATIONAL BUSINESS Section 4. Starbucks Entry Modes in Europe Group B: 073037 Wong Yiu Pong, Daniel 073040 Ng Wai Chuen, William 073047 Kwok TszChing, Doris 073048 Yuen Siu Ming, Hanson 073054 Wong Ho Yuen, Danny 073061 Wong Ka Hin, Nicole

  2. Starbucks in Europe

  3. Timeline of Starbucks in Europe

  4. Starbucks Entry Mode in Europe

  5. Entry Mode - FDI

  6. Entry Mode - Joint Venture Low control and interest in J.V.

  7. Entry Mode - Licensing Resources: http://www.echeat.com/essay.php?t=27282 http://en.scientificcommons.org/37037343 http://www.answers.com/topic/starbucks-corporation http://www.qsrmagazine.com/news/starbucks-takes-back-all-french-stores http://www.hospitalityfriends.com/news.php?view=35 http://www.starbucks.bg/bg/_About+Starbucks/Starbucks+%D0%B2+%D0%91%D1%8A%D0%BB%D0%B3%D0%B0%D1%80%D0%B8%D1%8F.htm news.starbucks.com/images/10041/​Timeline - EMEA - Q3 FY09.pdf http://www.examiner.com/starbucks-in-national/starbucks-opens-its-first-store-budapest-hungary http://news.starbucks.com/article_display.cfm?article_id=254 http://news.starbucks.com/article_display.cfm?article_id=330 http://www.moodiereport.com/document.php?c_id=1178&doc_id=18361 http://www.4-traders.com/STARBUCKS-CORP-4905/news/STARBUCKS-CORP-Starbucks-Outlines-Blueprint-for-Profitable-Growth-at-Annual-Shareholders-Meeting-13587302/?imprimer=1 • http://www.moodiereport.com/document.php?c_id=1178&doc_id=16717 • http://www.agra-net.com/portal2/home.jsp?template=pubarticle&artid=1251978882224&pubid=ag049

  8. Question: • 1) What factors did Starbucks considerate? • 2) Which entry mode strategies did Starbucks use in foreign markets.

  9. United Kingdom Entry Mode-Foreign Direct Investment

  10. Foreign Direct Investment • Wholly-owned subsidiary of Starbucks Corporation of the US -means the firm owns 100 percent of the stock Acquisition of 65 Seattle Coffee Company stores In 1988, May • The first European country which Starbucks entered • More than 600 branches in UK and Ireland at present moment Source: Master Thesis Course - International Business and Entrepreneurship Entry Modes of Starbucks

  11. Starbucks in UK • Offering packaged Starbucks® coffee in UK supermarkets • Great Place to Work® Institute UK as one of the UK’s 10 Best Workplacesin 2007 • Accepted the prestigious First Magazine Award for Responsible Capitalism 2007 in London • Introduced 100% Fairtrade certified espresso as part of the Starbucks™ Shared Planet™ commitment to ethical sourcing • In 2009, Starbucks VIA™ Ready Brew at U.K. based easyJet airlines flights Source: Timeline of Starbucks Website

  12. PESTEL- Socio-cultural • Basic cultural difference with US but not much • Highlife expectancy PESTEL-Political

  13. PESTEL- Economic • Principles of market liberalization and low taxation and regulation • The sixth largest economy in the world and the third largest in Europe • Developed countries in which 35468.00 US dollars GDP per capita in December of 2008 Source: Master Thesis Course - International Business and Entrepreneurship Entry Modes of Starbucks Wikipedia

  14. Reasons of using Acquisition • An existing coffee company in UK • Gain Knowledge in New market • Comparatively large size of Starbucks which can commit more resources and large amount of capital

  15. - Starbuck in France and Spain- Further Discussion in Joint Ventures

  16. External Environment of France GDP: 2.16 trillion(10) 2.126 trillion (09)

  17. External Environment of France

  18. External Environment of Spain GDP: 1.376 trillion (10) 1.379 trillion (09)

  19. External Environment of Spain

  20. Comparison of France and Spain Similarities Differences Economic development and consumer’s spending Population distribution • Democratic and free market • High standard of Living • Well-educated people • Art oriented

  21. Exchange of interest in J.V. All Interest in France J.V. All Interest in Spain J.V.

  22. Advantages and Disadvantages of J.V. Advantages Disadvantages Difficult to maintain a balanced relationship with partnership Loss control of technology • Shared Costs and Risk (Too many existing competitors) • Explore foreign market and gain market knowledge: - The market power of S.A

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