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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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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
Entry Mode - Joint Venture Low control and interest in J.V.
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
Question: • 1) What factors did Starbucks considerate? • 2) Which entry mode strategies did Starbucks use in foreign markets.
- Starbuck in France and Spain- Further Discussion in Joint Ventures
External Environment of France GDP: 2.16 trillion(10) 2.126 trillion (09)
External Environment of Spain GDP: 1.376 trillion (10) 1.379 trillion (09)
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
Exchange of interest in J.V. All Interest in France J.V. All Interest in Spain J.V.
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