This website uses cookies to ensure you have the best experience. Learn more

Foreign Direct Investment: Starbucks Case Essay

2705 words - 11 pages

Requirements:The case should address all the questions provided plus any additional issues the group members feel are pertinent to the case and include a comprehensive update on the company's situation since the time of the case. The case should be written up and presented in case format: scenario, problem to be solved or decision to be made, alternatives with the pros and cons of each and finally the recommendation with the accompanying rationale.Foreign Direct Investment: Starbucks CaseBackgroundGeneralThirty years ago Starbucks was a single store in Seattle's Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with over 7,000 stores in ...view middle of the document...

In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.The Company divides its operation into two segments, United States and International, each of which include Company-operated retail stores and Specialty Operations.1.Company-operated Retail StoresThe Company's retail goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and related products and by providing superior customer service, thereby building a high degree of customer loyalty. Starbucks strategy for expanding its retail business is to increase its market share in existing markets primarily by opening additional stores and to open stores in new markets where the opportunity exists to become the leading specialty coffee retailer.All Starbucks stores offer a choice of regular and decaffeinated coffee beverages, a broad selection of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages and a selection of teas and distinctively packaged roasted whole bean coffees. Starbucks stores also offer a selection of fresh pastries and other food items, sodas, juices, coffee-making equipment and accessories, a selection of compact discs, games and seasonal novelty items. Each Starbucks store varies its product mix depending upon the size of the store and its location. Larger stores carry a broad selection of the Company's whole bean coffees in various sizes and types of packaging, as well as an assortment of coffee and espresso-making equipment and accessories such as coffee grinders, coffeemakers, coffee filters, storage containers, travel tumblers and mugs. Smaller Starbucks stores and kiosks typically sell a full line of coffee beverages, a limited selection of whole bean coffees and a few accessories such as travel tumblers and logo mugs. Approximately 1,200 stores carry a selection of "grab and go" sandwiches and salads. During fiscal 2003, the Company's retail sales mix by product type was comprised of approximately 78% beverages, 12% food items, 5% whole bean coffees and 5% coffee-making equipment and accessories.2.Specialty OperationsStarbucks Specialty Operations strive to develop the Starbucks brand outside the Company-operated retail store environment through a number of channels. Starbucks strategy is to reach customers where they work, travel, shop and dine by establishing relationships with prominent third parties that share the Company's values and commitment to quality. These relationships take various forms including licensing arrangements, foodservice accounts and other initiatives related to the Company's core businesses. In...

Other Essays On Foreign Direct Investment: Starbucks Case

Starbacks Analysis

3467 words - 14 pages Service Management: The Case Study of StarbucksNameInstitutionDate of submissionSERVICE MANAGEMENT: THE CASE STUDY OF STARBUCKSIntroductionStarbucks Corporation is an American company operating in the specialty eatery industry. During its formation the company specialized in producing coffee operating both as a coffee roaster and retailer in Seattle (Lyons 2005). It has been a successful corporation since then and has been expanding its

State Support Of Private Investments Essay

2615 words - 11 pages run it is possible that it the end the state will be the looser. Such a case may occur because contemporary system of investment return in foreign countries is sometimes even less than 5 years. Therefore, companies that will get a tax holiday for the period of five years and will already make a pure profit in the last year, can simply close the business and find another country for a new investment. Therefore tax allowance together with direct

international business management

382 words - 2 pages : Two hoursAnswer Three questions out of NineEach question carries equal contribution to your final score.What is foreign direct investment? Using FDI theories to explain why firms decide to undertake FDI to enter overseas markets.Companies enter foreign countries via different strategies, such as Greenfield investment or merger and acquisition. Discuss the pros and cons of the two strategies.Discuss the opportunities and threats globalization

Analysis Of Advantages And Disadvantages Of FDI

2279 words - 10 pages IntroductionWith the development of economic globalization, foreign direct investment (FDI) is increasingly being recognized as an important factor in the economic development of countries. Although FDI began centuries ago, the biggest growth has occurred in recent years. This growth resulted from several factors, particularly the more receptive attitude of governments to investment inflows, the process of privatization, and the growing

Global Business Plan: Coca-Cola Company - MGMT 302 - Business Plan

3826 words - 16 pages case of China. Habitat International, 44, 177-185. Blonigen, B. A., & Piger, J. (2014). Determinants of foreign direct investment. Canadian Journal of Economics/Revue canadienne d'économique, 47(3), 775-812. Chan, A. (2016). China's Workers under Assault: Exploitation and Abuse in a Globalizing Economy: Exploitation and Abuse in a Globalizing Economy. Routledge. Deal, J. (2018). Brand Communication in a Large Consumer Goods Company: A Case of The

Case Study for Chinese economic development - Final year - Essay

3499 words - 14 pages increasingly large global supply and production chain in terms of production. As a result of rising labour costs now Chinese companies are looking at cheaper locations to produce their goods. This further indicates how China has gradually become increasingly integrated in this case outsourcing tasks in other countries. Foreign direct investment (FDI) also proves China’s highly integrated nature in the global economy. The modernisation of China’s

The World's End - identity and realism - Sheffield Hallam University - Essay

2609 words - 11 pages ‘Starbucks Effect’. This was an issue in and before 2013 where large companies such as Starbucks (or in a pub’s case Wetherspoons) would buy out independent businesses, which would therefore destroy their former identity. In the context of the film, the Starbucks Effect is even more significant. Pubs are seen as a distinctive aspect of British culture and its identity as a whole. As the Starbucks Effect is present in both the film and our modern

Taiwan Insurance Market - International Business Course Study

4050 words - 17 pages 2Overseas Chinese and Foreign Direct Investment Inflows of TaiwanYear Total Overseas Chinese Foreign Nations(US$ 1,000) Annual Rate of Change (%) (US$ 1,000) Annual Rate of Change (%) (US$ 1,000) Annual Rate of Change (%)1998 3 738 758 -12.37 184 721 -52.33 3 554 037 -8.381999 4 231 404 13.18 132 380 -28.34 4 099 024 15.332000 7 607 739 79.79 50 384 -61.94 7 557 355 84.372001 5 128 529 -32.59 47 223 -6.27 5 081 306 -32.762002 3 271 747 -36.20 44 960

How the inflow and outflow of FDI in China changed their economy - Global economy - Essay

2150 words - 9 pages they are no longer willing to work in sweat shops for little money. Foreign direct investment, FDI, is the flow of money from one national border to another, through either investment in a current company or through greenfield investments that are set up as new businesses in the designated country. The main types of direct investment however, are inward or outward investments, this is defined by either a country receiving an inward investment into

What Problems have Novartis been facing - SCU - research paper

711 words - 3 pages Although the public believes that Novartis’ Kymriah is a breakthrough medicine, the majority claim that Novartis is charging too much (overpricing). Plenty of in-depth analyses with publicly available information reveal that with the current quoted price, Novartis can earn more than 2.5 times what the drug manufacturer needs to cover its full investment. However, this is not the first time Novartis is accused of overpricing. In 2013, Novartis

International business management - Acsenda school of management. International business Management - Assignment

1078 words - 5 pages utilization or resale in one’s country. International investments are divided into two categories and they are foreign direct investment and portfolio investments. In foreign direct investments there is the control of property, assets, or companies which are located abroad while in portfolio investment there is no direct control even after investing in financial assets like bonds, stocks and certificates of deposit. With an International licensing it

Similar Papers

Foreign Direct Investment In China And Worldwide

3902 words - 16 pages Topic: Outline some of the recent and most salient trends and developments with regards to foreign direct investment worldwide and critically examine the determinants of inward foreign direct investment in China.Part 1: Outline some of the recent and most salient trends and developments with regards to FDI worldwide.Since the mid 1970s the amount of foreign direct investment (FDI) has been increasing at a fast pace. The world inward stock of FDI

Foreign Direct Investment On Infrastructure Within Developing Countries. Economics Essay

1307 words - 6 pages further competitive and many locals would rather work for a foreign company than a local one if given the choice. References : Ali Shah, S., Daud Ali, M., Nisar, M. and KHAN, S. (2018). DOES INFRASTRUCTURE MATTER? THE ROLE OF INFRASTRUCTURE IN ATTRACTING FOREIGN DIRECT INVESTMENT: A CASE STUDY OF SAARC REGION. International Journal of Information, Business and Management,, [online] Vol. 9,(No.2,). Available at: http://ac.uk/docview/1903812499

Strategic Management Of Starbucks Texas Tech Management Strategy Essay

1349 words - 6 pages Case Study: Starbucks Corporation Starbucks started through a partnership of three, with the desire of selling high-quality roasted coffee beans and equipment. Starbucks opens its first store in 1971, starting selling coffee (not just beans) to fine restaurants in 1982 and in 1984 serves its first Caffe Latte to the public. This is the genesis of the Starbucks Corporation that is known by the world today with its coffeehouse culture stores. In

Starbucks Corporation Case Study Dit Assingment

5696 words - 23 pages supplier power is increasing. Overall, Starbucks Corporation remains a large shareholder in the specialty eatery industry, but the need for constant evaluation of market forces continues to rise. External Analysis According to Yahoo! Finance (2012), Starbucks Corporation is classified as a firm within the Specialty Eatery industry. Starbucks has two types of competitors: direct and indirect. Starbucks Corporation’s major direct competitors are Dunkin