Globalization Of Starbucks Case Study

Homework Two: Case Analysis of the Globalization of Starbucks

Introduction

The smell that wakes most people up combined with friendly service is guaranteed to be a game changer. Around most corners in big cities worldwide, there is a Starbucks waiting to welcome in a customer. It has become one of the brands most cherished not only in America but across the globe. Why is that? Globalization, not happy with simply spreading across the United States Starbucks decided to branch out into the unknown. Let’s take a look at how this all happened and what is occurring right now with popular brand.

Where did the original idea for the Starbucks format come from? Starbucks was homegrown in the good old United States of America located in the Seattle.

How is the company creating value for its shareholders by perusing international expansion strategy? Why would any company want to expand internationally- profit? Starbucks had the opportunity to see that there was untapped potential. It is simpler to sending an employee to Italy where they stumble upon a gold mine, then as they looked back on that experience remembering that no one held the title to the goldmine. At this time (1995), they already had 700 stores and were looking for opportunities, what better opportunities are there then the ones across the sea- it’s what lead countless others throughout history to travel far and wide even for the smallest of

Starbucks is an excellent example of a successful business gone global. It not only does business in over 50 countries but also exports its supplies from around the world. Not only is it an international business but it is also investing more and more into the world of tomorrow. Its first foreign direct investment was roughly $10 million. It then went on to purchase “Seattle Coffee a British coffee chain with 60 retail store for $ 84 million” and that was just the start. In an International Management t states that Starbucks opened stores in China, Taiwan, Singapore, Thailand, New Zealand, South Korea, and Malaysia and that was just in the Asia region! Based solely on how the firm has grown in the past twenty years both internationally and intranationally, Starbucks is not only a force for globalization but a leading example and competitor in the coffee industry. It has expanded the global market for coffee and other companies are following its lead for example we can look at Apple, Exxon Mobil, Chevron, Google and many others. They took an opportunity and capitalized on it and now are not only producing in other countries but also employing, selling, and buying (Wright,