Essay on Case Analysis Starbucks

699 Words Apr 12th, 2011 3 Pages
Case 1-1 Starbucks – Going Global Fast
Summary
In the text the author tries to explain how Starbucks gets one of the global brands by entering new market. As one of the fastest-growing brands in the world, the Coffee chain is well known around the globe. The company tries to be very innovative, as they invented the Starbucks card and a pre-order via phone or internet. Nevertheless, they have to focus on a problem, since it is difficult to attract the next generation in the United States. The author criticizes the workload in the stores, but accentuates the positive working conditions compared to other companies. It is also mentioned, that Starbucks is very successful overseas, because it is still new and trendy over there. But for all
…show more content…
Nevertheless, there were uncontrollable elements too.
Usually the business has to operate with local partners, what makes the start up easier, but decreases the profit also. By considering cultural challenges, they had to work with an uproar in the Middle East but it didn’t affect their image. Furthermore there were competitive forces in Japan since the company Mt.Rainier sells rival products. To solve this problems, Starbucks developed broader menus for its stores, changed the flavors and brought up drive-through service.

2. A risk for the company might be the fact that Starbucks outlets become less popular for the workers. Despite the fact that the employees get paid more than the minimum wage, they still have to work many extra hours without being paid and that leads to unsatisfactory of them. Another risk which Starbucks is facing is the impossibility of offering the wide professional growth. It can cause the fast outflow of employees. The solution for this situation is paying extra hours of work, giving more working benefits and giving the employees special training or career opportunities.

3. Using the predatory real estate strategy can be backfiring in some cases.
Starbucks pays higher rents than the real market price is on purpose. Due to this strategy they try to get rid of competitors or by other words to keep them out of the locations where they are

Related Documents