Teaching Note
STARBUCKS- GLOBAL BRAND IN EMERGING MARKETS
Synopsis
Howard Schultz, the man who took Starbucks from a few stores in 1980s to a global company spread in more than 75 countries, stepped down from Chief Executive Officer (CEO) position in April 2017. His successor Kevin Johnson had a big legacy to carry with him together with newer challenges coming up in business. With his technology background and a decade old association at board level with Starbucks, Johnson was in a good position to take Starbucks on growth path. The restaurant industry had been facing lot of challenges in recent years and Starbucks had registered slowest growth during 2016-17 which disappointed investors. Mobile order & pay, changes in food menu and customer …show more content…
4) The case will teach students about the mode of foreign entry in emerging market, choosing a joint venture partner carefully and developing deeper understanding of new market before the launch of chain of outlets.
Research methodology
The case study was carried out based out of secondary resources. Primarily the published online resources form the basis of the research. The facts collected from these resources formed the basis of development of case study. Interviews with the Starbucks’ Global CEO and from the board members of Starbucks-Tata joint venture gave the fillip to the strategic moves by the global firm and it gave the glimpse of their strategies of entering the emerging markets. On-line news articles from established journals & newspapers also extensively studied to shape the case study.
Key words and subject code
Brand, consumer behaviour, competition, emerging market, standardization, …show more content…
For a global marketer, the complexities of an emerging nation are at the time far more than expected or faced earlier in other developed nation. It requires much deeper understanding of the multitude of governmental policies, vagaries of demographics and psychographics, infrastructural challenges or first mover advantage of local competition which had made inroads in the marketplace. A hugely successful global café chain must rework its strategies, human resource policies, lay-out plans for retail stores, business models and mindsets of leadership. Understanding Chinese and Indian customers’ expectations of a café, their buying preferences, choice of food apart from coffee is as important as the design, layout and aesthetics of the café. There is a significant role of family and community in terms of employees settling in the work place. The happy employees are more critical when the company focuses customer-first policies. There is whole lot of efforts required by Starbucks leadership to make their brand, part of life of the citizens. Emerging markets pose greater challenges to the company, however the results will commensurate the hard work by the
STARBUCKS- GLOBAL BRAND IN EMERGING MARKETS
Synopsis
Howard Schultz, the man who took Starbucks from a few stores in 1980s to a global company spread in more than 75 countries, stepped down from Chief Executive Officer (CEO) position in April 2017. His successor Kevin Johnson had a big legacy to carry with him together with newer challenges coming up in business. With his technology background and a decade old association at board level with Starbucks, Johnson was in a good position to take Starbucks on growth path. The restaurant industry had been facing lot of challenges in recent years and Starbucks had registered slowest growth during 2016-17 which disappointed investors. Mobile order & pay, changes in food menu and customer …show more content…
4) The case will teach students about the mode of foreign entry in emerging market, choosing a joint venture partner carefully and developing deeper understanding of new market before the launch of chain of outlets.
Research methodology
The case study was carried out based out of secondary resources. Primarily the published online resources form the basis of the research. The facts collected from these resources formed the basis of development of case study. Interviews with the Starbucks’ Global CEO and from the board members of Starbucks-Tata joint venture gave the fillip to the strategic moves by the global firm and it gave the glimpse of their strategies of entering the emerging markets. On-line news articles from established journals & newspapers also extensively studied to shape the case study.
Key words and subject code
Brand, consumer behaviour, competition, emerging market, standardization, …show more content…
For a global marketer, the complexities of an emerging nation are at the time far more than expected or faced earlier in other developed nation. It requires much deeper understanding of the multitude of governmental policies, vagaries of demographics and psychographics, infrastructural challenges or first mover advantage of local competition which had made inroads in the marketplace. A hugely successful global café chain must rework its strategies, human resource policies, lay-out plans for retail stores, business models and mindsets of leadership. Understanding Chinese and Indian customers’ expectations of a café, their buying preferences, choice of food apart from coffee is as important as the design, layout and aesthetics of the café. There is a significant role of family and community in terms of employees settling in the work place. The happy employees are more critical when the company focuses customer-first policies. There is whole lot of efforts required by Starbucks leadership to make their brand, part of life of the citizens. Emerging markets pose greater challenges to the company, however the results will commensurate the hard work by the