Essay on Starbucks Entering Italy

10615 Words Oct 12th, 2012 43 Pages
Consulting Report:
Starbucks entering Italy

Table of Contents

1. Introduction. 2

2. Starbucks Corporation. 2
2.1 History of Starbucks. 2
2.2 Strategy of Starbucks. 3
2.3 Starbucks’ international expansion. 3

3. The Italian Environment. 5
3.1 General information. 5
3.2 Trade barriers. 6
3.3 Political and legal environment. 6
3.4 Social considerations. 8

4. The Italian Culture. 8
4.1 Anglo cultural cluster versus Latin European cultural cluster. 8
4.2 Hofstede’s five cultural dimensions: United States versus Italy. 11
4.3 The Italian coffee culture. 12

5. An investigation towards the
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The roasting facilities ensure that they only use top quality beans and the distribution facilities enables them to get the coffee at the right place on the right time. In creating the experience they want to sell, Starbucks tries to create a seductive atmosphere in their stores. Its stores are distinctive and sleek, yet comfortable. While the sizes of the stores and their formats vary, most are modeled after the Italian coffee bars. The interior is well lighted and features light cherry wood and artwork, and there plays jazz or opera music softly in the background. The stores tend to be located in high-traffic locations such as malls, busy street corners, and even grocery stores.

The employee policy at Starbucks is laid-back and supportive. In fact, they want the employees to see themselves as partners in the business. Schultz believes that happy employees are the key to competitiveness and growth, and Starbucks wants to establish an empowered employee culture. In order to do so, they have generous benefits programs like medical insurance and paid vacations.

2.3 Starbucks’ international expansion.
In 1995, the firm established a subsidiary called Starbucks Coffee International Inc. This subsidiary is responsible for all Starbucks business development outside North America, including developing new businesses, financing and planning stores, managing operations and logistics, merchandising,

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