Starbucks Case Study

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Starbuck has been extremely successful in American since their beginnings 30 years ago. Now they seem to be running into their biggest challenge yet; going global. In this short paper I will discuss; the controllable and the major sources of risk facing the company and potential solutions, the uncontrollable elements that Starbucks has encountered in entering the global markets, the company’s overall corporate strategy and how Starbucks may improve profitability in places around like Japan. Starbucks has been incredibility successful in the last few decades and its bean roasting empire has become enormous. Being the giant that it has become is a source of unique risk factors. In American the company is reaching its saturation point. It is hard to grow if there is nowhere to go. Being a mature company, its sheer size and low pay makes the company feel like a fast food joint causing low morale and employee enthusiasm. Not only has it’s over saturation become a national joke; its big corporation behavior has left a bad taste in a younger generations mouth. These risks can be overcome by finding new places to open up shop and appear to new audiences. In other words the company needs to leave home and pursue business in foreign environments. Risks are involved in every business decision. Usually the bigger the decision means the bigger the risk. The big decision to take the company global is no different, and doing so is another major source of risk Starbucks will likely face. Doing joint ventures and partnerships with foreign investors reduces the company’s share of profits from 20 to 50 percent. To understand these risks involved in taking the company abroad it will needed to know its controllable and uncontrollable elements in the foreign countries. Starbucks needs to be aware of the elements that exist in other places around the globe that may not have

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