Strategic Management Essay

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Question 1 What are the greatest challenges in the broad environment that Starbucks will face when expanding into the Chinese market? What should Starbucks do to overcome these challenges? The broad environment will be define as forms the context in which the firm and its operating environment exist, including socio-cultural influence, global economic influences, political or legal influences and technological influences. Due to the Starbucks case, the greatest challenges in the broad environment that Starbucks will face when expanding into the Chinese market are socio-cultural influences, economic influences, technological influences and political influences. The first challenge is in the socio-cultural influence, which are the influences and trends that come from groups of individuals who make up a particular geographic region. The greatest challenge that Starbucks will be facing when expanding into Chinese market is the attitude of the people in the China. The Chinese people prefer to drinks tea than coffee. So, the challenge that Starbucks here is how they want to change the attitude of people and attract them to drinks and try to consuming coffee. This is important to Starbucks to ensure that customer preferences could not shift from coffee to the other beverages. In order to overcome this challenge, Starbucks should do the maximizing the market penetration and offer high quality of products. Starbucks also do research and studies the socio-cultural of Chinese market first before enter the market. The second challenge is in the economic influences, which are the influences, and trends that associated with domestic and global economies. The greatest challenges that Starbucks will face when expanding into Chinese market are changes in the disposable income of market could influence purchase levels of coffee and if the economic conditions is not good such as

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