Monday, November 19, 2007
Starbucks-Question #1~ Mallory Clynes
Starbucks' strategy of expanding overseas creates value for the company's shareholders because they are able to expand everything in the long run. Starbucks transfers a small amount of Americans to international markets, perferring that foreign operations be run by local managers who understand the market better. They have all of their store managers and employees attend training classes that are all very similar.
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3. Starbucks has used join ventures with local companies to enter foreign markets because it would lower their risk of failure. When companies enter foreign markets there is alot of stuff they need to know. For example economic environment, legal/political environment, lifestyle, culture etc. Therefore with teaming up with a company that is already doing business in the country will make it easier for Starbucks, since they will not have to do as much research. Also it might have been easier to get permission to set up operations in the foreign country when they team up with local companies in that country.
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