Starbucks in China - 4917 Words

Starbucks Corporation in China Company overview Starbucks Corporation is one of the most famous coffee retailers in the world. According to Starbucks Corporation (2012), it runs over 55 countries in many regions including North America, Asia Pacific, Latin America and so forth. Starbucks headquarter is located in Seattle, Washington, USA. It has approximately 149,000 employees. According to Starbucks Corporation (2012), its company verified the income of 11,700.4 million dollars during the fiscal year of 2011, which is an increase 9.3% over the fiscal year of 2010. In addition, the net profit of the firm was 1,245.7 million dollars in fiscal year of 2011, which rose 31.7% over the fiscal year of 2010. This Company is considered as†¦show more content†¦Starbucks has criteria to choose international partner including an associate company who share the values and mutual culture, a companion with a plan appropriate with the firm, a local business leader, a firm that has a strong track record developing new ventures, and so forth. It seeks to assure that its local partner will share its value and commitment in order to bring the firm experience to customers worldwide. For example, Starbucks Corporation has many alliances in order to enter to China’ s market including Mei da Coffee Co., Shanghai President Coffee Co., and Maxim’s Caterers Li mited (Santamaria 2008). As Forbes.com (2003) asserted that Starbucks Company has improved following the process of international expansion including a selection of local partner who are local business leader. Moreover, Starbucks try to adapt the business to traditional of each country (Harrison et al. 2005). There are many reasons why Starbucks used joint venture instead of other modes. First reason is that the government does not want foreign firms to own 100% of the business in China so it cannot use the wholly owned subsidiaries as an entry mode for this country. Second, Starbucks has seen that if it used franchise or license, the quality of the product may decrease, as the quality of both coffee and employee is low. Last, joint venture is quite safe from the financial risk so Starbucks wisely choose this entry mode forShow MoreRelatedStarbucks in China1227 Words   |  5 PagesCase study: Starbucks in China Starbucks – A global company? The 1971 founded company Starbucks has undergone an impressive expansion throughout the last years and as a result now is the leading coffee house retailer in the world. 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The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong’s Maxim group, who together have already opened 32 Starbucks stores in Hong Kong between 2000 and 2002.1 At the opening Pedro Man, president of Starbucks Coffee Asia PacificRead MoreStarbucks Expansion Into China1795 Words   |  8 PagesStarbucks expansion into China Abstract   In the following research we will look whether Starbucks will be able to launch an aggressive expansion throughout Mainland China, a country known for its tea drinking history dating back to 5,000 years. Starbucks is known for its ability to locate the business outlets in perfect spots as well as market their products in beneficial ways. This report will try to analyze the three main questions: 1) Should Starbucks continue its expansion in ChinaRead MoreThe Secret of Starbucks’ Success in China1180 Words   |  5 PagesArticle Review and Analysis ----The Secret of Starbucks’ Success in China The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premiumRead MoreStarbucks in China Case Study1580 Words   |  7 PagesCase - Starbucks in China Group 11 21-10-2012 Q1) Do you think Starbucks is a global company? Why or why not? Starbucks is one of the largest coffee shop chains in the world. 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As of July 2012, the company has 17, 651 stores in 60 different countries around the worldRead MoreStarbucks Is Taking China By Storm1277 Words   |  6 PagesStarbuck s has become a staple of American culture and for the most part, if you are in your 20 s, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so wake up and smell the coffee! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz s