Case- Starbucks : Going global Fast
1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.
There are controllable and uncontrollable elements that Starbucks has encountered global markets , where controllable elements refers to the ability of strabucks to overcome the problem and solve it , whereas uncontrollable elements refers to current situation in the market and how they can adapt to it.
The case discusses multiple international markets that Starbucks had entered. Japan, France, Italy, Austria, and the Middle East were mentioned. Starting with the Japanese market, the elements that faced Starbucks there were ...view middle of the document...
That was an uncontrollable element.
Lately, in the troubled Middle East, where Starbucks have branches in Lebanon, Kuwait, Saudi Arabia, United Arab Emirates, and so forth. Schultz nearly caused an uproar when he took a biased stand against Palestinians. That was a controllable element, which Schultz himself have corrected.
* 2. What are the major sources of risk facing the company and discuss potential solutions.
There are a few risks facing the company. One of which Starbucks is already attacking and trying to overcome. The expansion of Starbucks is coinciding with one of the worst economic surges in history. It has become unaffordable for the average person to go to Starbucks for a coffee seeing that a coffee costs as much as a gallon of gas. If you drink one coffee a day for a week, that’s almost a tank of gas! This is why Starbucks is now offering a less expensive cup of coffee with a completely different label and all. The company does not want to lose customers, but also does not want to offend the customers it currently serves.
* Starbucks was also facing slumping morale and employee exhaustion among store managers at each individual location. Employee discontent is very far from the image that Starbucks obtains or would like to uphold. The company is centered on enthusiastic, friendly service. If employee morale dropped it could have an extremely negative affect on Starbucks’ image and sales. One potential overcoming factor for this problem would be to simply ask each employee what makes them happy. Sometimes it is as simple as a few questions and they will tell you. Also, another option would be to initiate personality tests to all employees. This would be more costly, but if interpreted correctly Starbucks would definitely see results.
* 3. Critique Starbucks' overall corporate strategy.
Starbucks saturated their market in United States. However there are still frappuccino-free cities which included Butte, Montana and Fargo, North Dakota. This is because the saturation in big cities and the more outlets in big cities will help in increasing the sales but without maintaining the good services and meet the...