Global Strategic Planning



Starbucks' global expansion strategy with a focus on China, and how Starbucks' downsizing in the USA impacts their global growth strategy

Q1. What are some of the decision factors that Starbucks assesses?

Starbucks has introduced new cost cutting plan worth $400 million, in 2009. This plan targets removal of inefficiencies and redundancies and would provide avenues of expansion and speed in the value chain of Starbucks. Furthermore, other strategic choices for boasting presence in the Chinese markets have led to experimentation with newly blended and brewed coffee. 'South of the Clouds'. These locally harvested beans would provide consumers with abstract tastes with cocoa feel, herbal spiciness and bright acidity. These are only some of the decision factors that Starbucks assesses, other factors would be gauged further when answering later questions (Haoting, 2009).

Q2. What role does the Chinese government play in Starbucks' operations in China?

The Chinese government has been working for three years with Starbucks and farmers in the province of Yunnan, to produce standard adhering quality coffee beans. The province contributes more than 95% of coffee output of the country. Moreover, 70% of this stock is exported. The government has assessed that quality product of Yunnan, i.e. coffee beans, are internationally not known due to bad marketing decisions of the past. Earlier strategies were not focused to promote the product internationally. As such the government has realized the need of the hour, and struck strategic accords with farmers and MNCs including Starbucks to boast the awareness and competitiveness of Yunnan produced coffee beans, internationally. Further, the government has also initialized research and development efforts to acquire advanced production techniques, and marketing and management methods to further enhance quality of the coffee beans and the processes of selling it globally (Haoting, 2009).

Q3. What are some of their entry strategies?

Starbuck's is not a familiar ...