INTERNATIONAL BUSINESS

International Business - Starbucks Corporations

Abstract

In this study we try to explore the concept of “International Business” in a holistic context. The main focus of the research is on “Starbucks Corporations” and it's International Business”. The research also analyzes many aspects of “International Business” and tries to gauge its effect on “Global Marketplace”. Finally the research describes various factors which are responsible for “Globalization in Marketplace” and tries to describe the overall effect of “International Business” on “Global Marketplace”.

Table of Contents

Introduction - Global Marketplace1

Company Overview - Starbucks Cooperation2

Global Expansion Strategy3

Starbucks in Global Workplace4

Forces That Affect International Business6

Economic Forces6

Socio-cultural Forces7

Environmental Forces8

Technological Factors9

Political Forces9

Legal Forces10

Conclusion10

Key Success Factors10

References12

International Business - Starbucks Corporations

Introduction - Global Marketplace

Globalization refers to the increasing interconnectedness of the world. In stark contrast with prior times, when countries frequently found themselves in competition with one another (and often at war), globalization reflects their coming together to pursue common goals. This phenomenon is manifest most prominently, though not exclusively, through business. At the same time, however, the development of a world economy and global workplace has been accompanied by a general shift in thinking about social, economic, cultural, and political issues (Karen, 2007).

While globalization has arguably been taking place for centuries, the term was not coined until 1983, in a Harvard Business Review article by marketing scholar Theodore Levitt. In “The Globalization of Markets,” he argued that the world was moving toward a single “global” market and that success would be dictated by the ability of companies to integrate global thinking into their strategic thinking and planning. According to Levitt, “Companies that do not adapt to the new global realities will become victims of those that do.”

Globalization allows for the international transfer of goods, services, and ideas through a global marketplace. Although the 1980s and 1990s witnessed a large degree of globalization, its pace has quickened in recent years, particularly as a result of changing technology and the rise of the Internet. Enhanced communication has enabled people to overcome geographic obstacles through real-time interaction. Exchanges take place through local vendors, distributors, and via the Internet. People around the world now have access to many of the same products, no matter where they are. People are also connected through shared media—including, but not limited to, the Internet (Gray, 2005).

A critical factor is that these technological changes have substantially brought down the cost of the spread of information. Even some of the poorest people around the world have cell phones and can get access to the Internet. This has opened the door to innumerable business opportunities that have, in effect, changed the face of the globe.

Company Overview - Starbucks Cooperation

Starbucks Corporation is a company that deals in coffee retail with an approximate 16,850 coffee shops spread in 40 countries. Its stores specialize in offering drinks, food coffee and tea as well as roasted beans. In the US, the company runs shops that are owned while other shops are spread in airports and shopping centers owned as franchises constituting 8,000 of their ...