INTERNATIONAL STRATEGIES

International Strategies Of Starbucks And Marks & Spencer

INTRODUCTION3

BUSINESS STRATEGIES FOR INTERNATIONAL COMPETITION4

Starbucks4

Marks & Spenser6

COMPARISON OF THE INTERNATIONAL STRATEGIES USED BY MARKS & SPENCER AND STARBUCKS7

CONCLUSION11

References14

International Strategies Of Starbucks And Marks & Spencer

INTRODUCTION

Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although various business models exist, the principles and structure of Starbucks is a good model to follow, due to its national and global success. The researcher examines how Starbucks is financially succeeding as a corporation even through hard economic times. By looking at the industry and company situational analysis, the researcher will determine where Starbucks stands in the world coffee industry. The researcher will then discuss why Starbucks is a successful international business and the implications of being an international business. The last thing that will be discussed is the strategy recommendations for Starbucks, and how to go about implementing those strategies.

Whereas on the other hand M&S' marketing philosophy was simple: produce high quality products under a recognized brand name at affordable (but not cheap) prices, and advertise through word-of-mouth. However, in recent years, this marketing philosophy has come under attack as the company started loosing its competitive stance. The move to develop a marketing department was a departure from a long tradition of production/manufacturing emphasis. The problem facing James Benfield: how can M&S emerge from the slump and reposition itself as a fierce global competitor in the international marketplace?

BUSINESS STRATEGIES FOR INTERNATIONAL COMPETITION

Starbucks

As Starbucks expanded, a new emphasis was placed on recruiting talented leadership capable of guiding the tremendous momentum of the company. A vast amount of resources were devoted to constructing an organizational infrastructure adequate to support the anticipated future size of Starbucks. Schultz believed that many business visionaries failed by not creating the proper processes and systems to insure an appropriate foundation for their entrepreneurial visions to be implemented. Throughout the 80's and early 90's Schultz and his colleagues created the financial, accounting, legal logistics and planning necessary for the organization to go national. A turning point for the firm was in the 2000s, when large numbers of customers in Los Angeles, San Francisco, Chicago and other major cities began drinking Starbucks coffee regularly. It was as if Starbucks had hit a critical mass and their belief in word of mouth over the traditional marketing campaign was beginning to reap long awaited benefits. Senior management believed fervently that the most important of their organizational assets was the relationship fostered between Starbucks and the employees. Their philosophy was embedded in the fact that every dollar earned passed through the hands of a Starbucks' employee; ...