Project of Starbucks expansion in India



Executive summary

Starbuck's global expansion brought out the corporate side of them and drove the 'homespun' coffee magic and 'real coffee' experience into the background. To be known internationally, they disrupted their existing quality, management, atmosphere and most of all for a time there was great unrest within their ground level workers.

This is a discussion regarding the issues that Starbucks Coffee Corporation had to deal with while they expanded their production and selling operations into diverse markets. Due to the cultural variances both from inside the business and the clientele there were diverse problems that had to be dealt with before the corporation could profitably administer the coffee shops globally. There will also be a debate about why some people do not concede to other people's cultural differences and how this could negatively impact communication with others especially within a multicultural and global corporation like Starbucks.

One of the immensely huge challenges that Starbucks has had to face were the competing coffee shops and the existing consumer loyalties in the countries which they tried to penetrate, which led to a lot of restrictions within various levels of their organization. Another factor that Starbucks did not take into consideration before their expansion was the cultural differences that they would run smack into, alongside shortage of skilled labor that is people who knew how to make, serve and manage the coffee business. They also did not factor in the taste preferences of the people within the markets they were targeting, as all nations in the world have different taste pallets.

Due to such fast expansion and troubles they were experiencing worldwide, they had to compromise on their quality. They were criticized by various Non-profit Organizations (NGOs) because they were not using coffee beans which had been certified. Starbucks then had to change their existing suppliers and contract with new ones, an expense within itself and even more so because certified beans are of a higher quality and certainly more expensive to buy especially on the mass scale that Starbucks had to stock up. In various other countries they did not have trained staff which could successfully run their outlets, plus there was the problem of their pricing strategy because they had higher prices than the existing coffee outlets which had an established database of customers along with comparable product.

Project of Starbucks in India

Introduction

Starbucks has a prosperous and storied history with how it began from its modest early stages to expand into a business leader and international group in a couple of decades. Conversely, due to their aspiration in support of insistent development as the production and service leader in high end coffee they destabilized and damaged the brand name value that boosted this growth in the first place. Starbuck's was by no means just a 'cup of coffee' but on the whole it was about the 'Starbuck's experience' that swayed the customer over to shell out big money for a premium product which is their coffee, or ...