Viability of Business

Starbucks in Pakistan

Description of Country

Pakistan is a developing country located strategically in Asia and has been facing numerous problems since its independence. The economy is completely agriculture, but there are some thriving industrial sectors present in the country. In addition to this current major issues of the country are rising inflation, political instability, energy crises and the major problem is alarming law and order situations.

Company Overview

Starbucks Company began its operations in 1971 with a single store of whole bean and ground coffee, tea and spices. At present, they are managing millions of customers and operate with 18,000 retail stores in 60 countries of the world. It has established exemplary rapport globally for its quality food and care services.

Managerial Implications Regarding Culture, Politics, Legal Issues, and Economic Issue

Pakistan's culture is more inclined towards tea as compared to coffee culture. Even the tea has to be strong. Most of the population of this country lives in rural areas where there is no concept of drinking coffee. Elite class of this country enjoys the taste of coffee. Therefore in order to penetrate in the culture of Pakistan, the managers have to come up with smart strategy for marketing and advertising the company products. The political instability can easily be observed in the country. There are some political issues related to business. In the same context, some political parties possess enormous control over main and revenue generated cities of the country. They demand a certain amount from the profit of the business (Bragg & Bragg, 2005; Schaffer et.al, 2008).

Proper security and an effective legal strategy should be followed in order to run stable business in this country. There are also some certain issues regarding economic conditions of the country. Economic analysis shows that there is a decrease in GDP growth of the ...