Starbucks

Starbucks

Problems:

-most of international operations were running into losses 3.9 japan biggest market after US because its volatile intern buss environment fact caused by not managing good its operations

-they encountered a problem with a boycott of some Arab students

Advantages:

-above the steady and fast expansion ,the company gained a lot by its power to innovate,by bringing new peoducts on the market.

-they entered the market in the regions that they considered the younger generation would imitate western lifestyle

Solutions:

They have room for improvement. They need more flexibility in the overall management in the company,which may seem a little too rigid.

    They need to work on adapting different guidelines for their international foreign operations. They need to adapt to other country's beliefs and customs.

Their relationship with their employees and distributors is good. They need more work on the outspokenness of company management, high cost structure, competition overseas, public opinion and joint venture and licensing using the stop-gap plan.

The main advantage that Starbucks has over other companies in the industry is they’ve managed over the years to maintain their financial stability.

They need to have a more flexible supply of their merchandise ,because they have to adapt their company to each culture for their oversear operations.For example in Japan they sold curry puffs and meat buns in the Asian countries ,because of the local s people habit of eating when serving a coffee.

We think that the European market is the one they should concentrate on now and try to get the best aut of it.They will be able to get a stronger more loyal customer base in this way.They need to take into consideration that it is very important to have another strategic plan ,different than the one in the USA.Its usual extending strategies are:licensing,joint ventures and wholly owned subsidiaries.The best considerable option to enter a market would be...