Business Intelligence

BUS 401 MODULE 2

CASE ASSIGNMENT

Starbucks

Kevin DaLuz

5/24/11

Starbucks is known worldwide as one of the most popular coffee products and retail coffee shops. The brand is just as popular throughout the world as it is in the United States. For this essay in particular I will focus my attention on the Starbucks market in China, which seems to be a major part of the companies global growth strategy.

In the past few years the United States has undergone a major economic recession which has halted production, slowed product sales, and forced many major companies to cut, downsize, or completely stop progress altogether nationwide. What this means for a company like Starbucks is that to continue it's growth and progress, they have been forced to turn to international markets where the economy is in better shape. For example: If the average

American is unemployed, under employed, or thanking god for the job they currently have this economic state directly affects commerce in every way. In short, Americans don't have the money they once had for luxuries and gourmet coffee at $3.00 a cup is not a necessity for most people regardless how great is tastes or how well it is packaged and marketed.

The Starbucks Coffee shop chain has roughly 16,000 stores nationwide with about 11,000 of those in the United States. By attempting to bolster company profits in China, the company first closed a few hundred low profit generating venues in the United States first, decreased the number of international stores from 900 to 700, and prepared to employ a coffee distributor in close proximity to the Chinese market locations. On top of this global restructuring the company also began brewing a new blend of coffee that embodies flavors well known by the Chinese consumer base in hopes of attracting new customers.

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