Starbucks

Questions

1. Many of the same environmental factors, such as cultural factors, that operate in the domestic market also exist internationally. Discuss the key factors Starbucks had to consider as it expanded into China.

Key cultural factors that they had to consider consisted of the different kinds of food people eat and why the people would really want to go there. The main reason that people go to Starbucks in China is to gather with friends and family, so they made their stores bigger. Also, most Chinese people aren’t going to eat what the people in the U.S eaten, so they started selling duck sandwiches and green tea cheesecake way to create demand for a drink that few Chinese were familiar with or had a taste for

2. Discuss the key political and legal factors Starbucks had to consider in the Chinese marketplace. What are the risks of entering a country with these factors? What changes have occurred in China’s political and legal structure to the advantage of foreign companies?

China is a communist country that has only recently opened its borders to foreign investment. It is warn that with a one-party dictatorship everything could change overnight with a new regime that might decide to close the marketplace to foreign investors. The key to establishing stores there is to find local partners who understand the changing political and business landscapes. The most important legal factor is when Beijing entered the World Trade Organization in 2001 and began opening its markets, making it easier for foreign companies to operate there alone.

3. What demographic factors were important for Starbucks to understand in China? What were the demographics it decided to target?

The demographic makeup of China was important for Starbucks to understand because it needed to know who its target market in the country would be. Starbucks recognized that countryside Chinese would not be as accepting of coffee as the new generation nowadays. They had to...