International Business

1)

Starbucks started as a single store in Seattle selling premium roasted coffee to 16700 stores worldwide. The idea of the Starbuck setting came from Howard Schultz, a director of marketing who later became the CEO. He went to an Italian coffee house in Italy and wanted the same format in Starbucks. The idea was to still sell the same products but with a coffee house setting. This idea is an example of what international business is. International business is a world where business is done globally rather than domestically. An example of this would be, 10 years ago Toyota (a Japanese company) would be considered a Japanese car but today it would be considered a global car since all the parts are made around the world. This information, coupled with the fact that the world is going towards a global market, represents that you don’t have to go to Italy to experience the Italian coffee house experience.

2)

By 1995 Starbucks had great success with 700 stores in the U.S. and they wanted the same success around the world. Their idea was to use the same strategy they used in the U.S. and use it in Japan. With the world going towards globalization coupled with the success in Japan triggered Starbucks to go aggressive in the global market. Starbucks had to gain global market shares, if they wanted to be world leaders in the coffee market. By gaining global market shares, not only would it add value to Starbucks as a whole but also add value to the shareholders. By going international, a firm is moving towards globalization which in turn will increase market share if done correctly.

3)

Sazaby Inc. is a well-respected Japanese firm that has expertise in the Japanese market while Starbucks is a well-respected and successful firm in the U.S. market. There are many cultural and consumer differences between Japan and the U.S. By Joint venture, Sazaby Inc. and Starbuck are both interdepending and on each other. Networking globally can, not help a firm in gaining...