Starbucks Case Study

Question 1: Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

Answer:

i. Controllable elements altered in the long run business in the foreign market. In common, the controllable elements usually are the marketing mix (4P's) which consist of products, price, place, and promotion. These elements face the same problems or almost similar with Starbucks domestic market. As the name - ‘STARBUCKS' and its logo can be adjusted in order to adapt into one cultural tastes and expectation. Pricing of their products are reasonable with the foreign current rates and also their overall country income. The progress of market research is to understand and determine the right international locations which can fit in Starbucks products. Besides providing foods and drinks, Starbucks also provide the experience for customers in all around the world. As an example in China, customers in this country prefer to have tea rather than coffee. In this case, Starbucks have to adapt into their country's culture and thus originated some other drinks which can fulfill the needs and demand for customers in China.

ii. There are some elements occurred to be an uncontrollable elements to Starbucks organization itself in entering global market. The political, economy and cultural issues in the foreign countries can occurred at any time (sudden) and therefore, these are few elements which take into consideration when Starbucks trying to adapt into the foreign market. At any time, the foreign countries governments may change their fiscal and monetary policies which caused sudden change in Starbucks operation and with so, this given a big impact on Starbucks. As an example, during economic depression country like Japan, revised in customers' income and pulled down which caused Starbucks in losing instead of gaining profit or sales due to the coffee pricing. Besides, the increasing competition among rival shops in and natural...