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Starbucks forces or trends

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For Starbucks:

Research two forces or trends: 1) Why firms globalize, and 2) Complexity of the global environment. For each force or trend , discuss the following:

(A) a detailed description of the force or trend,
(B) the relevance of the force or trend to Starbucks, and
(C) Starbuck's strategic adaptability for the force or trend.

Prepare two synopses, one for each force or trend, which provides the information identified.

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Solution Summary

Research two forces or trends: 1) Why firms globalize, and 2) Complexity of the global environment.

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1) Why firms globalize

In today's extremely competitive and dynamic business world, companies are moving towards globalized operations for mainly two objectives- To expand revenues by exploiting new market opportunities in attractive markets across the world and To obtain comparative advantage in terms of cost, quality, etc. by setting up manufacturing or sourcing operations in low cost nations across the world.

These reasons to globalize are true for Starbucks as well. Starbucks wants to exploit new market opportunities in emerging markets across the world such as India and China and diversify its operations to reduce its dependence on a single or small group of markets such as USA and thus, globalization is an important tool for Starbucks to take advantage of its strong brand reputation and legacy in the coffee retailing industry. Globalized operations will help Starbucks to not only leverage on its huge brand reputation in such markets, but its strategic presence in such nations will also help the company to acquire raw materials at lower costs. Therefore, globalized operations serve dual purpose for the organization in the sense ...

Solution provided by:
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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