Tuesday, November 13, 2007
Starbucks- Question #1- Beth Ellis
Starbucks’ strategy of expanding overseas creates value for the company’s shareholders in a very obvious way. By expanding overseas Starbucks is seeing a huge increase in revenue. With this increase in revenue stock prices will inevitably rise as they do whenever a company begins to become more profitable. Since expanding overseas has obviously been a good experience for Starbucks and a profitable one, the expansion creates a wealth of profit for the shareholders as profits continue to rise and stocks continue to increase.
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Starbucks Question #2- Steve Moore
According to the global strategy framwork listed in our text, Starbucks looks to be currently pursuing an international strategy. Their main international focus was in Japan and a couple years ago purchased a British coffee chain that they have now taken full control over. Starbucks now has opened stores throughout Asia in order to raise their international status to 27 countries outside the US. Starbucks has chosen the right approach to expanding their business. They have exceeded their beginning goal of opening 650 stores throughout other countries. Starbucks have kept pushing around their competition with their money and superb management styles. They have obviously conducting a winning franchise as in 2004 Starbucks was named one of the ten most impactful global brands for the third year in a row.
Starbucks Question #3- Jason Grier
I think that Starbucks used a joint venture because having a friendly service/company will help settle in in the foreign markets. Teaming up with another company to create a new, seperate company is a good idea because then there is a new company that people are eager to try. Also, the risj and cost of this is not as high as if they just went in on their own.
I think that Starbucks was very smart, targeting Japan because it is a very populated place, which means that they will be much more profitable than if they establish their business in a different region of the world. Not to mention, Starbucks was already a wealthy and popular company before they decided to jump into the Asian market. It doesnt mean that they were guaranteed to be an instant hit in Asia but it basically guarantees them some market share within the countries that they have established stores in. In other words, when you have money and popularity among one market, it makes it easier to be successful in a different. Because of Starbucks great management team, they were able to recognize this and ultimatley become on of the wealthiest companies in the world.
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