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PRESENTATION
Presentation Topic

Starbucks-
Going Global Fast
 INTERNATIONAL BUSINESS (INB 372) PRESENTATION

PREPARED FOR PREPARED BY

NAME #ID
Mahmud H.Zaman
Md.Naim Khan 1611823030
LECTURER
D E PA RT M E N T O F M A R K E T I N G A N D
I N T E R N AT I O N A L B U S I N E S S Afsara Afroz 1712933030
N O RT H S O U T H U N I V E R S I T Y
Md.Ashraful Islam 1712927030
Introduction:

 HQ: Seattle, Washington,

U.S.
 CEO: Howard Schultz
 Founders: Jerry
Baldwin, Gordon
Bowker, Zev Siegl
 Founded In: March
30,1971 in Seattle
 Stores: 30,000 stores in
76 countries 
 Employed :2,91,000
partners
IT’S NOT JUST COFFEE ITS STARBUCKS
Summary

Starbucks name came from a character in classical Novel Moby dick,

published in 1851, which takes place in sea.
Logo was chosen with the start of the
company in 1971.
Controllable and Uncontrollable elements
Major source of risk
Overall strategy
Profitability in Japan
 
Identify Problems
1.Identify the controllable and uncontrollable elements that Starbucks
has encountered in entering global markets.
The Controllable Elements are:
1. Product: coffee, tea, pastries, Frappuccino beverages and smoothies.

2. Price: Starbucks Charges $1.75 for an espresso in USA, in northern Italy the
price is 1.04 euro and in south just 1.8 euro.

3. Channel of Distribution: 30,000 shops in 78 countries,

• 14,758 in the US
• 1,542 in Canada
• 1415 in Japan,
• 1260 in South Korea
• 3,684 in China
• 1,002 in the UK.

4. Promotion: Starbucks invested $260.3 million in ads in its fiscal year ending in September 2018 or roughly $27.3 billion
revenue in 2019.

5 Research: Starbucks is trying to bring creativity and new things through research into its products or services.
1.Identify the controllable and uncontrollable elements that Starbucks
has encountered in entering global markets.
The Uncontrollable Elements are:

1. Culture: Starbucks faces difficulty because of cultural differences. For instance

once Schultz. Caused uproar among Palestine supports.

2. Competition: Starbucks faced competition in Italy, France, Japan and in many other foreign
countries.

3. Economic Conditions: The economic conditions are not the same in all countries. So
Starbucks makes its strategy accordingly to each country's economic conditions

Culture Economic
Competition
Condition
2.What are the major sources of risk facing the company? Discuss
potential solutions.
The major sources of risk that Starbucks faced:

1. The home market is becoming saturated.

2. The company is facing an ominously hostile reception from its future consumers, the
twenty or thirty something of generation X.

3. Starbucks is becoming a far less special place for its employees.

The potential solutions could be:

1 As Starbucks is facing fierce competition, they need be better than the competitors.
They can lower their prices, better products and services, bring innovation in their
operation or they can incase their product line.

2. There needs to be a comprehensive research and bring a new strategy for its generation
X consumers.

3. They need to restructure their employees' working schedule, increase their salary and
other benefits to ensure employee satisfaction.
3.Critique Starbucks’ overall corporate strategy.

Critique of Starbucks overall corporate strategy:

1. Starbucks is making less money on each overseas store because most of them are
operated with local partners

2. The workers are not paid well for overtime or over duty.

3. Its pricing policy is not suitable for generation X.

4. Starbucks only spends $260.3 million annually on advertising, or roughly 27.3% of its
revenues.
4.How might Starbucks improve profitability in Japan?

Japan has a very competitive and lucrative market. To improve their profitability in
Japan, they need to position their products and services matching the culture of
Japan. They can,

• lower their products prices,

• design its stores using Japanese
• symbols or designs,
• free Wi-Fi and
• other technological facilities.

They also should increase their advertising budget to stay in the competition.
conclusion
Starbucks Coffee is located worldwide and there are many
different ways to look at this situation. The company offers a
unique range of coffee, lattes, espressos and cafe style drinks.
The company intended to reach a specific target audience, but
has ended up in many different markets and has been growing
rapidly. Overtime Starbucks has been able to require a solid
brand reputation and has a world renowned company logo.
Starbucks image has been achieved also through their ability
to provide honest quality service.
Marks Distribution

Cohesion
Completion
Theory
?
THE END