INTRODUCTION Starbucks describes a number of issues that could affect the company's growth in the near future. To clearly understand these issues, they will be analyzed in order to understand and create recommendations to assist in the growth of a successful business. STRATEGIC ISSUES INTERNALIZATION Starbucks is committed to expanding its name and reputation globally. It opened outlets internationally, but with poor management and understanding of the global market, expectations were not met and led to the closure of outlets. The closure of most Australian stores and some stores in the United States resulted in the “loss of almost 6,000 jobs; Plus 700 positions were nice in corporate and support positions.” (Grant, 2012) THE STARBUCK EXPERIENCE The Starbuck experience is a tactic that hopes to help differentiate Starbuck from other competitors. As noted by Grant (2012) this experience “is focused on creating a third place, a place other than home and work, where people can engage socially while enjoying the shared experience of drinking good coffee”. Unfortunately, without understanding the market within different cultures, Starbucks failed to provide an experience that reflected consumers' shopping styles. TEN ECONOMY OF SCALE Starbuck stocks a large quantity of products for in-outlet purchase and retail purchase. Once again it is a question of understanding the expectations of the market in which the store is located. Numerous products are available for sale, but not all are suitable for consumers in that target market. Therefore, Starbucks' production costs for all products remain quite high, while unfortunately retail sales are not as expected. EMPLOYEES Employees are that...... half of the paper....... Will need to understand cultural differences to bring customers what they want. Starbucks must accommodate proper employee ethics by providing appropriate working hours and conditions. Learning from past mistakes and strategically avoiding repeating the same mistakes is the main key to the global success of a company that is already globally famous. If Starbucks doesn't fix the underlying problems, it risks suffering further store closures and less global expansion; thus becoming a successful company only within its own home market; America. Failure to expand globally may also result in no future investor or franchising opportunities. For Starbucks to successfully operate stores globally, it will need to analyze problems and risks and plan ways to minimize them as efficiently as possible, so that Starbucks can grow as a well-known global company.
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