American Global Company Strategy

As an American global company, Starbucks is the biggest coffee company with 20,891 stores in 62 countries, which could be compared to McDonald in the food chain. Starbucks started its operation in the UK in 1998. Before its entrance in UK, soluble and instant coffee was in a much a more dominant position than roasted, ground, real coffee. After that, the coffee culture in UK was rapidly changed to ‘a decent cup of coffee’ (Spectator, 13th Nov, 2013), such as the roast and ground coffee, and premium instant coffee. Starbucks focuses on not only the customer service and better environment but also do a lot of research and development to analyze the UK coffee market, different age groups’ coffee-drinking habit, the target customers’ requirement and the most potential coffee category. Such as, before launching VIT premium instant coffee, they clearly understand the instant coffee accounted for 80% of the UK total coffee sales. Additionally, although the market of instant coffee goes on rising, the most potential one is ‘ the roast and ground category’ (Academic Integrity personal statement, 2010). It employs 7,500 employees in UK in 2011 and will employ more according to the president’s statement on their official website. In 2012, even after the scandal of tax avoidance in the end of 2011, it still enjoyed the second largest market of 28.5% market share with 757 stores next to Costa, 44.1% market share and 1,287 stores. (Hospitality & catering news, 4th, Jan, 2013).

Talking about the scandal of boycott, it happened because of tax avoidance during the time of preparing further expansion and promotion in the second half year of 2011. Since the business started in UK in 1998 till 2011, there was approximately £3.1 billion profit, however the tax paid was just £8.5 million. In addition, there is no tax at all in the last 3 years from 2009 to 2011 by transferring the profit to other country, like Netherland. Thus 40 stores were protested by UN uncut organization. The protesters shouted that 74% of 15 billion benefits were taken away from women income, connecting companies’ economical behavior with political and social levels. According to Elson (Conversion, 11th, Nov, 2012), women have multi-layer duties in society, such as unpaid family care and paid social career. However, women are much disadvantageous than men in society based