Starbucks Case

1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

A few controllable elements that Starbucks has encounter while entering the global market are it has the ability to adapt to an area. In addition, Starbucks can pick its locations carefully to ensure a successful time there. Starbucks can also make their new stores seems great and attractive making customers abroad happy and satisfied. Some uncontrollable elements are if the natives of countries are willing to give Starbucks a try. In Italy, the citizens are used to very cheap coffee while if Starbucks comes in, the coffee would be new and most likely more expensive.

2. What are the major sources of risk facing the company? Discuss potential solutions.

A major source of risk for the company is if the company is willing to adapt to the culture and environment when trying to expand. Usually citizens anywhere do not want their culture to be disrespected, and a solution for Starbucks is to do research and get statistics first to see if it will be worth it to even try to open up a new store abroad. Another risk the company can face is the already established coffee shops in Italy. In Italy, coffee is huge and if Starbucks comes in, with the correct marketing, pricing and taste, Starbucks could succeed, and that is why the company really needs to do research on demographics and the country.

3. How might Starbucks improve profitability in Japan?

For Starbucks to improve profitability in Japan, the company has to address a few issues. The company is working with Japanese beverage maker and distributor Suntory Ltd. Since this company is successful, by working with them, Japan legitimizes itself in Japan. Starbucks also has to win over the customers who buy from the coffee brand Mt. Rainier. The Mt. Rainier logo is similar to the Starbucks