Starbucks Format

1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this?

The idea came from Howard Schultz in 1980, marketing director of Starbucks, just came back from a trip from Italy, he was charmed by coffee house’ Italian experience. Soon he became CEO and convinced shareholders to experiment coffee house format.

When we see abroad good experiences with impact on people, not to be afraid to try to implement on our community, this can lead only to development and improvements in our lifes and businesses.

2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expanding strategy?

After achieving 700 stores all over US and became one of the best known brands in the country in a decade. The value for the shareholders is created by the opportunity to enter on a big international market, first with joint venture with a local company, after that change the Starbucks format to license and involving and responsible the local companies in order to grow the business.

3. Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lessons can you drawn from this?

In my opinion the decision to enter on a different market via a joint venture is a wise one from two different points:

- First you can benefit from market, legal, political etc. knowledge of a local company;

- You can maintain control on your strategy, vision and mission

4. Is Starbucks a force for globalization?

In my opinion yes, because Starbucks expansion implies changing from national business to international market place, surpass trade barriers and Starbucks coffee became