Case Study: Coffee, café, Kaffee, Or copi-Starbucks Spans the Globe
Q.1: What factors in the external environment influence starbucks as it does business outside of United States? Give some examples from each dimension?
A.1: The factors in the external environment which influence starbucks as it does business outside of United States are:
1. The local Standard of living where starbucks plans to open an outlet.
2. The similarity of the business environment for example in U.A.E and United States.
3. The competitors like Second Cup and Costa Coffee.
4. Countries with high levels of Anti-Americans.
5. The Business and legal environment of the country and regulators of the country.
6. The size of Target Market and low level Income earners.
The Dimension in which the starbucks has to look is like:
1. Economic Dimension: Refers to the economic growth, Inflation, Interest rates and Unemployment of the country. For Example when the country economy is in Recession or it is in economic crisis, so this also effects the business operations and activities. Example: when starbucks will open an outlet it will contribute into economic growth by reducing the unemployment level in the country.
2. Technological Dimension: Refers to the method available for converting resources into Products & Services. Example: Starbucks uses latest technology for making Coffee’s , Drinks and Snacks reducing the Cost and making there activity Efficient and Effective.
3. Political and Legal Dimension: Refers to the General Environment and consist of Government Regulator of business and the relationship between business and Government.
Q.2: What are the advantages and disadvantages of Starbucks’s choices regarding levels of international business activity?
A.2: Starbucks can choose various levels of International business Activity like
1. Importing and Exporting: This is making a product in Firms Local Domestic marketplace and the sending it...