The Globalization of Starbucks
Case Study Question Responses
Global and International Management
MGT Section
The Globalization of Starbucks
Case Study Question Responses
Where did the original idea for the Starbuck’s format come from? What lesson for international business can be drawn from this?
Howard Schultz’s visit to Milan, Italy in the 1980’s while he was the marketing director of the company is where he experienced the warm and pleasant atmosphere of Italy’s cozy Italian coffeehouse. Schultz’s positive experience with the personalization and warmth of the coffee house is where his inspiration to create the same atmosphere for the Starbucks Corporation was originated Schultz was able to persuade the owners of the company to implement the process and cultural experience from Italy’s coffeehouses into their store. Howard Schultz’s innovated process came form him having the opportunity to experience a different culture and observing how they do business. Schultz was intrigued and inspired by how the Italian coffee bars were organized, as well as, their unique characteristics of having a relationship with their customers. By learning and studying their practices and processes to the Starbucks stores, which has been instrumental to their success. As stated in our textbook “innovation not only includes the production of new products but entails new processes, new organizations, as well as the implementation of new practices, strategies and procedures.” His decision to re-create the Italian coffee house culture in America, transformed Starbucks into not only a retail store, but also a place where employees form social relationships and experiences with the customers, therefore creating that added value of personalization to their stores. In turn creating a loyal customer base, along with quality and efficiency is what sets Starbucks apart, and has made it harder for other corporations to replicate.
The lesson of international business...