This document summarizes IBM's presentation on Starbucks' international business operations. It outlines the stages of international business, from domestic to transnational companies. It then discusses Starbucks specifically, including its products, subsidiaries, and founding. Starbucks uses polycentric and regiocentric approaches. It has over 32,000 stores in 79 countries, entering markets through various modes like FDI and franchising. Key regions discussed include the Americas, Europe, Asia, and Starbucks' entry into India through a joint venture with Tata Global Beverages.
This document summarizes IBM's presentation on Starbucks' international business operations. It outlines the stages of international business, from domestic to transnational companies. It then discusses Starbucks specifically, including its products, subsidiaries, and founding. Starbucks uses polycentric and regiocentric approaches. It has over 32,000 stores in 79 countries, entering markets through various modes like FDI and franchising. Key regions discussed include the Americas, Europe, Asia, and Starbucks' entry into India through a joint venture with Tata Global Beverages.
This document summarizes IBM's presentation on Starbucks' international business operations. It outlines the stages of international business, from domestic to transnational companies. It then discusses Starbucks specifically, including its products, subsidiaries, and founding. Starbucks uses polycentric and regiocentric approaches. It has over 32,000 stores in 79 countries, entering markets through various modes like FDI and franchising. Key regions discussed include the Americas, Europe, Asia, and Starbucks' entry into India through a joint venture with Tata Global Beverages.
This document summarizes IBM's presentation on Starbucks' international business operations. It outlines the stages of international business, from domestic to transnational companies. It then discusses Starbucks specifically, including its products, subsidiaries, and founding. Starbucks uses polycentric and regiocentric approaches. It has over 32,000 stores in 79 countries, entering markets through various modes like FDI and franchising. Key regions discussed include the Americas, Europe, Asia, and Starbucks' entry into India through a joint venture with Tata Global Beverages.
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IBM Presentation
Made by- Mihir Bansal
BBA,3rd year,2nd shift Contents 1. Stages of International Business 2. International Business Approaches 3. Starbucks Corporation 4. International Business of Starbucks 5. Americas 6. Europe 7. Asia 8. Starbucks in India Stages of International Business 1.Domestic Company: Limits operation, Vision, Mission to National Political boundaries. 2.International Company: Focus on domestic practices but extent wings to foreign countries. 3.Multinational Company Different strategy for different market. 4.Global Company Either produce in one country and market globally or produce globally and market domestically. 5.Transnational Company Produces, markets, invests and operates across the world. International Business Approaches 1. Ethnocentric Approach It is maintenance of domestic approach towards IB. 2. Polycentric Approach the company establishes a foreign subsidiary company and decentralises all the operations and delegates decision-making and policy making authority to its executives. 3. Regiocentric Approach The company after operating successfully in a foreign country, thinks of exporting to the neighbouring countries of the host country. At this stage, the foreign subsidiary considers the regional environment( for example Asian environment like laws, culture, policies etc.) for formulating policies and strategies. 4. Geocentric Approach Under this approach, the entire world is just like a single country for the company. They select the employees from the entire globe and operate with a number of subsidiaries. The headquarters coordinate the activities of the subsidiaries. Starbucks Corporation • Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. • It is the world’s largest coffeehouse chain. • The company is ranked 114th on the Fortune 500 and 288th on the Forbes Global 2000. • Products: Coffee beverages, Smoothies, Tea, Baked goods and Sandwiches. • Subsidiaries: Starbucks Coffee, Evolution fresh, Ethos water, Teavana, Seattle’s best coffee, TATA Starbucks etc. • Founded in 1971 by Jerry Baldwin, Zev Sigel, Gordon Bowker. • It was later sold to Howard Schultz in 1980s. International business of Starbucks • As of September 2020, Starbucks had 32,660 locations spanning 79 countries and territories on six continents. • Starbucks is a Global company. • Starbucks uses polycentric and regiocentric approach of EPRG Model. • Popular entry modes used by Starbucks to enter in international market are Foreign direct investment, Licensing, franchising, joint venture. Americas • In September 2002, Starbucks opened its first store in Latin America, in Mexico City. By 2016, there were more than 500 locations in Mexico. • In August 2013, Starbucks's CEO Howard Schultz personally announced the opening of Starbucks stores in Colombia. Starbucks noted that the aggressive expansion into Colombia was a joint venture with Starbucks's Latin partners, Alsea and Colombia's Grupo Nutresa that has previously worked with Starbucks by providing coffee through Colcafe. Europe • In 1998, Starbucks entered the United Kingdom market in 1998 with the US$83 million acquisition of the then 56-outlet, UK-based Seattle Coffee Company, re-branding all those stores as Starbucks. • In October 2002, Starbucks established a coffee trading company in Lausanne, Switzerland to handle purchases of green coffee. All other coffee-related business continued to be managed from Seattle. • In February 2010, Starbucks opened in Arlanda Airport outside Stockholm, its first location in Sweden. • In May 2012, Starbucks opened its first coffeehouse in Finland, with the location being Helsinki-Vantaa Airport in Vantaa. • On April 21, 2015, Kesko, the second largest retailer in Finland, announced its partnership with Starbucks, with stores opened next to K-City market hypermarkets. Asia • In July 1996, the first Starbucks location opened outside of North America: a store in Tokyo, Japan. In September 2014, Starbucks announced the acquisition of the remaining 60.5% stake in Starbucks Coffee Japan that it did not already own, for $913.5 million. • In October 2011, Starbucks opened another location in Beijing, China, at the Beijing Capital International Airport's Terminal 3, international departures hall; making the company's 500th store in China. The store is the 7th location at the airport. Starbucks in India • In January 2011, Starbucks Corporation and Tata Coffee announced plans to begin opening Starbucks locations in India. • Despite a false start in 2007, in January 2012 Starbucks finally announced a 50:50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd., which would own and operate outlets branded "Starbucks, A Tata Alliance". • On 19 October 2012, Starbucks opened its first store in India, measuring 4,500 sq. ft in Elphinstone Building, Horniman Circle, Mumbai. • Starbucks opened its first roasting and packaging plant to supply its Indian outlets in Kodagu, Karnataka in 2013. • All espressos sold in Indian outlets are made from Indian roasted coffee beans supplied by Tata Coffee. Thank You