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United Kingdom

United Kingdom. Entry Mode-Foreign Direct Investment. Foreign Direct Investment. Wholly-owned subsidiary of Starbucks Corporation of the US -means the firm owns 100 percent of the stock Acquisition of 65 Seattle Coffee Company stores In 1988, May

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United Kingdom

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  1. United Kingdom Entry Mode-Foreign Direct Investment

  2. Foreign Direct Investment • Wholly-owned subsidiary of Starbucks Corporation of the US -means the firm owns 100 percent of the stock Acquisition of 65 Seattle Coffee Company stores In 1988, May • The first European country which Starbucks entered • More than 600 branches in UK and Ireland at present moment Source: Master Thesis Course - International Business and Entrepreneurship Entry Modes of Starbucks

  3. Starbucks in UK • Offering packaged Starbucks® coffee in UK supermarkets • Great Place to Work® Institute UK as one of the UK’s 10 Best Workplacesin 2007 • Accepted the prestigious First Magazine Award for Responsible Capitalism 2007 in London • Introduced 100% Fairtrade certified espresso as part of the Starbucks™ Shared Planet™ commitment to ethical sourcing • In 2009, Starbucks VIA™ Ready Brew at U.K. based easyJet airlines flights Source: Timeline of Starbucks Website

  4. PESTEL- Socio-cultural • Basic cultural difference with US but not much • Highlife expectancy PESTEL-Political

  5. PESTEL- Economic • Principles of market liberalization and low taxation and regulation • The sixth largest economy in the world and the third largest in Europe • Developed countries in which 35468.00 US dollars GDP per capita in December of 2008 Source: Master Thesis Course - International Business and Entrepreneurship Entry Modes of Starbucks Wikipedia

  6. Reasons of using Acquisition • An existing coffee company in UK • Gain Knowledge in New market • Comparatively large size of Starbucks which can commit more resources and large amount of capital

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