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BUS 417 INTERNATIONAL BUSINESS Section 4. Starbucks Entry Modes in Europe. Group B: 073037 Wong Yiu Pong, Daniel 073040 Ng Wai Chuen, William 073047 Kwok Tsz Ching , Doris 073048 Yuen Siu Ming, Hanson 073054 Wong Ho Yuen, Danny 073061 Wong Ka Hin , Nicole. Starbucks in Europe.

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starbucks entry modes in europe

BUS 417

  • INTERNATIONAL BUSINESS

Section 4.

Starbucks Entry Modes in Europe

Group B:

073037 Wong Yiu Pong, Daniel

073040 Ng Wai Chuen, William

073047 Kwok TszChing, Doris

073048 Yuen Siu Ming, Hanson

073054 Wong Ho Yuen, Danny

073061 Wong Ka Hin, Nicole

entry mode joint venture
Entry Mode - Joint Venture

Low control and interest in J.V.

entry mode licensing
Entry Mode - Licensing

Resources:

http://www.echeat.com/essay.php?t=27282

http://en.scientificcommons.org/37037343

http://www.answers.com/topic/starbucks-corporation

http://www.qsrmagazine.com/news/starbucks-takes-back-all-french-stores

http://www.hospitalityfriends.com/news.php?view=35

http://www.starbucks.bg/bg/_About+Starbucks/Starbucks+%D0%B2+%D0%91%D1%8A%D0%BB%D0%B3%D0%B0%D1%80%D0%B8%D1%8F.htm

news.starbucks.com/images/10041/​Timeline - EMEA - Q3 FY09.pdf

http://www.examiner.com/starbucks-in-national/starbucks-opens-its-first-store-budapest-hungary

http://news.starbucks.com/article_display.cfm?article_id=254

http://news.starbucks.com/article_display.cfm?article_id=330

http://www.moodiereport.com/document.php?c_id=1178&doc_id=18361

http://www.4-traders.com/STARBUCKS-CORP-4905/news/STARBUCKS-CORP-Starbucks-Outlines-Blueprint-for-Profitable-Growth-at-Annual-Shareholders-Meeting-13587302/?imprimer=1

  • http://www.moodiereport.com/document.php?c_id=1178&doc_id=16717
  • http://www.agra-net.com/portal2/home.jsp?template=pubarticle&artid=1251978882224&pubid=ag049
slide8

Question:

  • 1) What factors did Starbucks considerate?
  • 2) Which entry mode strategies did Starbucks

use in foreign markets.

united kingdom

United Kingdom

Entry Mode-Foreign Direct Investment

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

  • 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

starbucks in uk
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

pestel socio cultural
PESTEL- Socio-cultural
  • Basic cultural difference with US but not much
  • Highlife expectancy

PESTEL-Political

pestel economic
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

reasons of using acquisition
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
starbuck in france and spain

- Starbuck in France and Spain-

Further Discussion in Joint Ventures

external environment of france
External Environment of France

GDP:

2.16 trillion(10)

2.126 trillion (09)

slide18

External Environment of Spain

GDP:

1.376 trillion (10)

1.379 trillion (09)

comparison of france and spain
Comparison of France and Spain

Similarities

Differences

Economic development and consumer’s spending

Population distribution

  • Democratic and free market
  • High standard of Living
  • Well-educated people
  • Art oriented
exchange of interest in j v
Exchange of interest in J.V.

All Interest in France J.V.

All Interest in Spain J.V.

advantages and disadvantages of j v
Advantages and Disadvantages of J.V.

Advantages

Disadvantages

Difficult to maintain a balanced relationship with partnership

Loss control of technology

  • Shared Costs and Risk

(Too many existing competitors)

  • Explore foreign market and gain market knowledge:

- The market power of S.A