Starbucks Entering Italy - 10612 Words

Consulting Report: Starbucks entering Italy Table of Contents 1. Introduction. 2 2. Starbucks Corporation. 2 2.1 History of Starbucks. 2 2.2 Strategy of Starbucks. 3 2.3 Starbucks’ international expansion. 3 3. The Italian Environment. 5 3.1 General information. 5 3.2 Trade barriers. 6 3.3 Political and legal environment. 6 3.4 Social considerations. 8 4. The Italian Culture. 8 4.1 Anglo cultural cluster versus Latin European cultural cluster. 8 4.2 Hofstede’s five cultural dimensions: United States versus Italy. 11 4.3 The Italian coffee culture. 12 5. An investigation towards the†¦show more content†¦Unfortunately, the owners did not want to be in the restaurant business and turned down the idea. However, Schultz did not give up on his ideas. He started writing a business plan and began searching for investors. In April 1985 he opened his first coffee bar, Il Giornale (named after the Italian newspaper), where he served Starbucks coffee. His Il Giornale became a success from the start, which made Schultz expand to three stores. And in 1987, the owners of Starbucks agreed to sell the firm to Schultz for $4 million. The Il Giornale coffee bars took on the name of Starbucks. From the start, Schultz focused on growth. This caused the company to suffer losses for three consecutive years, as overhead and operating expenses ballooned with the expansion. But Schulz kept his determination, and in 1991 the business became profitable. Eventually, Starbucks went public in 1992 at $17 a share. 2.2 Strategy of Starbucks. The mission statement of Starbucks is included in appendix A. According to the mission statement, Starbucks emphasizes on the quality of their coffee. Their product is not to be just selling coffee, but selling a whole experience. As part of their strategy, they started a special operation to single out the particular Narino Supremo bean, and Starbucks guaranteed to purchase the entire yield. This enabled Starbucks to be theShow MoreRelatedCase 1-1 Starbucks1026 Words   |  5 PagesCase Study 1-1 Starbucks 1) Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. As Starbucks enters the international market will have to deal with the experience the going pains and tensions of entering an unknown territory where the public atmosphere is going to be different. First, some of the controllable elements that Starbucks deals with are the 4p’s (Price, Place, Promotion, and Product). Starbucks ultimately has controlRead MoreStarbucks : A Strong Shaper Of A People Essay1306 Words   |  6 Pagespolicies and practices. Howard Schultz, who is the chief executive officer and chairman of Starbucks keep respect for every local culture. He summed it up when he said, â€Å"We remain highly respectful of the culture and traditions of the countries in which we do business. 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