Coordination Challenges in Learning Disability Center: A Case Study

As employees from different agencies work together in a Learning Disability Center for young people, there can be negative factors such as improper coordination among various treatment procedures. It is essential to have effective communication and clear responsibilities to ensure successful collaboration. The assignment explores the importance of employee responsibilities and how they impact learning outcomes.

International Business
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EXECUTIVE SUMMARY
In order to succeed in the international marketplace, the company has to explore the foreign
opportunities in which the company can expand business by foreign direct investment. The chances
can be achieved through joint venture, licensing agreement and by acquisition. To enter in the foreign
market, the company should first analyse the market factors and after that enter with powerful
strategies to capture the foreign target market. Starbucks has entered into the \market of Japan, United
Kingdom, Thailand, Switzerland and China to expand their business outside United States. The
company is also focusing on staffing approach which are used in Japan in relation to the corporate
strategy.
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................4
TASK....................................................................................................................................................4
1. a) The foreign market analysis of the different markets .............................................................4
1. b) The different market entry strategies with their suitability employed by Starbucks in the
different foreign markets..................................................................................................................7
2) The suitability of the staffing approach that Starbucks utilised in Japan....................................9
CONCLUSION...................................................................................................................................11
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INTRODUCTION
In the present globalization era international business is consider as an effective approach that
focuses on selling the products and services across the national boundaries. However, it also focuses on
conducting the business transaction such as private and governmental, sales, investments, logistics and
transportation etc. Starbucks Corporation is an American coffee company and a coffee house chain that
is selling premium roasted coffee (Starbucks, 2016). The company is largest retailer of coffee with
23,450 stores all over the world and it also consist of 191,000 employees working in the organization.
The present report is been carried on the case of Starbucks' as they are entering into the market with
various strategies which shows its market analysis and staffing process in Japan.
TASK
1. a) The foreign market analysis of the different markets
Starbucks has captured different markets outside the United States which are Japan, UK,
Thailand, Switzerland and China (Murray-Webster, 2010). The foreign market analysis of the different
countries are as follows:
PEST Analysis of Japan:
 Political Factors: The factors of Japan is politically stable and the various law such as labour
law, environment law etc. have not been changed from past several years. So it would be easy
for Starbucks to monitor the political stability as well as other factors like tax policy,
employment laws etc.
 Economic Factors: In economic factors, it comprises interest rates, economic growth, inflation
rate and the inflation rate. During the time of recession, it is hard for Starbucks to convince the
target market of Japan because buyers are shifting to cheaper alternatives (Murdy and Pike,
2012). The company is also dealing with other economic factors such as increasing in labour
and operational costs of the company. The additional factors which can affect Starbucks can be
economic environment, taxation, local currency rates.
 Social Factors: Starbucks has to emphasis on different cultural aspects that includes health
consciousness, age distribution etc. The company has to focus on the customer’s tastes and
preferences, changes in lifestyle of Japanese (Miller and et.al. 2011). The population of Japan is
health conscious so the organisation should offer their products and services according to the
buyers ' need and requirements.
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 Technological Factors: The Company can focuses on the Research and development activities,
new innovative technological incentives and increase the rate of technological change. This
coffee house has to determine various functions like cost, quality and innovative products so
that they can attract more number of Japanese customers. Furthermore, barriers to entry,
production level can also affect the outsourcing decisions.
PEST Analysis of UK:
 Political Factors: Raw materials pattern of sourcing is the significant factor which can affect
the business of Starbucks. Tax scandal faced by the company in UK can be the major political
factor for the government (Makos, 2016). Other factors affecting the organisation include
political instability, impact of local coffee retailers and a broad range of non-government
organizations which will affect the political factors.
 Economic Factors: Consumer buying behaviour is a leading economic factor which influence
Starbucks profitability. During the economic crisis, revenue of the company decreases which
leads to winding up of 900 stores in the country. Currency exchange rate is another crucial
factor that diminishes the total profits.
 Social Factors: Spending more time in the Starbucks can lead to American and European
lifestyles in consumer perception which may attract a large number of customers (Burns, 2008).
The customers are concerned about their health so that the company is using less caffeine and
sugar in their coffee products. Changing in work patterns, tastes and preferences and shift in
consumer values are additional social factors that effects Starbucks.
 Technological Factors: The use of advanced and innovative technology can improve the
operational efficiencies of Starbucks. The coffee house can serve advanced technology such as
free Wi-Fi connection which can enhance their brand value. Other factors can be increase of
innovative technology, biotechnological developments etc. Starbucks is also enabling mobile
payments which gives overall consumer experience.
PEST Analysis of Thailand:
 Political Factors: The political factors of Thailand are not stable which is scaring Starbucks the
most to open their outlets in this country. The main factor is sourcing raw materials which can
be expensive for the government of Thailand to buy from outside its boundaries. The other
factors can be activism and political awareness, certain laws and policies.
 Economic Factors: Thailand is suffering from drought that is highly impacting the buying
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behaviour of consumer by which it reduces the sales of Starbucks. Thai people are
predominately dependent upon agricultural sector that is why customers are less preferring the
coffee house. The inflationary environment and falling profitability is also a major issue for the
organisation (Buckley, 2005). The other crucial factor may be the low level wages of the Thai
people which is reducing the purchasing power of the desired customers.
 Social factors: Starbucks is offering low priced products to Thailand so that people can
purchase the products according to their income level. The company also serves products
according to the needs and requirements of the consumers. Changing of work patterns,
lifestyles, tastes preference of the buyer will affect the sales of the Thai consumers.
 Technological Factors: Starbucks' partnership with Apple can bring mobile application based
discount coupons and vouchers for customers to attract them to the coffee house. Other
technological factors of Thailand that can affect the company are innovative and advanced
technology, biotechnological developments and improvements in agriculture.
PEST Analysis of Switzerland:
 Political Factors: The Company has to follow all the rules and regulations of Switzerland to
enter into their marketplace. The political condition of the country is stable and can control
regulatory pressures of the market. The organization wants to attach to the social and
environmental norms so that they can gather the raw materials from the source countries. The
business enterprise also gives importance to the fair trade practices.
 Economic Factors: European economic system is facing recession issues that can critically
impact the operations of Starbucks. Due to this reason, the customer can shift to cheaper
alternatives according to their purchasing power (Frynas and et.al., 2006). The organization has
to deal with rising labour and operational costs to enter in the marketplace.
 Social Factors: Swizz people are highly educated and modern and are quality conscious who
can pay more to get high quality products. Starbucks should serve high quality products to their
customers through which it can satisfy its customer and increase its profitability level (Stamm
and Trifilova, 2009). Change in tastes, preferences and lifestyles also affect the sales
performance of the company.
 Technological Factors: The people of Switzerland are very active in E-marketing and E-
banking through which consumers can buy products and make payments through internet
channel. There are large numbers of internet user in the country so by this Starbucks can
introduce free Wi-Fi connection and charger sockets to the retail outlets with online services.
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PEST Analysis of China:
 Political Factors: The flexibility has given by China in implementing business-friendly laws.
This can be main advantage for Starbucks to enter easily in Chinese market to sell their
products and services (Cavusgil and et al., 2008). Moreover, the company has to follows all
regulatory framework described by the China government.
 Economic Factors: In China, there are large number of tourists and traveller which is increasing
the sales of the products. This factor can affect the consumer base of Starbucks China because
of increasing number of competitors in China (Brakman, 2006). The inflation cost and other
operational costs are the main aspect of the economic factors.
 Social Factors: China possess a culture that is of high quality standards, low uncertainty
avoidance, very clustered etc. Due to avoidance of the uncertainty, the consumers are tend not
to plan their purchases. According to the China, their customers are brand loyal once they have
been satisfied with their particular product and services which can act as a limitation for
Starbucks.
 Technological Factors: With a highly technologically savvy population, Starbucks can provide
free internet connection to their customers. The Chinese people prefer to purchase online and
through this, the company could yield the advantage of this fact. In other words, Starbucks
could essentially provide this need of the consuming public.
1. b) The different market entry strategies with their suitability employed by Starbucks in the different
foreign markets
The suitability of entering into different market various strategies have been employed by
Starbucks such as through direct foreign investment in joint-venture (Frynas and et.al., 2006). The
different market entering strategies in the varied foreign markets are as follows:
Market entry strategies in Japan
Starbucks first target in foreign market was Japan and it happened in mid-nineties. To enter in the
Japanese market, the company first decided to license the agreement from Japan government. As per
the view of case study, to accomplished a joint venture with a local retailer and restaurant operator,
Sazaby Inc. Starbucks join as a partner of 50% stake in the venture. This joint venturing is done by
direct foreign investment. Furthermore, reported in the case, Starbucks initially invested $10 million in
this joint venture (Bartlett and Ghoshal, 2003). After that, the company gets licensed to venture and
later takes over the responsibility for expanding their business widely in Japan. According to the given
case study, it states that to secure the trading operations of Japanese company should send their some
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employees to the Japan to create the same US ambience. As per the success in the Japanese market, by
the end of the 2007. The suitability of joint venturing is successful here by which Starbucks opens 700
stores across the Japan and planning to continue opening more.
Market entry strategies in United Kingdom
After exploring the first foreign market opportunities in Japan, Starbucks started focusing on an
assertive foreign investment program. According to the given case study, the company acquire Seattle
Coffee which is a one of the popular British coffee chain across United Kingdom. The organisation's
market entry strategy is that, to buy the coffee house outlets and to formulated in the Starbucks coffee
house (Freeman and et.al., 2010). Here, the business enterprise use the strategy of acquisition in which
one company buys another company to enhance its sales performance and profitability. The suitability
of this strategy is moderately successful. The acquisition is done on the basis of direct foreign
investment to buy another coffee house with the amount for $84 million. Seattle coffee is another
coffee retailer that is American based which was set up by a British couple with an intention of
establishing famous coffee chain in United Kingdom.
Market entry strategies in Thailand
Subsequently succeeding in in Japan and United Kingdom, the company has started their stores in
Asia. In the late nineties, Starbucks opened its coffee retail outlets in Taiwan, South Korea, Thailand,
New Zealand, Singapore and Malaysia. To start their outlets in Thailand, the company uses the
licensing agreement as the market entry strategy. The organization initially entered into the market
with Coffee Partners which is a local Thai company by a licensing agreement. According to the terms
and conditions of the licensing agreement, Thailand coffee company was mandatory to open at least 20
Starbucks coffee retail outlets within the span of five years in the country (Pehrsson, 2009). In
Thailand, there is a low wage level of income and banks also provides less funds to the Thai
population. However, the suitability of the licensing agreement is not that appropriate because Coffee
Partners also found it difficult to take funds from Thai banks to finance for its business elaboration in
the Thailand. To overcome this situation, Starbucks uses another entry market strategy that is
acquisition, so that they can open more coffee stores in the Thai market (Griffith and Hoppner, 2013).
The coffee company acquired Coffee Partners for about $12 million to expand its market share. This
strategy's main goal was to gain clinched control over the expansion plan and to open more stores in
Thailand.
Market entry strategies in Switzerland
After expanding their business in United Kingdom, Starbucks was following an assertive expansion
in mainland Europe. The organisation's market entry strategy was to come into joint venturing with the
local company of Switzerland. After signing the joint venture agreement with a Swiss company, i.e.
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Bon Appetit Group which is the largest food service company of the country (Hill, 2006). As per the
evaluation of the case study, Bon Appetit is holding the majority of stake in this joint venture. The
main strategy of the company was to connect with Switzerland who has two motives and they are
firstly, joint venturing with local company to target the native swizz people. The other motive is to use
that company’s relations in expanding the business in Asia. In this market, the strategy is suitable
because company fulfils its all motives to expand globally.
Market entry strategies in China
After doing joint venture in other countries through direct foreign investment, the company give
statement that it is believed that there is now also potential to open 15,000 stores outside United States.
The company think that the major opportunities is in China and for that the company has taken the risk
of opening Starbucks coffee outlets without any joint venture and licensing agreement. The market
entry strategy which is used by the company in China is single market opportunity (Hofstede, 2010).
The Chinese policies are very flexible and allowed the foreign companies to sell their products and
services into their market. The entry barriers in China are flexible enough to allow Starbucks to do
their business in the country and the suitability of the strategy is successful because currently they have
350 stores in China.
2) The suitability of the staffing approach that Starbucks utilised in Japan
HRM is an important part of all organization where the corporation is identified that the only
mode of maintaining a boundary is to spend properly in the development of employees’ ability.
Starbucks is providing their employees to gain foreign market experience by sending them to their
international outlets which can act as a opportunities for them. The company is secure the trading
operations of Japanese company should send their some employees to the Japan to create the same US
ambience. (Holbeche, 2009). In order to meet the licensing agreement standards, the management
wants all Japanese store managers and employees to attend training and development classes similar to
those which are provided to the US employees. There is a culture differentiation between Japanese and
American market, the company is providing their employees training opportunities which will
enhanced their skills and allowed them to learn the new mechanics of the new market. The agreement
which was among the Sazaby Inc. and Starbucks also stated that store should lucifer to the design
parametric quantity constituted in United States.
To developed an effective plan in which there are brief about the training and development
initiatives which is the corporate strategy of the staffing approach that suited the Starbucks which
should be utilised in Japan. In early 2000, the organization introduces a stock option plan for all
Japanese employees which are making Japan the first organization to follow this plan. According to the
given case study, Intellectual doubted that Starbucks can repeat their success in North American
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(Daniels and et.al, 2011). The employees who are working in America were trained in such a way that
they can adjust in the working style of Japanese business culture. The employees were prepared in that
manner in which they can transfer the relevant skills to the Japanese workforce. However, it can be
critically assessed that it may be difficult for the organisation to replicate its United States success in
Japan.
In Asia, Starbucks' used the most common strategy which is licence agreement with the local
retailer which was benefiting the company through the initial licensing fees and royalties (International
Staffing. 2012). This common strategy was used by Starbucks to enter into the Japanese market and
operates its business enterprise. To set up their business in Japan, Starbucks starts a intense employee
training program which should match the strict specifications of US outlets in regards to the format and
layout of the store. In order to enhance its trading operations in the market of Japan, Starbucks
transferred some of its employees to the new market of Japan (Kelly, 2009). The organisation makes
sure that every employee possessed the required set of skills which is mentioned in the company
standards list. The training sessions which are provided by the US employees to the Japanese
employees were compulsory for them to attend to enhance their knowledge in the respective field. By
this compulsion training sessions, the Japanese employees could provide the similar Starbucks
experience to the customers.
The company is providing same experience to both the employees that is US and Japanese. For
an example, the employees who are working more than twenty hours per week, Starbucks has initiated
a health and safety benefit program for them. This approach is for those particular employees who are
precious part of the corporation. Once the trained workforce were ready to offer the best and constant
services to the customers then the staff was transfer to the different Japan outlets (Rao and et.al., 2015).
After that the employees of Starbucks were even given the stock grant options for intensify their
productivity level. In order to improve the motivational level of its employees, Starbucks has made
essential changes in their compensation packages. For an example, the part-time workers can provide
medical benefits and stock grant options to motivate them as well as to increase the production
capacity of the organization. But, it can be critically assessed that it will be hard for employees to
create the same ambience and same services to their customers.
Since consistency among the business operations is important aspect of a firm that is why Japan
is considering the Foreign Direct Investment option. The company has to secure that the employees are
well trained in their providing similar and better service level to their customers. Starbucks made it
certain that it employs the high quality resources for an efficient management of its staff (Senge, 2008).
The company is providing employees having the same capabilities which are required for managing
their international operations. Since, Starbucks focused at offering consumers with similar taste of
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coffee and ambience of US outlets in all of its international outlets. To offer these facilities to the
Japanese people, it has started a special training and development program to their local workforce.
CONCLUSION
Starbucks is highly popular premium roasted coffee retail company across the world. The above
report concluded that the company has done direct foreign investment to explore the foreign
opportunities outside United States. The countries like Japan, Thailand, Switzerland etc. in which
Starbucks has done the joint venturing gets successful in setting up their business. From foreign direct
investment, company has expanded their business, improve their sales performance as well as increase
their profitability. The firm has entered into the market by different strategies like licensing agreement,
joint venture and through acquisition. To offer similar products and services to the customers,
Starbucks is giving distinctive training to their employees.
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REFERENCES
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