Issues of Starbucks’ International Business Strategy

This presentation discusses the issues faced by Starbucks in its international business strategy and provides key theories to address them. It covers topics such as foreign laws and regulations, cost calculation and global pricing strategy, communication difficulties and cultural differences, and political risk. The presentation also suggests solutions for resolving these issues and highlights theories such as the theory of competitive advantage and the theory of HRM that can support Starbucks in its international business strategy.

International Business
Strategy

TABLE OF CONTENT
 INTRODUCTION
 MAIN BDOY
 CONCLUSION
 REFERENCES

INTRODUCTION
 International business strategy, it is a strategy that every business or company needs to
developed which runs its business operations at the international level.
 There are various issues also has faced by different businesses while making their
international business strategy.
 In this situation, existing management within businesses and companies should be taken
different productive decisions towards systematically dealing with the impact the of
various issues of international business strategy.
 This is presentation discusses issues of Starbucks’ international business strategy.
 There are some key theories of international business strategy also has been provided in
this presentation which can support this coffee café company to properly deal with
different issue of international business strategy.

MAIN BODY
 Overview of company
 Starbucks is basically an American coffee café company which was founded in 1971.
 Currently headquartered of this company has situated in Seattle, United States.
 Currently it operates in approx. 79 countries in across the world with 28,220 employees. It
generally has different coffee café shops in different cities and towns of countries.
 From establishment to date, upper management of this company has highly focused on
more and more expanding its business operations by entering in the new market segments.
 So that, this company has always required to make different business strategies for
systematically running its business operations internationally.

CONTINUE….
 Issues in international business strategy
 There are lots of issues has faced by Starbucks in its international business strategy, so that
some key issues of international business strategy have been discussed below;
 Foreign laws and regulations
 Currently Starbucks run its business operations in many countries, so identify and adhere laws
and regulations of each and every country is very complicated task to this coffee café business.
 That’s why this factor has considered by upper management of company as an issue of
international business strategy.
 Basically, foreign laws and regulations has influenced Starbucks for making its business
strategy accordingly.

CONTINUE….
 Cost calculation and global pricing strategy
 This is another key issue of the Starbucks, because tasks of cost calculation and
global pricing strategy are very complicated at the in international level.
 That’s why this factor also has considered as an issue of international business
strategy.
 Currently many of multinational companies has hired different people or
employees within their respective workplace for systematically dealing with issue
of cost calculations and global pricing strategy.
 Basically, every country has its own currency, so currency exchange is also
something hard task to this company.

CONTINUE….
 Communication difficulties and cultural differences
 This is also another key issue in the Starbucks’ international strategy.
 Basically, while running business at the international level, company has to leant about
different languages of different countries to communicate properly.
 On the other side, there are company needs to be completely aware about the cultures
of different countries, in which it is necessary to company for making an excellent
relationship with all the customers.
 In this situation, deeply understanding communication and cultural differences is not a
small task to this company, because company has required to put its huge efforts to do
this.

CONTINUE….
 Political risk
 Political risk is one of the key issues in the company’s international busines strategy.
 Basically, many times political environment of a country become very risky for the
company.
 There are company get always influenced to maintain its great relationship with existing
government of a country by fulfilling their obligations in very proper manner.
 Otherwise, local governments of many countries not give permission to those MNCs in
their business environment to run their business activities.
 In this situation, taxation also a major obligation to company that company has to fulfil
to systematically deal with political risk issue.

CONTINUE….
 Solution for resolving these issues
 There are company need to choose the right market place for expanding its business
operations, because it is necessary to this company for gaining huge profit from different other
countries as well.
 While choosing the market place, top-level management of company has required to ensure
that, existing market place is favourable for the company or not.
 Reason is, when company has favourable market place, then it can easily gain appropriate
outcomes without facing any issue.
 On the other side, company should be learnt from its previous experiences as well, because it
is necessary to Starbucks for not repeating those mistakes which it has does before, by
considering this thing, this coffee café company will be able to gain very excellent results
within international business operations.

CONTINUE….
 Theories for company
 There are international trade theories can be completely supported to Starbucks for solving
its different issues in international business strategy.
 These all theories will definitely enable to this company for gaining very appropriate
outcomes from its international business strategy, in which some key theories of internal
business or trade has been discussed below;
 Theory of competitive advantage
 This is theory is very favourable to the company, because with the support of this theory,
Starbucks will completely achieve an excellent profit within the international market.
 According to competitive advantage theory, Starbucks has always required to take such
steps which can provide it the great competitive advantage in different countries.

CONTINUE….
 Theory of HRM
 The company has required very trustable workforce in different countries for gaining
very appropriate foreign exchange.
 In this situation, company should apply the theory of HRM, because theory enable to
company for gaining effective workforces within many of countries within the
international market.
 According to theory of HRM, company should be focused on hire those people
within its workplace who are really capable for putting great efforts in the workplace.
 At the end, this company of coffee café shops will be able to gain very appropriate
outcomes through its international business strategy by considering this theory of
international trade.

CONCLUSION
 It can be concluded that there are various issues can be faced by Starbucks in its
international business strategy.
 So that, upper management of this company required to use some appropriate
tactics or techniques to resolving these all issues.
 Of course, running business operations within lots of countries is not an easily
task to company, but by taking few activeness within existing job role, top-level
management will be able to gain excellent outcomes from its strategy of
international business.
 Every time, company needs to be focused on new growth opportunities.
 By considering these all mentioned factors, Starbucks will be able to achieve
great competitive advantage within the international market.

REFERENCES
 Books & Journals
 Alcácer, J., Cantwell, J. and Piscitello, L., 2016. Internationalization in the
information age: A new era for places, firms, and international business networks?.
 Ubong, B., 2018. Entrepreneurship education in Nigeria: issues, challenges, and
strategies. Nigerian Journal of Business Education (NIGJBED). 4(1). pp.11-22.
 Sapkota, R., 2019. Issues and Analysis of Leadership, Strategy, Behavior, and
Accounting of Mergers and Acquisitions: a Case Study of a Merger of Two Mega-
Corporations. International Journal of Organizational Innovation (Online). 12(2).
pp.180-191.
 Klarin, T., 2018. The concept of sustainable development: From its beginning to the
contemporary issues. Zagreb International Review of Economics and
Business. 21(1). pp.67-94.