Critical Issues in Business Management

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Critical Issues in Business Management
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Critical Issues in Business Management 1
Contents
Introduction......................................................................................................................................1
Analysis of Growth and Performance..............................................................................................1
Part 1............................................................................................................................................1
Drivers of Globalization for Starbucks in Australia................................................................1
Global Expansion Strategy......................................................................................................2
Part 2............................................................................................................................................3
Maintenance of Growth by Starbucks.....................................................................................3
Part 3............................................................................................................................................4
Opportunities...........................................................................................................................4
Challenges................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Critical Issues in Business Management 2
Introduction
Starbucks Corporation is a coffeehouse chain based in Seattle United States that is one of the
largest coffeehouse company present worldwide. The company was originated in the year 1971
in USA and now holds more than 17,000 stores worldwide. The aim of the organization is to
provide best quality and finest coffee in the industry. The report evaluates the analysis of the
company Starbucks in the country South Africa. The company entered in the market of South
Africa in the year 2016. They found overwhelming response from the people of South Africa due
to which they resumed the plan of opening 12-15 stores in the South African market. The
company aimed to accommodate large number of stores around 150 in South Africa. The report
includes the analysis of drivers of globalization and global expansion strategies used by the
company to enter in the market of South Africa. Along with this, it also discusses about the ways
in which the company maintained its brand name in the country (Bates, and Buckles 2017).
Opportunities and challenges are also analysed for Starbucks while entering in the African
continent for long run. More details about the report are discussed below:
Analysis of Growth and Performance
Part 1
Drivers of Globalization for Starbucks in Australia
Many factors acted as a driver for globalization for the company Starbucks in the market of
South Africa. These factors are mentioned below:
Increasing Demand of Coffee: The coffee industry is growing due to increasing demand of the
customers in the target market. More and more people are connecting to this industry which is
insisting the company Starbucks to expand the scope of business in the international market. As
the coffee industry is growing so it is attracting the interest of the companies in the market to
expand their scope of business and increase the level of profit in the market. Customers present
in the South African market have started demanding rich and authentic coffee from the industry
(Bezuidenhout 2018). There were few such companies that successfully satisfied the customers