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Pleasepo
ostyouranswerssinthessameshe
eet
TThisisattakehom
meexam
mination.
D
Deliveryshouldb
beonorbeforeJuly16th2011
Nam
me: ___________________
IntaakeN
Num
mberr: ___________
Date
e:
____
_ ____
_____
2011
ESLSCA
AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
StrateggicManaggement
MidTermExamination16thofJuly2011
1
Pleasereeadthroughthefollowin
ngcaseandffollowthegu
uidelinequesstiontohelp
pyouanswerrthe
followingcasestudyy,youwillneeedtoaccessstheinternetforinformaationaboutttheexternal
environm
mentrelated
dtothecaseeandexamin
nethecompaanyinformattion
STARBUCKS COF
FFEE COM
MPANY: TH
HE INDIA
AN DILEMM
MA
Starbuck
ks in 2006 was
w
worlds largest coffe
ee retailer with
w
over
11,000 stores
s
in 36 countries an
nd over 10,0
000 employee
es. With
7,600 stores
s
in the
t
U.S., management
m
t was focu
using on
internatio
onal expansio
on as Starbu
ucks primary
y growth opp
portunity.
Through its Starbucks Internation
nal division, the
t
company
y pursued
onal expans
sion for th
hree reasons: (1) to prevent
internatio
competito
ors from gettting a head start, (2) to
o build upon
n growing
desire for western bra
ands, and (3) to take adv
vantage of high coffee
ption rates in other countrries. Starbuck
ks entered bo
oth Japan
consump
and China during the 1990s. Jap
pan soon beca
ame the seco
ond most
e market for the company
y. Starbucks became the leader in
profitable
specialty coffee in Ch
hina. These successes prrompted man
nagement
to consid
der expansion
n into India in 2002. Pro
oblems in Japan then
caused m
managementt to postpone
e a move into
o India. In 2004,
2
Starbucks officials visited India,, but due
to a lack
k of local partners, again postponed entry. By mid
d-2006, Starrbuck once more
m
targeted
d India as
the nextt expansion opportunity.
o
Howard Sch
hultz, founderr of the company, stated that We arre equally
excited a
about two oth
her major ma
arkets we intend to enter during 2007 India and Russia.
After dis
scussing Starbucks histo
ory of successful growth both at home and inte
ernationally, the case
focuses on India as a potential market
m
for the
e coffee retailer. The cas
se presents information on
o Indias
e industry. Profiles
P
are provided for various
v
existing coffee
societal environmentt and on Indias beverage
ains in India.. The key is
ssue in the ca
ase revolves around the question: Arre circumstan
nces right
shop cha
for Starb
bucks to ente
er India?
Guiding
g Questions:: you are nott supposed to
o answer thes
se questions only, your an
nswer should
d cover all
the topic
cs agreed witthin the past 5 lectures.
1.
2.
3.
4.
5.
Does Starbuc
cks a distinc
ctive compete
ency? If yes, does it fit the
t
Indian ma
arket.
6.
Che
eck out the appendices
s at the end of this do
ocument
ESLSCA
AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
You
ur Answer
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
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ESLSCA
AStrategiccManagemeent&BusinesssPolicies2
2011RamyyKhodeir
Appendix: India as an
n emerging E
Economy
ESLSCAStrategicManagemen
nt&BusinessPolicies2011RaamyKhodeir
ESLSCAStrategicManagemen
nt&BusinessPolicies2011RaamyKhodeir
ESLSCAStrategicManagemen
nt&BusinessPolicies2011RaamyKhodeir
ESLSCAStrategicManagemen
nt&BusinessPolicies2011RaamyKhodeir