MAR 3023 Lecture Notes - Lecture 1: Starbucks, Coffee Culture, Espresso
Document Summary
Case 1 starbucks, going global fast: identify the controllable and uncontrollable elements that starbucks has encountered in entering global markets. There are four controllable elements that starbucks has encountered as they entered the global markets. Those four controllable elements are price, product, promotion, and the firm"s characteristics. Starbucks have had to adjust their prices globally. Italy is 55 cents compared to 1. 50 dollars in america. Starbucks chooses international partners in order to make cultural adjustments for the countries they sell from. A cultural adjustment that needs to be made by starbucks in italy for example is that they need to serve food along with coffee, as that is essential to italians. The product controllability includes selling snacks and packaged coffee to supermarkets to gain more profit. Profit is also made because of the savings starbucks makes by relying on word of mouth and reputation, thus not spending on marketing costs. The firm"s controllable characteristics are place and cash flow.
