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Starbucks - Modes of international business


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-Abhishek & Brijesh

Published in: Education
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Starbucks - Modes of international business

  1. 1. Modes of International Business
  2. 2. License Joint Venture FDI (Foreign Direct Investment) Franchisee Contract Marketing Turnkey Projects Barter Merger Take Over Exports Contract Manufacturing
  3. 3. "We aren't in the coffee business, serving people. We are in the people business, serving coffee"
  4. 4. "We aren't in the coffee business, serving people. We are in the people business, serving coffee" - Howard Schultz Starbucks CEO
  7. 7. STARBUCKS 1971 The Starbucks Center, Seattle. The company HQ, in the old Sears, Roebuck and Co. catalog distribution center building.
  8. 8. OUR HERITAGE Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better. It was true when the first Starbucks opened in 1971, and it’s just as true today.
  9. 9. MISSION Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.
  10. 10. STORES Starbucks is the largest coffeehouse chain operating in the world. There are 16,706 of them spread out through 50 countries. The US is home to about 11,068 of them. Total stores 16,706 (as of Dec. 27, 2009) 8,850 Company- operated stores. 7,856 Licensed stores.
  11. 11. BENEFITS
  12. 12. PRODUCTS
  13. 13. EMPLOYEES
  14. 14. Company Operated It all started in Seattle's Pike Place Market in 1971. From there, we've grown in numbers but maintained our commitment to being the heart of the neighborhoods where we operate. Our stores are customized to provide a unique Starbucks Experience for our customers and to complement the surrounding community. Total U.S. Co-operated 6,871 Total Int’l Co-operated 2,048
  15. 15. STARBUCKS’ BUSINESS VENTURES 1995 A long-term joint venture with Dreyer’s Grand Ice Cream was formed to market a premium line of coffee ice creams. Nationwide distribution to leading grocery stores occurred in the spring of 1995. Formed a strategic alliance with United Airlines to become the exclusive coffee supplier on every United flight in 1995.
  16. 16. STARBUCKS’ BUSINESS VENTURES 1996 Starbucks & Pepsi Launch DoubleShot Espresso. The North American Coffee Partnership was formed between Pepsi-Cola and Starbucks New Venture Company, a wholly-owned subsidiary of Starbucks. The partnership announced its plan to market a bottled version of Starbucks’ Frappuccino™ beverage. Starbucks has given License to Aramark to operate a number of Starbucks Stores at businesses, industrial sites,health care locations, colleges, universities and other locations in the United States.
  17. 17. STARBUCKS’ BUSINESS VENTURES 1998 Starbucks Coffee Co. and Kraft Foods formed a long-term licensing agreement to accelerate growth of Starbucks brands into The PASQUA grocery channels across COFFEE CO. and The the U.S. TAZO Tea companies are acqired in 2000.
  18. 18. HOST COUNTRY Operating in more than 50 countries: Argentina, Aruba , Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland, Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland, Singapore, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United States and Wales.
  19. 19. EXPANSION
  20. 20. LICENSED Licensed stores are Starbucks stores that offer great coffee, tea and customers service; however, they are owned and managed by a licensee. Starbucks enters into licensing arrangements to provide the Starbucks Experience in locations including local department stores, hotels and resorts, college and university campuses, hospitals, casinos, airports, grocery stores and other locations. Total U.S. Licensed 4,395 Total Int’l Licensed 3,290
  21. 21. INT’L EXPANSION In markets outside the continental United States (including Hawaii), Starbucks' strategy was to license a reputable and capable local company with retailing know-how in the target host country to develop and operate new Starbucks stores. In some cases, Starbucks was a joint venture partner in the stores outside the continental Untied States.
  22. 22. JAPAN 1995 Starbucks Coffee Japan was established in October 1995, as a joint venture between Sazaby League and Starbucks Coffee International. Since the opening of our first store on August 2, 1996, in the Ginza district of Tokyo, our network has expanded rapidly throughout the country and has reached 872 stores. Company Name: Starbucks The 1st Store in Japan Coffee Japan,Ltd.
  23. 23. UNITED KINGDOM 1998 Acquired Seattle Coffee Company, UK’s leading specialty coffee company. There are altogether 675 Stores in United Kingdom.
  24. 24. SOUTH KOREA 1999 Starbucks Coffee Korea Co., Ltd. is a joint venture partnership between Shinsegae Department Store Co., Ltd. and Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Company. The five-story Starbucks, Largest in the World.
  25. 25. MIDDLE EAST 1999 Egypt   Starbucks initially started Saudi Arabia   in Kuwait in 1999 through a United Arab Emirate   Lebanon    licensing agreement with Tunisia   trading partner and licensee Syria    M. H. Alshaya Co. WLL, Iran  Yemen      a private Kuwaiti family Somalia    business. Morocco    Iraq    Qatar   M. H. Alshaya Co. Libya   operates over 280 Kuwait    Jordan   Starbucks stores in the Algiers   Middle East region Oman    Bahrain   including Kuwait, KSA, UAE, Afghanistan   Egypt, Lebanon, Jordan, Qatar, Bahrain and Oman.
  26. 26. CHINA 1999 Starbucks has collaborated with different partners for its operations in China. In Shanghai and Hangzhou, it has partnered with a unit of the President group. The President group is Starbucks’ partner in Taiwan, where it runs around 80 coffee stores. In North China, the company has partnered with H&Q Asia Pacific and Beijing Mei Da Coffee.
  27. 27. SWITZERLAND 2001 Starbucks Coffee Switzerland AG is responsible for setting up and running Starbucks coffeehouses in Switzerland. Business operations are managed by Starbucks Coffee Switzerland AG , a 50/50 joint venture of Starbucks Coffee International & Marinopoulos Brothers SA.
  28. 28. INDIA ??
  29. 29. HOWARD SCHULTZ Remember, just because nobody else is doing it, doesn’t mean there isn’t a market out there. If business only ever set out to capture share of proven markets, nothing new would ever happen. Drive your people to think about consumers and markets, then make the product to meet their needs.
  30. 30. Why do you think Starbucks expand internationally primarily through local joint-ventures, to whom it licenses its format, as opposed to a pure licensing strategy? It gives Starbucks some type of safety. We had rather license to a holding company that already has experience with selling food or coffee that granting a license to an individual that may not have any knowledge of the business. The holding company has the experience, and the money to support the expansion. A joint venture will allow you to grow your company without having to spend too much money, pretty much like franchising.
  31. 31. THANK YOU Project by : Abhishek & Brijesh