Starbucks plans to open its first location in Italy in early 2017 in Milan. The CEO has visited Italian coffee shops since 1983 to understand Italian coffee culture. Starbucks aims to respect Italian traditions by focusing on coffee and espresso while introducing new flavors. It will face challenges attracting Italian coffee drinkers, but hopes to appeal to tourists and new generations. Starbucks educated itself on Italian coffee drinking to globalize responsibly.

1. G L O B A L I Z A T I O N A N D D E M O G R A P H I C S
Starbucks Coffee

2. Starbuck’s Current Global Position
 Stores in 67 countries
 More than 22,000 outlets
 Obtain coffee from three growing regions:
 Latin America
 Africa
 Asia-Pacific
 First international store was launched in Tokyo,
Japan back in 1996

3. Where Starbucks Is Going Next
 Milan, Italy
 Howard Schultz, CEO, is teaming up with Antonio
Percassi, to open store.
 Schultz added that Starbucks will enter Italy with
“tremendous humility and great respect for the
culture.”

4. How They Are Globalizing
 According to Schultz, the store will “have to deliver a
stunning visual experience that is only topped off by
the quality of the coffee and what it tastes like.”
 Different drinks for different regions
 Strawberry red velvet mocha is found in the Asia-Pacific
 Pistachio and rose mocha is found in Europe, Middle East, and
Africa
 Cookie latte is found in China

5. When Are They Going
 Shultz first visited Italy in 1983 for a
trade show and visited local coffee shops
 Picture of Schultz’s visit on right
 Revisits once a year
 First and only store for the time being
in Italy will be in Milan.
 Launch date is early 2017
 Still have yet to pick out property

6. Why The Big Move
 Percassi states that "We know that we are going to
face a unique challenge with the opening of the first
Starbucks store in Italy, the country of coffee, and we
are confident that Italian people are ready to live the
Starbucks experience, as already occurs in many
other markets."
 Schultz wants to bring the “quality and artistry of
Italian products” into Starbucks.
 Schultz has always wanted to come full circle but
thinks they weren’t ready, but now they are.

7. The Challenges of Organizational
Communication
 Globalization
 The process of our world becoming ever more connected in
economic, political, organizational, and personal terms as
transportation and telecommunication systems improve.
 Terrorism
 Climate change
 Changing demographics
 Statistical descriptions of characteristics of a population, such
as age, race, income, educational attainment, and the like.

8. Globalization
 Globalization emerged after the Cold War and the
development of the European Union.
 It is regulated by organizations such as the World
Trade Organization and the International Monetary
Fund.
 Globalization is seen as unstoppable
 The World Is Flat, Thomas Friedman argues that the
global economy offers exciting opportunities for
entrepreneurs with the requisite skills.

9. Problems of Globalization
 Can lead to outsourcing which is when services and
manufacturing are relocated to another country with
cheaper labor.
 Because we’ve become more globalized, if one
economy suffers, so do others.
 Globalization in general can lead to problems such as
domestic job loss and exploitation of cheap labor.

10. Advantages of Globalization
 Increased connections with other countries
 Ex. Gathering coffee from other countries
 Understanding different cultures
 How do Italians drink coffee?
 Increasing profits
 New customers
 Nontraditional coffee drinkers (ex. Frappuccino)

11. Demographics To Consider
 Italian coffee drinkers
 Focus on coffee
 American coffee drinkers
 Will drink anything
 Age
 Students
 Adults on-the-go
 Natives vs. Foreigners
 Tourists

12. Italian Coffee
• Italians like their coffee dark and
short
 Ex. Espresso (1 ounce per shot)
• Getting a cup of coffee is
comparable to a cigarette break.
• All coffee is served in a pre-warmed
cup
• Enjoy smaller drinks

13. American Coffee
• Americans like their coffee light and
watered down
 Ex. Americano (espresso shots with water
added to make a larger drink)
•Take our time to sit and drink
•On-the-go cardboard cups
•Want all their drinks big

14. Opportunities for Starbucks in Italy
 Not charge a higher cost for those who stay inside to
drink their coffee
 Many coffee bars in Italy do
 Take advantage of the new generations by promoting
it as a place to gather with friends
 Studying
 Starbucks has already established themselves around
the world and are a trusted company

15. What will Starbucks Face?
 Starbucks hires local citizens
 They will train their employees and run regular operations as
they do in all their stores.
 Fair wages for employees
 Name brand will attract tourists
 Loyal Starbucks customers from other countries

16. Question 1
 What has Starbucks done to educate themselves in
understanding how they need to approach the coffee
industry in Italy?
 Learning new styles of drinking coffee?
 Learning new techniques?

17. Question 2
 Globalization will surely help increase sales, but
where will those sales come from?
 Milan is a major city in Italy, but who can we expect those sales
to come from- the locals or the tourists?
 In what ways, if any, will Starbucks reconstruct themselves to
entice customers?

18. Question 3
 How does Starbucks plan to attract current coffee
drinkers in Italy and what tools will they use?
 Different drink flavors?
 Focusing more on coffee and espresso rather than blended
drinks?

19. Works Cited
 A Dream 33 Years in the Making, Starbucks to Open in
Italy. (2016). Retrieved March 02, 2016, from
https://news.starbucks.com/news/howard-schultz-dream-
fulfilled-starbucks-to-open-in-Italy
 BBC (2016, February 29). BBC: Starbucks To Open First
Coffee Shop In Italy. Retrieved March 02, 2016, from
http://www.bbc.com/news/business-35684831
 Chappell, B. (2016, February 29). NPR: Starbucks Plans
First Store In Italy, ‘With Humility and Respect.’ Retrieved
March 02, 2016, from
http://www.npr.org/sections/thetwo-
way/2016/02/29/468553918/starbucks-plans-first-store-
in-italy-with-humility-and-respect

20. Works Cited
 Faris, S. (2016, March 1). Time: Starbucks Faces
Struggle to Take on Italian Coffee Traditions. .’
Retrieved March 02, 2016, from
http://time.com/4244456/starbucks-italy-coffee-
traditions/
 Kealing, J. (2016, March 1). PRI: Starbucks is
Poised to Take a Crack at One of the World’s
Proudest Coffee Markets: Italy. .’ Retrieved
March 02, 2016, from
http://www.pri.org/stories/2016-03-
01/starbucks-poised-take-crack-one-worlds-
proudest-coffee-markets-italy