Foreign Direct Investment: Starbucks Case

Requirements:The trip should address all the questions tenderd plus any excess issues the group members feel are pertinent to the case and complicate a comprehensive update on the companys situation since the measure of the case. The case should be written up and presented in case format: scenario, problem to be solved or termination to be made, alternatives with the pros and cons of each and finally the recommendation with the accompanying rationale.

Foreign grade Investment: Starbucks Case

Background

General

Thirty years ago Starbucks was a single gun dividing line in Seattles Pike Place Market selling tribute roasted umber. Today it is a global roaster and retailer of coffee with over 7,000 stores in U.S. and outside U.S. Starbucks Co. set out on its current course in the 1980s when the companys director of merchandise came back from a trip to Italy enchanted with the Italian coffee shop experience. Schultz persuaded the companys owner to experiment with the coffeehouse format-and the Starbucks experience was born. The basic outline was to sell the companys own premium roasted coffee, along with saucily brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company likewise stressed providing superior customer service.



Reasoning that motivated employees provide the best customer service, Starbucks executives devoted a lot of financial aid to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. (Hill, 2003)

The Companys objective is to establish Starbucks as the most recognized and respected brand in the world. Starbucks purchases and roasts high-quality undivided bean coffees and sells them...

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