Bus-D301

In: Business and Management

Submitted By sikelley
Words 795
Pages 4
Sierra Kelley
BUS-D301
Prof. Brown
CASE SUMMARY 4
The Globalization of Starbucks
Starbucks started out over thirty years ago and was a single store in Seattle’s Pike Place Market and sold amazing roasted coffee. Today, it has over 16,000 stores, 40 percent are in the United States. After Starbucks director of Marketing, Howard Schultz, returned from Italy in-love with the coffeehouse experience, he persuaded the owners to work with a coffeehouse format; thus, the Starbucks experience was born. The company then became about selling their premium-roasted coffee, and other fresh espresso-style coffees, with a variety of pastries, coffee accessories, teas and many other products all in a strategically designed coffeehouse setting. They wanted this to be “a third place between work and home”. They didn’t want this just to be coffee. Today, Starbucks is one of the greatest known brands in the U.S. Coffee shops are now known as a gathering place. It is a place to relax, catch up with friends, hold business meetings, and even browse the web with all of the Wi-Fi. In 1995, Starbucks began thinking of foreign opportunities. They targeted Japan, and established a joint venture with Sazaby Inc. Both Starbucks and Sazaby held a 50 percent stake in the company, which was called Starbucks of Japan. They first invested over $10 million and it was its first foreign direct investment. They wanted to be sure that the “Starbucks experience” would be replicated, so they transferred some employees over. The licensing agreement stated that all Japanese store managers and employees had to attend training classes similar to those in the United States. They also had to adhere to the same designs. In 2001, they introduced a stock option plan, making it the first company in Japan to do that. Many people were skeptical of how successful Starbucks would be, but by the end of 2009 they had…...

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