Starbucks: Failure Abroad
Introduction
When one thinks of a global corporation, one thinks of a company who has got it together. They must right? How else could a corporation overcome transnational barriers and socio-cultural issues and still make a profit? Turns out not all global companies have this ability. Some do for the most part but are still vulnerable to mistakes. Such is the case with Starbuck’s failure in Australia. We will introduce you to the company, overview their history and expansion efforts, and explain in short why they failed miserably at something they have done literally thousands of times before.
General Information
Starbucks Coffee International, Inc. purchases, roasts, and sells whole bean coffees, brewed coffees, Italian-style espresso beverages, and cold blended beverages. The company markets its products through more than 15,000 stores in North America, Europe, the Middle East, and Asia and the Pacific Rim among other regions. The company was founded and is based in Seattle, Washington. As of 2008 Starbucks operates in 44 countries. (Starbucks.com). Starbucks Coffee International operates as a subsidiary of Starbucks Coffee Company. Starbucks diversified its business. Starbucks now offfers compact discs, books and other life style products. In addition they have created several strategic alliances with food manufactures both domestic and Abroad. (www.starbucks.com)
Company History
In 1971 the first Starbucks store was opened in Seattle’s Pica Place Market by Jerry Baldwin, an English teacher, Zev Siegel, a history teacher and the writer Gordon Bowker (www.mhhe.com). In 1982 Howard Schultz joined the company as a director of retail operations and marketing. He saw potential in Starbucks and started to build up a coff ...