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Starbucks To India Essay

1371 words - 6 pages

BUSN 427 – Global Issues in Business – Group Project

STARBUCKS IN INDIA

By

Keith Escher

Module 1: Identifying Global Business Opportunities:
Potential Market:
In today’s business environment, there are several global business opportunities which exist. Due to technology and other related issues, the gap which existed years prior and which kept the world somewhat segregated, has now been lifted and the world is much more connected. When it comes to the topic of bringing Starbuck’s to India, it is safe to say that India is a perfect potential market for this venture. For one, India has an extremely large population base, which just naturally makes the possibilities that much ...view middle of the document...

Currently there are as many as 17,000 locations in approximately 57 countries. The Starbuck’s customer is one who is extremely loyal and who keeps coming back.

Weaknesses: Unfortunately, Starbucks does tend to be a little overpriced, compared to competitors, especially compared to Café Day, which is one of the largest coffee chains in India. Another weakness is that the only profit which Starbucks makes that really amounts to anything is the profit made from the sale of coffee itself. Also, the other hurdle would be that there are an extreme amount of regulations and laws which exist in regards to opening and conducting business in India and the process can be very slow.

Opportunities: Starbucks has the capability to create numerous opportunities and to end up being a success in India as a global business. The excellent quality of coffee which Starbucks has to offer in addition to health oriented food and drink products will cater to those health conscious customers.

Threats: With the possibility of the economy of India changing, there may be a slight possibility which exists that the people of India will go elsewhere for a cup of cheaper coffee. Also, there may be a possibility that the existing local coffee suppliers will increase their prices as well. There should be great effort made on the behalf of Starbucks to ensure that there is care given in regards to adhering to India’s unique culture and blending in with them, rather than coming in with a “take over” kind of attitude.

Module 8: Creating a Global MIS (Management Information System):
In regards to a global management information system, there are numerous suppliers which are able to provide this type of service. Whichever company is chosen to provide the management information service, there will be a management team which will be delegated to provide the computer and communications equipment which will be installed. There will also be a team of technical personnel who will be able to ensure that the new stores are complying with the current procedures of the company. The main goal will be to ensure that all of the Starbucks stores which are opened in India will be in full communication with Starbucks headquarters in the U.S.

Module 12: Designing a Global Distribution Strategy:
In order to maintain a network of strong businesses in India, the country is in dire need of establishing and developing a stable power supply source. The concept of quality electric power, telecommunications and also roads are a hurdle which has not been really addressed yet in India. Due to these infrastructure problems which exist, this has caused some hesitance from certain countries when it comes to doing business in India. It is a unspoken fact that pretty much any country who decides to pursue opening a business in India will be responsible for the cost of electrical issues, as well as helping to improve the condition of local roads which ultimately are the means for which...

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