Discuss how Starbucks downsizing in the USA impacts their global growth strategy

The current international position for Starbucks seems to be a promising part of their business and the reformation of this is shown by their aim to become a leading global company through changing the life of a regular person all over the world. This goal is quite close to being achieved as proved the Starbucks current locations in international markets and the successfulness of these ventures. The current countries in which Starbucks are located in are Australia, Bahrain, Canada, Hong Kong, Israel, Japan, Kuwait, Lebanon, Malaysia, New Zealand, Oman, Peoples Republic of China, Philippines, Qatar, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, and the United States. (Starbucks.com)

Starbucks global aim is to become the best coffee seller and brand in each of the countries it plans on expanding to. They plan on doing this by providing their customer with the finest coffee and other products and by their exceptional customer service.China is a perfect example of how a Western company can win over cultural barriers especially in the Far East side of the world. (Kemball et al., 2002)

In most countries people welcome globalization of various goods and services as that allows them exposure to products that are not available to them otherwise in their own country. There is another issue that affects the society more, which is the possible disturbance of the countrys cultures, values and traditions. This could apply both to the host nation and the globalizing corporation. If the foreign products are changing the countrys cultures values and traditions than the former is affected, and the latter is when the company decides to adapt to the cultures of the host country, losing its culture in the process in exchange for profits.

Even though China has great opportunities because of its big population and immense growth, coffee is not a part of Chinese traditions. Starbucks faces a big problem which is that most of Chinas 1.3 billion people dont care for the chains signature product. Coffee is so unpopular in Chinas tea-drinking culture that until recently many Starbucks didnt brew regular drip coffee unless a customer ordered it. (Kemball et al., 2002)

Coffee was considered as a Western product and match well with Chinese food, cultures and traditions, tea of course sounds a lot better. It is difficult to transform a tea-drinking nation into a coffee-drinking nation. Starbucks is hoping to draw Chinese customers first by offering a new type of informal gathering place. Once patrons are inside, their coffee education begins. The chain stacks cream-and-sugar counters with brochures titled Coffee Brewing Wisdom and others that answer questions like What is espresso Workers float through stores passing out small cups of pumpkin spice latte and other drinks. (Adamy, 2006)

Starbucks faces competition from a new age group of Chinese teahouses that offer both traditional beverages and a coffeehouse culture. The chain also has to steer lots of obstacles. Financial regulations prevent the chain from offering a Starbucks payment card. If Starbucks wants to fiddle with its offerings, adding white-chocolate mocha drinks in China, for instance, it has to get government approval to import the flavoring. (Kemball et al., 2002)

Thats where Starbucks got help. Starbucks is relying on Mr. Wang to smooth over these hurdles. The Beijing native worked for the Chinese government in the early 1980s and helped it form its first partnerships with overseas auto makers before joining Starbucks in 1992, when it had 120 U.S. stores. He left the company in 2000 to return to China, then rejoined Starbucks in 2005 to lay plans for its Chinese expansion.

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