Problem:The problem is anti-globalization which makes more difficult for Starbucks to enter in new markets.
Symptoms:1. Protests from anti-globalization activists.
2. If those activists have enough media power it leads to international scandals sometimes even involvement of celebrities (who also might be activists of anti-globalization). And finally the worst situation for Starbucks:3. They receive push-backs in new markets.
That is why Starbucks needs to establish some systematic method or decision process which would work equally around the world by helping to say: “To open new shop in certain place or not!?”Alternatives:I. To try to solve problems with anti-globalization activists.
+/- If Starbucks could solve this worldwide conflict they would go in the history, but by my mind it is impossible to speak with those people by continuing to go globally. It is in what they believe and they will not change their mind.
II. To work with the media of regions they want to go in.
Everybody knows that big power is in hands of people who have “good relationships” with the biggest media. Starbucks has to use it:•Maybe they has to involve in requirements for their next foreign partners that they need to be in good relations with mass media (like biggest newspapers and TV channels):+ They could overpower anti-globalization activists.
+ They could make better PR of themselves.
– Then it could start some media wars, because they can not be sure that some of media companies also are not anti-globalists.
– It could be quite a hard for Starbucks to find such a partner with the required contacts.
III. To promote loudly and more active that they have very friendly Environmental Mission Statement. Spend money that this message would go globally.
+ Nowadays, when there is so much pollution and foodstuffs becomes modified Starbucks should make global marketing campaign where they would tell everybody that how their work is to: “instilling environmental responsibility as a corporate value and that they uses environmental products.”- It will require big money.
IV. For each market to work out the strategy that they uses the coffee from the best coffee fields of this particular country where they are planning to go in.
+ It means that they can show in the numbers how many working places they will give and that coffee growers in this country will not gong to suffer, but at the same time in the coffee shops for those who want it they also offers coffees from different regions around the world.
– Of course it is not 100% diminishing the possibility of anti-globalist activities.
V. In place of searching partnerships in the new place to sell franchises.
Franchise vs. Partnership:+ This person would be more interested that there would not be push-backs because he will be 100% owner of Starbucks coffee shop/s.- For the person who buys franchise it would be more difficult to open Starbucks because opening costs for one coffee shop is high.
+ He will know better the ethical things which Starbucks can not step over.
– It will be harder for franchiser to catch up this know-how which Starbucks has and he can loose the Starbucks identity.
+ It is always more acceptable for the locals if it is international but belongs to the local guy and even more better if it is well known person or this fact is nicely showed in the media.- For the franchiser it will be more complicated to follow the statements of the employment policy’s benefits packages, shares for employees est.
Partnership vs. Franchise:+ Starbucks owns its coffee shops and has to pay to his partner 20 to 50%.- Starbucks it is not local they are Americans.
+ Starbucks has very good and well established know-how of everything – starting from choosing coffee and ending with their employee polices.
+ Starbucks can make one and united mission statement and goals and what are the most important – they can control it.
+ By giving franchise Starbucks can not control the brand is it made correctly, even Starbucks has not standardized places, but they adapt their coffee shop to each place and culture.
+ Starbucks can’t be 100% sure that their partner will be the right person and will bring the best ideas and outcomes.
Recommendations:I would choose to implement Alternative # III and # IV.
To make louder marketing campaigns, to make better and louder PR that is what is needed for Starbucs. To become more local they need to support locals. I would suggest doing it because Starbucks are very profitable company which means that they can spend more money for good PR and many charity activities in the country they are or want to go in.
Implementation:Global marketing campaigns:1st step:To come together and to decide what kind of activities they could support in each country – whether it would be one system for all or case by case decision.
My suggestions would be:It would be better that all society in each country they come in would feel that they bring not only “American coffee shops” but also something to their nation or community. That is why I would choose to implement case by case decision what kind of charity support it will be.
~ For Example: Also as I mentioned to make some Coffee Planters Associations in each country where they come in and in which country can be planted coffee. It would make better relationships with society and also they will gain the opportunity to get good coffee (they can also educate planters).
~ For Example: They can open in each country some Starbucks Rio (as example) Interests Organization where they could for example support youngster graffiti contests (it is only as example, because in Rio they had vandalism cases (but this example is only in case if this is the real problem), so, the main thing is that they need to find core of the problem points when they will come in new place and by smart and intelligent ways to solve it. It means that: 1st they have to find out what problems they will facing in this new place and 2nd only after finding some interesting and socially responsible way to solve this problem to go publicly with the announcement that they will open Starbucks in this place. That will help to make good PR for Starbucks before entering the market.
2nd step:To decide how to promote globally that they are very friendly to the environment?My suggestions would be:As I told it is very important that company is friendly to the environment. Starbucks has to show it and best way is to show with the help of promotions.
They have to hire the best and most creative promotion agency and together think about the strategy they can show their attitude to the environment.
In general:I can suggest improving the relationships with mass media and try to find out why they are writing or showing what they do and creating bad PR for Starbucks.
I can suggest working more with governments of the places where they want to go in because we know that governments have an access to mass media.
I would suggest never overstepping ethical issues of countries.
But more of everything I would suggest to stay as friendly as they are and try to conquer society’s hearts by building that they are not Americans but they are cosmopolitans and their Starbucks in particular country is not any more American Starbucs but completely adapted to the country they come in.
stategic managemet 7th edition. charles w.hill and gareth r.jones