From the Starbucks case, can you identify any organisational capabilities thatStarbucks has been able to develop through these experiences? How will these organisational capabilitiestranslate to core competencies that give Starbucks a sustainable competitive advantage in their industry? along with Harvard style referencing Starbucks is not an ordinary purveyor of a cup of coffee. It is a largeand innovative multinational firm that engages in major strategicactions to enter new international and product markets (e.g.,acquisitions). It is a multibillion-dollar company with many storesoperating in multiple countries. Starbucks set a goal to have atleast 12500 stores in the USA by 2015, up from 11128 in 2012.Starbucks has become a major player in Asian markets, whichis interesting because it took on a largely tea-drinking culture.Starbucks expected to have at least 1500 stores operating inChina by 2015, a major increase over its 700 stores there in 2012.Starbucks adapts to localmarkettastes bydeveloping larger storeswhere, for example, the Chinese can lounge and meet with friends.It also has introduced flavours specifically for the Chinese market,such as red-bean frappuccinos. It has products that cater to teadrinkers as well. Starbucks' success in China is reflected by thefact that China was expected to quickly become the company'ssecond-largest market. The average annual single store sales inChina increased by almost 75 per cent from 2008 to US$886 000Its experience in Europe has been more mixed. It has hadsome success but has also encountered another different set ofcoffee cultures. At first, it tried to have Europeans adapt to theStarbucks approach, but failed. Now, because of the importanceStarbucks places on its future in Europe, the company is adaptingto the European café culture. This means that Starbucks isbuilding larger, stores with additional seating to allow people tomeet and spend time in their stores, as they have done in Asia.It has implemented other practices and products that adapt evenmore to local (countryl cultures and tastes (e.g., France, England).In addition to Starbucks international thrust, it alsoengages in significant innovation and strategic actions toadd to its product line. In recent years, it has introduced Via,an instant coffee, and a single-cup coffee maker (named theVerismo) that allows customers to make their own lattes athome. Another attempt to add to its product line was evidencedby its acquisition of the tea chain Teavana. In fact, it paid US$620million to acquire the Atlanta-based company. In recent times italso acquired a juice maker, Evolution Fresh, and Bay Bread, theoperator of La Boulange bakeries.at the end of 2012.Starbucks has also entered Vietnam and India with highexpectations. In 2013 it opened its first store in Vietnam.Interestingly, Vietnam is the second-largest producer of coffeebeans in the world behind only Brazil. Starbucks hopes to workwith local Vietnamese farmers to grow a high-quality Arabicacoffee bean. In partnership with the Tata Group, Starbucks alsoopened its first stores in India, with plans to expand rapidly there.In contrast, in Austratia the scorecard has been extremelypoor. Business Insider referred to its efforts in the country asa 'huge flop'. Starbucks entered the market hard in 2000 andhad 84 stores at its peak. The problems were obvious from thestart. The firm charged more than competitors, had stores inlow-traffic locations and, basically, the well-established coffeeculture of Australia was better than the Starbucks offerings.Melbourne-style coffee is arguably the world's best andStarbucks could not compete on taste. The final 24 stores weresold to the holders of the 7-11 stores.Sources: J. Gertner, 2013, For infusing a steady stream of new ideas to reviveits business, Fast Company, http://www.fastcompany.com; A. Gasparro, 2013,Starbucks enjoys sales jolt from its U.S., China stores, Wall Street Journal,http://www.wsj.com, 24 January: J. Noble, 2013, Starbucks takes on Vietnamcoffee culture, Financial Times, http://www.ft.com, 3 January: A. Gasparro,2012, Starbucks: China to become no. 2 market, Wall Street Journal,http://www.wsj.com, 6 December; 2012, A look at Starbucks' U.S. presenceaver the years, Bloomberg Businessweek, http:l/www.businessweek.com,5 December; L. Burkitt, 2012, Starbucks plays to local Chinese tastes,Wall Street Journal, http://www.wsj.com, 26 November; J. Jargon, 2012,Starbucks CEO: We will do for tea what we did for caffee", Wall Street Journal,http://www.wsj.com, 14 Navember; V. Bajaj. 2012, Starbucks opens in Indiawith pomp and tempered ambition, New York Times, http://www.nytimes.com,19 October; S. Strom, 2012, Starbucks to introduce single-serve coffee maker,New York Times, http://www.nytimes.com. 20 September; L. Alderman,2012, In Europe, Starbucks adjusts to a café culture, New York Times,http://www.nytimes.com, 30 March.

Starbucks is the leading coffee brand of the world. It has an extensive global presence. The brand…

Answered: How will these organisational…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...