Asdfsadg

Universidad Autónoma de Nuevo León
Facultad de Contaduría Pública y Administración
International Business Program

Integrated Business Project

Student’s Name: Carlos Gutierrez Tijerina
IDNumber: 1648782
Group: 1Ai

Ciudad Universitaria Tuesday, 18th September of 2012

Case Discussion Questions

1. Initially Starbucks expanded internationally by licensing its format to foreignoperators. It soon became disenchanted with this strategy. Why?
As it is known licensing is "the method of foreign operation whereby a firm in one country agrees to permit a company in another countryto use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor". However, licensing has disadvantages and for Starbucks the main disadvantages of licensing inJapan are:
• This strategy did not give Starbucks the control needed to ensure that the licensees closely followed Starbucks’ successful formula. “Starbucks successful formula” refers to its basicstrategy: To sell the company’s own premium roasted coffee, along with freshly brewed espresso-style beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefullydesigned coffeehouse setting and also providing superior customer service. Starbucks found it necessary to successfully replicate the look, feel, and experience of an American Starbucks that is whyStarbucks transferred American employees to the Japanese stores to help train workers in the Starbucks way. Because this strategy did not give Starbucks the control needed to ensure that the licenses closelyfollowed Starbucks’ successful formula. To sell the company’s own premium roasted coffee, along with freshly brewed espresso-style beverages, a variety of pastries, coffee accessories, teas, andother products, in a tastefully designed coffeehouse setting also providing superior customer service. Probably means that, in an overall answer, Starbucks wanted to expand very quickly to build...