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Business Operations of Starbucks in China - Case Study Example

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The purpose of the case study 'Business Operations of Starbucks in China' is to provide an in-depth analysis of Starbucks' business entrance in the Chinese market. The study will discuss the challenges faced by the corporate in the present setting as well as investigate the strengths and opportunities of the company…
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Business Operations of Starbucks in China
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Download file to see previous pages “Starbucks opened its first store in Hong Kong in May 2000 and currently has 51 stores. Guangzhou opened in August 2003 and has 12 stores in Southern China, including six stores in Guangzhou and six stores in Shenzhen (BNET).” Starbucks has entered the Chinese market through joint ventures with companies like Mei-Xin and Macau. The company in order to strengthen its operations and brand image in the country has recently decided to extend the term of the joint venture agreement made with the above-mentioned companies. “As part of the transaction, Mei-Xin (International) Ltd., will also acquire a 30 percent interest in a joint venture to operate Starbucks stores in Chengdu (BNET).”

Apart from the above-mentioned initiatives, the company has also increased its store size which was earlier less to above 2000 square feet now (seattlepi.com). This move was taken as there was a tremendous increase in the number of customers pouring into the coffee store. Most of the customers in the Chinese market feel Starbuck’s coffee store as a home away from home and the comfort levels provided by the management and staff of the company are very high and amazingly good.

2. Background of the country – China: China is the most populated country of the world. It geographically covers an area of approximately 9,596,960 sq. km. (about 3.7 million sq. mi.). Beijing is the capital city of the country and other major cities include Shanghai, Tianjin, Shenyang, Wuhan, Guangzhou, Chongqing, Harbin, and Chengdu (U.S. Department of State). The political government of China is basically the communist party. Apart from this, there are various other parties like the Chinese Communist Party, 70.8 million members; 8 minor parties under Communist Party supervision (U.S. Department of State). China initiated economic reforms in the year 1978. These reforms ushered in rapid economic growth in the country.   ...Download file to see next pagesRead More
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