International Management - Essay Example

International Management How to Re-energize Starbucks By: Question What is the Substantive Question? Starbucks is already an established in the world of the café business. The company has already branched out in the different parts of the globe. But it seems that the giant coffee shop has started slowing down in terms of revenue and stock market value. Due to the recent management changes that the company went through, the focus now is one how to put life back to the company and re-energize Starbucks back to its original point.

Question 2What is the key opinion/position or argument of the author?The key opinion/position or argument of the author is that the company needs to focus more on the way Starbucks coffee do business in today’s current market trend. Given the fact that the company has somehow been left behind, in terms of revenue, by the various café’s in the market which are offering almost the same products at much lower prices. The author also showed that the company Starbucks must be able to reenergize, not only in the way it does business in the market, but also with their everyday business with people who comes into its coffee shops.

Question 3What evidence does the author use to support their opinion/position or argument?The author stated that the coffee business is a crowded playing field in the sense that many food chains like McDonald’s and Dunkin Donuts (companies which don’t include coffees in their menus before) are now creating and selling their own posh coffee creations. Another reason for the need to reenergize the company is its declining reputation. According to the survey conducted by Schultz “the Starbucks experience has been significantly downgraded as a consequence of its rapid expansion.

” The once hip vibe turned into “disparate markets,” even if compared amongst the Starbucks chain of coffee shops.Starbucks company should also focus on the way the company is connecting with its customers on a day to day basis. This entails the catering of coffee drinkers at the different times of day. It is also noticeable how high-tech Starbucks stores have been; but in some cases, the store must also give importance on creating an atmosphere conducive to fostering human interactions.

Question 44. What are the strengths or weaknesses of the opinion/position or argument?Strength:The company’s strength lies in the fact that is a pioneer coffee shop in the industry. It has already established a name and a reputation amongst coffee drinkers as offering the best coffee concoction in the business. Experience is also one of the company’s strengths. As it had been in business for so many years, the company somehow knows the coffee market. In putting the phrase “refocus on the experience” on a different context, Starbuck company could reevaluate the years with which they have operated and compare it with the current experience of the company for it will give them valuable insights and realizations.

Weakness:Many other coffee shops are opening offering fresh and delicious coffee mixes at a more affordable cost. Even fast food chains like McDonalds and Dunkin Donuts are already including coffee as one of its products. Posh coffee shops are also almost everywhere providing a different, but still delicious, coffee experience.International ManagementSelecting International Modes of EntryBy:Question 1What is the Substantive Question?Due to the rapid growth of businesses in response to globalization, many companies, like the US and Japanese, have decided to venture into the international market; others entering the international scene for the first time, while others re-enter the global market.

Whichever is the case, it is of vital importance that the company should be able to study and assess the international market scene to be able to come up with a strategy or plan on how to expand business internationally and choose the correct mode best suited for the company. Question 2What is the key opinion/position or argument of the author?It is important to study the results of the research conducted on the US and Japanese companies that entered new international markets. Many modes might be available, but selecting the right and appropriate one for the company is a difficult and taxing challenge.

Thus, it is important that studies and research conducted with regards of the US and Japanese companies’ selection of mode of entry in the international scene is given attention. The insights gained on the study of US and Japanese firms will be valuable for others who will be entering the international scene for the first time. Question 3What evidence does the author use to support their opinion/position or argument?According to Root (1994), selecting a mode to apply in entering the international market for expansion is one of the most vital “strategic decisions that a company has to make.

” A mode well-chosen enables the firm to gain valuable insight for competitive advantage. Decisions made inappropriately can cause future problems or set-backs which are difficult to change especially for long-term contracts or large resource commitments. As stated by Dickson and Giglierano (1986), choices made poorly either leads to “sinking the boat” or “missing the boat”, of which companies don’t want to commit either one.Question 44. What are the strengths or weaknesses of the opinion/position or argument?

Strength:The strength of the author’s argument or position is that many businesses that have expanded and entered the global market failed due to a lot of factors and events which the companies were not able to prepare for. Events which could have been properly handled if the company were able to study researches and other related literature, such as this, that would help them prepare for whatever lies ahead. Knowing that the global market is a new and wider field to play in, companies should deem it necessary to discuss the modes of options available as they reenter a wider and globalized market.

Weakness:The weakness of the argument would be that, the time and effort spent would be expensive for the company. It might also delay that company’s plan of expansion as discussion and planning on this aspect would certainly take time. In addition, the cause of the delay would also lie on the fact the company advisers or strategists (or however you call it) would still take time to collect research studies on global market expansion that are related to the business that the company is engaged in or is planning to engage in.