Some examples of the controllable variables that Starbucks encountered are pricing and
product. When considering to enter the italian market, Starbucks faced the challenge of Price: Coffee costs on average $.60 compared to the US $1.50. Also product-wise, Starbucks would struggle competing with one of the best quality coffees in the world and also with food products such as croissants and pastries that italians cafe serve daily. For the uncontrollable variables: culture and foreign laws. In Italy, it would be hard for Starbucks to change people mind about breakfast food/coffee, since it is strongly deep-rooted in the italian culture. In France, labor benefits and other regulation would be problematic for Starbucks.!
2) The risks Starbucks is facing are primarily: targeting younger crowds, market saturation and low wages for workers. Solutions are: Expand the business in other countries, increased wages that will also reflect increased quality of service and increased overall quality of the product to justify the premium price.!
3) I believe that opening an absurd number of locations wasn’t a good move for Starbucks, even if that would translate to convenience for customers. Unhappy employees with low wages are also something that I consider wrong while doing business, not only ethically but mostly because it will hurt the business itself in the long run.!
4) To appeal the Japanese especially in big cities, Starbucks should increase the number of employees working behind the counter so that the service can be faster, therefore increasing the made-to-order coffee side of Starbuck’s business. Also, they should spend some ad dollars to make the consumers understand that they are the “original” and they are better than the lookalikes.
Some examples of the controllable variables that Starbucks encountered are pricing and
product. When considering to enter the italian market, Starbucks faced the challenge of Price: Coffee costs on average $.60 compared to the US $1.50. Also product-wise, Starbucks would struggle competing with one of the best quality coffees in the world and also with food products such as croissants and pastries that italians cafe serve daily. For the uncontrollable variables: culture and foreign laws. In Italy, it would be hard for Starbucks to change people mind about breakfast food/coffee, since it is strongly deep-rooted in the italian culture. In France, labor benefits and other regulation would be problematic for Starbucks.!
2) The risks Starbucks is facing are primarily: targeting younger crowds, market saturation and low wages for workers. Solutions are: Expand the business in other countries, increased wages that will also reflect increased quality of service and increased overall quality of the product to justify the premium price.!
3) I believe that opening an absurd number of locations wasn’t a good move for Starbucks, even if that would translate to convenience for customers. Unhappy employees with low wages are also something that I consider wrong while doing business, not only ethically but mostly because it will hurt the business itself in the long run.!
4) To appeal the Japanese especially in big cities, Starbucks should increase the number of employees working behind the counter so that the service can be faster, therefore increasing the made-to-order coffee side of Starbuck’s business. Also, they should spend some ad dollars to make the consumers understand that they are the “original” and they are better than the lookalikes.
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