Introduction
Today, coffee is a big and attractive business area. Most people can hardly imagine their lives without it either in the morning or during the day. If they choose to have a cup of coffee out of home, in most cases, they will grab one at Starbucks. Founded in 1971 in Seattle, this American company has turned into a real global giant represented in more than 60 countries worldwide and employing more than 20,000 people.
The number of licensed stores and those operated by the corporation exceeds 21,000 (Starbucks Corporation, 2015). The company’s current position in the global economy and worldwide recognition of the brand itself is fascinating. However, one cannot deny the fact that reaching such spectacular results would be impossible without thorough planning and strategy based on the decision to go global and win customers in many countries across the globe.
Review of the company
Nowadays, Starbucks is one of the central players in economic globalization. It stands in one row with Apple, Ikea, Google, and McDonald’s (Smallman & Brown, 2015). In addition to it, the company is a bridge connecting the poorest countries with the richest ones by providing them with coffee of premier quality. This linking effect derives from the company’s ethical considerations and its promise to serve people identically without regard to the level of living in the country of a Starbucks store location.
Moreover, it comes from the very nature of the phenomenon of globalization, which results not only in boosting the scale of a company’s operation but also increasing human connectivity and promoting exchanging lifestyles and cultures (Hult & Hill, 2015). It means that Starbucks’ expansion implies the exports of not only coffee products and desserts of high quality but also the perception of leisure time and luxury because even though hanging out in one of its stores is a costly experience, it is viewed as the synonym of fun and high standards of living (Campbell, McKinnon, & Stevens, 2010).
There are numerous opinions regarding Starbucks’ decision to go global. Some scholars believe that once the company has become a global corporation, it has lost its identity and turned into a moneymaking machine putting the desire to make economic profit higher than the initial wish to satisfy the customers’ needs in high-quality coffee (Enz, 2010). Others view it as a threat to cultural diversity because, as was mentioned above, the company exports a certain image of an acceptable lifestyle adding to the establishment of universal global culture (Elliott, 2015). However, the homogenization of culture is a direct outcome of globalization itself, not Starbucks’ decisions.
Conclusion
Still, it is paramount to investigate the influence of globalization on the company instead of the role it plays in global processes. That said, this paper will provide an overview of Starbuck’s globalization progress. The research will start with studying the foundation of the company and opening its first coffee stores as well as current economic and financial performance with specific attention to factors contributing to its success and popularity.
The next step is the review of the benefits and drawbacks of going global with the aim of identifying the motives for growing internationally. Finally, the researcher will explore how Starbucks became a global corporation taking a close look at significant decisions and changes in the developmental strategy as well as the company’s ups and downs and how the company reshaped over time.
References
Campbell, P. J., McKinnon, A., & Stevens, C. R. (2010). An introduction to global studies. West Sussex, UK: Wiley-Blackwell.
Elliott, C. (2015). Consuming caffeine: The discourse of Starbucks and coffee. In J. E. Schroeder (Ed.), Brands: Interdisciplinary perspectives (pp. 342-353). New York, NY: Routledge.
Enz, C. A. (2010). Case 7: The commoditization of Starbucks. In C. A. Enz (Ed.), Hospitality strategic management: Concepts and cases (pp. 564-581). Hoboken, NJ: John Wiley & Sons.
Hult, G. T. M., & Hill, C. W. L. (2015). Global business today (9th ed.). New York, NY: McGraw Hill Education.
Smallman, S. C., & Brown, K. (2015). Introduction to international and global studies (2nd ed.). Chapel Hill, NC: The University of North Carolina Press.
Starbucks Corporation (2015). Fiscal 2014 annual report. Washington, DC: United States Securities and Exchange Commission.