Module 09: Critical Thinking Assignment How Starbucks Convinced Indians to Embrace Coffee
In Chapters 8 and 9, we reviewed several types of global expansion strategies a company can undertake when entering new markets. For this assignment, you will read a case study about Starbucks’ expansion into the Indian market (p. 413 in the textbook). A case study is a puzzle to be solved, so before reading and answering the specific questions, develop your proposed solution by following these five steps:
Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study.
Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current module. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
Describe in some detail the actions that would address or correct the situation.
Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.
Respond to, and make decisions, based on the following questions:
What inspired Starbucks to venture into India? What were some of the company’s early concerns and other obstacles? How would you describe Starbucks’ approach to entering India and how Starbucks was influenced by cultural differences to adapt its offerings for the Indian market?
Why did Starbucks want to enter India through a joint venture? Specifically, what benefits did Starbucks and the Tara Group both gain by partnering with one another? What synergies were present? What conflicts occurred and how were they resolved?
Now, assume the role of the Director of Starbucks’ Indian strategic planning team. You have been tasked to explore the benefits and challenges of expansion into foreign countries through joint-venture partnerships. Describe the opportunities, benefits, and concerns that Starbucks might face by doing so. Summarize the cultural environment, choose an entry strategy from the text, and describe how you would implement this entry strategy. Make sure you are very detailed in your explanation. Based on the lessons learned from Starbucks case study, what lessons would you apply to those implementing Saudi Vision 2030 as the Kingdom of Saudi Arabia embarks on this multi-year strategy to attract multinational corporations? Your well-written paper should meet the following requirements:
Be 5-6 pages in length, which does not include the title page, abstract, or required reference page, which is never a part of the content minimum requirements.
Use Saudi Electronic University academic writing standards and APA (7th ed) style guidelines.
Support your submission with course material concepts, principles, and theories from the textbook and at least four scholarly, peer-reviewed journal articles. Review the grading rubric to see how you will be graded for this assignment.
Required:
Chapters 8 Strategy Formulation and Implementation & 9 Entry Strategies and Organizational Structures in International Management: Culture, Strategy, and Behavior
Chapters 8 & 9 PowerPoint slides in International Management: Culture, Strategy, and Behavior
“In-Depth Integrative Case Study 3.1: How Starbucks Convinced Indians to Embrace Coffee” (p. 413) in International Management: Culture, Strategy, and Behavior
Sambharya, R.B., Rasheed, A.A. and Contractor, F.J. (2022). Exploring the antecedents of industry globalization: a longitudinal investigation. Cross Cultural & Strategic Management, 29(1), 91-113.
Farrag, D.A.R. and Abu Gharara, S.R. (2022). Can Arab-origin brands go global? An exploratory study. Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print.
Rundh, B. (2022). International expansion or stagnation: market development for mature products. Asia-Pacific Journal of Business Administration, Vol. ahead-of-print No. ahead-of-print.
Recommended:
Instructions to follow: Cover page (APA 7th).
Introduction
Tell your readers what they will read in your essay. Starbucks Expansion to India (heading)
What inspired Starbucks to venture into India? What were some of the company’s early concerns and other obstacles? Starbucks Approach (heading)
How would you describe Starbucks’ approach to entering India and how Starbucks was influenced by cultural differences to adapt its offerings for the Indian market? Starbucks Entry Strategy (heading)
Why did Starbucks want to enter India through a joint venture? Specifically, what benefits did Starbucks and the Tara Group both gain by partnering with one another? What synergies were present? What conflicts occurred and how were they resolved? Director of Starbucks Indian Strategic Planning Team (heading)
Now, assume the role of the Director of Starbucks’ Indian strategic planning team. You have been tasked to explore the benefits and challenges of expansion into foreign countries through joint-venture partnerships. Describe the opportunities, benefits, and concerns that Starbucks might face by doing so. Summarize the cultural environment, choose an entry strategy from the text, and describe how you would implement this entry strategy. Make sure you are very detailed in your explanation. Lessons for Vision 2030 (heading)
Based on the lessons learned from Starbucks case study, what lessons would you apply to those implementing Saudi Vision 2030 as the Kingdom of Saudi Arabia embarks on this multi-year strategy to attract multinational corporations?
Conclusion (heading)
Wrap up your essay. References (heading)
Textbook and at least four scholarly, peer-reviewed journal articles. (Textbook: Luthans, F., & Doh, J. P. (2021). International management: Culture, strategy, and behavior (11th ed.). McGraw-Hill Education). No more than 6 pages.
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