Evaluation of the Long-term Strategy of Starbucks Company in China Essay

Evaluation of the Long-term Strategy of Starbucks Company in China - Essay Example This essay delivers critical assessment of the plans of Starbucks company to strengthen its China operations with the help of the PESTEL analysis utilization. Globalisation of production and investment in recent years has led to a situation where long-term capital inflows from advanced economies to developing economies is taking place at a rapid pace. No doubt this has contributed immensely to the economic growth and development of these nations. In this process while on the one hand global knowledge is being used locally, at the same time local societies too are moving towards a knowledge society with an increased level of locally produced knowledge. It is still widely believed about the developing world that most of the knowledge and the transition societies are produced outside the region. The later half of the 20th Century saw dramatic growth in industrial production and in the mass consumption in developing nations. The Starbucks company was found in 1971 in Seattle’s Pike Place Market today it has its presence in 36 countries outside United States. It is offering more than 30 blends and single origin coffees, hand-crafted espresso and blended beverages. Company’s mission statement says, â€Å"Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.† Having established itself as the world’ leading brand, the company now wants to strengthen its market in China, a big consumer market, the land of billions and vast opportunities. ... Growth of industrial output in countries like China and India during this period was robust and to some extent the process of catching-up also began in the technological field (Linsu Kim, 1997). The process is thus called "imitation to innovation" approach. Well Starbucks, the coffee can only be enjoyed in the cool company of a friend, while relaxing after a days' work, or while preparing oneself for the day full of assignments. It's not like any other product or service, which we can order on its e-business website. But nonetheless, the company has an attractive presence on the net with http://www.starbucks.com/ which informs the coffee lovers about the varieties and processes available with Starbucks. The website basically has the following sections; Our Coffees: This section tells about the range of Starbucks coffees and company's expertise on the subject. With a details menu of its varieties available in Latin America, Africa, Arabia, Asia and some multi regional blends, the site encourages the visitor to at least have a look at it in any one of its locations. Our Stores: This tab spills the beans about different locations where the patrons of coffee can have a go at it. Starbucks Card: The Company also issues 'Starbucks card' to its customers, which serves as a means of rewarding the loyal customer. This is a co-branded card with Visa and calls on the consumers to earn more and more Starbucks "Duetto Dollars" with every Visa purchase through this card. At Home: Here the site gives us information about how we can enjoy Starbucks at home with little help from our nearby store. For Business: This section calls for business opportunities with other corporate clients and how one can open a Starbucks coffee outlet with the