1. starbucks[f]
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International Business course
2012
Maria JOGI
Marina KONIAKINE
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y I. History of Starbucks
y
II. The choice of Foreign Direct Investmen
y III. Conclusion success of Starbucks
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y Founded in 1971. By Jerry Baldwin, Zev Siegel andGordon Bowker. In 1987 Starbucks were sold toHoward Schultz.
y Pikes Place Market in Seattle, United States ofAmerica.
y Starbucks s name and logo named after the firstmate in Herman Melvilles Moby Dick. Logo is alsoinspired by the sea featuring a twin-tailed siren fromGreek mythology.
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y By 1980
y Today more than16,000 coffee shops inmore than 50 countries.
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y Company is the premierroaster and retailer ofspecialty coffee in theworld
y
Starbuckss Corporationwas formed in 1985y Stock trades on NASDAQ
Global Select Market(SBUX)
y In addition to the flagshipStarbucks brand there are:Tazo Tea, Seattles BestCoffee and Starbucks VIAReady Brew.
Starbucks in numbers:5-Year Averages
y Return on Equity 22,50%y Return on Assets 11,80%y Return on Assets 11,80%y Return on Invested Capital
19,20%y Gross Profit Margin
43,90%y Total Debt/Equity Ratio
0,26
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y FDI occurs when a firminvests directly in facilities toproduce or market a productin a foreing country
y For the US Dpt of commerce:
From 10% and more
y Greenfield investment orAcquisition
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Joint venture Acquisition:
y Quickly reach a foreign market
y Have the valuable assests of the firm they acquire
y More control on the operations (products, training)
Strategy since 2007:
y Aggressive foreign program
y Some specific countries needed Wholly owned subsidiaries
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Advantages:
y Emprovment of the existing facilities and system
y More control on processes (quality)
y
FDI may import intermediate goods or inputs forproduction from the home country, creating jobs
y New skills from exposure to foreign countries qualitycontrol
Drawbacks:y Increasing costs for quality control
y Risks involving excisting facilities and inventory
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y Starbucks brand
y Key perception and reaction
y Starbucks changed the strategyy FDI JV investments
y Starbuckss case as an example and a model of success
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y Starbucks' new mobile payment application onBlackBerry
y the company has plans to go even higher tech
y Supermarkets have become a big part of Starbucks'business. The company turned its instant coffee line,Via, into $250 million worth of sales in 14 months.
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y Starbucks official website: http://www.starbucks.com/
y Book: International B. Charles W. L. Hill
y Starbucks company profile
http://www.starbucks.com/assets/company-profile-feb10.pdf
y Wikipedia: http://en.wikipedia.org/wiki/Starbucks
y Article: Starbucks CEO Howard Schultz looks to the futurehttp://articles.sfgate.com/2011-04-07/business/30226648_1_instant-coffee-starbucks-ceo-howard-schultz-coffee-brand
y Starbucks Finance: http://finance.yahoo.com/q?s=SBUX