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?