International Business Case Study Essay

GUIDELINE ASSIGNMENT 2

Details of Task: Read the case “Starbucks: global brand in emerging markets and answer the following questions:

● Explain how does Starbucks create value to sustain superior profitability?

● Starbucks uses a variety of entry modes when entering foreign markets. For example, in Japan and India, Starbucks entered via a joint venture with Sazaby League and Tata Global Beverages respectively. In the Middle East, it entered through a licensing arrangement. In China, it entered through a joint venture but ended up taking full ownership of all its China outlets, after acquiring its joint venture partner for $1.3bn in 2017.

Critically evaluate factors influencing Starbucks entry mode choices. You are required to support your arguments with theory and empirical evidences where relevant.

Here are some guidelines:

1. This is a report - so you should use subheadings

2. The essay will have several parts -

Executive summary/Introduction (10%):

· Prepare an executive summary

· Introduction: Provide a brief overview of the case (Starbucks)

Explain how does Starbucks create value to sustain superior profitability? (40%)

· Briefly define concept of value creation.

· Briefly discuss how firms can create value and sustain its competitive advantage. Integrate relevant theories and evidences from the IB literature.

· Explain how Starbucks can create value to sustain superior profitability. Support your arguments with examples and empirical evidences.

·

Critically evaluate factors influencing Starbucks entry mode choices. (40%)

· Briefly define concept of entry mode/entry mode choices.

· Highlight factors influencing entry mode choices. You are expected to discuss the theoretical underpinning behind choice of entry mode. Integrate empirical evidences where relevant.

· Highlight Starbuck’s entry mode choices globally

· Evaluate factors influencing Starbucks entry mode choices.

Presentation (10%)

· Professional report format

· Intensive research of academic journal articles (at least 10) and company/industry/country reports

· Creative and well supported arguments

· Proper referencing system

· Good English grammar and within word limit

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