Starbucks Intended Expansion in the “Forbidden City” in China
by Student’s Name
Class/Course/Code
Professor’s Name
University/School
City, State
Date
Starbucks Intended Expansion in the “Forbidden City” in China
Executive Summary 商业分析论文作业代做
This research presents an inclusive analysis of Starbucks ‘ intended expansion in the Forbidden City in China. The company was banned in Beijing’s Forbidden City in the claim that the ethnic past and the American coffee chains do not rely upon any charge. The detailed perception is strained in this exploration about the conclusion of the Starbucks café in the Forbidden City, which is one of the significant places in China. This inclines to exemplify the analysis of the complicated part of the social impact on global public affairs. This is completely over the internet-based setting. It also assesses the contests near the struggle between the Starbucks coffee shops in Beijing and the devoted social legacy. This research also argues different policies Starbucks might practice for inspiring, satisfying, and appealing its staffs in both China and The USA chains.
Introduction 商业分析论文作业代做
The worldwide coffee got to china nearby the year 1999 wherever over an entire number of 400 coffee cafes were started in china by 2006 of which 66 of them are in Beijing the capital of China. The development and expansion of the Starbucks coffee bars in china were constant till July 2007, where the pressure and intensifying behavior of public force was important to its conclusion as a consequence. They reacted to the spat that it signified more of the western values, which did not equal with the Chinese philosophy in the term. The term is a symbol of the Chinese fights through evolution which is a support for the social sign of China.
After this move, the Chinese nationals embarked on the internet to defend the country from criticism by the global society regarding the ban of Starbucks in the Forbidden City. The internet-based promotion was started by a personal blog of the Chenggang Rui, who is known as famous who works state-operated television stations in the English language programs.
Policies, Resemblances, and Dissimilarities 商业分析论文作业代做
Starbucks is a US-based coffee business that started in 1917 in Seattle, Washington. In 1998 the brand moved its attention to start a business in China and started its first branch there in 1999. With the values being much dissimilar, there had to be a distinct style when it came to selling policies. The parts of effort are promotion, product, human resources, and location.
Though Starbucks is well-known for its quality coffee things, it had to variation its tariff to charm to Chinese perception. The native tea likers had to be influenced to try the “Western coffee taste” that the brand took to increase deals (Yang, 2007). The menu in China was changed from that in the US because it used local materials, for example, white tea, green tea, iced rice dumplings, and black sesame green tea. The dissimilarity in the list of items sees the requirements and desires of customers all over the world.
“Starbucks used a smart market entry strategy to grow in China” (Han and Zhang, 2009). 商业分析论文作业代做
The branches were located in high-circulation sites, alike the corporation guaranteed for their US supplies. The “green circle Siren logo” was used in mutual nations to guarantee their product was identifiable. Though, in China, the employment of new coffee cafes did not look like a risk to the “tea-drinking ethos,” which was shown to be a thoroughfare to new marketing to produce new claims for coffee. As stated by The University of Southern California, “The rapid rise of Starbucks in China signaled a shift in beverage culture in China” (Yang, 2007).
The ether that Starbucks presented was much changed from a coffee store in China when the first branch started there in 1999. This ether is comparable to the cafes in the United States of America: comfy seat preparations, related background melody, and fashionable insides. But during 1999, most coffee chains in China did not even deal with air-circulation systems; these did not liken to the ether in Starbucks that allowable for an excessive gathering place for families or even business managers.
Starbucks places get a significant ration of their businesses from carryout orders In the United States, but in China, the optimistic dinner facility is desired. A part that equally the Chinese and United States sites prosper in is human resources. Starbucks strives to keep every employee knowledgeable and truthful to its brand image. They send baristas to each new site to train employees on how to “preserve its brand integrity” (Michelli, 2006).
SWOT Analysis 商业分析论文作业代做
A SWOT analysis assesses a company’s strengths, weaknesses, opportunities, and threats. Strengths and weaknesses come from the retailer’s internal environment; they are “assets, knowledge, and skills that a retailer possesses, such as the loyalty of its customers and the quality of its relationships with its vendors.” Opportunities and threats come from the retailer’s external environment and are “factors associated with the market, competition, and environment dynamics typically beyond the retailer’s control” (Yang, 2007).
Strengths and weaknesses arise from Starbucks’s internal environment. China is a gigantic tea ingestion company, and coffee is a western beverage, which many Chinese people will not wish. Concerning their expansion plans in China, an inner strength would include the taste-testing room in Shanghai. This idea was pitched by Belinda Wong, who became CEO of China’s Starbucks in 2016. This location will be the “first international roaster and reserve tasting room” (Curtin and Gaither, 2007).
Another internal strength concerning the expansion plans is the baristas that Starbucks sends to new stores to train new employees. 商业分析论文作业代做
China has a rising mid-class which signifies new development predictions for Starbucks Company. The quality of sales associates and the commitment of the sales associates to the company are store management capabilities that help internally strengthen Starbucks in each of its locations.
Opportunities and threats arise from Starbucks’s external environment. One external threat includes the coffee market in China. The growth of business in the market threatens the sales for Starbucks. The main competition includes Pacific Coffee Company, Costa Coffee, Caribou Coffee, McDonald’s, and Dunkin’ Brands. Retailers such as Dunkin’ Brands have also tailored their menu to Chinese tastes by adding items such as pro donuts (Han and Zhang, 2009).
Another external threat concerning the expansion plans is the income of Chinese customers. 商业分析论文作业代做
“The Chinese customer is more price-sensitive and therefore tends to spend less” (Tikson, 2018). They choose Starbucks for the experience rather than the items; customers in the United States provide a larger ticket-average for stores compared to those in China. It has a western-educated and young group of people. They are the prospective clients for Starbucks that can generate long-term development.
One major external threat that Starbucks locations in China face concerns stores disrespecting the culture. In 2007 the company closed a location near Beijing’s Forbidden City due to public outcries. According to Rui Chenggang, an anchor for China Central Television’s English-language channel, “Starbucks’ presence undermined the Forbidden City’s solemnity and trampled over Chinese culture”. In September 2012, Starbucks opened a store near the infamous Buddhist temple; some people feel this is also impolite to Chinese values (Han and Zhang, 2009). Starbucks has reflected a low-middle class mark in the West side of China. The brand is unwelcome in the Banned City.
Factors
There are several factors that Belinda Wong, Starbucks CEO in China, must consider concerning market growth. She must identify and analyze the internal components that are strengthening and weakening Starbucks. These include the baristas that train new staff and the tasting room in Shanghai. She also must identify and analyze the external aspects that are considered opportunities and threats to Starbucks in China. These factors include the local competition, customer’s budgets, and respect for Chinese culture. Converting values and operational tactics are two important variations from American to a new market process like Starbucks in China. Starbucks is rising for its coffee in china for the first time. They intentionally selected Greek and China inexact. Coffee cultivates well in Greek, and the beans gave off an idiosyncratic flavor, not like others. The brand also expected that this sense of taste would twinset the clients because the beans are grown locally. Starbucks is transitioning to attention on lasting tolerable importance like a planned association with farmers, government, and training their workers.
Compare and Contrast the Challenges 商业分析论文作业代做
Overall, Starbucks is “incredibly successful at recruiting and training employees” (Tikson, 2018). In both China and U.S. locations, Starbucks will face challenges during the acquirement and detainment of human resources. Each store must recruit, train, motivate, evaluate, reward, and compensate employees.
Starbucks is commonly known for having an upbeat and relevant staff; maintaining this image may pose a challenge for the retailer in both China and the United States. One way to avoid a mundane work environment is to allow employees to express themselves while still upholding the company’s expectations outlined in the dress’ code. “Starbucks has begun to allow visible tattoos on baristas, though it mandates that they cannot contain any offensive content”. One critical way that China differs from the U.S. in terms of employment is while turnover rates in China are high, “Starbuck’s turnover rate is much lower due to its attractive compensation packages, career paths, and working environment” (Yang, 2007).
According to the main Starbucks webpage, their company awarded “Best Employer in China, Most Attractive Employer in China, and Employer Excellence of China”.
There will also be legal challenges that are different between Starbucks in China and the United States concerning recruiting, hiring, and training employees. There are U.S. federal and state laws that each store must follow. In China, stores consider other regulations throughout the acquirement and detainment of human resources.
Compare and Contrast the Different Strategies 商业分析论文作业代做
Starbucks could motivate its workers in both its U.S. and Chinese stores by raising employee morale. “Effective managers build morale by doing small but meaningful things for employees”. Having an employee of the month or throwing a small party after achieving goals is an easy but effective way to boost employee morale.
Starbucks locations in the United States and China deal with rewarding and compensating their employees. “The largest and typically most important form of extrinsic reward from both the retailer’s and employee’s perspective is monetary compensation” (Curtin and Gaither, 2007). This includes straight salary compensation, incentive compensation, and quota bonus compensation. One way these differ in the opposing countries is the federal regulations, such as minimum wage and taxes, in the United States. The intrinsic rewards that employees from both countries could enjoy are contests and job enrichment. By using these strategies effectively, Starbucks could significantly reduce employee turnover.
One way that Starbucks engages its employees in both its U.S. and Chinese stores is by calling them partners rather than employees. 商业分析论文作业代做
An employment webpage explains, “A small change like this can have a significant impact on brand authenticity and team camaraderie” (Michelli, 2006). There is also the engagement of both employees, as well as customers, by use of social media platforms. Starbucks launched My Starbucks Idea in 2008, which is an online community used for customers and employees to share suggestions, ideas, frustrations and even vote on plans for the company (Pradhan, 2011). Starbucks locations, at least within the United States, make a great effort to engage employees in a modern way using social media platforms. An employment webpage comments, “The Snapchat account dedicated to Starbucks Partners does a great job of this through store takeovers, behind-the-scenes tours, and even latte art competitions.”
Public Relations Analysis of the Starbuck Closure 商业分析论文作业代做
The global market for international ventures is related closely to the interaction through the internet media. It is also revealed that the internet and culture interacts have strong links in the public relations matter in the international environment. There are five moments of cultural circuits that are important in the analysis of the case of Starbucks. They all represent the complexities that arise when international public relations interact with the internet communication platform. In understanding this, one has to consider Starbucks that represents international relations, and the Forbidden City, which represents the culture of Chinese society (Han and Zhang, 2009).
The first argument is of the suggestion that the public participation that is supported by the new internet media is a powerful tool in public relations research.
It is noted that traditionally, public relations were understood in the organizational setting where the public does not play a major role since they are either the beneficiaries or the victims of the organization. From the present research, it is revealed that the role that the public plays is vital since it allows them to raise their concern on issues that affect them. The new media complicate things further as it includes new media forms such as celebrity blogs. The examination of public relations in modern society looks into the holistic approach, which is considered the larger realm that is concerned about the particular situation (Han and Zhang, 2009).
Recognizing the fragility of public relations, the consumers have a greater voice regarding the decision on what they consume. 商业分析论文作业代做
They play a great role in what product they prefer to use, making them the co-creators in the linkage between consumption and production. With the cultural difference between Starbucks (a European company) and the consumers (Chinese culture), the Starbuck products cannot be received in a foreign culture easily as the company management had thought in the Chinese case. Additionally, it is noted that the message Starbucks was trying to send to the global society through their shops in China did not apply to the particular branch inside the Forbidden City. The cultural analysis that is essential as the company tries to identify new expansion programs is also critical. The company should ensure that they carry out the background study on the cultural aspect of the population they target with the expansion programs (Yang, 2007).
The other part of the analysis views the case as an interplay of two aspects that are essential to international public relations under globalization and communication technology platforms. 商业分析论文作业代做
The international public relations activities are made complex by technological application as the democratizing the public to air their voices on issues affecting them. Curtin and Gaither (2007) is of the point that the digital world can be an effective mode of communication between the consumer and the producer. From analysis, we can identify the cross-relationship between new technology and business organizations. Consumers and producers can interact through social media and web-based communication (Tikson, 2018).
Furthermore, the case of Starbucks also informs the researchers and business organizations on the role played by celebrities in modern business. The news anchor was able to influence the Chinese society against the Starbucks case that succeeded in the closure of the Starbucks coffee shop in the Forbidden City. According to Yang (2007), the new trend in the Chinese advertisement industry is using celebrities in organizations that intend to air adverts. In modern society, there is a great influence of celebrity advertisement, especially on the young generation, which forms the greatest population of Chinese residents.
Recommendations 商业分析论文作业代做
This research would recommend for Starbucks’s Chinese CEO Belinda Wong to investigate the mass store closings in the United States concerning the market development in China. While the 600 underperforming stores closed in the U.S., there could be a correlation that would help avoid this happening in China in the future. These stores were all relatively new to the market, having been in operation less than 18 months (Yang, 2007).
This research would also suggest that Belinda Wong invest more resources into researching a location before purchasing it for the company’s expansion plan in China. There have been several instances where consumers felt the presence of a Starbucks threatened their culture. This backlash is something that the company can avoid in the future.
This paper would suggest to Belinda Wong that a customer loyalty program would help boost sales and repeat visits for Starbucks in China. If they detained a customer connection management (CCM) package, also named a loyalty program, they could allow a discount based on the amount of merchandise the customer purchases (Zhang, 2014). Starbucks locations in the United States use a mobile application to allow users to earn and track points for every item purchased, eventually obtaining them a free product. Customers in China often purchase one drink and remain in the facility all day; therefore, this program would be an incentive to buy another beverage or sandwich.
Conclusion 商业分析论文作业代做
I don’t fault Starbucks for opening the storefront in 2000. Companies are in business to make money, and if they have the opportunity to make money by selling coffee at the top tourist spot in a country, then they had to take it. It may have been an impulsive decision looking at it now, but it’s very conceivable that Starbucks was invited to open a shop there by imperial palace management. I think the one area they did not spend enough time and planning on was public relations.
If my company is ever faced with a similar situation where there is a large community uproar, the last thing I’d want to do is play a more passive role and react to where I’m presented with. Instead, I’d do a better job of forecasting potential issues and play a more aggressive role with the community and working with them to build the local franchise together. But in the end, the company did the right thing by conceding to the public. Resistance gets you nowhere. A graceful cessation of the activity causing so much offense is the only practical choice. As the Operational Manager on site, the only thing I would have done differently is to try and make more of an effort to incorporate the community. Working with community leaders and organizations to try and contribute and/or enhance the city and its people. Even participate and/or creating programs to help the community and show a clear partnership between Starbucks and the Forbidden City.
References List 商业分析论文作业代做
Curtin, P.A. and Gaither, T.K., 2007. International public relations: Negotiating culture, identity, and power. Sage Publications.
Han, G.K. and Zhang, A., 2009. Starbucks is forbidden in the Forbidden City: Blog, circuit of culture and informal public relations campaign in China. Public Relations Review, 35(4), pp.395-401.
Michelli, J.A., 2006. Starbucks experience. Tata McGraw-Hill Education.
Pradhan, S., 2011. Retailing management: Text and cases. Tata McGraw-Hill Education.
Tikson, S.D.S., 2018. Human Resource Policies and Work Culture: A Case of Starbucks. JBMI (Jurnal Bisnis, Manajemen, dan Informatika), 15(1), pp.1-12.
Yang, W., 2007. Starbucks inside the Forbidden City made itself a laughingstock of the West, CCTV anchor urges it to leave. The Beijing News,. Retrieved November, 15, p.2007.
Zhang, N., 2014. Coffee market in China: trends & consumer strategies. A coffee industry market research of a traditional tea-drinking country.
更多代写：cs北美作业代写机构 gre网上代考 英国大学网课代考 本科essay代写 代写assignment机构 医疗改革论文代写
