Starbucks Expansion Into China
Abstract In the following research we will look whether Starbucks will be able to launch an aggressive expansion throughout Mainland China, a country known for its tea drinking history dating back to 5,000 years. Starbucks is known for its ability to locate the business outlets in perfect spots as well as market their products in beneficial ways. This report will try to analyze the three main questions:
1) Should Starbucks continue its expansion in China?
2) Will the Chinese be willing to change their tradition of drinking tea, after 5,000 years, to coffee?
3) Will Starbucks current marketing plan work in China without advertising?
Company Overview The history of Starbucks dates back to …show more content…
Looking at the year starting 2013 and the further expansion plans, predicted total net revenue growth of approximately 25%, comparable store sales growth in the range of 4% to 8% and earnings per share in the range of $0.44 per share to $0.45 per share for the fiscal year.
The environmental Savings for Starbucks Starbucks promotes its image as environment friendly business, which recycles heavily and cares about the surroundings. It goes through 2 billion cups a year. Environmental Defense calculates that Starbucks' move to use new hot cups with 10 percent post-consumer recycled paper will achieve the following annual environmental improvements with an annual cost savings of $3.2M: * Resource savings Equivalency 11,300 fewer tons of wood consumed 78,000 trees * 58 billion BTUs of energy saved 640 homes for a year * 47 million gallons of wastewater avoided 71 Olympic-sized swimming pools * 3 million pounds of solid waste prevented 09 fully-loaded garbage trucks
Recommended Solutions Cities in China are under constant construction and are rapidly changing; finding the best locations that will embody the right lifestyle is more like gambling than science. However locating at the best spot is the one thing Starbucks is famous for, but the computerized mapping databases that are used to test a potential street corner in the United