Starbucks Case Essay

Words: 1212
Pages: 5

THE GLOBALIZATION OF STARBUCKS 1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this?
The original idea for the Starbucks format came from the 1980´s when the company´s director if marketing, Howard Schultz, came back from a trip to Italy enchanted with the Italian coffeehouse experience, the idea was to sell the company´s own premium roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products in a tastefully designed coffeehouse setting. The focus was to sell a “third place experience”.
Starbucks is an important lesson for international business, because good ideas can be
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What do you think is the difference between fair trade and free trade? How might a fair trade policy benefit Starbucks?

The difference between a fair trade and a free trade is
Fair trade - Makers of the goods (coffee classic example) get more of the profit of the sale of the goods rather than the pittance they usually get.
Free Trade - this is a market condition where the sale/trade of goods is not hindered by (inter)governmental/world trade regulations taxes quotas etc.
A free trade leaves producers in developing countries at a disadvantage. In those countries, producers lack social security and other safety nets that would help them hold out on selling their wares during times when prices are low. While producers in more prosperous nations can wait to sell at times like these, their counterparts in developing nations must sell immediately. As a result, they lose a lot of money. That is why I think a fair trade policy benefit Starbucks because It shows that they have values and they care about other countries problems and people, especially because a big part of their revenue come from the coffee beans from these countries.


1. What are the facilitating developments that have allowed health care to start globalizing?
The facilitating developments that have allowed health care to start globalizing are without a doubt and in the first place internet, the possibility to be connected