Saturday, August 10, 2019
Global Supply Chain Analysis of a Global Coffee Company Essay
Global Supply Chain Analysis of a Global Coffee Company - Essay Example The essay "Global Supply Chain Analysis of a Global Coffee Company" talks about the analysis of an entrance to a new market by Starbucks Corporation in Lithuania through theories. There are different strategy models which can be applied to Starbucks in order to analyze their current situation and steps to be taken for future internationalization. There are four strategies based on local responsiveness pressure and cost reduction pressure. They are global standardization strategy, transnational strategy, international strategy and localization strategy. In the case of Starbucks, the best strategy which can be incorporated is Global Standardization Strategy. This would enable the firm to expand over the larger geographical area and acquire high-profit margins. Global standardization strategy mainly states that the company follows the same strategy across the globe. This form of standardized strategy is reflected in its branding, products or services, customer support, etc. International strategy is all about implementing the best possible strategy to establish a strong market position. The four possible international strategies for Starbucks are joint ventures, franchising, exporting and acquisitions. Starbucks encompasses complex tasks from product manufacturing to delivery at retail stores. The company is inclined towards global resource span where it acquires cocoa beans from one country and milk from another distant location. This supply chain strategy enables the firm to spread its operations across many locations.