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Modes of
International
  Business
License                   Joint Venture

    FDI (Foreign Direct Investment)


Franchisee               Contract Marketing


           Turnkey Projects

                                Barter
  Merger
               Take Over
                                    Exports


           Contract Manufacturing
"We aren't in the coffee business, serving
people.
We are in the people business, serving
coffee"
"We aren't in the coffee business, serving
people.
We are in the people business, serving
coffee"
                           - Howard Schultz
                             Starbucks CEO
HOME COUNTRY
HOME COUNTRY
STARBUCKS           1971



     The Starbucks
     Center, Seattle.
     The company HQ,
     in the old Sears,
     Roebuck and Co.
     catalog
     distribution
     center building.
OUR HERITAGE
Every day, we go to
work hoping to do
two things: share
great coffee with
our friends and help
make the world a
little better.

It was true when
the first Starbucks
opened in 1971,
and it’s just as true
today.
MISSION

      Our mission is
      to inspire and
      nurture the
      human spirit –
      one person,
      one cup, and
      one
      neighborhood
      at a time.
STORES
Starbucks is the largest
coffeehouse chain
operating in the world.
There are 16,706 of
them spread out
through 50 countries.

The US is home to about
11,068 of them.

Total stores 16,706 (as of
Dec. 27, 2009)
8,850 Company-
operated stores.
7,856 Licensed stores.
BENEFITS
PRODUCTS
EMPLOYEES
Company Operated
 It all started in Seattle's Pike
 Place Market in 1971.

 From there, we've grown in
 numbers but maintained
 our commitment to being
 the heart of the
 neighborhoods where we
 operate.

 Our stores are customized to
 provide a unique Starbucks
 Experience for our
 customers and to
 complement the
 surrounding community.

Total U.S. Co-operated 6,871        Total Int’l Co-operated 2,048
STARBUCKS’ BUSINESS VENTURES
                              1995

A long-term joint venture
with Dreyer’s Grand Ice
Cream was formed to
market a premium line of
coffee ice creams.
Nationwide distribution
to leading grocery stores
occurred in the spring of
1995.

Formed a strategic alliance
with United Airlines to
become the exclusive coffee
supplier on every United
flight in 1995.
STARBUCKS’ BUSINESS VENTURES
                                                                     1996
Starbucks & Pepsi Launch DoubleShot Espresso.
                                    The North American Coffee
                                    Partnership was formed between
                                    Pepsi-Cola and Starbucks New
                                    Venture Company, a wholly-owned
                                    subsidiary of Starbucks. The
                                    partnership announced its plan to
                                    market a bottled version of
                                    Starbucks’ Frappuccino™ beverage.

                                    Starbucks has given License to
                                    Aramark to operate a number of
                                    Starbucks Stores at businesses,
                                    industrial sites,health care
                                    locations, colleges, universities and
                                    other locations in the United
                                    States.
STARBUCKS’ BUSINESS VENTURES
                                       1998



Starbucks Coffee
Co. and Kraft Foods
formed a long-term
licensing agreement
to accelerate growth of
Starbucks brands into     The PASQUA
grocery channels across   COFFEE CO. and The
the U.S.                  TAZO Tea companies
                          are acqired in 2000.
HOST COUNTRY
  Operating in more than 50 countries:
Argentina, Aruba , Australia, Austria, Bahamas, Bahrain,
Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus,
Czech Republic, Denmark, Egypt, France, Germany,
Greece, Hong Kong, Indonesia, Ireland, Japan, Jordan,
Korea, Kuwait, Lebanon, Malaysia, Mexico, New Zealand,
Netherlands, Northern Ireland, Oman, Peru, Philippines,
Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia,
Scotland, Singapore, Spain, Switzerland, Taiwan,
Thailand, Turkey, United Arab Emirates, United States
and Wales.
EXPANSION
LICENSED
 Licensed stores are
 Starbucks stores that offer
 great coffee, tea and
 customers service; however,
 they are owned and
 managed by a licensee.

 Starbucks enters into
 licensing arrangements to
 provide the Starbucks
 Experience in locations
 including local department
 stores, hotels and resorts,
 college and university
 campuses, hospitals,
 casinos, airports, grocery
 stores and other locations.

Total U.S. Licensed 4,395      Total Int’l Licensed 3,290
INT’L EXPANSION

In markets outside the continental United States
(including Hawaii), Starbucks' strategy was to
license a reputable and capable local company
with retailing know-how in the target host country
to develop and operate new Starbucks stores.

In some cases, Starbucks was a joint venture
partner in the stores outside the continental Untied
States.
JAPAN                            1995

Starbucks Coffee Japan was
established in October 1995, as
a joint venture between
Sazaby League and
Starbucks Coffee
International.

Since the opening of our first
store on August 2, 1996, in the
Ginza district of Tokyo, our
network has expanded rapidly
throughout the country and
has reached 872 stores.

Company Name: Starbucks           The 1st Store in Japan
Coffee Japan,Ltd.
UNITED KINGDOM   1998




Acquired
Seattle Coffee
Company,
UK’s leading
specialty coffee
company.

There are
altogether 675
Stores in United
Kingdom.
SOUTH KOREA                              1999


   Starbucks Coffee
   Korea Co., Ltd. is
   a joint venture
   partnership between
   Shinsegae
   Department Store
   Co., Ltd. and
   Starbucks Coffee
   International, a
   wholly owned
   subsidiary of
   Starbucks Coffee
   Company.



The five-story Starbucks, Largest in the World.
MIDDLE EAST                 1999

                                             Egypt  
Starbucks initially started           Saudi Arabia  
in Kuwait in 1999 through a    United Arab Emirate  
                                          Lebanon   
licensing agreement with                   Tunisia  
trading partner and licensee                  Syria 
                                                    
M. H. Alshaya Co. WLL,                         Iran 
                                            Yemen 
                                                    
                                                    
a private Kuwaiti family                  Somalia   
business.                                 Morocco   
                                               Iraq 
                                                    
                                             Qatar  
M. H. Alshaya Co.                            Libya  
operates over 280                          Kuwait   
                                            Jordan  
Starbucks stores in the                    Algiers  
Middle East region                           Oman   
                                           Bahrain  
including Kuwait, KSA, UAE,
                                       Afghanistan  
Egypt, Lebanon,
Jordan, Qatar, Bahrain and
Oman.
CHINA                                 1999

Starbucks has collaborated
with different partners for its
operations in China.

In Shanghai and Hangzhou,
it has partnered with a unit of
the President group.


                                  The President group is
                                  Starbucks’ partner in Taiwan,
                                  where it runs around 80 coffee
                                  stores.

                                  In North China, the company
                                  has partnered with H&Q Asia
                                  Pacific and Beijing Mei Da
                                  Coffee.
SWITZERLAND          2001


Starbucks Coffee
Switzerland AG is
responsible for setting up
and running Starbucks
coffeehouses in
Switzerland.

Business operations are
managed by Starbucks
Coffee Switzerland AG , a
50/50 joint venture of
Starbucks Coffee
International &
Marinopoulos
Brothers SA.
INDIA ??
HOWARD SCHULTZ
Remember, just because
nobody else is doing it,
doesn’t mean there isn’t a
market out there.

If business only ever set
out to capture share of
proven markets, nothing
new would ever happen.

Drive your people to
think about consumers
and markets, then make
the product to meet their
needs.
Why do you think Starbucks expand internationally primarily
           through local joint-ventures, to whom it licenses its format, as
           opposed to a pure licensing strategy?


It gives Starbucks some type of safety.
We had rather license to a holding
company that already has experience
with selling food or coffee that
granting a license to an individual that
may not have any knowledge of the
business. The holding company has the
experience, and the money to support
the expansion.

A joint venture will allow you to grow
your company without having to
spend too much money, pretty much
like franchising.
THANK YOU


  Project by : Abhishek & Brijesh

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Starbucks - Modes of international business

  • 2.
  • 3. License Joint Venture FDI (Foreign Direct Investment) Franchisee Contract Marketing Turnkey Projects Barter Merger Take Over Exports Contract Manufacturing
  • 4.
  • 5. "We aren't in the coffee business, serving people. We are in the people business, serving coffee"
  • 6. "We aren't in the coffee business, serving people. We are in the people business, serving coffee" - Howard Schultz Starbucks CEO
  • 9. STARBUCKS 1971 The Starbucks Center, Seattle. The company HQ, in the old Sears, Roebuck and Co. catalog distribution center building.
  • 10. OUR HERITAGE Every day, we go to work hoping to do two things: share great coffee with our friends and help make the world a little better. It was true when the first Starbucks opened in 1971, and it’s just as true today.
  • 11. MISSION Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.
  • 12. STORES Starbucks is the largest coffeehouse chain operating in the world. There are 16,706 of them spread out through 50 countries. The US is home to about 11,068 of them. Total stores 16,706 (as of Dec. 27, 2009) 8,850 Company- operated stores. 7,856 Licensed stores.
  • 16. Company Operated It all started in Seattle's Pike Place Market in 1971. From there, we've grown in numbers but maintained our commitment to being the heart of the neighborhoods where we operate. Our stores are customized to provide a unique Starbucks Experience for our customers and to complement the surrounding community. Total U.S. Co-operated 6,871 Total Int’l Co-operated 2,048
  • 17. STARBUCKS’ BUSINESS VENTURES 1995 A long-term joint venture with Dreyer’s Grand Ice Cream was formed to market a premium line of coffee ice creams. Nationwide distribution to leading grocery stores occurred in the spring of 1995. Formed a strategic alliance with United Airlines to become the exclusive coffee supplier on every United flight in 1995.
  • 18. STARBUCKS’ BUSINESS VENTURES 1996 Starbucks & Pepsi Launch DoubleShot Espresso. The North American Coffee Partnership was formed between Pepsi-Cola and Starbucks New Venture Company, a wholly-owned subsidiary of Starbucks. The partnership announced its plan to market a bottled version of Starbucks’ Frappuccino™ beverage. Starbucks has given License to Aramark to operate a number of Starbucks Stores at businesses, industrial sites,health care locations, colleges, universities and other locations in the United States.
  • 19. STARBUCKS’ BUSINESS VENTURES 1998 Starbucks Coffee Co. and Kraft Foods formed a long-term licensing agreement to accelerate growth of Starbucks brands into The PASQUA grocery channels across COFFEE CO. and The the U.S. TAZO Tea companies are acqired in 2000.
  • 20. HOST COUNTRY Operating in more than 50 countries: Argentina, Aruba , Australia, Austria, Bahamas, Bahrain, Belgium, Brazil, Bulgaria, Canada, Chile, China, Cyprus, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, Indonesia, Ireland, Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Mexico, New Zealand, Netherlands, Northern Ireland, Oman, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Scotland, Singapore, Spain, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United States and Wales.
  • 22. LICENSED Licensed stores are Starbucks stores that offer great coffee, tea and customers service; however, they are owned and managed by a licensee. Starbucks enters into licensing arrangements to provide the Starbucks Experience in locations including local department stores, hotels and resorts, college and university campuses, hospitals, casinos, airports, grocery stores and other locations. Total U.S. Licensed 4,395 Total Int’l Licensed 3,290
  • 23. INT’L EXPANSION In markets outside the continental United States (including Hawaii), Starbucks' strategy was to license a reputable and capable local company with retailing know-how in the target host country to develop and operate new Starbucks stores. In some cases, Starbucks was a joint venture partner in the stores outside the continental Untied States.
  • 24. JAPAN 1995 Starbucks Coffee Japan was established in October 1995, as a joint venture between Sazaby League and Starbucks Coffee International. Since the opening of our first store on August 2, 1996, in the Ginza district of Tokyo, our network has expanded rapidly throughout the country and has reached 872 stores. Company Name: Starbucks The 1st Store in Japan Coffee Japan,Ltd.
  • 25. UNITED KINGDOM 1998 Acquired Seattle Coffee Company, UK’s leading specialty coffee company. There are altogether 675 Stores in United Kingdom.
  • 26. SOUTH KOREA 1999 Starbucks Coffee Korea Co., Ltd. is a joint venture partnership between Shinsegae Department Store Co., Ltd. and Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Company. The five-story Starbucks, Largest in the World.
  • 27. MIDDLE EAST 1999 Egypt   Starbucks initially started Saudi Arabia   in Kuwait in 1999 through a United Arab Emirate   Lebanon    licensing agreement with Tunisia   trading partner and licensee Syria    M. H. Alshaya Co. WLL, Iran  Yemen      a private Kuwaiti family Somalia    business. Morocco    Iraq    Qatar   M. H. Alshaya Co. Libya   operates over 280 Kuwait    Jordan   Starbucks stores in the Algiers   Middle East region Oman    Bahrain   including Kuwait, KSA, UAE, Afghanistan   Egypt, Lebanon, Jordan, Qatar, Bahrain and Oman.
  • 28. CHINA 1999 Starbucks has collaborated with different partners for its operations in China. In Shanghai and Hangzhou, it has partnered with a unit of the President group. The President group is Starbucks’ partner in Taiwan, where it runs around 80 coffee stores. In North China, the company has partnered with H&Q Asia Pacific and Beijing Mei Da Coffee.
  • 29. SWITZERLAND 2001 Starbucks Coffee Switzerland AG is responsible for setting up and running Starbucks coffeehouses in Switzerland. Business operations are managed by Starbucks Coffee Switzerland AG , a 50/50 joint venture of Starbucks Coffee International & Marinopoulos Brothers SA.
  • 31. HOWARD SCHULTZ Remember, just because nobody else is doing it, doesn’t mean there isn’t a market out there. If business only ever set out to capture share of proven markets, nothing new would ever happen. Drive your people to think about consumers and markets, then make the product to meet their needs.
  • 32. Why do you think Starbucks expand internationally primarily through local joint-ventures, to whom it licenses its format, as opposed to a pure licensing strategy? It gives Starbucks some type of safety. We had rather license to a holding company that already has experience with selling food or coffee that granting a license to an individual that may not have any knowledge of the business. The holding company has the experience, and the money to support the expansion. A joint venture will allow you to grow your company without having to spend too much money, pretty much like franchising.
  • 33.
  • 34. THANK YOU Project by : Abhishek & Brijesh

Editor's Notes