Multi National Corporation - Global Issues – Essay Example

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67). Some parts of the world were previously believed to be unsuitable for coffee house business. In this industry, Starbucks was one of the first business organizations to take advantage of the changes in the way of life in such areas. Good examples of such places are Egypt and Morocco in Africa. At sometimes, selling business products only at the company’s outlets might not be enough for a business organization that plans to go global. Sometimes it can be convenient to come up with a strategy that will allow certain products to be sold in locations that are far from their points of production (Wheelen & Hunger 2012, p.

96). Starbucks has used this strategy for a number of its product. Starbucks has introduced new products that can be sold at joints such as groceries and convenience stores. This is something that they do with convenience stores and groceries all over the world. A good example of a product that has been sold through this means is Via instant coffee (Thompson & Arsel 2004, p. 633). This helps them in increasing their sales channels, thus making their products available to a bigger number of consumers all over the world. Operating in a foreign market is sometime hard, especially when there is no good knowledge of the market in question.

This is particularly very true for the case of Starbucks Corporation. In order to avoid failure that might arise as a result of lack of proper knowledge of the foreign markets, they sometimes partner with local companies so that they can help in running the stores (Bussing-Burks 2009, p. 153). Their partners always run more than 50 % of the foreign stores owned by Starbucks.

This might in a way be less productive as compared to direct management. However, the use of partner in the foreign market stores is safer than direct management. One of the main strategies that Starbucks uses in their operations is making sure that their products are of quality. Ever since the company was started in the 1980s, one of the most conspicuous thing about them was the quality of the coffee that they serve. This is as a result of the emphasis that the company has always put on the quality of coffee that they produce.

As a result of this emphasis, they are able to be in a position in which their products are much more attractive to the public are compared to those produced by their competitors. This explains why even when their prices are slightly higher than those of their competitors, their products still remain tempting to the consumers (Mahrokian, Chan, Mangkornkanok & Hee Lee 2010, p.


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