Essays on Starbucks Enter into Vietnam Market Case Study

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The paper "Starbucks Enter into Vietnam Market" is a great example of a business case study.   The resources available to a company’ s disposal profoundly affect how the company relates to the environment. It also influences the strategic decisions and decision-making process of the organization to align itself to the dynamic and ever-changing external business environment. All resources held in any organization can be grouped into four principal categories. These are: Physical Financial Human Intellectual Physical resources Starbucks has their store locations as its physical resource. Other physical resources are their delivery vehicles, equipment and even the saleable items (cups, coffee, pastry, etc. ).

Most of these physical resources are affected by appreciation and depreciation. Depreciation is most relevant to the resources since, for the resources which are depreciating in value, the recently purchased or acquired resources are better and more useful to the company. In terms of stores, according to the company profile, as of July 3rd 2011, there are 17,018 stores in 56 countries including Hong Kong/Macau, Oman, Japan, South Korea, Sweden, Russia, Brazil, China, Spain, Scotland, and many others. These stores are distributed in six continents in the world.

The only continent that is not represented is Antarctica. Africa is represented by Egypt only, Australia is represented by Australia and New Zealand, North America is represented by the United States of America and Canada, South America by Peru, Brazil, Chile and others, Asia by China, Hong Kong/Macau and others and Europe by Spain, Belgium, Netherlands and others. Starbucks has reported substantial growth in terms of opening stores. In the early 1990s, the company was reported to be opening stores at the rate of 2 stores per day.

In the year 2002, the company had just over 5,600 stores. In the month of January of 2004, the company opened its eight thousandth store. Now, the company has doubled the number of stores in just a period of seven years. This growth is healthy for the company and it can be seen in the ever-increasing stock prices, rewarding dividends, and their phenomenal financial reports. Financial resources In a company, financial resources are also extremely valuable to the company’ s growth and development. The financial resources include capital, creditors and debtors, fixed assets, liquid cash available and shareholders.

Starbucks has a whopping capital base and most of the capital is tied up in depreciating fixed assets such as Coffee and tea brewing machines, grinders, storage containers and accessories, tea and coffee mugs, coffee grinders, music equipment, baking equipment, tables and chairs, and much more. They also have their capital tied in stock and merchandise – mugs and accessories, whole coffee beans, packaged goods, books, gift items, baked pastries, salads, fruit cups, sandwiches, and yoghurt parfaits. Human resources Human resources refer to individuals who together make up the staff of a company or organization.

The human resources of a company are usually the company’ s largest and most valuable asset. This is because, without the workforce, the company would not be able to perform any tasks towards the achievement of their goals and objectives. Starbucks has invested much time, effort and financial resources in their employees to ensure they are happy in their workstations and in return, they provide the unique customer experience that is recognized in the Starbucks brand. The company offers a distinctive blend for each customer.

This unique combination includes medical, dental, life and disability insurance, a great salary, bonuses, overtime, paid off days, retirement plans, emergency financial assistance, free coffee and much more. All this coupled with the training, sabbaticals, internal recognition and reward programs, recreation facilities and employee discounts in partner stores make working at Starbucks fun and rewarding.

References

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MACDONALD, K. 2007. Globalising Justice within Coffee Supply Chains? Fair Trade, Starbucks and the Transformation of Supply Chain Governance. Third World Quarterly, 28, 793-812.

MICHELLI, J. A. 2007. The Starbucks experience: 5 principles for turning ordinary into extraordinary, New York, NY, McGraw-Hill.

PHAM-GIA, K. 2009. Marketing Strategy of 'Starbucks Coffe', München GRIN Verlag GmbH.

PORTER, M. E. 1998. Competitive advantage: creating and sustaining superior performance : with a new introduction, New York, Free Press.

SCHMITZ, H. 2005. Value chain analysis for policy-makers and practitioners, Geneva, International Labour Office.

STUHL, O. 2011. Review: Everything but the Coffee: Learning about America from Starbucks. Gastronomica: The Journal of Food and Culture, 11, 109-110.

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