Essays on International Human Resource Management - Starbucks Corporation Case Study

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The paper "International Human Resource Management - Starbucks Corporation " is a great example of a human resources case study.   Starbucks Corporation is a renowned international retailer, roaster and brand of Specialty coffee, with more than 12000 company-operated and licensed stores around the world. Starbucks international licensed retail stores are operated through licensing arrangements and joint ventures with established retailers or restaurants. The Starbucks brand portfolio includes Ethos™ water, Starbucks™ Liqueurs, Tazo® teas and Hear Music® CDs, these brands enable Starbucks to appeal to a broader customer base (Starbucks, 2011).

The company’ s workforce is comprised of different professionals, including retail operators, accountants, marketers, IT professionals, store clerks among others. Starbucks Corporation has been able to successfully enter the Chinese market despite the spiral effect of the recession in Europe and the United States which took a toll on emerging economies. Research indicates that Starbucks success in foreign countries such as China is attributed to its committed and highly motivated workforce. Starbucks is looking into sending an employee to China (Wang, 2012). The following plan is a consistent cross-cultural training and support strategy for the employee.

Part A of this plan addresses key IHRM information, including business strategy and needs, country analysis, and job analysis and description. Part B of this plan addresses such issues as cross-cultural training and support strategy. Part C of this plan evaluates the cost-effectiveness of training. PART A-The Context Business Strategy and needs Starbucks opened its first store in China in 1999. Since then, Starbuck has opened many stores throughout the country. Starbucks’ is famous for its quality coffee. China is the best target market for Starbucks due to the rapid growth of the economy and a high population that offers the ready market for the products.

In the US, Starbucks is facing slow growth due to intense competition from other coffee shops including Dunkin‘ Donuts and Caribou Coffee, and therefore, it is prudent for Starbucks to take attractive options in China. According to Bindé , (2001), China will be the third-largest consumer market throughout the globe in the near future after Japan and the US. Goals and Objectives To be the market leader in the coffee industry in China; To be the pacesetter in quality, health, safety and environment in the Chinese coffee market; To maintain a constant supply of quality coffee throughout the year. Country Analysis Firms wishing to expand their businesses should consider various factors, including general values, political/legal/socioeconomic situation, social institutions, the standard of living and physical environment of both host and parent countries in order to determine the viability of such a move.

The following provides an analysis of both the US (host country) and China (foreign country). Host Country-China China is the largest national economy in South East Asia. The country is the second largest in purchasing power parity after the United States.

Economists predict that the country will become the largest national economy in the world in the next few decades (Leong & Ku, 2005). In addition, China is a political leader in South East Asia. Chinese foreign policy is based on such aspects as non-intervention by foreign countries, multilateralism and peaceful coexistence amongst individuals. The Chinese government has come up with more flexible trade policies that enable investors to operate freely. Most public utilities in China have been privatized and this enables firms to compete effectively.

The country is a member of the World Trade Organization, and this plays a greater role in enhancing international trade. The country is highly populated, and therefore, there is surplus labour supply. Most businessmen in China opt for personal relationships. The country has strong laws governing intellectual property rights.

References

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Bussing-Bucks, M. (2009). Starbucks. California: ABC-CLIO.

Carter, L, Ulrich, D & Goldsmith, M. (2004). Best Practices in Leadership Development and Organization Change: How the Best Companies Ensure Meaningful Change and Sustainable Leadership. New York (NY). John Wiley & Sons.

China Daily (2012). Starbucks near Buddhist temple triggers debate< http://www.chinadaily.com.cn/china/2012-09/24/content_15779426.htm>

Kathawala, Y. (2005). Global outsourcing and its impacts on organizations: problems and issues: Int. J. Services Operations Management, Vol. 1, N0. 2 < http://www.ux1.eiu.edu/~cfyak/Articles/global%20outsourcing.pdf.>

Leong, H.K. & Ku, S.C. (2005). China and Southeast Asia: Global Changes and Regional Challenges. Singapore: Institute of Southeast Asian Studies.

OECD. (n.d). Programme For International Student Assessment (PISA) Results from PISA 2012 problem Solving < www.oecd.org/unitedstates/PISA-2012-PS-results-eng-USA.pdf>

Starbucks. (2011). Starbucks Company Profile. < http://globalassets.starbucks.com/assets/F62C45CD8A8B4699BEFC60A2618F0431.pdf.>

Tang, J & Ward, A. (2003). The Changing Face of Chinese Management. London: Psychology Press.

Thomson, N & Baden-Fuler, C. (2010). Basic Strategy in Context: European text and cases. New York (NY): John Wiley & Sons.

Ting-Toomey, S. (2012). Communicating Across Cultures. New York (NY): Guilford Press.

Wang, H. (2012). Five Things Starbucks Did to Get China Right< http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/>

ZOFI, Y. (2011). A Manager's Guide to Virtual Teams. AMACOM Div American Mgmt Assn.

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