1. What would the advantages and disadvantages be for Friend-Z’s if it decided to be a global competitor? 2. If Friend-Z’s management did decide to become a global competitor, the company must decide which foreign country (or region) to enter first. What environmental factors would you have to take into consideration? 3. If Friend-Z’s management did decide to become a global competitor, what type of strategy (exporting, licensing, joint venture, direct investment) would you consider to be the best type of strategy to employ? Explain why you chose your strategy by describing its advantages over other types of strategies. 4. Investigate how you would become a global competitor that would enable you to compete against other global competitors like Starbucks. The investigation should begin by identifying a country or region in which to compete. After you choose a country, perform an environmental scan by determining what the important considerations would be regarding your potential customers, any potential competitors, and any economic, technological, socio-cultural, demographic, and/or political/legal considerations your company would have to consider. Starbucks Corporation is an American company, based in Seattle, Washington, that has become a global coffee company. Starbucks is the largest coffee house company in the world. As of March, 2013, Starbucks had 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 171 in Thailand and 10 in India.(“Loxcel Starbucks Map”. Starbucks. March 22, 2013. Retrieved April 20, 2013.) Starbucks’ stores mainly serve hot and cold beverages that include whole-bean coffee, micro-ground instant coffee, full-leaf teas, pastries, and snacks. Many of their stores sell packaged food items that include hot and cold sandwiches. Starbucks sells merchandise items (such as mugs and tumblers) that bear its famous logo. Starbucks Evenings locations, in addition to the products noted above, offer a variety of beers, wines, and appetizers after 4 p.m. (http://www.starbucks.com/coffeehouse/starbucks-stores/starbucks-evenings, retrieved 4/20/2013) Starbucks also has an entertainment division with its “Hear Music” brand. The company markets books, music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks also sells its own brand of ice cream and coffee at grocery stores. To fulfill one of your requirements for a business class, you and two of your college friends developed a plan to start a coffee house company (named “Friend-Z’s). After graduating from college, you and your friends have successfully built Friend-Z’s into a coffee house company that competes on regional basis in the United States. You and your co-owners realize that to continue Frien Trait Does Not Meet Expectations Meets Expectations Exceeds Expectations GP SLO.1 Identify how global competition can be an important consideration in business decisions. Is unable to identify how global competition can be an important consideration when making global business decisions. Is able to identify many ways how global competition can be an important consideration when making global business decisions. Is able to identify nearly all ways how global competition can be an important consideration when making global business decisions. Important Considerations: Advantages-opens or extends new markets, can market their products that same way they do in home country (international company) or develop new products or variations for each market (Multi-domestic) GP SLO.2 Identify how cultural, economic, and/or political differences are important considerations when making global business decisions. Is unable to identify any aspects of cultural, economic, and/or political differences that would be important considerations when making global business decisions. Is able to identify many aspects of cultural, economic, and/or political differences that would be important considerations when making global business decisions. Is able to identify nearly all aspects of cultural, economic, and/or political differences that would be important considerations when making global business decisions. Important Considerations: Cultural Diversity (Values, Customs, Cultural Symbols, Language), Economic Considerations (Economic Infrastructure, Consumer Income and purchasing power, Currency issues), and Political-Regulatory climate (Political Stability, Trade Regulations,) GP SLO.3 Understand how businesses can compete on a global basis. Fails to understand how businesses complete on global basis. Adequately understands how businesses complete on global basis. Show exceptional understanding of how businesses complete on global basis. Important Considerations: Exporting, Licensing, Joint Venture, and Direct Investment-from exporting to direct investment, profit potential increases BUT firm’s financial commitment and risk increase; marketing control also increases GP SLO.4 MGMT Apply management practices when formulating a specific global business program or strategy. (MGMT3183-186 to 192) Unable to apply how certain business practices could be incorporated into specific global business programs or strategies. Is adequately able to apply how certain business practices could be incorporated into specific global business programs or strategies. Is exceptionally able to apply how certain business practices could be incorporated into specific global business programs or strategies. Important Considerations: Must consider how the various components are integrated: how the identification of country or region in which to compete, decision is integrated with the management practices that would be used. MGMT 3183: Must consider how the country or region in which to compete should be integrated with an environmental scan. d-Z’s growth, your company will need to consider becoming a global competitor. You decide to call a meeting with your co-owners to discuss this issue. You develop the following questions
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