MGT 672 SEU Decision Making for Entry Strategies & Organizational Structures Discussion

Module 09: Decision-Making for Entry Strategies and Organizational Structures

Critical Thinking: (100 Points) 

In Chapters 8 and 9, we reviewed several types of global expansion strategies a company can undertake when entering new markets. For this assignment, you will read a case study about Starbucks’ expansion into the Indian market (p. 413 in the textbook) and then respond to, and make decisions, based on the following questions:

What inspired Starbucks to venture in to India? What were some of the company’s early concerns and other obstacles? 

How would you describe Starbucks’ approach to entering India and how Starbucks was influenced by cultural differences to adapt its offerings for the Indian market?

Why did Starbucks want to enter India through a joint venture? Specifically, what benefits did Starbucks and the Tara Group both gain by partnering with one another? What synergies were present? What conflicts occurred and how were they resolved?

Now, assume the role of the Director of Starbucks’ Indian strategic planning team. You have been tasked to explore the benefits and challenges of expansion into foreign countries through joint-venture partnerships. Describe the opportunities, benefits, and concerns that Starbucks might face by doing so. Summarize the cultural environment, choose an entry strategy from the text, and describe how you would implement this entry strategy.