First, watch Former Starbuck’s CEO Howard Schultz and Alibaba founder Jack Ma discuss the success of Starbucks in China.
https://www.youtube.com/watch?v=sBKL9752NWwLinks to an external site.
Then, read the article Links to an external site.about the success of Starbucks and McDonald’s in a difficult market such as China. Follow this with your own research on how other US companies found success in China. Answer the following questions –
- What are the reasons for Starbucks to choose Joint Venture as their choice of entry mode in China? List the advantages for this choice.
- Let’s assume that Starbucks decides to go with franchising as the entry mode in South Africa due to some governmental regulation. How can Starbucks find success in such a situation?