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Science Case - Starbucks Corporation

Essay by   •  May 10, 2011  •  Case Study  •  347 Words (2 Pages)  •  1,206 Views

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R & D is in the charge of the American research centre of Starbucks, and Subsidiaries can do research according to local situation but approved by the regional headquarters. Starbucks attaches great importance to the maintenance of brand image, and thus sets up product-oriented culture. For many products , the power to decisions and choose is mainly held by the company headquarters. The construction and fitting inside and outside Of each Starbucks is arranged by the U.S. headquarters Queen's architects to create a unique style. While the U.S. headquarters strictly control the product, it does some adjustment in different regions in order to attract consumers, to achieve localization. However, adjustment is limited. Starbucks gives workers more rights. The views of staff get the most fully respected, and are easy to be reflected to the upper management through the smooth mechanism.

Most of the Starbucks Corporation are directly managed store, which means ownership and management rights are centralized in the headquarters. To maintain global brand consistency, it limits the power of all the partnerships. The reason of the centralized way but not franchisee is that, Starbucks demands managers strictly to agree with the concept of brand identity、action、discipline and consistency of quality. But franchisees consider joining the brand as the only way to make money regardless of the development of brand.

Therefore, in order to prevent unnecessary interference with the brand, Starbucks is not open to join the right decision. It has some ban on foreign investment, but there are exceptions to these provisions. Most Starbucks in Greater China are joint ventures, like Taiwan Uni-President Starbucks is a joint venture with American Starbucks, the Starbucks in Shanghai and Central China are joint ventures of Taiwan's President Enterprises, Shanghai Tobacco Group and Starbucks, Beijing and Tianjin Starbucks are joint ventures of Beijing Meida Starbucks, and Guangdong, Hong Kong and Macau Starbucks are jointly operated by Maxim Group and Starbucks Coffee Concepts HK Ltd. Starbucks Corporation tends to overweight holdings in these areas to achieve greater mastership. In Shenyang, Dalian and other cities, Starbucks is Starbucks Corporation Guide

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