International Business strategy Essay Example | Topics and Well Written Essays - 2500 words

International Business strategy - Essay Example The Starbucks Corporation faced many strategic challenges in its international business operations in the year 2006. Main challenges were from the well established local players in the host countries. Business strategies of Starbucks were not supportive for satisfying the international customers for a long term. The follow up of basic principles in the translational business also was helpful only to a certain extent of time period. Business principles like self service rule and no smoking rule in the premises helped to attract the youngsters and non-smoking customers to the shop and helped to attract a large number of customers in the initial stage of the business. But it was not capable of sustaining the customers for a long term. . The quality and taste of Starbucks products is not capable of attracting and sustaining the customers in the competitive environment. Operational costs such as hiring employees and buying leases were very huge and it reduced the rate of business profit. Training of personnel and promotion of products required large amount of investment. Operational problems resulting from lack of a trained work force and suitable real estate for its stores also affected the profitability and market growth of Starbucks in international market. The volatile political environment in the Middle East region imposed restrictions over the business operations of Starbucks. The political attitude in the Middle East was against the US due to its strong relation with Israel. As a US based company, Starbucks faced boycott problems from the customers in the Middle East region. The owner of Starbucks firm is a Jewish personality and it intensified the situations. Resistance from customers as a result of the alleged close relation between USA and Israel affected the business growth in Middle East region. NGOs were also against Starbucks activities and it restricted the availability of certified coffee beans