Assignment 2: Operating Globally - Conduct Research To Ident
Assignment 2 Operating Globallyconduct Research To Identify A Company
Conduct research to identify a company that operates in two countries located in two different geographical regions. After evaluating the assigned readings and the research literature related to this module, explain adjustments that had to be made in the way the business operates in each country and how products and/or services are offered in one country versus the other. Submit your findings in a 2–3-page paper. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Apply APA standards to citation of sources.
Paper For Above instruction
In an increasingly interconnected global economy, understanding how companies adapt their operations across different geographical regions is essential for appreciating international business strategies. This paper examines the operations of Starbucks Corporation, an iconic coffeehouse chain, as it navigates the distinct markets in the United States and China, highlighting the adjustments made in business practices, product offerings, and service delivery tailored to each country's unique cultural, economic, and regulatory environment.
Adaptations in Business Operations Across Countries
Starbucks' entry into the Chinese market required significant modifications aligning with local cultural norms and consumer behaviors. While the American market emphasizes quick-service coffee, customization, and a fast-paced lifestyle, the Chinese market values social interaction, traditional tea preferences, and a different set of consumer expectations. To accommodate these differences, Starbucks localized its operational strategies, including store layout, staff training, and menu offerings.
In China, Starbucks adopted a more community-oriented approach, creating spacious stores that serve as social hubs, contrasting with the often smaller, convenience-oriented outlets in the US. Staff training emphasized bilingual skills and cultural sensitivity to enhance customer experience (Mitra & Sreejith, 2019). Furthermore, the company adjusted its supply chain to source ingredients locally, such as matcha and traditional teas, reducing costs and aligning with consumer preferences for local flavors.
Product and Service Offerings in Different Countries
The product assortment reflects local tastes and traditions. In the United States, Starbucks offers a wide range of customizable coffee drinks, bakery items, and seasonal products, relying heavily on established American preferences for coffee beverages. Conversely, in China, Starbucks introduced products like green tea frappuccinos, red bean desserts, and mooncakes during festive seasons, which appeal to local palate preferences (Liu & Li, 2021). These adaptations ensure cultural relevance and market acceptance.
The company also modified its customer service approach. In China, Starbucks often emphasizes a more personal, hospitable experience, aligning with Chinese social norms, whereas in the US, the focus is on efficiency and speed. These tailored service strategies help Starbucks maintain its global brand while respecting local customs.
Conclusion
Starbucks’ successful international expansion demonstrates the importance of cultural adaptation and strategic operational adjustments. By modifying store design, supply chain management, product offerings, and customer service practices, Starbucks effectively caters to diverse consumer preferences and regulatory environments. Such localization efforts are critical for multinational corporations seeking to thrive across varied geographical regions.
References
- Liu, J., & Li, H. (2021). Cultural adaptation of western brands in China: The case of Starbucks. Journal of International Business Studies, 52(4), 607-623.
- Mitra, R., & Sreejith, V. (2019). Cross-cultural management and adaptation strategies of Starbucks in China. International Journal of Business and Management, 14(9), 134-144.