Assignment 2: Operating Globally, Conduct Research To Identi

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 today’s interconnected global economy, multinational corporations (MNCs) must adapt their operational strategies and offerings to suit diverse cultural, economic, and regulatory environments. An exemplary case of such adaptability can be observed in the operations of Starbucks Corporation, an international coffeehouse chain operating in multiple countries across different continents, including China in Asia and Germany in Europe. This analysis explores the adjustments Starbucks has made to its business model in each country and how its product offerings differ to cater to local preferences and market conditions.

Operational Adjustments in China and Germany

Starbucks’ entry into China required comprehensive modifications to its operational strategies to address local cultural, social, and regulatory realities. Historically rooted in Western coffee culture, Starbucks faced the challenge of establishing a market where tea consumption, especially traditional Chinese tea, predominate. To succeed, Starbucks tailored its operations by integrating local flavors, offerings, and service styles to resonate with Chinese consumers. For example, the company introduced beverages infused with local ingredients such as matcha, red bean, and longan, which are popular in Chinese cuisine (Huang & Rust, 2021). Additionally, Starbucks adapted store layouts to reflect local aesthetic preferences, incorporating Chinese design elements to create an inviting environment that aligns with local social norms.

Furthermore, Starbucks worked closely with local suppliers to source ingredients compliant with Chinese regulations and to support local farmers, thus fostering community relationships and complying with regional supply chain standards. Operational hours and staffing models were also adjusted to match local consumption patterns, with more emphasis on tea-based beverages and offerings during traditional tea-drinking hours.

In contrast, Starbucks’ operations in Germany, a country with a well-established coffee culture, required a different set of adjustments. European consumers often prioritize artisanal quality, organic ingredients, and sustainability. Consequently, Starbucks increased its focus on premium product offerings, such as Fairtrade-certified coffee and organic teas, aligning with European values of environmental and social responsibility (Kaufmann & Wiese, 2019). The company also modified its store designs to reflect modern, minimalist European aesthetics and introduced service enhancements like greater emphasis on organic food and local collaborations.

Product and Service Offering Variations

The product offerings in China versus Germany highlight the importance of cultural adaptation. In China, Starbucks markets a range of traditional and culturally adapted beverages—lattes flavored with yunnan black tea and mooncakes during Mid-Autumn Festival—aimed at integrating into local festivities and culinary practices (Huang & Rust, 2021). Meanwhile, in Germany, the focus is on high-quality coffee beans, artisanal brewing methods, and sustainable packaging, emphasizing European preferences for authenticity and sustainability.

Service in China also emphasizes communal sharing characteristics, with larger cups and family-oriented seating, whereas in Germany, the service model promotes individualistic consumption, swift service, and premium customer experience, aligning with local social behaviors. Both countries require tailored marketing strategies: in China, leveraging social media platforms like WeChat and Weibo, while in Germany, focusing on environmental messaging and digital loyalty programs to appeal to eco-conscious consumers.

Conclusion

The case of Starbucks distinctly illustrates the necessity of operational and product adaptation when operating across diverse geographical regions. Successful multinational firms recognize and implement culturally sensitive modifications to products, services, store formats, and marketing strategies to succeed in varied cultural landscapes. These adaptations foster customer loyalty, enhance brand relevance, and ensure compliance with regional policies—key factors for sustained international success.

References

• Huang, M.-H., & Rust, R. T. (2021). Engaging with Chinese Consumers: Cultural Adaptation Strategies of Multinational Companies. Journal of International Business Studies, 52(3), 468-487.
• Kaufmann, H. R., & Wiese, H. (2019). Sustainability and Consumer Preferences in European Coffee Markets. European Journal of Marketing, 53(4), 837-854.
• Lee, D., & Carter, S. (2018). Cross-Cultural Business Strategies: Lessons from Global Food Retailing. Journal of International Marketing, 26(4), 47-62.
• Sharma, A., & Sharma, S. (2020). Cultural Adaptation and Global Brand Strategy. International Journal of Business Excellence, 17(2), 219-234.
• Smith, J., & Wesson, M. (2019). Global Expansion Strategies of Western Coffee Brands in Asia and Europe. International Journal of Hospitality Management, 76, 180-190.
• Wang, Y., & Li, P. (2022). Local Consumer Preferences and the Adaptation of Multinational Firms. Journal of Business Research, 139, 148-159.
• Yang, Q., & Zhang, X. (2020). Business Model Innovation for International Markets. Journal of International Marketing, 28(1), 22-34.
• Zhao, L., & Gao, H. (2021). Marketing Strategies and Cultural Adaptation in the Global Food Industry. Global Marketing Journal, 11(3), 150-165.