Growing Big While Staying Small: Starbucks Harvests International Growth

2017 ◽  
pp. 1-22 ◽  
Author(s):  
Richard Honack ◽  
Sachin Waikar
Keyword(s):  
Stock Price ◽  
Global Economy ◽  
The United States ◽  
Economic Downturn ◽  
Value Proposition ◽  
International Growth ◽  
Global Brand ◽  
Loyal Customer ◽  
The Right ◽  
The Impact

By early 2009 Starbucks had nearly 17,000 stores worldwide, with about a third of these outside the United States. Despite multibillion-dollar annual revenues, the giant coffee retailer's yearly growth had declined by half, quarterly earnings had dropped as much as 97 percent, same-store sales were negative, and its stock price was languishing. Factors such as a global economic downturn and increasing competition in the specialty coffee market from large players such as McDonald's and Dunkin' Donuts had driven this decline, resulting in the closings of hundreds of domestic stores already, with many more planned. Founder Howard Schultz, who had recently returned as CEO, and his executive team were convinced that Starbucks's growth opportunities lay overseas, where the firm already had a strong foothold in markets like Japan and the United Kingdom and was preparing to open hundreds of new stores in a variety of locations. But recent international challenges, including the closing of most Australian stores due to sluggish sales, made clear that Starbucks had more to learn about bringing its value proposition—a combination of premium coffee, superior service, and a “coffeehouse experience”—to foreign soil. The key question was not whether Starbucks could transport its value proposition overseas, but how the value proposition's three elements would play in recently entered and new markets. And the stakes of making the right international moves rose with each U.S. store closure. Schultz and his team also faced a broader question, one that applied to both their U.S. and foreign stores: Could they “grow big and stay small,” remaining a huge retailer that delivered both high-quality products and a consistently intimate and enjoyable experience to consumers worldwide? This case presents this challenge in the context of Starbucks's history, well-established value proposition, and domestic and international growth and vision.The key objectives of the case focus on the successful growth of local city brand, to a country brand, to a global brand, leaving the questions: 1. How much more can it grow? 2. Can it? 3. What is the impact of new competitors in a given market and/or the impact of the global economy on discretionary spending by a loyal customer base? 4. How important is it to the sustain a brand's core value(s) proposition when innovating for new audiences and customer preferences?

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

scholarly journals Prediction and comparison of the impact of COVID-19 epidemic on the financial industry of major countries based on neural intelligent algorithm

2020 ◽  
Vol 39 (6) ◽  
pp. 8831-8838
Author(s):  
Bin Wang ◽  
Qingyuan Zhou
Keyword(s):  
United States ◽  
Global Economy ◽  
Mutual Influence ◽  
The United States ◽  
Household Consumption ◽  
Intermediate Input ◽  
Financial Industry ◽  
Government Consumption ◽  
The Impact ◽  
The Relationship

The global economy appears the trend of anti-globalization under the influence of COVID-19. Based on the input-output table of lead database from 2006 to 2020, this paper divides the factors that affect the development of financial industry in China, the United States and Russia into six aspects: price, intermediate input, household consumption, government consumption, export and import. ADGA-BP neural network model is proposed in this paper, which is based on six aspects of price, intermediate input, consumer, government consumption, export and import. The intermediate input is decomposed from the perspective of industrial structure to study the interrelationship between financial industry and other industries in the three countries. The results show that the intermediate input is the main factor in the development of financial industry in the three countries, but the source industries of the intermediate input are not the same; the two factors of household consumption and price are closely related to the development of financial industry in the three countries, and they all play a role in promoting China, while the relationship between household consumption and the United States and between price and Russia is reverse; Government consumption only has a significant impact on Russia; from the perspective of mutual influence, the mutual investment between the financial industry of China and the United States is relatively large, while the relationship between the Russian financial industry and the two countries is relatively weak. It shows that under the background of covid-19, the development of financial industry is affected.

scholarly journals The impact of the COVID-19 pandemic on the shopping behaviour of customers of selected global brand marketing strategy

2021 ◽  
Vol 129 ◽  
pp. 02020
Author(s):  
David Vrtana
Keyword(s):  
Marketing Strategy ◽  
External Environment ◽  
Value Added ◽  
Shopping Behavior ◽  
Behavioral Characteristics ◽  
Purchasing Behavior ◽  
Global Brand ◽  
Brand Marketing ◽  
The Right ◽  
The Impact

Research background: Research will highlight the impact of the COVID-19 pandemic on Mc Donald’s brand marketing strategy. In the research, we will analyze the internal and external environment of the global brand. We will find out how the current pandemic situation has affected the customer shopping behavior of the global brand Mc Donald’s. Purpose of the article: In this article, we point out the importance of analyzing customers’ shopping behavior before and during a pandemic. We identify differences in shopping behavior before and during a pandemic. We will confirm whether our research identifies differences in the behavioral characteristics of the global brand’s shopping behavior in terms of differences and penetration. Methods: We used the methods of analysis, synthesis, comparison and generalization to assess the theoretical assumptions of purchasing behavior and marketing strategy. By comparison and generalization, we compare the financial performance of the brand during the COVID-19 pandemic. We will evaluate its significance in relation to shopping behavior. We will also use an analysis of the internal and external environment to identify the right marketing strategy for the global Mc Donald’s brand. Subsequently, we compare the results and identify the possibilities of adapting the marketing strategy with respect to purchasing behavior before and during the COVID-19 pandemic. Findings & Value added: We will point out the importance of the shopping behavior of Mc Donald’s global brand customers before and during the pandemic. We will find out how customers’ shopping behavior has changed and we will identify this change to the marketing strategy.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2013 ◽  
pp. 466-476
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

scholarly journals The Impact of International Sanctions on Russian Financial Markets

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 107
Author(s):  
Mirzosaid Sultonov
Keyword(s):  
Exchange Rate ◽  
Stock Price ◽  
Price Index ◽  
The United States ◽  
The European Union ◽  
Stock Price Index ◽  
The Exchange Rate ◽  
Long Term Impact ◽  
The Impact

Russia’s international comportment and geostrategic moves, particularly the invasion of Ukraine and the annexation of Crimea in 2014, caused a substantial change in its international economic and political relations. In response to Russia’s invasion, the United States of America, the European Union, and their allies imposed a series of sanctions. In this study, by applying an exponential generalized autoregressive conditional heteroscedasticity model to daily logarithmic returns of the ruble exchange rate and the closing price index of the Russian Trading System, we analyze how the returns and volatility of the exchange rate and the stock price index responded to the sanctions and oil price changes. The estimation results show that the sanctions have a significant positive short-term impact on exchange rate returns. Economic sanctions have a significant negative long-term impact on the returns and variance of the exchange rate and a significant positive long-term impact on the returns of the stock price index. Financial sanctions have a positive/negative long-term impact on the returns of the exchange rate/stock price index and a positive long-term impact on the variance of the exchange rate and the stock price index. Corporate sanctions have a positive long-term impact on exchange rate returns.

Public Deficits and Surpluses in Federated States: A Review of the Public Choice Empirical Literature

2004 ◽  
Vol 22 (3) ◽  
pp. 123-145 ◽  
Author(s):  
Louis M. Imbeau
Keyword(s):  
United States ◽  
Public Choice ◽  
The United States ◽  
Empirical Literature ◽  
Systematic Observation ◽  
Economic Cycles ◽  
German Länder ◽  
Canadian Provinces ◽  
The Right ◽  
The Impact

Abstract The purpose of this paper is to review the empirical public choice literature explaining deficits levels in federated states. First, I describe theoretical constructs, showing how new theories have developed by releasing one of the basic Ricardo-Barro assumptions. Empirical results bearing on the federated states of Australia, Canada, Germany, Switzerland, and the United States are then reviewed to assess which hypothesis, in which setting, is confirmed by systematic observation. On the whole, this literature shows that economic cycles have an impact on budget balances. It also shows that deficits are higher in election years in German Lander, Canadian provinces, and American states, but not in Australian states nor in Swiss cantons. In addition, the literature tends to support the hypothesis that the stringency of budgetary rules is related to higher budget balances in Canada, Switzerland, and in the United States. Finally, government fragmentation has no impact on the budget balances of federated states and parties of the left do not have higher deficits than parties of the right, except in Switzerland where empirical evidence is mixed. Rather, parties of the center or of the right do have higher deficits in German Lander and in Canadian provinces. In the concluding section, I discuss two issues: the impact of rules, and the partisan cycle hypothesis.

scholarly journals Comforted But Not Compensated? Mourners and Funeral Picketing in English Law

2015 ◽  
Vol 17 (3) ◽  
pp. 283-294
Author(s):  
Carolyn Shelbourn
Keyword(s):  
United States ◽  
Canon Law ◽  
United States Supreme Court ◽  
The United States ◽  
Baptist Church ◽  
Westboro Baptist Church ◽  
Active Service ◽  
Day Services ◽  
The Right ◽  
The Impact

In recent years there have been protests at Armistice Day services and at the funeral of Margaret Thatcher, but these events seem insignificant compared to the impact of the ‘funeral picketing’ carried out in the United States by members of the Westboro Baptist Church, principally at the funerals of American forces personnel killed on active service. This has caused considerable distress to family members and wide public outrage. In 2011 the United States Supreme Court held in Snyder v Phelps that the right of freedom of speech of the WBC rendered them immune to claims for damages by mourners affected by their picketing. This article will first consider how English secular and canon law could be used to restrict the practice of funeral picketing and secondly discuss whether current law could provide a remedy for mourners distressed by funeral picketing and other forms of protest at funerals, were they to take place.

scholarly journals Impact of the Economic Downturn on Elective Lumbar Spine Surgery in the United States: A National Trend Analysis, 2003 to 2013

2017 ◽  
Vol 7 (3) ◽  
pp. 213-219 ◽  
Author(s):  
David N. Bernstein ◽  
David Brodell ◽  
Yue Li ◽  
Paul T. Rubery ◽  
Addisu Mesfin
Keyword(s):  
United States ◽  
Lumbar Spine ◽  
Spine Surgery ◽  
International Classification Of Diseases ◽  
The United States ◽  
Lumbar Spine Surgery ◽  
Economic Downturn ◽  
Classification Of Diseases ◽  
Lumbar Spinal ◽  
The Impact

Study Design: Retrospective database analysis. Objective: The impact of the 2008-2009 economic downtown on elective lumbar spine surgery is unknown. Our objective was to investigate the effect of the economic downturn on the overall trends of elective lumbar spine surgery in the United States. Methods: The Nationwide Inpatient Sample (NIS) was used in conjunction with US Census and macroeconomic data to determine historical trends. The economic downturn was defined as 2008 to 2009. Codes from the International Classification of Diseases, Ninth Revision, Clinical Modification (ICD-9-CM), were used in order to identify appropriate procedures. Confidence intervals were determined using subgroup analysis techniques. Results: From 2003 to 2012, there was a 19.8% and 26.1% decrease in the number of lumbar discectomies and laminectomies, respectively. Over the same time period, there was a 56.4% increase in the number of lumbar spinal fusions. The trend of elective lumbar spine surgeries per 100 000 persons in the US population remained consistent from 2008 to 2009. The number of procedures decreased by 4.5% from 2010 to 2011, 7.6% from 2011 to 2012, and 3.1% from 2012 to 2013. The R2 value between the number of surgeries and the S&P 500 Index was statistically significant ( P ≤ .05). Conclusions: The economic downturn did not affect elective lumbar fusions, which increased in total from 2003 to 2013. The relationship between the S&P 500 Index and surgical trends suggests that during recessions, individuals may utilize other means, such as insurance, to cover procedural costs and reduce out-of-pocket expenditures, accounting for no impact of the economic downturn on surgical trends. These findings can assist multiple stakeholders in better understanding the interconnectedness of macroeconomics, policy, and elective lumbar spine surgery trends.

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