100%(1)100% нашли этот документ полезным (1 голос)
7K просмотров3 страницы
Starbucks chooses joint ventures in some countries to share costs and risks with local partners who provide knowledge of local conditions. Starbucks chooses wholly owned subsidiaries in some countries like Britain and Thailand to maintain tight control over expansion strategies and operations for global coordination. The internalization theory best explains Starbucks' strategy as it involves valuable know-how that requires tight control through foreign direct investment like wholly owned subsidiaries rather than licensing.
Starbucks chooses joint ventures in some countries to share costs and risks with local partners who provide knowledge of local conditions. Starbucks chooses wholly owned subsidiaries in some countries like Britain and Thailand to maintain tight control over expansion strategies and operations for global coordination. The internalization theory best explains Starbucks' strategy as it involves valuable know-how that requires tight control through foreign direct investment like wholly owned subsidiaries rather than licensing.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PPT, PDF, TXT или читайте онлайн в Scribd
Starbucks chooses joint ventures in some countries to share costs and risks with local partners who provide knowledge of local conditions. Starbucks chooses wholly owned subsidiaries in some countries like Britain and Thailand to maintain tight control over expansion strategies and operations for global coordination. The internalization theory best explains Starbucks' strategy as it involves valuable know-how that requires tight control through foreign direct investment like wholly owned subsidiaries rather than licensing.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PPT, PDF, TXT или читайте онлайн в Scribd
Starbucks over entering through wholly owned subsidiaries? Answer: • Starbucks can benefit from local partner’s knowledge of the host country’s competitive conditions, culture, language, political and business systems. • Starbucks can share potentially high development costs and risks with local partner. • Joint-ventures face low risk of being subject to nationalization or other forms of adverse government interference. Q3 (b): On occasion, Starbucks has chosen a wholly owned subsidiary to control its foreign expansion (e.g., in Britain & Thailand). Why?
• Gain tighter control over expansion strategies
• Reduce risk of losing core competencies • Maintain tight control over operations in different countries – necessary for engaging in global strategic coordination
• Firm has a 100% share in the profits
Q4: Which theory of FDI best explains the international expansion strategy adopted by Starbucks? Answer: • Internalization Theory – when one or more of the following conditions holds, FDI is preferable to licensing and exporting
1. When a firm has valuable know-how that cannot be adequately protected by
a licensing contract
2. When the firm needs tight control over a foreign entity to maximize its market share and earnings in that country
3. When a firm’s skills and know-how are not amenable to licensing