Starbucks in Italy

Alice Y
Najm S
Dina M
Jae C
Ridwan H

Social, Political, and Economic Environment

Social
Family is the center of the social structure and provides a stabilizing influence for its members
Political
Democracy
Bicameral legislature
Economic
Diversified industrial economy
Industrial north; agricultural south
North: food, textiles, machinery, iron and steel, clothing, footwear and ceramics
South: engineering products, food, especially olive oil, wine, beverages, textiles and clothing,
production machinery, motor vehicles, transport equipment, chemicals; minerals and nonferrous

Business Culture in Italy

Pleasant with foreigners; Italy was once a country of emigrants
Relationship oriented
Mobile Etiquette
Prefer face to face conversation
Regional Differences
Northerners: more reserved
Southerners: more open and relationship oriented
Gestures
Grouping all finger tips together against the thumb and waving the hand back and forth is to say
what do you want? or what is it?.
Pointing the index and little fingers downwards to shape two horns is a sign to protect against
bad luck, whereas the horns pointed upwards are a sign of offence.
Sense of Humor - not easily offended, can joke around with them

Situation of the Industry

Coffee declined slightly in retail volume terms in 2015 while in current value terms it increased by 2% to
reach 156,000 tonnes and 1.7 billion respectively.
Italy is the 7th largest coffee consumer in Europe.
Despite Italy being a nation with numerous small local players operating within coffee, the industry is still
dominated by the leading companies at a national level.
coffee is expected to increase at CAGRs of 1% in retail volume terms and 3% in 2015 to reach 162,000
tonnes and 2.0 billion by 2020.
In Italy fourteen billion espresso coffees are consumed each year.
Bars sell an average of 230.3 cups a day

Competitors
1. The main rival is Luigi Lavazza Spa
. 37 percent retail esteem offer in 2015
. Marked as italy's most loved espresso the organization guarantees that 16 out of 20 million espresso
acquiring families in italy pick Lavazza

2.

Illycaffe which is marked as illy is an italian roasting company which has some expertise in the production
of espresso.

. The company has more than 800 employees and has reached a gross revenue of 361 million euros in
2012.
3.

Mauro Italian coffee

Possible Locations of Investment

Venice - is one of the most important tourist destinations in the world for its celebrated art and architecture. The
city has an average of 50,000 tourists a day. In 2006, it was the world's 28th most internationally visited city, with
2.9 million international arrivals that year. It is regarded as one of the world's most beautiful cities.

Florence - is an important city in Italian fashion, being ranked in the top 51 fashion capitals of the world;
furthermore, it is a major national economic center, as well as a tourist and industrial hub. In 2008, the city had
the 17th highest average income in Italy.
Milan - is the main industrial, commercial, and financial centre of Italy and a leading global city.Its business
district hosts the Borsa Italiana (Italy's main stock exchange) and the headquarters of the largest national banks
and companies. The city is a major world fashion and design.

Negotiations with Business Partners

Try And Take The Win-Win Approach.
You Can Benefit From A Collaboration
Instead Of A Competition.
3 Ways To Negotiate:
Passive Communication
Aggressive Communication
Assertive Communication
Fair Is The Result Of Your Negotiation.

Cultural Characteristics

Steeped in the arts, family, architecture, music and food.

Home of the Roman Empire and a major center of the Renaissance, culture on the Italian peninsula
has flourished for centuries.
Easy-going culture for foreigners
North-South divide
North: strains of the French and German (from ancestors)
South: influenced by Spanish and Arab Cultures

Cultural Differences
U.S.A.

Italy

Starbucks in America is known for fast-service

and on-the-go coffee
Has been established as the coffee franchise
Mild taste appeals to Americans
Will have local, yet loyal customers

Starbucks in Italy will have to adjust to how

Italians prefer to sit and enjoy their coffee
Will encounter lots of competition in terms of
other coffee stores
Strong, bold taste is preferred by Italians
Starbucks in Italy will have to cater to tourists
mainly

Starbucks in Italy Video

https://youtu.be/h1OAZF_k4jg

Thank You!