International Business Success: A Case Study of Starbucks

Introduction

The article analyzed is “Starbucks CEO Kevin Johnson on Work, Joy and Yes, Coffee” was written by Adi Ignatius. This article was published in the Harvard Business Review, posted September 23, 2019 and was updated September 26, 2019.

Area of International Management 

The area of international management this analysis will cover is the values of culture dimensions in Hofstede’s model and how Americans bring their business into other countries. The role of culture is extremely important in any successful international business. Hofstede’s model in particular shows how the vast majority of companies differ from one another. In this article, the nature of culture is referenced very often. Especially with the cross cultures of American society. In this article, there are multiple instances that are referenced in regard to power distance, uncertainty avoidance, individualism, masculinity, and time orientation indefinitely.

Application of the Article to the Topic

Hofstede characterizes culture as “the collective programming of mind that distinguishes the members of one human group from another.” In the present globalized world, we are associated with one another than any time in recent memory, regardless of whether it be through web-based social networking, telephones, or globalized organizations. Accordingly, in this globalized world, it has likewise happened to crucial significance for pioneers to know the complexities among societies, to keep away from future and current business bumbles. Hofstede’s cultural dimension are divided up into 5 primary sections, that are very useful to know before doing business with another country.

Power Distance - As indicated by Hofstede 'Imbalance exists in each culture; anyway, the degree to which less incredible individuals from the general public consent to the disparity contrasts from one culture to the next. Power separation is identified with the various answers for the essential issue of human disparity'

Individualism vs. Collectivism in the Article

Individualism vs. collectivism is characterized as the ability of an individual to just deal with himself or his family whereas cooperation depicts a gathering of individuals who take care of every single individual from that gathering. Masculinity is one of the most overwhelming variables of a culture. Nations where men are viewed as increasingly solid and extreme and ladies are viewed as progressively sensitive and delicate pursue more of a masculine culture, whereas nations where people are viewed as equivalent as far as quality and delicacy pursue more of a femininity about their culture.

Uncertainty avoidance is the level to which an individual can acknowledge abrupt changes and circumstances. Organizations which tend to concede unpredicted conditions and aversion vulnerability have high vulnerability evasion score culture though nations which accept ridiculously and are set up for any change anytime of time have low vulnerability shirking score culture.

Time orientation was not discovered with the rest of the dimensions. Hofstede only began to understand this when he began to work with international managers like in China. As per Hofstede, “long-term orientation means focusing to the future whereas short term orientation is focusing on the present and past. In long term-oriented societies, pragmatism, perseverance is valued more; in short term-oriented societies, respect for tradition and return favors is valued more”.

Review and Analysis of the Article

The main purpose of this article is essentially to get an understanding of how Starbucks CEO Kevin Johnson stands out as a business leader, by using special social skills he learned whilst being a CEO at a different and why Starbucks is so successful all around the world. After he talks about basic management skills and talks about how it is truly important to be authentic. Authenticity is one of the major components that is international, and very important in business. This relates to understanding individualism vs. collectivism in business. As an individual, he is very authentic, and this will translate to his employees and overall his international business.

Then, he starts to unwind about how Starbucks is opening a store in China and average every 15 hours. This part is a major key in international management as a whole. He says “the way we win in China is the same way we went in every market, including the US. We create a customer experience that is grounded around human connections, over coffee.” The statement says it all. Starbucks is known for being very socially responsible along with having a great sense of community. This is really important in a lot of communities, and very important to think of when diving into such different realm of the world with already established major competitors, such as China and he goes on to talk about India as well which similarly is just as important in their culture.

The interviewer goes on and asks a question on why they are not currently frequently expanding in India after successful launch in 11 cities. I find this part very interesting. Johnson goes to explain that they entered India in a joint venture with a naturalized Indian company. They are a partner based in India who are helping them contract and continue to expand and grow. Johnson then talks about how if Starbucks includes some aspects of the way of their life in their country to brand itself, it will be easier to bring the Starbucks values to that specific location and have them easily mesh. For example, he says “and so, we play the long game. 20 years from now, we will look back and we’ll see India’s another one of those significant markets for Starbucks.” This goes to show that another dimension is referenced in this article. This dimension would be in regard to time orientation. Starbucks is really focused on their brand in the long term, and that will really resonate with a lot of different countries outside of the United States. In the US, we tend to have a more short term to mentality, due to our life of being given instant gratification. It’s good that they can adjust between countries with the same brand, in which it stays uniform but can be successful for all cultures. That in turn increases customer connection and frequency and desire to spend at Starbucks.

Conclusion

Starbucks seems to be thriving and continuing to expand and grow globally. They seem to have a great strategy locked in place, with a lot of focus on Corporate Social responsibility, and have a general understanding of each country they delve into. They have a great CEO, who has brought the morale of the company to something great, and that will be passed on from generations to generations, regardless of nationality. All different types of citizens around the world knows the Starbucks sign,