Thursday, September 6, 2012

Starbucks, Coffee around the world -- Craig M. Lifton



Me and Coffee
Coffee has been the drink of choice around the world since the 9th century according to Robert Linder (2010) of the Oregon Culinary Institute.  It’s grown and cultivated in more than 70 countries around the world.  It has affected countries politics and religion for centuries around the world, from Turkey to Germany to America.  According to Linder, worldwide more than 400 billion cups of coffee are drank each and every year.  The first coffee house opened in Turkey in 1554 according to Linder.  Just less then 500 years later, one company has taken the simple business formula of a corner coffee shop and created a world juggernaut of a company.  Starbucks has moved from its humble beginnings, to in 2006 it reported to have 12,000 stores in total, which outside of the U.S., 36 countries had 4,000 of the locations.  Starbucks globalization has not been without it growing pains of bringing American coffee consumption in a culture war around the world.
            During the ongoing conflict between Lebanon and Israel, Starbucks was targeted for an Anti-War protests by Arabs in the region, according to Daniel Workman (2006) of the Suite101.com website.  Complaints were made that the coffee giant was contributing funds to both the Israeli government and the Israeli Defense Force or IDF.  Even though Starbucks denied these rumors they never denied that they had been contributing money to Israeli charities.  With growing concern of possible terrorist attacks, unlike others carried out in Israel, Starbucks elected to shutter each and every one of its stores in Israel.  This was one of Starbucks major loses in the American Coffee war overseas.  The violation of what the Arabs in the region perceived of their values had server loses.  Even though Starbucks was not aiding Lebanon’s enemy, the Israel government or military forces, they were able to influence others into believing so.  This would be a informal norm, one that the Lebanon’s would assume that Starbucks should have known before investing in Israel during the conflict.  The Arabs for the violation of their unwritten social norm then sanctioned Starbucks.  Starbucks possibly could have consulted Middle Eastern experts before their venture into the area.
 The next battlefield in the Starbucks culture war would lie in France.  Workman describes that in France, a country that has a rich and traditional café culture of their own, upset the older French with the American Coffee culture Starbucks brought to their doorsteps.  Caroline Wyatt (2004) of the BBC reports that Starbucks invasion of the modern birthplace of the café society was one which Starbucks marketing won over the younger French coffee consumers.   Using exotic curiosities like caramel coffee.  The other concern in France according to Wyatt is the fear that Starbucks will force out the family owned cafes even in France.  The dominant ideology of the American Coffee culture is a true and viable threat to the rich coffee heritage that French possesses.   France is not a country with coffee drinkers belonging to a subculture but one of which coffee and tea drinking is completely interwoven into their culture.  Starbucks possibly has no concern for this loss of the French self.  They have shown that in American by beating out and running small coffee business out customers.  The French Café is possibly a French mores value, one of which that could be deemed very important to the French people.  The French coffee drinking could even be considered a folkway value one of which without the French people would be without what they consider the proper way to prepare, present and to drink coffee.
China will possibly be Starbucks biggest challenge to date. China, with a population of more than 1 billion people is the largest single country population Starbucks will move into. Workmen describes that China is historically a country of tea drinkers.  Starbucks key to success will be China’s growing middle class.  Venkatraman of Sawyer Business School at Suffolk University and Nelson (2008) of the School of Management at Simmons College, describe the middle class as the “New China”.  They say that the “New China” is made up of the young and upwardly mobile Chinese consumers.   Venkatraman and Nelson state that Starbucks through their business plan has successfully branded a high-end brand that makes a emotional connection with the “New China”.  This was fine example of how Starbucks has learned better strategies in the coffee culture war.  They have shown fine study into the Chinese Norms and changing norms. China is changing, along with their change into capitalism, and interest into other cultures.
Starbucks has made some business bloopers in their drive for international coffee domination.  They have shown failure to think out at first of possible results into investments.  At the same time they have not given up and have not turned away from challenges.  Like Workman relates the giant company to a giant sports star, Ty Cobb.  Ty Cobb may have struck out more times at bat but never gave up and earned one of the highest batting averages of .366 careers.  Starbucks continues to introduce a full range of products in 25 countries worldwide and 11 other countries with retail beverage sales.  Starbucks will possibly influence other countries now that they have pledge to become more eco-friendly.  Starbucks changing and developing social awareness should be a lead other companies should follow when they begin to venture internationally. 
           



References

Linder, R. (2010, November 15, 2010) Coffee-Panacea or Poison? Retrieved December 5, 2010, from oregonculinaryinstitute.blogspot.com, http://www.oregonculinaryinstitute.blogspot.com/

Venkatraman, M., Nelson, T.  (2008) From Servicescape to Consumptionscape: A Photo-Elicitation Study of Starbucks in the New ChinaRetrieved December 5, 2010, from https://simmons.edu/som/docs/ATT00969.pdf

Workman, D.  (August 29, 2006) Starbucks Global Sales Retrieved December 5, 2010, from suite101.com, http://www.suite101.com/content/starbucks-global-sales-a5823

Wyatt, C.  (January 15, 2006) Starbucks invades Parisian café culture Retrieved December 5, 2010, from BBC News, http://news.bbc.co.uk/2/hi/europe/3401637.stm


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