Managing in Troubled Times Case Study

Case Title:

Starbucks In France: Teething Problems

Abstract:
In 2005, Starbucks was the largest specialty coffee shop chain in the world. In 35 years of its operation, Starbucks emerged as the world’s leading retailer, roaster, and brand of specialty coffee with coffeehouses in North America, Middle East, Europe, Latin America and the Pacific Rim. The company had outlets in more than 10,000 locations around the world by the end of 2005.

The coffee multinational initially operated in various locations of North America, starting its business in the US in 1971. In 1996, Starbucks started its international ventures as the US market reached saturation by that time. It entered the Asian market first. After receiving encouraging responses in Asia, Starbucks entered Europe in 1998. In 2004, the coffee chain reached Paris in France. France, being the birthplace of café society, already had several well-established and reputed coffee chains. Moreover, the café culture of France was much different from the culture Starbucks was known for. Hence analysts questioned whether Starbucks was aware of the risk it was taking by entering into France and challenging the origin of café society.

Pedagogical Objectives:

• To highlight the need for adapting to the culture of a country to flourish in business
• To understand the coffee culture in France.

Keywords : Starbucks; French Coffee culture; Howard; Schultz; Gourment Coffee; Expresso bar; Cappuccino; Coffee Beverage; Seattle; French Coffee Market; Starbucks Experience; Italain Caffee; Managing in Troubled Times Case Study; Arabica Bean; Hear Music; No Smoking Policy