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Starbucks Corporation is an American company, based in Seattle, Washington, that has become a global coffee company. Starbucks is the largest coffee house company in the world. A 2013 review revealed that Starbucks had 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 171 in Thailand, and 10 in India. The company remains to be a force to reckon in the beverage sector based on its reputable international success and its influence on the global platform. This paper seeks to delve into globalization and competition in the global market, by analyzing the prospects of Friend Z’s, an organization that seeks to enter into global business and compete favorably with existing players in the coffee house business.
One of the greatest advantages to Friend Z’s going global is the access to wider markets. It must be noted that with globalization, the company could be in a better position to reach out to larger markets as opposed to localization in America. If Friend Z’s were to remain localized in America, then the reach to different markets will reduce. This will also imply that the company’s capability in terms of expansion is reduced, as the markets are concentrated within a given location (Pullman & Moore, 2000). Looking at the Wal-mart strategy, global expansion has widened their scope and made it easier for growth in that they have already covered a good size of the American markets.
Going global will help Friend Z’s in the spread of political risk to various regions and locations. It must be noted that with outlets all over the world, the risk of business failure due to negative market forces, economic performance, or political instability is reduced. Revenues generated by many other outlets in different countries will cover the poor start of Friend Z’s that may be experience in a particular country. This was quite evident with Starbucks and Wal-Mart Corporation during the peak of the 2008 global financial crisis. During this time, these companies had some outlets in most affected countries. Outlets in other locations that were performing helped cover losses and poor performance recorded in some countries such as Greece.
The greatest challenge to Friend Z’s will be pegged on increased political risk. Investing in America or in a single country will be much comfortable, because it could give the company an opportunity to study the markets external forces and develop necessary growth and sustainability strategies. When compared to going global, it could imply that Friend Z’s will be exposed to greater political risks (Pitta, Weisgal & Lynagh, 2006). Changes in political environment and upheavals in countries with Friend Z’s outlets may negatively influence the growth and establishment of the organization in that market.
For the management of Friend Z’s to go global, there must be a clear-cut procedure and considerations on which countries to start the investment. This calls for a critical analysis of several market environment factors, which should be considered when making a decision on what country to establish the business outlets. These factors include the political environment, the legal environment, and the social structure. All these factors will be analyzed differently and collectively in identifying a sustainable target country to set up the new coffee shops (Johnson, 2009).
The political environment could be an important consideration for the management team on which country to make the investment. The management of Friend Z’s should have to consider the stability of a country and its leadership. Whereas certain countries may offer good platform for growth in terms of economic potential, some may not be viable because of the political instabilities and upheavals that can lead to disturbance of the company’s operations. This can be analyzed in view of civil wars, exorbitant taxes, and restrictive multinational company regulations, which are political decision considerations. Analyzing of these factors provide the management team with a history of the country as an indicator of the political environment.
The political environment will also be linked to the legal environment. The political class and players are charged with responsibilities of creating laws, including those dealing with business regulation. For effectiveness during market research, the management of Friend Z’s must consider the prohibitive legislation's in place and the possibilities of ratification of laws that seem be against multinationals. This may include taxation and other labor related laws. Legislation on conducting business in various countries will be analyzed against the countries operational strategies. For instance, the management team should consider whether a country provides a favorable working environment for expatriates (Johnson, 2009). This could be important, particularly where expatriates have to provide the technical support to staff and other persons working with the company. The legal environment could also look at other issues such as bureaucracy and the ease of doing business in different countries as may be defined by the law and government policy.
The social structure of different countries will help in informing the decision by the management on what countries Friend Z’s will visit. The special structure of a country transcends the basic value of people and things they hold dear to their lives. In getting into new markets, Friend Z’s have to operate in an environment where people hold different perceptions and thoughts about different products and forms of interaction in the society. Friend Z’s management also have to consider other social issues closely associated with culture and communication means used by citizens of different countries. Whereas the company could have expatriates, it must involve locals to ensure the involvement of local communities and their empowerment. Locally, sourced staff will only work effectively where the communication style adopted is contingent to the social structure and characteristics of that society. This could involve making a determination on whether that society has taken up a centralized system of communication or it could be easy to institute vertical and horizontal communication structures at the organization. Social structure will also bring in considerations such as religion, family life, and time concepts.
By going global, Friend Z’s have to consider a number of global strategies that will oversee establishment of its coffee shop units throughout the world. Considerations on exporting, licensing, joint ventures, or direct investment need also to be done. Based on the provisions of these approaches to global business, various advantages and disadvantages could be drawn. This includes the mission and long-term objectives of Friend Z’s. The objective of Friend Z’s is to becoming a leading player in the Coffee and Restaurant industry, providing services to different people across the globe (Lymbersky, 2008). The intention of the organization is to provide hot and cold beverages that include whole-bean coffee, micro-ground instant coffee, full-leaf teas.
The main product of the company and the fact that the company has not started will limit the company to various strategies. In the first place, the company has not been established as a brand in the local and the international markets. With this in mind, licensing could be ruled out as one of the company’s strategies (Pullman & Moore, 2000). Licensing will be viewed as an option once the company has established itself and is recognized as a brand just as is the case with multinationals such as MacDonald’s and Starbucks.
The joint venture and direct investments present the two strategies that can be reasonably applied to Friend Z. The joint venture option calls for the company to engage another player and possibly strike a deal in carrying out joint operations. This may include Friend Z’s leasing the brand name from MacDonald’s or Starbucks as part of its internationalization strategy (Lymbersky, 2008). Whereas this strategy may work, it rules out the possibility of the company remaining with its brand name, Friend Z’s, as the company will be forced to take up the brand name of the already existing business partner. Direct investment will be the choice for Friend Z. Through taking up direct investment, the company advocates for better placement in the market and be able to create a brand name in different markets. Direct investment platforms will also allow the management of the company makes their own strategic decisions, without having to get instructions from other quarters, as is the case with joint ventures.
Friend Z’s will consider expansion and growth into the outside world through establishment of units in various markets. Britain is one of the business locations or countries the company seeks to target (Douglas & Neil, 2009). Great Britain will be a preferred business location because of the favorable environmental conditions the country poses for the growth and sustainability of Friend Z’s.
Britain provides a favorable business location for many multinational companies and is home to great players in the coffee and restaurant industry including MacDonald’s and Starbucks. The country is well positioned to provide a good market for the products of the company as its citizens are known to be ardent consumers of coffee, tea and other snacks, which aids in marketing of Friends and its branded products.
Perhaps to help in marketing of its products, the management of the company can take up a multi-dimensional approach to marketing. This has to be considered through inclusion the marketing and product orientations to marketing. Whereas the level of competition is high in the country, with numerous coffee shop brands and multinational, quality will remain to be the centre sage of Friend Z’s operations (Douglas & Neil, 2009). The company should seek to raise the bar of quality beyond that of its competitors to get some competitive advantage. Britain is also a vast country with large populations to mark the target market, which provides a pedestal for growth. The company will be in a good position to reach out and induce demand for its products.
The culture of Britons and residents of Britain is moderately rated. This means that the country has a balance in terms of extremes of cultural differences. Being at the center of transport between America, Europe, Asia and other regions, the country is cosmopolitan. This implies that cultural backlash is likely to remain at the minimal level. Starting the business in the global markets in Britain will facilitate expansion leading to various outlets that can be established in its vast locations (Weidenbaum, 2002). This will act as an incentive for expansion into other European regions.
Globalization and change are the main items making headlines in the field of business. Almost all investors and business owners can attest to the fact that these two factors are inevitable regardless of the nature or class of business or a company. As a result, the companies are forced to change their organization structure, leadership protocol and strategies. In order to meet the requirements for positive change most organizations are dropping their traditional practices and norms and adopting new ones that are compatible with global principles and requirements.
The example of BTSA Ltd demonstrates clearly the phases and problems that most Canadian companies are experiencing owing to globalization and change. BTSA Ltd is a visionary company which was recently acquired by Multi Tech Global. Being a small business that has close attachments to the local Canadian community, the company is facing challenges in adopting a new organizational culture and structure. The first adjustment was the adoption of a new chief executive officer introduced a new style of organizational reporting. As a result, employees had to put in more effort and energy in order to meet the new requirements owing to the new system of reporting.
The significant impact of the adoption of a global system in BTSA Ltd was on employee's turnover. In addition, some employees left the company as a result of the changes that were taking place in the company's organizational structure. The company was subject to a decrease in productivity initiatives and total quality management due to the loss of engineering staff. BTSA Ltd also experienced significant delays in implementation of ERP systems, reduction in process engineering efforts and considerable impact on its future production and leadership.
The example on BTSA Ltd highlights significant impacts of change and globalization on the aspects of organizational behavior. It clearly shows how transformation of the business from a local scope to a global one impacted on it leadership and production capabilities.
Douglas, V. W., & Neil, M. (2009). Market Orientation, Marketing Capabilities, and Firm Performance. Strategic Management Journal (30.8): 909-920.
Johnson, W. (2009). Environmental Factors of International Business. Retrieved 14 October, 2013
Lymbersky, C. (2008). Market Entry Strategies: Text, Cases and Readings in Market Entry Management. New York: Management Laboratory Press.
Pitta, D. A., Weisgal, M., & Lynagh, M. (2006). Integrating Exhibit Marketing into Integrated Marketing Communications. Journal of Consumer Marketing (23.3): 156-166.
Pullman, M. E., & Moore, W. L. (2000). Optimal Service Design: Integrating Marketing and Operations Perspectives. International Journal of Service Industry Management (10.2): 239-261.
Weidenbaum, M. (2002). The Business Response to the Global Marketplace. The Washington Quarterly (15.1200): 173-185.
Authenticity can be described as the degree to which one's true to own personality, character, spirit as well as external pressures. It is important to understand that authenticity involves the understanding of the conscious self in a person that is living in a material world and that which encounters external forces, and different pressures that exist from an outside form. A person that lives in the world has to have several character traits in order to survive. It is these character traits that often make the person to counter the external forces. In life, there is a need for certain narcissism, one should put his needs first sometimes in order for one to better understand life and effectively deal with it in an effective and efficient manner. There are times where one might compromise in order to experience what is usually described as absolute freedom, this experience is extremely necessary for the state of authenticity. Authenticity can be described as a reliant way of an individual finding authentic faith and becoming true to oneself. There is a need for one to develop the idea that one needs to find compromise and several predispositions in order for one to understand him and the state that he or she is in.
The historical origins of globalization have been the subject of ongoing debate. Globalization can be described as a historical process which began with the first movement of people from Africa into other parts of the globe. There were several people who travelled for short distances whereas there were those that travel led for extremely long distances. At this time there was transference of ideas, customs as well as new products into the new lands (O'Rourke, 1999). This concept is global as it involved the transference of ideas from one place of the world to the other. Local transference would have occurred if there was the transferring of ideas from one place to another same locality. It is at this time that there was the territorial expansion to all the five continents. Further, it is imperative to note that the development of agriculture was also crucial when it came to the furthering of globalization (Moore, 2009). This is because it converted the majority of the world’s population into a more settled lifestyle.
Agriculture can be described to be at the center of globalization, this is because it was an art that travelled at a quick pace and got to many parts of the world. Agriculture was able to bring trade on board, as most communities were able to trade the goods that they had harvested in agriculture. It is from this trade that peoples from different continents started what has come to be referred to as long distance trade. Spices, herbs, and other farm products were traded in an international market (Moore, 2009). Further, it can also be seen that there was transference of ideas on how to domesticate animals. The sudden domestication of certain animals at a go cannot be described as a miracle that occurred in different parts of the world. This is because anthropologists have showed that domestication in most parts of the world took place at relatively the same time. For this reason, it can be seen and argued that it is as a result of globalization that animals were domesticated. People from different places of the world were able to take ideas of domestication to other different places in the globe and therefore, change the lives of the local residents.
In terms of agency, globalization can be seen by the spread of religion can also be said to be as a result of globalization. Islam and Christianity were spread to different places by missionaries who traversed the world with the main of spreading their religion (Hopper, 2007). The spread of the religion changed societies to their core; they also changed their culture as the locals had to blend with the new religions. Therefore, the spread of religion can be said to have been as a result of globalization and eventually it made a very huge impact on the lives of normal locals in many different places of the world.
The world is increasingly getting globalized with the advent of information sharing techniques that are faster and which makes the world a global village. This has resulted into more ideas, religious faiths and even money being shared in greater numbers as compared to earlier centuries (Hopper, 2007). The advent of new technology can therefore, be argued as the pivotal point in the changing the speed of globalization and the way it occurs. Further, transportation has been quickened and consequently there is more sharing of ideas as people are more mobile than ever before.
Imagination plays an extremely important part in the mental lives of us as human beings, the first part of imagination is the use of mental images, and in particular the representational nature of the mind. The second part links mental imagery to imagination and lastly, there is the modal epistemology where imagination has often been thought to serve as an important philosophical function that is named as a guide to possibility. Reflection is an integral part in imagination and critical reflection is a process that analyses, questions and reconsiders the experiences that are within a context of issues that is broad. There are several activities which are play a central role in the process of critical refection in adult learners. There is analysis of assumptions. This is the critical reflection process first step that involves persons thinking in a manner that will challenge their beliefs, their values, their traditional and cultural practices as well as the social structures. The challenge will lead to an assessment of the impact that this things have on the person's daily happenings. Assumptions help people when it comes to seeing things as they are in reality and they are essential in describing relationships and their order. Fantasy is also an integral part of imagination, fantasy as way of relaxation is gaining prominence increasingly. It has been argued that sometimes it is fantasy that keeps us as human beings going on. There have been talks of wizards, trolls, dragons and elves; all these are fantasies that have been made up to spice up the normal living.
The habit of being critical effective is one that confers a deeper benefit which is more beneficial that the procedural utility. It not only grounds any actions of as a person learns but it also grounds the sense of teaching in a way that examines the reality of things. With creative reflection, it creates the ability to know why we have believe in what one believes as a person. A person who is critically reflective has a better positioning to communicate with his or her inner self and also communicate with other persons.
Conflict can be described as a normal part of life, and it can be described as a problem that can only be fixed through justice. Justice is the use of authority as granted by law or honor to support their decision on a fair ruling and awaiting reward. It involves upholding of the governing law. As far as equality and fairness is concerned, I would consider justice an inadequate standard. This is because there are so many cases, even with the set rules, where we see injustice finding way. The world we live in can be considered biased because, the unlucky ones continue being unlucky, while the lucky ones win their case most of the time. This is contributed mostly by the differences in social status, where we see the unequal get unequal treatment and the equal get equal treatment. The high standard people get more than their counterparts with low standard social lifestyle
Distributive justice and liberty involves the freedom to do anything at any time or place as long as it does not affect any other person, directly or indirectly, but rather its effects are positive and gives happiness to others other than harm. Equality is focused on governmental and judicial equality. This means that any set law should be equal to everyone, despite their standards, whether it punishes or protects, condemns or set free. Fraternity involves people uniting and coming together without grudge and selfish motives. In terms of liberty, people are tied up by laws that see them confined and unable to live freely. The government does not have a fair justice system because we see people are judged depending on their social status and standards and so forth. In terms of fraternity, there is no unity unless it is between family members or close friends.
Inequality and freedom go hand in hand in the sense that those who receive better treatment due to their social status tend to dictate how much freedom the lower status people can be allowed to have. For example, a senator in a row with a normal citizen will use all his power to discomfort the citizen, even if he is the one on the wrong. The citizen is therefore left without option other than to accept defeat. If the citizen tries to fight for his rights, the senator can result to having him limited to specific activities that can end up reducing the freedom that this citizen enjoyed before the row. Therefore, there is a need for distributive justice that will cut across all these barriers and ensure that a person gets what he or she deserves in relation to the conflict that had transpired.
Identity is an extremely important phenomenon in a person life, what does being the person that you are from one day to the next usually consists of? This can be described as the ultimate question for personal identity as it is also literally the question in regards to life and death. Popular theories state that persons are immaterial souls that are made up of pure egos. There are also those that argue that personal identity can be described as a matter of psychological continuity, and according to this view, identity involves a person having several character traits that are necessary and sufficient for him or her to exist. The idea can be argued to by typically cashed out in terms of different overlapping chains of direct psychologically evolves persons.
Culture is important in any settings and to any people that live in any part of the world. It can be described as the way of life and it often helps in curbing problems in regards to hierarchy, norms and ensuring social justice. Without culture there would have been no social justice and social inequality would ultimately rise to all time highs. Social inequality refers to the distribution of artificial and natural resources in a manner that is not fair and just. This occurs especially when the dividing entity endangers the rights of the minority people due to position or rank. Social inequality is borne from different political ideologies and advancements made by certain social groups. The social groups feel that they are party to more resources other people in the community. Selective sharing and distribution of resources alienates the citizens from acquiring their rightful share and embedding favors unto other. Social inequality ought not to be confused with people’s hard work. It involves unjust and inconsiderable sharing of resources, especially public amenities.
Culture also enforces ethics and it argues an opportunity for people to follow some set rules that set boundaries in terms of culture. Time discounting is an important element as it ensures that each and every person basically believes that a desired result that exists in the future is perceived as being of less importance. This is especially true in many cultures where they view the present as being extremely important as compared to the future.
Tales of trash explains the life of a neighborhood garbage collector who collects garbage and leads to one of the most efficient recycle management system in the world. He argues that the beauty of trash does not cost anything. One just picks up the trash and he or she is paid for it. The collector, referred to as Sayyid gives a journey of culture, personal identity, conflict and the nature of globalization. He especially elucidates on the issue of social structure being the communal or national organization of the Egyptian people. The social structure defines the mainstream cultural norm of the individuals and this can also be seen in the trash that they often produce. It is the avenue for determination of way of life. This includes the attribution of value and beliefs to particular artificial elements. The social structure defines the flow of natural resources, thereby creating such ideologies like class stratification.
There were rich and poor neighborhoods where Sayyid collected garbage and this can be seen to be a result of social inequality that led to social stratification. Social stratification is the emergence of different classes of people in the society based on material gains and possessions. During the Egyptian revolution as explained by Sayyid, the revolution came as a result of evolution; class stratification became which became unanimous to accumulation of wealth and social ranking. This implied that the rich people would assume a superior social classification than the normal people. Social stratification rank people in accordance to the material possessions held with regard by the community. For instance, in the contemporary society, money is the legal tender that defines classy ad wealthy lifestyle. As such, social stratification will occur with accumulation of money, thereby leading to the creation of the poor, middle class and rich in the society.
Garbage defines people by who they are, their social class, what they eat and what is going on their lives. Sayyid is able to explore these issues in great detail and it can be argued that indeed the garbage that one disposes can be able to tell a lot of about the identity of the person. It ensures that the community judges people in the right manner. The assumption is that people’s opinion defines the social class of the individual. In fear of losing mileage among the people, humans coin ways of ensuring that they gain their identity among st the society in a bid to raise their social rank. The aim of the garbage story is to explain the innate nature of human's beings to desire a prosperous and adorable life. While material gains can work to the achievement of the human desires, perception from communal members affects the social ranking of people. The fear of being invisible and unrecognizable among the people prompts people to adapt to different ways so that they can gain social power and identity.
In the game of life, winning is second nature to every being. However, some societal aspects place winning at the bottom of most yearned lifestyles. This is especially when winning has to come at different costs. In order for an individual to increase their social rank, they consider addition of natural resources or otherwise class stratification with accumulation of wealth. This is the epicenter of the tales of trash. The human mind is also made of the subconscious entity, which scales individual experiences based on moral virtues and vices. This brings out the issue of social ethics in the journey towards social stratification with accumulation of wealth. Therefore, individuals pose to consider and contemplate on the essence of social stratification, especially that arising from social inequality.
The rich people in the society received had more trash and more stories in their trash. There were sex pills, foreign objects from other countries, medicinal pills as well as other equipment that talked about their character. They had sufficient machinery in their homes according to Seyyid, both in terms of money and material superiority, to avoid questioning or in terms of accountability. Therefore, the rich people in the society would easily tell their stories in their trash. The rich people were in apposition to continue widening the social inequality gap by their continued efforts to amass ore wealth at the expense of innocent citizens. On the contrast, the poor people had no mechanisms to give out trash and their trash did not tell a lot about their everyday doings and their identity. Their social position or material accumulation would not allow them to get out enough trash. They subjected to the mercies of the rich people. The game was rigged on these conditions. The middle class individual had access to basic needs, but few of them cared about amassing wealth through social inequality.
The Egyptian people, according to the garbage collector had different ways of behaving in relation to their character, culture and identity. They acted in a manner that justified the rational economic perspective of human beings. Therefore, the garbage collector placed high interest on things that people threw out as trash as it explained a lot about the people. In terms of acquiring wealth, the acquisition of land was difficult for the poor, and this situation was worsened when trying to sell the land. For instance, the interest added on the value of the items meant that only people in the high social class would afford the goods. The system was such it benefitted the rich and undermined the poor people. In the real world, this is synonymous to the capitalist society where individual gain is the motivational force for business. Profit maximization controls setting of profits and acquisition of new property.
Sayyid's conversation often revolve around several fundamental forces that exist in the world such as money, garbage, and women. It is imperative to understand that all these factors are often connected. There is also the exploration of women and their rights based on the garbage that exist in their garbage bins. Women have always assumed second position in the Egyptian society. This is from the time of the independence of the Egyptian people and the adoption of voting rights. It is only the men that were given voting privileges with the focal assumption being that women could not be rational (Rosemaria 55). However, the fight for gender equality and elimination of male chauvinism began to emanate. Women found themselves suffering as casualties of societal expectations, which deemed them as second-class mortals. Their garbage according to Sayyid has evolved and it almost the same as that of men.
The first sentiments leading to the equality of women being a reality was in the fight for the rights of children. Women spearheaded the consideration of children in the society as the less capable beings and worthy of care. While such efforts did not receive criticism, it appeared as a milestone in the fight for equality. Therefore, women gathered more support, through social movements and welfare associations, so that they could be recognized by the Egyptian society.
The society had expectations from the females, most of which were filled with male chauvinism, and household chores. This was evident through the mainstream cultural norms. The lucrative tasks with manly responsibilities were not given to women. In fact, women were reduced to the role of child bearing and taking care of the family. As such, their opinion in the social, economic and political environments was disregarded as immature and misplaced due to their social position. In fact, Sayyid argues that most of the times women were the ones that were concerned with getting out the garbage and they were the ones that he said argued had a way with household chores.
In the economic environment, women were not allowed to vie for influential company positions. There were traditional jobs reserved for women and men. For instance, secretarial jobs and tailoring were assumed as tasks for women. Therefore, hiring of workers was based on gender selection and discrimination. Women assumed the less influential positions in the company. They were at the mercies of the policies and objectives stipulated by their male counter parts. For example, Seyyid talks about a woman that is rich but stingy, well educated but has never been married. With her stature in the Egyptian society, it goes to show that indeed persona identity of women is something that has been recognized in the Egyptian society.
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O'Rourke, K. H., & Williamson, J. G. (1999). Globalization and history: The evolution of a nineteenth-century Atlantic economy. Cambridge, Mass: MIT Press.
Hopper, P. (2007). Understanding cultural globalization. Cambridge, UK: Polity.
Brookfield, S. D. (1995). What it means to be a critically reflective teacher. In Brookfield, S. D. Becoming a Critically Reflective Teacher (pp. 1–27). San Francisco, CA: Jossey-Bass.
Health Disparities Conference, Wallace, B. C., & Columbia University. (2008). Toward equity in health: A new global approach to health disparities. New York: Springer.
Goodman, Carl F. The Rule of Law in Japan: A Comparative Analysis. Hague, Netherlands: Kluwer Law International, 2003. Print.
Keetley, Dawn. A Documentary History of American Feminism: 1900 To 1960. Philadelphia: Rowman & Littlefield, 2005. Print.
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