International Business Strategy Master Case Study

International Business Strategy Master - Case Study Example How should Starbucks manage the paradox of profitability and responsibility Andrews (1997: p. 52) defines corporate strategy as "the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organisation it is or intends to be and the nature of the economic and non-economic contribution it intends to make to its shareholders, employees, customers, and communities". Corporate strategy in effect maps out the businesses in which an organisation intends to compete in a way that focuses resources to convert distinctive capabilities into competitive advantage. (Andrews, 1997). Economists are not in agreement as to a common definition of multinational or transnational enterprises (MNE/TNC). Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc. (Root 1994, Hill 2007). According to Ghoshal. et al (2002), A multinational Entreprise (or transnational corporation) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. Most multinationals have budgets that exceed those of many countries (Ghoshal et al. 2002). This paper addresses some of the pertinent issues that affected Starbucks in 2006. The paper further discusses the advantages and disadvantages of the different models of entry used often adopted by Multinationals. The last section of the paper looks at Stakeholder mapping of Starbucks and how each of its Stakeholders affected its strategies 2.0Identify and assess the strategic challenges confronting Starbucks Corporation in 2006. Use your findings to critically evaluate the firm's decision not to compromise on its "basic principles" (Case Page 303) as its expands internationally. Today's business environment is increasingly becoming more turbulent, chaotic and challenging than ever before and to survive, it is vital that a firm understands the strategies underpinning the success of rival firms and try to emulate, or do something better than the rivals. This study is initiated to investigate the core features underpinning H&M success when compared to it competitors. Within the context of today's global competition, businesses and firms no-longer compete as individual companies but try to corporate with other businesses in their activities (Wu & Chien 2007:2). These researchers went further to argue that, this strategy has become quite common in many businesses including the retail clothing chain stores. The conventional vertical integrated company based business model is gradually being replaced by collaborative relationship between many fragmented, but complementary and specialized value stars and constellation (Wu & Chien:1). The problems and challenges that Starbucks faced in 2006 can be explain inline Porters five forces. Porter (1985:4) contends that the Five Forces define the rules of competition in any industry and at the same time marks the bases for understanding a company's success. Porter (1985) went further and argues that, competitive