Question

•Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified. •Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred? •Based on your review, explain what the biggest challenges could be to this institution operating globally.

Answer 1

Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.

Starbucks have created a movement to give away 100 million healthy coffee trees to farmers by 2025 because they have a commitment to provide support to farmers around the world. This commitment by Starbucks includes farmer financing, open source agronomy research, and access to information. These efforts started in 2015 to replace coffee trees that are unproductive due to disease and age. This is an example of a company that is making ethical decisions to ensure customers get the best quality coffee instead of focusing completely on profit at the expense of their customer’s health. Starbucks started an initiative to have 10 million rust free coffee trees available each year for coffee farmers in need. Starbucks have taken their corporate social responsibility globally by making a global effort to support famers coffee plantations.

•           Describe how this institution facilitates international trade. Is there e-commerce? Are actual goods transferred?

Starbucks Coffee operates globally in 75 different countries. Their coffee products can be purchased at their 12,711 company-operated stores that are leased. These stores are located in high-traffic, high visibility areas. Starbucks coffee sells its products through leading global supermarkets such as Walmart and Tesco. What makes Starbucks product place effective? It is placed in high traffic areas. Place or positioning is about painting a beautiful picture of how you want customers to think of you (Kirkland). Starbucks has painted a picture of being a high-quality coffee that is in high demand because their locations are in high traffic areas with a long line out the door. Yes there is e-commerce because people can use the mobile app to find the nearest location, order coffee and pay for it on their cell phone. That reduces the long line and waits that have been occurring because of the popularity OF Starbucks coffee. The process is based on the way the service is delivered. Starbucks process is effective because it reduces the time it takes for a customer to receive their coffee. Another reason their process is effective because it makes the client's experience more convenient and user-friendly by introducing the mobile app. Starbucks also make sure their service is delivered with quality by training their staff with providing a pleasant experience to customers. How are actual goods transferred? Starbucks focus on quality service, and quality coffee. Starbucks coffee service process consists of a three-person system one takes the order, one makes the coffee, and another one takes the payment. The process varies from one location to the next because of the size of the site. Starbucks has used technology innovation to make the process of ordering coffee and waiting on line smoother.

•           Based on your review, explain what the biggest challenges could be to this institution operating globally.

The challenges an organization face is interacting and integrating with people, governments, and people from different countries. This presents challenges because companies must understand the laws and culture of another country to operate a company successfully in another country. What is legal in one country may be legal in another country so a company must be educated thoroughly on the laws of doing business in another country. Another challenge that is faced with a company doing business globally is the changes in the economic conditions of a foreign country because it has a negative effect on the profits of a company doing business there. Globalization brings challenges because companies must encounter the risks of outsourcing globally which involves the geopolitical environment, legal environment, cultural environment, and the IT infrastructure. If a company is not careful about their IT infrastructure overseas customers personal information can jeopardized by hackers.