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Copy of Consumer Behavior

Starbuck Case

Manon Lp

on 25 October 2012

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Transcript of Copy of Consumer Behavior

Starbucks Strategy Cultural Aspect How to avoid this ? Relax Impact of culture The Negotiation What is the influence of culture ? Cup Expensive Coffee Starbucks Case Formal Vs. Informal Time Orientation Communication Ways Negociation Process The "Great Divide" Influence of culture in our business life Influence of culture in our business life Formal versus informal cultures Influence of culture in our business life Time orientation Communication ways Influence of culture in our business life Influence of culture in our business life Negotiation process differences The Great Divide Pros & Cons Reactions Cultural Aspect Financial Aspect Political Aspect The Internet Solutions Think about the cultural differences when taking the decision Reassure chinese people about the company's ethics : the model comes from the US, but the products and the employees come from China Transparency and Respect with Online Surveys.

Ex : Taco Bell PR Crisis = PR Opportunity Nationalism made people too emotional The essence of Chinese tradition has always been about harmony and accommodating all cultures The mob mentality of modern digital media Alternative 1 : Online Survey Alternative 2 : Online Respond Already done before in other cities.

« Starbucks is aware about the cultural differences » and wants to adapt and fit with it.

Emotionnal experience. Famous among the young generation.
Fantasma of « the western culture » The Forbidden City is a real symbol of the Chinese culture : destroys this sign and the image « Cultural choc » eastern vs western culture.

« Visual pollution » which doesn’t fit with the Forbidden City Museum's officials invited Starbucks to come. Receiving an invitation and deny it could be seen as an insult from country’officials Starbucks is seen as the « Western invader » Capitalism vs Communism Chinese’s market is huge Lack of funds, Starbucks can help. Problem of Starbucks’ image: people who do not agree will boycott the shops. Context The controversy What happened ? Cup Brand
and cultural places ? Sources http://big5.china.com.cn/city/txt/2007-01/17/content_7668240.htm http://www.chinareviewnews.com/doc/1004/1/1/2/100411231.html?coluid=10&kindid=262&docid=100411231&mdate=0911123624 http://blog.sina.com.tw/lejon/article.php?pbgid=3939&entryid=317056 Chinese Blogs http://www.altosmarketing.com/component/wordpress/what-we-can-learn-from-taco-bell-about-a-public-relations-crisis/ http://www.tata.com/article.aspx?artid=9Kp5Pmawl+g%3D Tasco Case http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/ Starbucks in China - Hall, Edward and Mildred Reed. (1990), Understanding Cultural Differences, Intercultural Press
- Trompenaars, F. and Hampden-Turner, C. (2002)“ Riding the waves of culture” – understanding cultural diversity in business
- Trompenaars, F. and Hampden-Turner, “Riding The Waves of Culture” (1997) — identifying seven value orientations.
- Hofstede, G.J., Pedersen, P.B. and Hostede, G. (2002) Exploring culture – exercises, stories and synthetic cultures
- www.geert.hofstede.com - the cultural dimension model Culture United States Starbucks in China Afford traveling (around 5 million chinese tourists in Forbidden City and 1 million foreigners every year) Starbucks Expanding fast : number of stores + 45% (2003 - 2006) A population of about 1.344 billion. Fast economic development
Quality of the coffee,
Respect of the partners,
Connection with the customers,
Stores made to have a good and comfortable time, Implication in the life of the neighborhood

Employee-friendly management :
- Workplace that values and respects people from different backgrounds
- Enables its employees to do their best. « to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time ». Starbucks in the Forbidden City
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