Case study essay
The best and idle strategy would be a joint venture. To justify it, Starbucks has to rely on local culture / connection to get things moving right from the beginning. The main reason is to negotiate local regulations and issue relation to culture, demographics, and psychographic and importantly behavioural pattern. It is better to find partners who can guide through the process of starting up a business in a foreign location. A multi level restaurant experience (or retailing) firm can very well use the opportunity of joining with Starbucks. Should have similar values, is corporate citizen, and have long business experience. Good business acumen with finding right locations and real estates for picking prime locations in India, (strategically important). And importantly finding the human resource willing and committed to work for Starbucks and its projects...
Bear Creek ended the year with a loss of almost $25,000, while they had projected to earn a net income of around $50,000. The noticeable fact about the pro-forma projections is that, the income is projected aggressively, while expenses were projected conservatively. The norm on business plans is to project the income conservatively and expenses aggressively. Most of the actual expenses were equal or over the projected amount. Especially with a range not fully operational this indicates that the partners heavily underestimated the cost of their expenses. Another noticeable aspect is the underestimation of cost of sales for merchandise...
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