The first Starbucks opened in Seattle in 1971 as a purveyor of coffee beans and brewing equipment. It was only in 1987, after the company was sold to Howard Schultz, that it began selling espresso drinks. The firm’s global reach is impressive. It operates over 16,000 stores in 49 countries and works with raw bean suppliers all over the world. Recently, though, Starbucks’ rapid expansion has come to a screeching halt, with the company closing nearly 1000 stores and eliminating nearly 8000 jobs. As a part of its recovery strategy, Starbucks is experimenting with coffee shops that cater to local interests and needs. In a bold move, it opened an outlet in Seattle, the Fifteenth Avenue Coffee and Tea, that had no trace of the corporate logo. Two more similar outlets are planned for in Tokyo and Paris.

Using the integration-responsiveness framework detailed in the chapter, how could students describe this strategy?

How effective will the strategy be?

Do students think the general public will have negative reactions toward this “local” branding of a global product?

What changes would students suggest Starbucks make to their strategy?