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RequirementsThe case should address all the questions provided plus any additional issues the group members feel are pertinent to the case and include a comprehensive update on the companys situation since the time of the case The case should be written up and presented in case format scenario problem to be solved or decision to be made alternatives with the pros and cons of each and finally the recommendation with the accompanying rationale Foreign Direct Investment Starbucks Case Background General Thirty years ago Starbucks was a single store in Seattles Pike Place Market selling premium roasted coffee Today it is a global roaster and retailer of coffee with over 7000 stores in US and outside US Starbucks Co set out on its current course in the 1980s when the companys director of marketing came back from a trip to Italy enchanted with the Italian coffeehouse experience Schultz persuaded the companys owner to experiment with the coffeehouse format-and the Starbucks experience was born The basic strategy was to sell the companys own premium roasted coffee along with freshly brewed espresso-style coffee beverages a variety of pastries coffee accessories teas and other products in a tastefully designed coffeehouse setting The company also stressed providing superior customer service Reasoning that motivated employees provide the best customer service Starbucks executives devoted a lot of attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits The formula met with spectacular success in the United States where Starbucks went from obscurity to one of the best known brands in the country in a decade Hill 2003 The Companys objective is to establish Starbucks as the most recognized and respected brand in the world Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh rich-brewed Italian style espresso beverages a variety of pastries and confections and coffee-related accessories and equipment -- primarily through
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