Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lessons can be drawn from this?
Read Closing Case Starbucks Foreign Direct Investment (uploaded). Answer the following in a three to four page response.
- Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lessons can be drawn from this?
- What drove Starbucks to shift from a joint venture strategy in China to run the operation through a wholly owned subsidiary? What are the benefits here? What are the potential risks and costs? Do you think this was the correct decision?
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