Starbucks' Operations in Singapore: Oasis in Midst of Desert?

Case number : 9 00 2011 003
Case published in the International Journal of Case Studies in Management, Vol. 9, No. 2
Author :  Jhony Choon Yeong Ng
Date :  2011-06-15
Teaching notes included :  Yes
Abstract

Although Starbucks is faced with setbacks in its operations in many parts of the world, its operations in the Republic of Singapore seem to be on a different track. While stores have been closed in many countries, including the United States, Starbucks has opened many more new stores in Singapore. Is this a wise decision? How should Starbucks make use of its capabilities and resources in Singapore to exploit the opportunities available in the country and generate profit from them? Is it possible for Starbucks' operations in Singapore to eventually turn profitable enough to enhance its overall global operations? Based on information on Starbucks’ general capabilities and resources, together with other relevant information on Singapore's market, this case is aimed at training students in the skills needed to analyze operational and management issues related to global corporate/franchise expansion in the context of a Southeast Asian country.

Teaching objectives

Based on information on Starbucks’ general capabilities and resources, together with relevant information on the Singapore market, this case is aimed at training students in the skills needed to analyze operational and management issues related to global corporate/franchise expansion in the context of a Southeast Asian country.

Primary domain :  International business
Secondary domain :  Not available
Sectors :  Accommodation and Food Services
Type :  Traditional case 
Event location :  Singapore
Year of start of the event :  2009
Year the event ended :  2009
Business size :  160,000 employees