With the introduction, literature review ( parts 1 to 5- include only parts that are relevant to your research topic) and conclusion ( Summary of cultural guidelines for how Starbucks can be successful in Italy).
In your literature review and recommendations, you can discuss how core values of Starbucks include individualized experience, quality coffee product, and community building- Starbucks coffee shops as “ third spaces” where the community can gather and spend time together can be connected to Italian coffee culture.
For instance, how can Starbucks connect or might find it difficult to connect with Italian Values (e.x family values, neighborhood values, relationships, familiarity, style of coffee drinks, size of drinks, novelty etc.) or how can Starbucks attract more International Tourists into their coffee shops (ex. location selection, price, familiarity) . Here you can add demographic statistics on how many Tourists visit places such as Milan and other places in Italy.
Italian and American Coffee Culture; The Integration of Starbucks
How do customers perceive Starbucks in the U.S. versus in Italy?
Starbucks is seen as more of the go-to in the U.S. because of its wide reach and the fact that people know and trust the brand. In Italy, trust is based on the generations of coffee culture that has existed and is seen through the prevalence of cafes that sell coffee like espresso and cappuccinos day in and day out. There is a certain token value in the private cafe, such as the trust that goes into the cafe that will meet the experience of the customer or the fact that many of these cafes are family owned and customers can talk with the owner and the regulars that visit the shop.
What motivates people to go to Starbucks in the U.S. versus in Italy?
There are only about a dozen Starbucks in Italy which is similar to the number of Starbucks in a few miles radius of a metropolitan area in the U.S. All of these Starbucks are in the North of the country and there are no stores open in the major cities of Rome and Florence.
How does Starbucks brand itself in the U.S. versus in Italy?
In the U.S., Starbucks and other chains are what people associate coffee with. In Italy, there may be brands like Lavazza that is a large producer, but there is not one coffee shop that is prevalent throughout the country like Starbucks is in the U.S… Thus, there is a disconnect between the connection of coffee in these cultures. There is an apparent connection to the corporation in the U.S. while there is an apparent connection to the good (coffee), in Italy.
Recommendations that would help Starbucks to be successful in Italy?
Starbucks will need to act less like a corporation that may be seen as an intruder in Italy, and incorporate more of the values that Italians want which is the individuality and the homely feel that comes with their neighborhood cafe. Starbucks needs to be less of “the coffee place” and revolve more around the ideas of another place to get good quality coffee. Starbucks may not be welcomed in Italy, yet there are plans for expansion in the future. The real question is if the people that are going to these Starbucks are Italians or travelers who find comfort in finding their Starbucks while abroad.
Since Starbucks was created in 1972, it has transformed from just one store in Seattle to a 30,000 cafe international coffee powerhouse, with more than 14,000 locations in the US alone. A Starbucks location can be seen on almost every corner of every major American and European city across the globe, except for in Italy. The first Starbucks in Italy opened in Milan on September 7, 2018, and today there are 12 locations across Italy. Starbucks in the US has become a tradition for many people and is seen as a trusted coffee shop that will never disappoint. It is the company that people will associate coffee with in the United States, while in Italy, there are multiple coffee shops far more popular than Starbucks such as Lavazza with better quality and more traditional coffee that Italians prefer. However, a new generation of Italians who are connected to the online world and popular corporate culture have known about Starbucks outside of Italy for some time. They see Starbucks in movies, on TV, and mentioned in magazines and they want to try it themselves. This is the reason why one year since the first Starbucks was opened in Italy, eleven more have opened, and the franchise is expanding across the country. Older, less modern Italians will still prefer the more traditional coffee shops that have been around them for years and perhaps it is tourists, not necessarily Italians, that are going to this Starbucks. Therefore, Starbucks will not have the reach in Italy that it has in the US, as Starbucks is viewed as what people associate coffee with, while in Italy it is not.
Look at tourism economy
It is apparent that the service sector is dominant in the Italian economy yet tourism has made up 10% of the country’s total GDP and will rise to about 15% in the next 5-10 years. This is important in noting that Starbucks ‘ location is clustered around a major city; Milan. There is one location outside of the large metropolitan city, but it is located in the airport a few miles outside the city.
Map 1: Starbucks locations in Italy
Use of location and if they are competitors
Scale of economy
Look at mannerisms
· Core values of Starbucks include individualized experience
According to Starbucks, the core values that represent their company are as follows; “Creating a culture of warmth and belonging, where everyone is welcome, acting with courage, challenging the status quo and finding new ways to grow our company and each other, being present, connecting with transparency, dignity, and respect, delivering our very best in all we do, holding ourselves accountable for results, we are performance-driven, through the lens of humanity.” It is important to tie these values to the individual experience that the customer may take part in. This helps to determine why this type of brand loyalty to the company exists and how they are able to enter so many different markers across the world. The concept that everyone is welcome helps to engage with this idea of cultural competence. Auditing to table 1, a globally oriented corporation helps to focus on its ability to operate in many different cultures and to work interdependently to support all of its different branches. This is evident in Starbucks’ mission statement in how their international cultural competency allows for their success in so many different regions of the world. To address “worldwide objectives” there needs to be an understanding of the bigger picture as to how to understand the whole world. In that sense, the values of “transparency, dignity, and respect” help to show that, as a company, Starbucks respects all people and wishes to treat and connect with all people through respectful means. As a backbone of the country, this must be reiterated through their international expansion.
Table 1: Corporate Orientations
· Quality coffee product and community building
What is the best way to gain community support of a business? Is it having the best product or the best atmosphere in which to find oneself?
· Starbucks coffee shops as “ third spaces” where the community can gather and spend time together can be connected to Italian coffee culture.
The idea of a third-place is important in culture as it helps define the time that one spends when not at home or work. Each country has its own way in which the community is drawn and created through these “third-places”. The idea that a coffee shop can be this type of space is a large indication of using these shops to promote an atmosphere that gets people in and helps them stay around for a while. This also helps to create and develop community and community practices around these sites as people spend more time and make more connections with the location. The idea of a third-place can also apply in terms of thinking that Starbucks is a workplace and buying a coffee is a ticket to work in that space. It is not necessarily allowed or socially appropriate to sit in a Starbucks in America to do work without purchasing something first.
· how can Starbucks connect or might find it difficult to connect with Italian Values (e.x family values, neighborhood values, relationships, familiarity,
· style of coffee drinks, size of drinks, novelty, etc
· How can Starbucks attract more International Tourists into its coffee shops (ex. location selection, price, familiarity) . Here you can add demographic statistics on how many Tourists visit places such as Milan and other places in Italy.
1. Elements of Culture, Social Institutions and Global Business
In the United States and many other European countries, Starbucks has become the main coffee spot to go to in the last few decades. When talking about coffee shops or wanting their favorite espresso, people will almost always be talking about or wanting to go to a Starbucks nearby. However, Italy’s intense coffee culture is a much harder barrier to break because most Italians prefer traditional coffee that has been in their families for generations. This is the reason why the first Starbucks in Italy did not open until last year in Milan. Starbucks has committed to treading lightly in Italy, as Howard Schultz, the company’s former executive manager described, “We are not coming here to teach Italians how to make coffee, we’re coming here with humility and respect, to show what we’ve learned.” This approach to the Italian market is clear in the Starbucks in Milan, where the company chose a historic post office in a busy city square for its location. Unlike the typical Starbucks, this location was designed to relate to the Italian culture, decked out in marble with hand-chiseled palladiana flooring and a staircase leading to an “Arriviamo Bar” inspired by the Italian tradition of aperitivo. (Purdy 2018) The company has partnered with an Italian brand management firm and a real estate group to get help understanding how to better relate to the Italian culture when entering the market.
For Starbucks, the goal is not to achieve better results and make better coffee that local cafes, but to find customers interested in a different way of approaching coffee. The company will use the locations in Italy as an experiment to figure out how many Italians will accept a faster-paced experience when buying coffee, and if it is possible to succeed in a country with a culture like Italy’s. So far, Starbucks is succeeding in Italy because a new generation of Italians sees Starbucks advertisements or people around the world talking about how much they love going to Starbucks. They see Starbucks everywhere, maybe even viewing Starbucks’ social media platforms such as their Twitter with very good reviews and they want to try it themselves. Since the first Starbucks opened just over a year ago in Milan, eleven more have opened in big cities, and the franchise is rapidly expanding across the country. However, the older generation, less modern Italians will still rather go to the traditional coffee shops as they do not want any cultural change. Therefore, although Starbucks is slowly expanding in Italy, it will never have the same reach that it does in other countries like the United States because, over the last few decades, it has become the traditional coffee spot for the majority of Americans, while in Italy only the younger generation prefers to go to Starbucks over other coffee shops.
Starbucks in Italy
The type of vibe in a Starbucks’ in Italy is more like most of the traditional Italian coffee shops scattered around the country. They all have similar atmospheres in Italy which is somewhat different to other locations around the world, including naming the different sizes in Italian instead of the usual names. Schultz, who opened the first location in Milan, realized that in Italy coffee shops or bars have always been a place to stay, relax, discuss and meet. His idea was to export and franchise an Italian-style coffee shop to North America, to bring the Italian experience to his home.
Over the years Starbucks has developed its own, strong brand identity. Today the company appeals to the young, modern generation of urban Italians that use the shops as a way to escape the city life and relax. Free Wi-Fi has always been one of the reasons Starbucks has so many customers globally, because there now are many work-at-home professionals that want to get out of their home office to spend their work day in a comfy, chill but lively area. Free Wi-Fi obviously has existed in most coffee shops for a while, but it adds to the enjoyable Starbucks experience for customers. However, a Starbucks location in smaller towns and villages in Italy, where it may be still difficult to find a good spot to work on your computer when not at home, would be ideal for a person who usually works from home. A Starbucks without Wi-Fi would have no appeal to Italians, as they go for the experience and comfort, and they could just go to another shop with generally better quality coffee if the quality atmosphere does not exist.
The laidback, modern atmosphere is what draws in the younger Italians, especially those working in the fields of design, communications and marketing. Starbucks is currently doing well in Italy because it is a change to what most Italians are used to, and although many Italians refuse to go somewhere else than what they are used to, some like the different cultural experiences, and enjoy being in such a chill environment.
Joe’s rhetoric: Finding authenticity at Starbucks
STARBUCKS: MAINTAINING A CLEAR POSITION
The Globalisation of ‘Italian’ Coffee. A Commodity Biography
Making Italian Espresso, Making Espresso Italian
Starbucks in Italy
The Barista Principle — Starbucks and the Rise of Relational Capital
Why It Took Starbucks 47 Years To Open A Store In Italy
Starbucks from USA to Italy. Not only coffee
Cheers! Starbucks Strategy in Italy and the Global Market
Briody, Elizabeth Kathleen., and Gary P. Ferraro. The Cultural Dimension of Global Business. Routledge, 2017.
WTTC. “Total Contribution as a Share of Gdp of The Tourism Industry in Italy from 2014 to 2028.” Statista, Statista Inc., 22 Mar 2018, https://www.statista.com/statistics/628849/tourism-total-contribution-to-gdp-italy-share/
Each group of two students will be required to investigate, through internet and library research as well as through reflection, how the culture and social institutions of a particular country or world region of their choosing is essential to various aspects of business such as product development, marketing, and preparation for an international business trip and/or meeting. The group will write a research paper, total 15-20 pages long, double spaced, in Microsoft Word format. It should be completed and submitted by Thursday, December 12, at 8:00 A.M., the latest, on the Moodle course site. A paper submitted after the due date will receive a maximum grade of C (76%). Each group will be asked to briefly share their findings in-class for about 15 minutes on Thursday, December 12, from 8:30 A.M. to 11:30 A.M.