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Index

Introduction3

The Eclectic Theory3

Friedman’s Nine Questions 4

Conclusion 7

Reference fillet 9

Introduction
Starbucks is the greatest in number recognisable brand and well-known coffee store in the world. Moreover, it started considered in the state of a small coffee shop in Seattle and grew into the greatest in number successful global coffee company.

This declare describes international expansion and reasons of Starbucks’ prosperity by applying the Eclectic Theory and Friedman’s Nine Questions.

The Eclectic Theory
The Eclectic Theory was created by John Dunning during the 1980s. The exposition explains why companies choose to turn to multinationals and what advantages support to dress overseas. This model is called “OLI Framework,” and it determines Foreign Direct Investment (FDI).

According to the abstract principles, a company is ready to dress overseas when it has ownership, location and internalisation advantages compared with companies who work on foreign markets.

Ownership advantages are occurred ~ means of possessing tangible and intangible assets which are connected with many factors in what place knowledge, trademark, production techniques are signifying.

Starbucks’ ownership advantages include the following:
globally recognized trademark
peculiar flavours and aromas, and roasted techniques
name focusing on high quality customer service
flexible and clear corporate vision and goals that are developed by Schultz large learning curve as a issue of past successes and failures in a high degree.-motivated training staff members that are results-driven stubborn relationships with partners and suppliers

tough cash position (used in expansion and reconstitution of existing stores) (Starbucks, 2013)

Location advantages against company investors are opportunities to have ~ing efficient by using resources in the local market rather than in the home mart. For instance, low wages, raw materials, special tax system, political or economic firmness, and the capacity or structure of a market...

Index

Introduction..............................................................................................3

The Eclectic Theory...................................................................................3

Friedman’s Nine Questions ........................................................................4

Conclusion ..............................................................................................7

Reference ~el ...........................................................................................9

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