International Business Theory and Practice Essay

International Business Theory and Practice - Essay Example Starbucks is one of the leading coffee chain businesses in the world which has been exemplary in their strategies for domestic as well as global expansion processes. Starbucks Corporation in a Washington based company but over the last decade, the company has employed different innovation strategies to expand their business internationally and has increased its number of stores across the world at an accelerated rate making it one of the fasted internationally growing multinational corporations across the globe. The company is specifically focused on expanding into the emerging markets with high potential for growth like Middle East, Europe, and Asia pacific including China, Korea, India and the Latin America markets. This paper focuses on the different strategies of Starbucks in entering the emerging market of North Korea. There are a number of studies and theories presented by different scholars and researchers who have studied the different factors related to the international expansion of various multinationals. The Uppsala model for internationalization expansion processes was one of the earliest developed models for global expansion policies of multinational companies. The Porter’s diamond model for competitive advantage of nations is a critical model used to understand the different locational and company specific advantages to be considered in the international expansion process. According to the study of Chen and Mujtaba (2007) the entry mode factors considered for the expansion strategy are based on transaction cost model and can be considered the most critical step in the global expansion process (Chen and Mujtaba, 2007, p.322-337). The transactional cost model states that the implementation cost of an entry mode is a critically relevant factor in choosing the entry mode for implement ation. According to the work presented by Tang and Liu (2011), the evaluation of the