International Journal of Business, Economics and Management Works Kambohwell Publisher Enterprises Vol. 1, Issue 2, PP. 17-23, Dec. 2014 www.kwpublisher.com Strategic Change and Effectiveness of Starbucks Coffee in China Sajjad Nazir, Amina Shafi, Nadia Nazir Abstract— This study suggest a comprehensive investigation on the close down of a Starbucks coffee, a overseas organization, and its infiltration in the Chinese market. By way of an examination, this research is qualitative and quantitative. We collected the data through questionnaire and from several different networks, containing journal, Google search engine, official websites Starbucks China, and appropriate Web sites and online forums in China. AS a result it was found that the Chinese customer still giving preference to the Starbucks coffee even it is very expensive. It was found that Starbucks in Chinese market is measured as the strongest developing and the furthermost influential marketplace in the world in relation to massive population Therefore, a SWOT analysis was utilized to recognize the key organization policies to increase the Starbucks plan in Chinese market. Keywords— Starbucks, SWOT, Analysis, Market, Factors Estimate Matrix, China I. INTRODUCTION Starbucks first established its store in 1971 at Pike Place Market in Seattle. It was initially called Starbucks Coffee, Tea and Spices. The company mainly initiated its operations by providing coffee to different restaurants and espresso bars. Later in 1980s, at that time executive of retail operations and marketing Howard Schultz presented the idea of a coffeehouse to the company‟s founders, a concept he got from his visit in Milan, Italy. However the previous CEO Jim Donald expressed that "" we would prefer not to manage the world ", in the 1990s and early 2000s, Starbucks was opening, overall, no less than one store for each day [1]. In 2008, guaranteed to be the opening stores of seven days a week around the world. As anyone might expect, Starbucks is currently the biggest operator in the global espresso chain, with more than 15,000 stores in 44 different countries, and in 2007, was responsible for 39% of total sales in the world [1] [2]. Starbucks Coffee Company‟s accomplishment, victory in the coffee business reverberated clearly all over the world. The organization had the capacity to appeal many customers regardless of its expensive coffee. [3] The coffee-chain was able to draw the consideration of investors as well, as they found in the Starbucks a beneficial speculation. Starbucks is well-known for its expensive coffee and its incredible stores decorated with relaxed couches and pleasing music. Starbucks promoted itself as the “Third Place” – a place where individuals can go beside home and the place of work (CEO Howard Schultz). II. LITERATURE REVIEW The rapid growth of Starbucks has turned into an example of overcoming adversity in the business world and numerous individuals are stupefied by the organization‟s business approach. Who could have envisioned a coffee outlet, offering expensive coffee with extravagant Italian names, can influence individuals to purchase its products, and can make happy with these individuals? Certainly, the rapid success of Starbucks is a secret in the coffee industry business. Starbucks‟ competitors were not able to compete with the quick development of the organization. For less than two decades, Starbucks was capable of 10, 000 of stores around the world. The worth of its shares and dividend in the stock market also improved quickly, an indication of its attraction to stockholders. Moreover, somewhere around 2012 and 2013, Starbucks opened 500 new stores across the China, to some degree more than the total in the chain‟s first 12 years in the mainland market [3]. The Previous fall, Starbucks accomplished its 1,000 store objective with a leading cafe in Beijing‟s central business region. It's on track to include another 500 areas this year. Given such quick growth, China is anticipated to overwhelm Canada as the second biggest market by year's end. What stays to be seen is if such aspiring growth is sustainable [3]. The average Chinese get paid $500 per month and drinks just three cups of coffee a year. How many people $4.5 cups of coffee do they really need or would they be able to afford? From now, Starbucks coffee costs 10 to 20 percent expensive in China than in the United States. That powerful evaluating provoked a late assault by China's state media, which blamed the Seattle organization for profiteering Sajjad Nazir: sajjadnazir@hotmail.com, sajjadnazir@hhu.edu.cn , Hohai Business School, Hohai University, Nanjing China. Amina Shafi, aminasajjad@hotmail.co.uk, Hohai University, Nanjing, China Nadia Nazir, Hohai University, Nanjing, China