Compare and contrast the effects of Starbucks entering the global market

Compare and contrast the effects of Starbucks entering the global market

People from different parts of the world are now more connected than ever. Money and information now flow much faster than ever. Global manufactured goods and services that are produced in one part of the world have become increasingly available in all parts of the world. Most businesses and companies have now gone global which means that operate their business in many countries around the world. Going global is a business strategy that has been fueled by advances in information technology, fast means of global travels such as airplanes and the increasing globalization of cultures and economies. Entering Starbucks into the global market is a business strategy surrounded by numerous opportunities for growth and expansion as well as multiple setbacks or limitations. The purpose of this essay is to analyze the advantages and disadvantages of entering the global food market.

There are many advantages of Starbucks entering the global food market. Proponents of globalization argue that going global has the potential of making the world a better place to live and it will be a crucial factor in solving some deep-rooted problems such as poverty and unemployment. As food companies enter the global market, they have to employ more people who will be involved in different aspects such as production, supply, and marketing. This is crucial in reducing unemployment rates and poverty in countries that the companies operate in. Furthermore, globalization potentially increases the profits of food companies hence the shareholders will have more in their pockets and the government benefits more from increased income from taxes (Pieterse, 2015).

Going global promotes the growth of the worldwide economy, creates more jobs, lowers prices for consumers and makes companies more competitive. As companies expand into new markets in different countries, the economies of those countries benefit in various ways as increased revenues from the tax. Consumers also benefit by having multiple types of food products introduced into the local market which makes the product cheaper. Expansion into the global food market enables companies and consumers to access products from different countries which increase competition and variety for the benefit of the consumers.

Apart from the potential economic benefits, there are several other benefits of  Starbucks entering into the global food market which includes infusion of foreign technology and capital, promote conditions that nature worldwide democracy and respect for human rights since globalization goes hand-in-hand with justice.  As a result of the expansion of the global food market, global politics is increasingly merging and decisions that are being been actually beneficial for all people from all over the world. Socially expansion of the global food market leads to more open and tolerant society as people who live in other parts are no longer considered aliens.

There are several disadvantages of Starbucks entering the global food market. Several multinational food companies have been accused of social injustice, unfavorable working conditions that include poor wages, poor working and poor living conditions. Furthermore, global food companies have been accused of lacking concern for the environment, damaging the ecology and mismanagement of natural resources. Multinational food companies which were previously restricted to operating in specific countries are as a result of entering the global market having more influence on political decisions in the states that they work in. As a result, there is a significant threat that food corporations will eventually rule the world as they gain more political power due to globalization (Evans, 2017).

Opponents of the globalization of the food industry say it operating in different countries makes corporations act with less accountability. This is especially so in countries without strict control of ethical and moral obligations of companies. Furthermore, individual cultures of different countries are now being overpowered by westernization. A good example of this is the rapidly expanding fast food culture into countries that were considered to have healthy lifestyles such as Japan, China, and Africa.

Anti-globalists also claim that globalization of the food market is not working for the majority of the countries around the globe. One of the most rapid periods of growth of the global food market was between 1960 and 1998. In this era, inequality worsened within countries and internationally. The wealthiest 20 percent of the world’s population consumer close to 86 percent of the global resource, while the poorest 80 percent are forced to put up with 14 percent of the global funds.  According to experts, globalization of the food market has led to the spread of communicable diseases. HIV/AIDS and other deadly diseases are now being spread by travelers to even the most reports parts of the world.

Globalization of the food market has led to the exploitation in use of labor. Child workers and prisoners are increasingly being used to work in inhumane conditions in attempts by food companies to reduce operating costs and increase profits. Safety standards are frequently being ignored to produce cheaper foods which pose a threat to public health. Furthermore, globalization of the food market has been linked to increase in human trafficking as a source of cheap labor. Entering the global market has many benefits as well as demerits, and it is essential for companies and countries involved to strive to strike a balance for the benefit of all stakeholders concerned.

References

Evans, N. (2017). What roles does food Sovereignty play in exposing the consequences of globalization, and in conveying solutions to the consequences of globalization pertaining to food access in West Africa and US Midwest?.

Pieterse, J. N. (2015). Globalization and culture: Global mélange. Rowman & Littlefield.